Global Inflation implications for MENA supply chain

Jan 31, 2023

Global Inflation implications for MENA supply chain

 

As companies navigate an uncertain future as a direct result of inflation, supply chain disruptions and capacity constraints, procurement and supply chain functions play a key role in enhancing resilience in a company as collaborators between a business and their suppliers.  

 

Planning for market uncertainties is where a procurement and supply chain consultancy can help. PRISM consultants have identified four strategies that your business can adapt and prepare for change; which is the only constant in the world.

 

PRISM consultants have the skills and tools that can help a company build capabilities in existing contracts to manage future uncertainties. Tactics, such as:

 

1)      Increase value by design – PRISM consultants analyse your current engineering and design of products to see if changes in material costs can make and deliver greater value, without compromising on quality.

 

2)      Plan ahead for the long term – setting clear volume purchase plans established in a Supply of Goods and Services Contract.  A long-term commitment comes in exchange for firmer business relationships, better value, and economies of scale.

 

3)      Create a collaborative approach to managing cost – Raw material prices affect buyers and suppliers. PRISM consultants advise companies to build fair cost control mechanisms through the Supply of Goods Contract.  This is aligned to objective commodity indexes and provides either the company or supplier an inclusive, fair, and transparent opportunity to review cost prices within the year. This mechanism generates a win-win means to manage cost fluctuations, negotiate trends and anticipate outcomes during a contract term as opposed to at contract renewal.  

 

4)      Build resilience in the supply chain through joint venture – PRISM consultants can facilitate a re-tender process that will enable your company to assess the benefits of a joint venture.  This will drive value by optimising key strengths of each company to generate greater value and build resilience.

 

If your company’s supply chain has been affected by global inflation PRISM consultants are here to help you.  Our experienced consultants drive a future-proofing exercise to overcome any challenge and to minimise future cost increases, whether these be short-term or long-term, PRISM can provide the solutions and results specifically for your business.

 

Please contact one of our consultants today.