As someone who has been in the Supply chain industry- procurement and logistics, for a good number of years, times like these are always tough.

In fact these are the toughest times you can experience as a practicing supply chain professional.

I remember years back when you could issue out blanket Purchase Orders for supply of goods and services, for up to 6 months, these were times that there was stability of naira and resultant stability of goods and services in the market.

At such times, you are able to relax and map out all the best strategies you can use to get the best out of your vendors.

At times like this, you just want to keep up because even your vendors are not having it easy.

But the story is very different especially since Buhari's time up until now. Goods and service providers are unwilling to tie down a particular cost for more than a week, 2 weeks or monthly depending on the nature of the goods or service agreement with the buyer.

As a matter of fact, some are saying that prices are valid for 24 hours only. This is a sad case.

But then, work and operations must go on. Companies must do all they can to stay afloat. Tough times can go away.

When I worked with TigerBrands, an FMCG company, fluctuation of prices of raw materials and services affected the operations badly, in the sense that it was very difficult to keep increasing the price of the finished goods, especially when they had other key competitors in that sector.

At a point, the factory was being run, just to ensure that the production lines are busy because the fluctuations eroded all the margins and even went negative.

Procurement was saving costs generally, but then there were other aspects of running the business - salaries, energy bills, maintenance e.t.c.
Manufacturing in Nigeria is difficult.

What are the best practical ways that supply chain professionals can maximize their own operations this time?

1.Procure only what is needed for an approved length of time.

2. Wastages must be reduced to the barest minimum. Wastes are money gone.

3. Quality is still key. Good and services procured must be of the highest acceptable quality. No room for quality errors.

4. Look out for approved vendors that are still able to offer better credit facilities or better prices - have a standard of 3 approved vendors for key goods and services being procured.

5. Plan ahead to avoid run out of materials and minimize downtime.

6. Try importing your key raw materials by yourself. This will save you from sudden price fluctuations for an extended period of time.

7. Put on your negotiation regalia. Saving costs must be taken into consideration for all transactions.

6. Add yours

Emeka Stanley

NLFPMOD
Seun

So what do you think can be procured right now.

I don't understand your message

malcom1X:
So what do you think can be procured right now.

I don't understand your message

You can procure anything you want. You just need to be tactful about it and negotiate the terms better

Artificial intelligence (AI) technologies such as smart route planning, high-tech transportation and operational demand planning in the logistics consulting have begun to include during the past few years. It’s just a start. From predictive optimization tools, last-mile delivery drones and sustainability solutions to warehouse automated picking systems, AI is already having a significant impact on supply chain management. These advances in logistics technology are anticipated to continue further, with benefits for suppliers, shippers, carriers and customers.

Even augmented intelligence is anticipated to see a rise in popularity along with Artificial Intelligence. Automation and human minds are combined to create Augmented Intelligence as human capabilities like responsibility, experience, flexibility, customer service, common sense, and more are required with AI technology. Monotonous and laborious work and logistics planning, for instance, can benefit more from employing augmented intelligence than AI alone.

Of course, if you want to improve your supply chain and increase efficiency, maximize transparency, reduce risk and empower people to make better decisions you should check out the anylogistix service. I also advised you to check out the supply chain planning system, this example gave me an idea of how supply chain management software can improve my business performance.