COVID-19 Distrupt 94 Per Cent Of companies Fortune Supply Chain-expert

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Mr. Deji Ogunde, Senior Procurement Manager (Logistics, Indirect & 3rd Party Manufacturing) for PZ Cussons Nigeria has said that COVID-19 distrupted 1000 companies supply chain.

Ogunde disclosed this in Lagos on Tuesday in his keynote address during the Haulage and Logistics Magazine Annual Conference and Exhibition (HAULMACE 2022)

The News Agency of Nigeria (NAN) reports that the theme of the event was “Developing an Adaptive Framework in the Nigerian Haulage and Logistics Industry:an Imperative for Stability in a Vuca Environment”.

He said that supply chain was simply an event (risk occurrence) that leads to an imbalance in demand and supply.

Ogunde said that pre-pandemic research found that on the average, companies experience a distruption of one to two months in duration every 3.7 years.

He said that 94 per cent of the fortune 1000 companies had their supply chain distrupted due to COVID-19.

He said that external and environmental risk factors are political, economic, sociological, technological, environmental and legal factors.

Ogunde said that active attention was now required I preparing for high impact, low predictability risks rather than only contingency planning noting that research suggests entirely new supply chain.

He identified recent distruptive events as COVID-19 lockdown, Suez canal blockage, war (food crises from Ukraine war) flood(20/36 states in Nigeria) currency swap (Dec 2022) record inflation rate in 17 years, record USD/N devaluation and energy cost increase.

He said that supply chain resilience was the ability of a supply chain to prepare for and/or respond to distruptions to make a timely and cost effective recovery and therefore progress to a post-disruption state of operations.

The keynote speaker said that firms with supply chain agility could respond better to unforeseen changes as they are able to better synchroniser supply with demand.

He said that synchronisation of supply and demand requires integration across a firm’s internal functions as well as it’s suppliers and customers.

He said that new supply chain priorities (resilience, agility, sustainability) can’t be tacked on to existing supply chain setups thereby recommending innovation, technology and data, collaboration and workforce..

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