/ MEDIA STATEMENT / This content is not written by Creamer Media, but is a supplied media statement.
Under the effects of COVID-19, supply chains across South Africa are undergoing a profound change. Manufacturing and production ecosystems need to evolve and innovate to mitigate the economic fallout. Now, more than ever, a keen balance needs to be drawn between innovating and cost-saving.
In essence, crisis calls for innovation, innovation calls for smarter, reliable and affordable products.
A key approach to reducing the costs of energy is the implementation and use of Compressed Natural Gas via an off-the-grid supply system. Why? Simply put - it gives local businesses accessibility to a tried and tested product that continuously delivers affordable energy. Manufacturing clients currently running operations through the virtual gas network are enjoying savings of between 19% and 30% on energy costs.
Food and Beverage Manufacturing - Balancing costs in the supply chain
In theory, the transmission of COVID-19 is not the key challenge faced by manufacturers. According to food safety specialist, Ravi Jadeja, the risk associated with person-to-person transmission of COVID-19 in the food industry is low due to the regulatory practices already in place before the arrival of the virus.
Weforum.org reports – “the real threat sits with the costs and supply of “raw materials” procured through global value chains or GVC’s”. Factoring in the impact of the lockdown and global restrictions on trade, the procurement costs are soaring and set to increase further.
Switching your energy needs from traditional sources, such as Electricity, LPG and Diesel, to CNG through a natural gas network will help drive down your energy costs significantly. This is proven theory, for example, in comparison to LPG the costs savings average R 120/GJ.
Crisis - a catalyst for innovation
Establishing new approaches to help reduce or reshape consumption and associated cost levels becomes a key strategy for survival. A catalyst during the H5N1 epidemic was for medical innovation. Born in North-West Africa, at the height of H5N1 infections, the world saw the birth of the medical production and supply industry in traditional western reliant countries such as Ghana. Today these industries are driving the supply chain for medical components in the fight against COVID-19.
In South Africa businesses in the chemical and plastics industry have a unique opportunity to get closer to the benefits of using CNG through a virtual gas system offered by Virtual Gas Networks.
The Natural Gas Plan
Manufacturing is one of the worst affected sectors by Covid-19. The epidemic has forced many factories to shut, exports to grind to a halt, and workers sent home during the nation-wide lockdown. Virtual Gas Network integrates CNG as part of a company’s response plan in reaching short and long-term energy-saving objectives, factoring in not only economic but also social and environmental challenges.