An executive team of any company really has to work hard in order to announce a little amount of profit even on normal days. Now, with the entire globe hit with supply chain problems in the wake of the COVID-19 pandemic and its variants, both companies that rely on shipping their products overseas and their customers have had to get creative in the ways they do business together. For example, this can mean partnering up with a professional forwarder.
All Forward, the new all-in-one forwarding platform, is able to assist supply chain companies by choosing from a global directory of shipping partners, not by randomly tossing darts at a long list, but instead by examining peer reviews and via recommendations from mutual professional associates.
Rather than choose to work with organizations and people they have no information about, they rely on the real experiences of others in order to better select their working partners. This kind of unique platform will allow customers to request and receive quotes from experienced, reliable partners while closing shipping contracts quickly, in real-time.
One of the keys in these shipping and forwarding deals, is the financial stability of the companies involved. According to a recent New Standard Chartered survey finds that Association of South East Asian Nations (ASEAN) like Vietnam, for instance, has come to the conclusion that the financial stability of suppliers is necessary to make the global supply chain run smoothly as well as make it more resilient.
But it turns out a resilient supply chain is more than just cost and operational efficiency. Standard Chartered’s report states that approximately 90 percent of global companies surveyed all agree that financial robustness, flexibility and adaptability, environmental soundness and direct supplier transparency, along with connectedness and collaboration in the ecosystem are all critical components of an effective supply chain.
Disruptions due to Covid-19
For ASEAN in particular, many companies have been placing high importance on guaranteeing the financial stability of companies by making available financial options separate from supplier finance programs. Almost 60 percent of the companies polled believe this is of high importance.
With global supply chains continuing to undergo significant disruptions since the COVID-19 pandemic started, many companies are turning to more creative, all-inclusive approaches to supply chain management. “Understanding and monitoring labor practices of direct suppliers” is now seen as key to achieving an environmentally transparent and sound supply chain. However, only about 40 percent of companies surveyed believe they are demonstrating a strong performance in this particular area in a post-pandemic era.
Constructing Flexible Supply Chains
In order to construct flexible and adaptable supply chains in 2021 and 2022, 57 percent of the companies are in agreement over having in place a fully tested business continuity plan, along with conducting thorough reviews of production facilities, logistic routes, supplier relationships, and other important supply chain challenges that have resulted from the pandemic.
Half the companies surveyed rate themselves as performing well in the area of a prepared and fully tested business continuity plan. Another 50 percent are pleased with their ability to conduct adequate reviews of suppliers either on their own with the assistance of professional forwarders.
In order to construct both collaborative and connected supply chains, ASEAN companies attest that “developing shared objectives between internal departments within the firm” are very important if not imperative. However, less than 50 percent of the companies believe they are performing this task as well as they should be and it shows in the present disruption of the supply chain.
Significant Gaps
Recently the head of trade of ASEAN and Singapore Standard Chartered was quoted as saying that as more financially stable companies realize the importance of building sustainable and resilient supply chains, there are still significant gaps in the chain “that need to be bridged.”
With more than 70 million micro, small, to medium-sized companies in ASEAN alone, supporting direct and indirect suppliers to boost the strength of their company’s supply chains with alternative financing options is something that must be explored and tapped into.
Standard Chartered is said to be committed to expanding funding access for the many low-tiered suppliers who are facing significant challenges when it comes to being adequately financed and constructing supply chains that are financially resilient and smooth running. Deep-tier supply chain financing answers for clients and suppliers demonstrate renewed efforts to provide more responsible inclusive regional and global trade.
In the end, it will be the financially resilient supply chain company that will make it through the pandemic crisis and make the return to some semblance of normalcy. But this will take time. It will also take cooperation with the global banking system, shipping professionals and their customers.
It is also true that a person might need to suffer more in his present situation in order to prepare for his future hypothesis. However, focusing on such investments which are digitally connected with the complete value chain, will eventually get paid-off time. For the same reasons, it will not only minimize the risks for the future but will also help in increasing productivity for the industry. Moreover, the same will also have a positive impact on the total ecosystem.
