Recent political turmoil in the Ukraine threatens the supply of natural gas from that region to Western Europe, thus affecting the worldwide price of energy. Stricter Western sanctions could worsen the situation. As a supply chain manager, you understand the importance of fuel as a cost of doing business. Explain your short and long-term planning decisions in response to this situation.
The short supply of gas in March 2014 plunged Europe into energy crisis due to the turmoil in Ukraine.Supply chain interruptions affects information, sales and increases costs. In such cases, supply and demand do not match up.
As the supply chain manager, first, I will think creatively about its implication then find a strategic approach since it seriously impact our reputation and customer satisfaction. I'll apply good management supply chain practices. A quick decision will be made to protect supply chain form costly disruptions.
In the short run, multiple supplier strategy will be devised and I'll provide transparency for all chain partners. The right tools will be applied and technology utilized to reduce costs. Investing in technology in the short run will help cater for business growth and maintain supply chain integrity in the long run.I will invest in smart small chain solutions to upgrade.
I will also increase and have the right inventory in the right place and continuously enhance my IT landscape.
Our supply chain will be developed for long term success.
Oct 18th, 2014
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