Advance Blog

January 21, 2022
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Value Chain Disruptions – and How to Overcome Them

Value Chain Disruptions – and How to Overcome Them

Traditional value chains are deeply vulnerable to changing global conditions, as the pandemic has made painfully clear. From lockdowns and travel bans to illnesses and remote work, irregularities at one link in the value chain tend to disrupt operations elsewhere as well.

In such an environment, with Omicron and any future variants threatening to create further destabilisation, businesses must skilfully leverage technology as well as strategy moving forward. Here, our recruitment agency in Bangkok and Singapore reviews recent disturbances across five sections of the value chain, and how the right adaptations can mitigate their impact.

Commodities

This volatile market has had a disruptive effect across Southeast Asia, particularly in Indonesia and Singapore, as increased demand contributes to significant price and inventory fluctuations.

Yet it is precisely because of the interconnectedness of the trading market that AI tools such as machine learning and predictive analytics can have such a dramatic effect. By quickly identifying new patterns and trends within large pools of data, these tools can often give advance warning when another fluctuation appears likely. When businesses apply such insights into their strategy, they can do a much better job of staying ahead of the curve.

Procurement

The pandemic has caused lockdowns and work stoppages in various regions across Southeast Asia, leading to persistent inventory shortages in some sectors.

By diversifying their sourcing, however, businesses can reduce their vulnerability to disruptive events. Our recruitment agency in Bangkok and Singapore recommends using multiple suppliers across a variety of channels and locations, so that operations can continue even if a major problem affects one supplier. Diversified procurement also lets businesses take advantage of lower prices wherever they may appear.

Production

Factory closures and employee illness can drastically reduce production output, and the current wave of infections suggests that manufacturers will remain at high risk in this area moving forward.

A dual-pronged effort is needed to create stability over time. In the short term, proactive health and hygiene standards, together with frequent cleaning and ventilation, can keep employees healthy. Longer-term solutions could also include the integration of robotics and advanced machinery, for improved safety and reliability, as well as increased performance.

Logistics 

Ongoing work and travel restrictions can create logistical delays for products and materials, particularly when demand is high.

It is therefore essential to maintain open lines of communication with supply chain partners. Moreover, businesses should incorporate Bluetooth Low Energy and GPS tracking systems to keep tabs on their assets. Software solutions can then generate alternative transport routes, helping to avoid delays and maintain the smooth flow of goods.

Technology

Tech modernisation offers vast improvements over traditional work processes, but completing this transformation successfully is by no means easy.

Businesses must install new technology, upskill their personnel, and adapt both their internal operations and their company culture to reflect the modernised approach. A smart recruitment strategy should identify candidates who fill the most important cultural and technical needs for such a transformation, thereby easing the transition on multiple levels and making success far more likely.

Today’s tight economy leaves little room for error. For recruitment services that can help your organisation optimise its value chain, get in touch with Connexus today.

Connexus Global
Connexus Global is dedicated to helping multinational organisations discover and retain the best talent available in the market that will add value and become a long term assets to our clients organisations. We provide flexible and tailored recruitment solutions for multiple industries working along the global value chain.
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