Page 13 - Logistics News April 2021
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Supply Chain
chain problems, and 29 percent of them never but those of their trading partners, with the
switched back. In addition, consumers say dual objectives of reducing risk and instilling
they are concerned about a lack of supply in resilience,” according to Sean Thompson,
2021, including food (48 percent), hygienic executive vice president, network and
or personal care products such as toilet ecosystem, procurement solutions, for SAP. “A
paper (44 percent), and personal protective key area of focus is the symbiotic relationship
equipment (PPE) such as face masks (33 between buyer and supplier. By proactively
percent). They are also worried about pending addressing the supplier experience, businesses
product shortages: 84 percent of survey can benefit from even more than increased
respondents said they’re concerned about the resiliency – they also can leverage supplier
availability of electronic components, which expertise to identify opportunities to enhance
are critical to producing everything from eciency. Additionally, when buyers and
smartphones to cars and trucks. suppliers align on shared priorities, this
The changing behaviours and shifting enables collaboration and knowledge-sharing
attitudes are causing retailers, e-commerce to improve product and service innovations
companies and others along the supply chain together.”
to rethink their supply chain management Developing digital strategies is also
and sourcing strategies. Part of the change important. “By embedding direct materials
includes finding alternate sources of supply to procurement into product planning and
meet demand more quickly or keeping more manufacturing, and by sharing accurate, up-
stock of certain items on hand. Agility and to-the-moment information enabled by digital
end-to-end visibility remain key components networks, organisations can more strategically
of any good strategy as well, according to plan demand, run material requirements,
SAP. evaluate time horizons and determine what
“More than any singular event in modern components are needed where and when,”
history, the coronavirus pandemic has brought Thompson said. “Then, by strategically
the global supply chains’ systemic weaknesses sourcing materials across a global, diverse
into sharp focus. To restore these links to supply base connected to a digital network,
full strength, businesses need to broaden companies can procure the goods they need
visibility not only across their own operations when they need it.” •
April 2021 | Logistics News 11
