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. 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.