by Obella Marie D. Ronsairo and Francis J. Custodio, JANUARY 2021
In 2020, we have seen more ups and downs than possibly any other year. The pandemic is far from over and has battered businesses, big or small alike, and we in the toll road industry is no exception. Global supply chains have also taken a hit and the issues that led to the global supply chain crisis born out of the pandemic are not going anywhere for much of the year ahead. The current COVID crisis has developed resilience in industries and has opened doors to new ways of working.
The future is always uncertain, and we need to look back at the positive things 2020 has taught us. Let us look at some of the possible trends for the Supply Chain this 2021.
1. Delivering Value Beyond Savings: Current times demand procurement savings which means moving beyond bottom-line profit goals and achieving savings. While profits and savings are equally important, to thrive in these changing and competitive times is crucial. Here are a few ways in which an organization can deliver value beyond savings:
- Supplier Compliance and Relationship
- Running a sustainable business
- Collaborating with suppliers to improve environmental and social impact
2. Use of Procurement Technologies:
Due to the pandemic, more and more companies realize the importance of a more comprehensive digital procurement solution or eProcurement Solution especially a solution that is compact and solves the basic needs of procurement. The organization will put their faith in software that provides a holistic approach to eProcurement and makes their work easier. The more innovative and sustainable the software is, the better.
3. Be Prepared for Regulatory Changes:
It is no surprise that the pandemic will continue to mess with the global supply chain. Countries will continue to impose lockdowns and supply chains will come to a halt. However, organizations will have to be on guard and be prepared for these regulatory changes. Companies will have to monitor international trade and regulations closely and be ready to make changes accordingly.
4. Innovation and Sustainability:
Procurement teams in organizations must recognize the benefits of embracing sustainability goals. They will eventually benefit the company’s stakeholders, employees, and communities they serve. Procurement has immense scope for innovation and collaboration and organizations should create opportunities to provide value beyond savings. Companies can collaborate with suppliers on product innovation and improvements. In the current crisis, it has become crucial for organizations to create long-term, meaningful relationships with key suppliers.
5. Relationships will become more important than ever:
As the new year progresses, it will be critical for organizations to hold on to their key suppliers. Engaging with them through various communication channels is crucial. If there are any more COVID crises in-store, your company will need to make immediate changes. Hence, a strong relationship with your key suppliers will be important in implementing these changes. Nurturing relationships with your existing suppliers and developing new strategic relationships is certainly the way to go in the coming year.
Supply chain management might not be the flashiest aspect of running a company, but it also plays an integral role in every business operation moving forward. Digitization of the supply chain involves all the efforts to integrate a corporate system, with this digitization aims for a smart, efficient supply chain ecosystem that creates transparency and improves responsiveness. Through this system, it can foresee a digital environment that can spare us from manual processes that may incorporate the creation of paperless systems by practicing for modeling supply chain networks and creating what-if scenarios.
About the writer:
Obella Marie D. Ronsairo. Loves to feature life and see the beauty of every side of the stories. Have been with the newsletter team for almost two years since becoming part of the MPTSouth family. Gained a lot of fun, experience and knowledge through this growing team and helped her to develop more of her skills in writing and creativity.
Francis J. Custodio. Is a Industrial Engineer who loves to think outside the box. Also like the saying “Work Smart not Hard”. Always curious and that curiosity led him to join the Southlink Newsletter. Loves to know “what make things tick”.