TRL3708
ASSIGNMENT 4
SEMESTER 2
2024
, Question 1
1.1 Demand-Facing vs. Supply-Facing Warehouse in Energy Supply Chain in
SA
A demand-facing warehouse focuses on responding to customer needs by aligning
inventory and operations with demand patterns. The warehousing done in this type
of warehouse is possibly nearer the consumer market, and its major function is to
provide for immediate consumer demand. In contrast, a supply-facing warehouse
targets storage in accordance with the supply side, such as production plans and
supply constraints. Often, they possess a large number of inventory items, which sit
and wait until demand notice arises.
Looking at the situation of energy supply in South Africa, it seems as if the
warehousing operation is more supply-driven. This has been well illustrated by the
case study showing that warehouse operations are affected by frequent power
blackouts, thus the need to effectively plan for stocking and transportation of
electrical products, transformers, and batteries in a way that allows normal operation
when power is unavailable. Further, the movement of heavy electrical components
as transformers and switch gear implies that more of a function seems geared
toward warehouse-style inventory storage and order picking, similar to supply in
advance of demand as opposed to a distribution centre responding to expressed
customer needs. For instance, the equipment used in the handling, moving, and
assembly of these products shows a systematic, vertical supply system as opposed
to a dynamic, horizontal demand system.
1.2 Improving Service Levels in Energy Supply in SA
To enhance service levels in South Africa’s energy supply chain, three main
strategies can be employed:
1.2.1 Variation in the Number of Facilities
Increasing or redistributing the number of storage facilities can directly impact
service levels by reducing lead times and improving accessibility to critical energy
components. The addition or decreasing of the number of storage facilities can have
a direct influence on the service levels with regard to lead times and display critical
ASSIGNMENT 4
SEMESTER 2
2024
, Question 1
1.1 Demand-Facing vs. Supply-Facing Warehouse in Energy Supply Chain in
SA
A demand-facing warehouse focuses on responding to customer needs by aligning
inventory and operations with demand patterns. The warehousing done in this type
of warehouse is possibly nearer the consumer market, and its major function is to
provide for immediate consumer demand. In contrast, a supply-facing warehouse
targets storage in accordance with the supply side, such as production plans and
supply constraints. Often, they possess a large number of inventory items, which sit
and wait until demand notice arises.
Looking at the situation of energy supply in South Africa, it seems as if the
warehousing operation is more supply-driven. This has been well illustrated by the
case study showing that warehouse operations are affected by frequent power
blackouts, thus the need to effectively plan for stocking and transportation of
electrical products, transformers, and batteries in a way that allows normal operation
when power is unavailable. Further, the movement of heavy electrical components
as transformers and switch gear implies that more of a function seems geared
toward warehouse-style inventory storage and order picking, similar to supply in
advance of demand as opposed to a distribution centre responding to expressed
customer needs. For instance, the equipment used in the handling, moving, and
assembly of these products shows a systematic, vertical supply system as opposed
to a dynamic, horizontal demand system.
1.2 Improving Service Levels in Energy Supply in SA
To enhance service levels in South Africa’s energy supply chain, three main
strategies can be employed:
1.2.1 Variation in the Number of Facilities
Increasing or redistributing the number of storage facilities can directly impact
service levels by reducing lead times and improving accessibility to critical energy
components. The addition or decreasing of the number of storage facilities can have
a direct influence on the service levels with regard to lead times and display critical
