The American Chamber of Commerce of the Philippines, together with its corporate partner, Santos Knight Frank (SKF), hosted a web event entitled “The Future of Logistics: Outlook and Opportunities in Supply Chain” last March 15, 2022. Speakers included Dan Lachica, President of Semiconductor and Electronics Industries in the Philippines, Inc.; Richard Strollo, Vice President of Supply Chain of LBC Express; and Charlie Villasenor, Chairman of the Board and CEO of Procurement & Supply Institute of Asia (PASIA), TransProcure Corporation, and PASIA Shared Services Corp. The discussion was moderated by Kash Salvador, Director and Head for Investment & Capital Markets of SKF.
After SKF Chairman and CEO Rick Santos had welcomed the guests and participants, Charlie Villasenor started his presentation. He defined supply chain as “a network of organizations linked together, performing different activities that produce value in the form of a product and service for the ultimate consumer.” He emphasized that supply chain is our best enabler for it saves lives, ensures peace and order, and sustains the economy.
Charlie shared that, according to AON’s 2021 Global Management Survey, the Top 10 Sources of Risks in Business and Supply Chain includes the following:
- Cyber Attack/Data Breach
- Business Interruption
- Economic Slowdown/Slow Recovery
- Commodity Price Risk/Scarcity of Materials
- Damage to Reputation/Brand
- Regulatory/Legislative Changes
- Pandemic Risk/Health Crises
- Supply Chain or Distribution Failure
- Increasing Competition
- Failure to Innovate/Meet Customer Needs
Bullwhip Effect
As explained by Diann Daniel of TechTarget, “The bullwhip effect is a supply chain phenomenon describing how small fluctuations in demand at the retail level can cause progressively larger fluctuations in demand at the wholesale, distributor, manufacturer and raw material supplier levels.”
The image below shows PASIA’s representation of Bullwhip Effect:
Future of Supply Chain
The images below further describe the future of supply chain.
In summary, Charlie suggested that in order to make the Philippines the Supply Chain Back-Office Capital of the World, we consider the following:
- Ethics – good supply chain practices, delivered by capable people, make the organizations stronger
- Excellence – strong organizations make good economies; good economies are good for nation-building
- e-Enablement – better supply chains deliver higher chances for survival and better lives
