Subway supply chain partner urges businesses to focus on risk management strategies, ability to be flexible
IPC Asia Pacific plans to continue securing shorter supply chain routes from existing and alternate suppliers.
The president and chief executive of Subway’s procurement and supply chain partner urged businesses to focus on their risk management strategies and the ability to be flexible.
“We have a continual spotlight on business continuity and risk management strategies within the supply chain. Where products are sourced and how long they take to arrive at their destination means that short and long lead times and local, regional, and global options need to be part of business planning,” IPC Asia Pacific’s Duane Barber said in a media release.
“In addition, the ability to pivot is critical as we continue to operate in changing environmental, political, and social landscapes."
Barber said Russia and Ukraine provided more than a quarter of all global wheat exports.
“Sanctions, disruptions and port closures in the Black Sea have already seen market prices for wheat spike by 20-25 per cent,” he said, adding that other grains and oils had seen similar price spikes.
“In addition, freight rates and container prices were already at record highs, even before the invasion.”
For IPC Asia Pacific, the focus had and would continue to be securing shorter supply chain routes from existing and alternate suppliers and having alternate plans to mitigate potential write-offs and losses.
“We’re weathering the storm, reducing the disruption to restaurant supply in our region. We continuously review our choice of partners across the region to ensure they can withstand the financial pressures caused by this perfect storm of disruption with more stringent risk management processes,” Barber said. “COVID-19 was a little different, of course. It created challenges for the stock on hand position and forecasting as volumes varied wildly and shipping became less predictable.”