Firms urged to study demand, strategize sourcing to weather supply chain woes

ABS-CBN News

Posted at Sep 22 2022 11:00 AM | Updated as of Sep 22 2022 12:15 PM

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Philippine companies should recalibrate their sourcing network and manage inventories to boost profits as global supply chain challenges persist, a stakeholder said on Thursday.

Global markets are grappling with supply chain challenges brought by the COVID-19 pandemic, Russia's invasion of Ukraine, the slowdown in China and other factors that are delaying shipments and pushing prices upwards.

Inflation in raw materials and the unpredictability of the supply chain network remain as top concerns of manufacturers and trading firms, Procurement and Supply Institute of Asia chairman and CEO Charlie Villaseñor told ANC.

Villaseñor said studying the demand, adjusting prices and focusing on money-making products could also help boost the bottom-lines.

“Many companies should really watch the distortion on the market demand, because the demand that they actually prepare on triggers a signal on how they’re going to manage their working capital,” he said. 

He said the industry’s outlook remains “bleak” due to the anticipation of more incoming shocks.

But he assured the public that essential supplies are likely to be procured and delivered during the holidays as these are prioritized by trading companies and manufacturers.