Wrong, wrong, RIGHT!…

Experience is the teacher of all things

It is recorded in the De Bello Civili (52 B.C.) that Julius Caesar expressed his belief that “experience is the teacher of all things” [1]. This prevailing quotation sings true for many daily adventures at home, in the office, and even for Spare Parts Management and Supply Chain activities.

 

The hard truth

It was in 2017 that I purchased my first equity for R500.00. I remember how amazing I felt a week later when the value had increased to almost R650.00. Clearly, I had the magic touch, an understanding that only a few others have… or perhaps not. I very quickly learnt that nothing lasts forever.

Life happens and we should be prepared for the worst. I sold my first equity after a short two months out of fear the stock price had ‘plummeted’. My inexperience ended my first investment with a 5% loss. It is only later that I learnt this was just a regular correction within the market. If I had held that same investment till today, I would have profited 60%. Today, armed with more education and experience, events like these help me identify my optimal buy-in points. Optimisation that has helped me to maximise my long-term gains.

Similarly, in spare parts management, changing inventory parameters based on short-term behaviour can result in un-optimised performance and a loss of investment. If you observe availability (service levels) in line with wise investing, then you realise that the best “gains” stem from experienced and practiced long-term planning.

 

Specialised experience

My first investment taught me many things. My actions were unplanned, and my strategy was weak. The modern-me would call it guessing. I lacked foresight and was dominated by fear of the short-term rather than utilising patience, and the correct research, to maximise the long-term. Only after years of technical courses, assorted failings, small victories, and constructive feedback from those far more experienced than myself, can I finally say that “I am okay with it”.

At Gordian Logistic Experts we like to prepare our clients for the long-term. Specialising in spare parts inventory planning and management, we strongly believe that physical assets do not have to be down due to a shortage of spares. Great service levels should not need to come at exuberant costs. It comes from superior long-term forward thinking. We aim to reduce the working capital and operating costs whilst decreasing the probability of stock-outs.

 

References [1] R. A. Spears, McGraw-Hill’s Dictionary of American Idioms and Phrasal Verbs, McGraw-Hill Professional Publishing, 2003.

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Matthew Higgo
Junior Consultant - Gordian SA