Bain & Co has released a set of principles to help businesses reposition and navigate the on-going impacts of the war in Ukraine.
As the war wages on there’s a host of near and longer-term challenges for procurement professionals, most notably accessing goods and supply chain planning.
Bain & Co has released five guiding principles to help businesses prepare for a prolonged period of uncertainty.
On the on-going issues with supply chain delays, Bain & Co suggests no let up in disruptions.
The information suggests a “Lack of access to input resources and energy exacerbates existing supply chain issues in an expanding range of industries” – disruption factors in the supply chain.
It also says, suppliers will be “increasingly forced to prioritise most valuable customers.”
A section dedicated to ‘respond’ and ‘recover’ actions to the crisis suggests procurement teams can consider “access supply chain exposure, including impacts to inventory, affected N-tier suppliers, product components, and logistics.”
It also says consideration should be given to “Identify and secure alternatives across inputs, supply, and transportation.”
Supply chain diversification and resilience have become priorities on the back of the disruption of the pandemic – and more recently the war in Ukraine.
On repositioning supply chain operations, Bain & Co says business should look to “enhance end-to-end supply chain visibility and even “increase resilience through strategic redundancy and reduced geographic risk exposure.”
Get strategies to reduce supply chain risk.
Along with the topic of supply chain, Environmental, Social, and Governance also features – one of six topics to be broken down.
As reported last week, sustainable procurement has been thrust into the limelight of late.
Airbnb earlier this month has reached out to shelter some 700,000 people displaced by the conflict.
On ESG, Bain & Co says business should “determine values-based posture on future participation in Russian market” and activate humanitarian support for those affected, including refugees.
When repositioning on ESG, the Bain & Co says businesses should:
- define “red lines” in anticipation of future geopolitical crises
- strengthen relations with government and wider stakeholders
- continue to accelerate on decarbonization efforts.”
Get your guide: Crisis in Ukraine: Respond and Reposition
