Webinar - Efficient Procurement during the Pandemic.pptx

Webinar - Efficient Procurement during the Pandemic

1. W ebinar: Efficient P rocurement D uring the P andemic 25.08.2020., Novi Sad

2. Vladimir Nikolajevic , Ph.D. Head of Procurement Department at Frikom Serbia facilitator Zlatko Bazianec Regional Leader and Partner at Deloitte Croatia Marina Lindič Purchasing Manager Of Business Units Adria and Italy at Ursa President of ZNS (Slovenia purchasing association) President of IFPSM – International Federation for Purchasing and Supply Management

3. The aims of the A ssociation are: Connecting professionals to exchange knowledge and skills and achieve overall improvement Continuous education and specialization of members of Association, as well as all interested subjects Empowering of integrity and significance of Supply Chain in the overall economic development of the Republic of Serbia as well as the development of its business organizations. Being proactive in the profession al regulation procedures , especially in the areas that are relevant for improving the business environment and sustainable economic growth Establishing regional cooperation with associations with similar goals and activities Supporting all other associations and clusters to promote the Supply Chain. www.supplychain.rs

4. Pandemic disruption and business recovery phases

5. Consequences of pandemics on the economy The Covid-19 crisis already caused a very sharp drop in economic growth in March and April. The first bottom is forecast to be reached at the end of the third quarter of this year . Minor improvements are expected in most countries to enable state aid to the economy to mitigate the effects of the virus between the fourth quarter 2020 and the second quarter of 2021. W hen these aids end, some analysts predict another downturn in economic growth, in the second half of 2021 to 2023 , and then in 2023 to 2026 again economic growth .

6. Consequences of pandemics on the economy

7. Consequences of pandemic on procurement and supply processes

8. 1st Wave and Procurement response (Q2 2020)

9. What would we need to make our supply chains more resilient? Basics: firm strategy, management, systems, and control - including well-defined roles and responsibilities so that everyone understands their role in the supply chain. Define strategic material and suppliers ( Kraljic Matrix, Category Management ). Commodity monitoring. Define adequate stock strategy . Assessment and continuous risk management : identification and assessment of all possible risks. Define strategy in case of emergency . Insoucing or outsourcing? What can be unforeseen disruptions in supply, in different cases, which negatively affects the services and our reputation Strategy

10. What would we need to make our supply chains more resilient? Segmentation: To understand what/who is representing the greatest risk in our SC , is critical and requires the highest level of ongoing management and control. Agility : Key activity in case of an unexpected crisis Special care in concluding contracts: Ensuring that the assessment is carried out before the contract is performed and that the contracts reflect the relevant risks, control, and protection. How do we define force majeure in our contracts? Measures for smooth operations and scenarios: consistently plan and regularly implement for each supply chain what would happen in different scenarios - from full renewal of cooperation after the crisis or in case of minor supply disruptions (including planned or unplanned exits of different suppliers). The findings are then reflected in operational and key control procedures and contracts. Process

11. What would we need to make our supply chains more resilient? Understanding of your supply chains outside the first level of suppliers and participants (the 2nd, 3rd and 4th level). Analysing the market. Use the present time to look for new business opportunities, we need to look to the future. What can we do today for better business in the future, after the epidemic ? Where can we get a new, reliable supplier who will supply a sufficient amount of goods when the epidemic is over? In order to limit the risk, it is necessary to regularly check both potential and existing suppliers . From the operations of our existing suppliers, we provide important information for the survival of our company: their learning/adaptation in a crisis, supply chain costs, supply chain diversity, operates globally or locally, "Outsourcing or insourcing„ how it copes with the requirements of delivery times in crisis situations, how to manage risks, what share do we represent to him? Suppliers

12. TOP 10 topics for Autumn/Winter season 2020 for CPOs and Procurement team’s Enhance focus on workforce/labor planning of your team Focus on Tier 1 supplier risk Illuminate the extended supply network (Tier 2/3/4) Understand and activate alternate sources of supply Update inventory policy and planning parameters Enhance inbound materials visibility Prepare for possible unplanned plant closures Focus on production scheduling agility Evaluate alternative outbound logistics options and secure capacity Conduct global scenario planning