2022 Outlook for Supply Chain

It is another uncertain and difficult year in 2022 to manage supply chain in order to be resilience and sustainable.
It will be impact from many aspects, at least but not limited to, geopolitics, trade war, COVID19, Carbon reduction…
How to manage lead time, quality and cost from procurement perspective?
 
The problem to solve:

1. Inflation squeezes profit.
2. Logistics bottleneck due to unbalanced trade router, higher container cost
3. Geopolitics – from globalization to localization
4. Lockdown due to COVID 19
5. Destination port / in-land-railway low efficiency due to driver/labor shortage
6. Warehouse insufficient due to business transfer from off-line to online.
7. Resignation trend increasing labor shortage

 
Buyer focus:
1.   collaborate with supplier to focus on the following area:            - Speed to mark
           - work together to manage shocks on supply chain
           - build & enhance trust
           - technology innovation
           - productivity and efficiency
2.    Establish process to ensure same understanding and same goal, and avoid last-minute changes-Clear             - expectation with timeline, specification
         - Middle/long term forecast
         - Online & auto communicate & approval process
         - Transparent on supplier chain
3.   Not only focus on tier 1 suppliers, but also focus on critical tier 2 suppliers. Earlier involvement to Identify        risk and take action
4.    Supplier diversity & near shore
5.     Local procurement
6.     Share 12 months rolling forecast
7.     Manage and adjust supplier relationship strategy
8.     Optimize safe inventory for FG and critical components
​9.     Establish the dynamic linkage between unit cost and market price index.