|
Vaccine distribution
challenges underscore the
need for supply chain risk
mitigation processes, says
JAGGAER
(Dubai,
UAE) -
JAGGAER, one of the world’s
largest independent spend
management company, has
underscored the need for
supply chain risk mitigation
procedures within businesses
following the difficulties
surrounding the COVID-19
vaccine distribution
experienced in Europe and
America.
Countries
worldwide, including many in
Europe, have been put under
considerable strain as
demand for the vaccine has
considerably outpaced
supply. According to data
tracked by Bloomberg, some
4.25 million doses are being
given daily, with Israel,
the UAE, Seychelles and the
UK leading the way in terms
of doses per 100 people.
Thomas Dieringer,
President for Europe Middle
East and Africa, JAGGAER
said: “With any supply
chain, it is vital to be
aware of the risks and
everything that could go
wrong.
“National
security issues, poor
coordination, limited
capacity, misinformation,
shortage of personnel,
vaccine damage and
logistical difficulties in
reaching rural areas have
all contributed to the
challenges faced by many
countries.
“Supply
shortages to make the
vaccine has been perhaps one
of the major issues.
Distribution has been
hampered by the drug makers
inability to produce the
number of vaccines initially
planned. The vaccine
comprises several components
and raw materials that have
been subject to a fragile
supply chain, built at
record speed. Understandably
delays have occurred as a
result of setting up supply
chains while still
developing the vaccine.”
According to JAGGAER,
there are several critical
supply chain mitigation
steps to address the issue.
These revolve around
business impact analysis,
assess and monitor existing
suppliers, reduce the
concentration of supply,
work hand-in-hand with
suppliers and proactively
manage supply chain threats.
COVID-19 has had
far-reaching impacts on a
range of business around the
world, according to research
released by the Institute of
Supplier Management in the
whitepaper, COVID-19 and
Supply Chains: Increasing
impacts, decreasing
revenues, 95% respondents,
stated that their supply
chains have been or will be
impacted by COVID-19’s
spread.
Furthermore,
the results also revealed
that one in five stated
continuity disruption as one
of the top three impacts.
“Understanding when
the supply chain has been
impacted, and indeed what
suppliers have been impacted
is crucial. However, perhaps
even more important is a
system that supports finding
alternatives to ensure any
disruption is minimised,"
said Dieringer.
Greater visibility into
supply, not just immediate
sources such as
distributors, but visibility
into upstream suppliers of
materials and components is
crucial. In turn,
distributors need to
understand the demand from
their customers better and
share this knowledge with
manufacturers. The crisis
has illustrated the need for
broad visibility into both
demand and supply across the
entire system.
Organisations must utilise
digital supply networks
rather than relying on the
conventional linear supply
chain model to achieve
greater visibility. Digital
supply networks are dynamic
and integrated and will
increasingly rely on
artificial intelligence
technology to provide fast
and continuous information
and analytics flows. This
can empower organisations to
stay connected with their
entire supply network and
deal with major disruptions
such as those caused by
Covid-19.
There also
needs to be greater
cooperation at a local,
regional, and international
level, in particular, to
develop contingency plans to
prepare for the next crisis.
"Although none of us
could have prepared for
COVID-19, one thing we have
seen is those businesses who
invested in procurement
technology are those that
have been able to adapt
quickest, pivot and ensure
business continuity,” he
concluded.
Related Link:
JAGGAER
PRINT
THIS ARTICLE
|