Volatile geopolitical situation yet to leave mark on supply chains – poll

Gurjit Degun
1 October 2014

A majority of buyers polled by SM have not made any particular changes to their supply chains in reaction to recent geopolitical crises.

In an online poll asking ‘Have you made any specific changes to your supply chain as a result of the geopolitical crises?’ just 45 per cent (15 people) answered yes.

But the results were more definitive when consulting the SM Jury. Just one purchaser has made such a change – Taras Fesenko, head of the import procurement division of the material support department at Konti.

Fesenko said: “A couple of our production sites are located inside the conflict area in Ukraine. We were forced to implement new ways and different combinations of delivery, to find new suppliers for the certain raw materials, and to conduct negotiations with existing partners regarding current situation. The new geo-crisis has brought us new challenges that we have to overcome.”

Other buyers who responded no to the question explained they do not have suppliers based in the Middle East or Ukraine.

John Milne, a procurement consultant at Hampco, said: “As yet none of our sources of supply have been directly involved in any of the prominent uprisings, however we are watching the situation as everything appears to be more fluid. If Singapore, Korea, South Africa or Brazil were to become embroiled in any terrorist or revolutionary activity we would have to consider our options but let us hope that the world settles down to restoring peace and prosperity.”

Gary Moore, procurement performance manager for defence information, training and services at BAE Systems, added: “The projects and the related supply chain I am involved in have fortunately not been affected by geopolitical crises. We monitor all potential supply chain risk as part of business continuity management so would hope to be ahead of the curve and not fire-fighting an impact in the future.”

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