We live in a challenging age of polarization between rich and poor, fighting for new balances between global superpowers, trade wars, pandemics, and global warming. All of this sends “Shock Waves” into the global supply chain, and we are all, both privately and professionally, witnessing that even when we have money, some goods are simply missing or dramatically late with deliveries. At the same time, there is a lack of staff and knowledge of dealing with it. There are not enough SCM professionals in Croatia and the region, and it is similar in Europe.
The first Supply Chain Event was held at the Zagreb School of Economics and Management with an aim to share best practices, open essential topics, and facilitate discussions on supply chain management. The event has gathered 170 people from business and academia, both online and offline.
The supply chain, which affects every aspect of our lives, is usually invisible until it breaks. The global supply chain has snapped, and Covid-19 is not the only cause. This happened due to macro trends and the problems that have culminated in recent years, and Covid-19 has dealt the final blow. Shortages of goods vary from state to state, and Croatia has not felt it as drastically as the UK and the US. We are a small country, and however, if we want to buy something specific, we will have to wait. We used to wait about three months, and now we will have to wait about three years.
Bruno Filipi, executive in residence of ZSEM, opened the conference and presented Mckinsey’s research on the demand for goods, which is on the rise. As many as 62% of consumers cannot find the product they were looking for, which has never happened in the past 300 years. When consumers do not find the product they want, they compete.
“It is better to invest more money in inventory, have wider inventory and invest in labor so as not to lose consumers. It takes many years and millions of dollars to restore customer loyalty.”
– said Bruno Filipi to supply chain managers.
Along with the dean of the Zagreb School of Economics and Management, Mato Njavro, Ph.D., speakers at the conference were Nives Ožeg, Supply Chain Director fpr Coca-Cola Hellenic Bottling Company Adriatic Region, Amir Mešković, CEO of Source Code, and Nadir Paulović, supply chain lecturer at ZSEM. They acquired many years of experience working in the supply chain in several multinational companies across Europe.
“The global supply chain is greatly influenced by geopolitics, manufacturing, and transport. The relationship between China and the West is of great importance, and eventhough China and the United States compete in the same system, they are interdependent.”
– points out the dean of ZSEM Mato Njavro, Ph.D.
Amir Mešković, CEO of Source Code, also spoke about disruptions in the supply chain, citing as an example that the delivery of containers today costs ten times more than at the beginning of 2020. Some of the causes of disruptions in long-distance supply chains have increased consumer demand driven by COVID blockades, seasonal increases in consumer demand, lack of skilled labor, and government regulations. Effective supply chain planning is needed as it depends on current market conditions.
“To reduce problems in supply chains, we need effective planning, data sharing, updating data, end to end visibility, updating the infrastructure that affects current demand,”
– said Amir Mešković.
All conference speakers agreed that the chain is as strong as its weakest link. They also stated that these are the times when it is the worst time to work in the supply chain; however, the best time to learn about it.
The Zagreb School of Economics and Management has already refreshed the curriculum and strengthened the teaching team of the Supply Chain Management MBA program, and announced the launch of the Supply Chain Exchange platform and the organization of the Digital Supply Chain conference.
