Cambridge Talent Partnership write:
The Russia-Ukraine War has completely changed the way we think about supply chains. Prior to the outbreak of hostilities, Russia and Ukraine were responsible for more than a quarter of the world’s wheat exports as well as 17% of corn exported globally. However, the conflict has disrupted these vital supply chains, resulting in shortages of these essential commodities.
The disruption of the Russia-Ukraine supply chain has also had a ripple effect on other industries, including energy, food, and semiconductors. As the conflict continues, it is likely that these sectors will feel increasingly negative impacts. In light of these developments, it is clear that the way we think about global supply chains needs to change.
No longer can businesses rely on just one source for their goods and materials. They now have to consider multiple suppliers in different countries in order to ensure that they can still operate even if one supplier is cut off.
This has led to a huge increase in demand for procurement professionals who are able to manage these complex supply chains. Recruitment agencies are seeing a surge in demand for procurement specialists and are having to adapt their strategies to meet this new demand.
A new era in global supply chain management
The current global supply chain is fraught with risk – as demonstrated by the recent conflict in Ukraine. This event has had a surprisingly large impact on European car manufacturing, exposing the vulnerabilities inherent in reliance on international suppliers. In response, European car companies like BMW and Volkswagen are re-evaluating their supply chains, with a view to reducing risk by sourcing more locally – even if this comes at a higher cost. This shift could have wide-ranging implications, ultimately leading to a more insular and protectionist world economy. Time will tell whether this is a temporary blip or the start of a longer-term trend. Either way, the events of the past year have served as a stark reminder of the risks associated with globalisation.
The Russia-Ukraine war is making it more difficult to obtain supplies in particular industries
In a globalised economy, supply chains are increasingly complex and vulnerable to disruptions. One potential source of disruption is no-fly zones, which can impact transport routes and disrupt the supply of raw materials. This issue is becoming more prevalent as countries attempt to exert their influence over contested areas.
In the case of the Russia-Ukraine war, the proposed no-fly zone over Ukraine would have a significant impact on the supply of raw materials to Ukrainian manufacturers.
This would have a knock-on effect on other industries that rely on Ukrainian suppliers, including the automotive and semiconductor industries. A no-fly zone would also make it more difficult for companies to transport finished products out of Ukraine.
The conflict in Ukraine is a reminder that businesses need to be prepared for disruptions to their supply chains. They need to have contingency plans in place to deal with disruptions, such as no-fly zones. By being prepared, businesses can minimis
e the impact of these disruptions and keep their operations running smoothly.
How the Russia-Ukraine war is changing the way we think about supply chain management
With the impact of the Russia-Ukraine War still being felt across the globe, many industries are struggling to adapt to the new reality.
A new type of procurement professional is needed to meet the challenges posed by the current geopolitical environment. These professionals must be able to navigate complex supply chains and find new sources of supply. They must also be able to manage risk and ensure that businesses can continue to operate in the face of disruptions.
How the Russia-Ukraine War is changing the thinking around supply chain management is a question that procurement recruitment agencies are now being asked on a regular basis.
We surveyed the top procurement recruitment agencies to find out how the war has changed their thinking when it comes to sourcing and managing risk. Here’s what they said:
Gerard Walsh, an Executive Procurement Recruiter from a procurement recruitment agency in Milton Keynes:
“The current geopolitical environment is resulting in a more complex and riskier supply chain. This is making it difficult to source goods and materials, as well as transport finished products. In response, businesses are looking for procurement professionals who can innovate on the fly and find new ways to get the supplies they need.”
Ray, a Senior Consultant from a procurement recruitment agency in Cambridgeshire.
“Many of my customers are already pre-planning due to the war in Ukraine, the big talking point is will prices go up or down? Can we even take the risk? This is now the new norm and it has only been a few weeks. This is certainly a challenge, but if companies manage their recruitment process well, they can actually use this as an opportunity for growth.”
Sarah, a Supply Chain Recruiter for a large agency specialising in recruitment for procurement in Hertfordshire.
“Procurement teams are being tasked with finding new and innovative ways to source goods and materials. We’re seeing a lot of interest in procurement roles that require expertise in more adaptive digitally focused sourcing strategies’
Joby, Procurement Recruiter from Cambridge Talent Partnership a procurement recruitment agency based in Suffolk.
“The current geopolitical environment has made supply chains more complex and difficult to manage. Businesses are looking for procurement professionals who can help them navigate these challenges and find new sources of supply. A new generation of procurement professionals is needed to meet the demands of the current climate.”
Final thoughts
Many companies we have spoken to feel the risk of further logistical challenges due to the war are too high, and are re-addressing their entire import strategy to focus on other countries not in such a volatile state. The days of just-in-time inventory management may be over for the foreseeable future as companies look to increase their stock levels to protect against disruptions.
It is clear that the procurement landscape has changed dramatically in recent months. The war in Ukraine has had a profound impact on the way we think about supply chain management.
Nearly every procurement recruitment agency is seeing a change in the skill sets that businesses are looking for when it comes to procurement. There is a greater focus on risk management and sourcing, as well as the ability to find new sources of supply.
The current geopolitical There is a need for procurement professionals who are able to navigate complex supply chains and shore up supply chains against potential disruptions.
At Cambridge Talent Partnership, we are a specialist supply chain and procurement agency. Our wealth of experience means we’re well-placed to help businesses find the right procurement talent for their needs. With our coverage of the areas of Cambridgeshire, Norfolk, Essex, Suffolk, Bedfordshire, Northamptonshire, Milton Keynes and Hertfordshire, we are able to source the best talent for your business.
If you are looking for procurement recruitment services, please get in touch. We have achieved a high rate of success in helping businesses find the right procurement talent for their needs.
Cambridge Talent Partnership does more than find the right people, we develop long-term relationships. We pride ourselves on working closely with our clients and candidates, so we can make the best possible match. And we don’t just sit around waiting for the phone to ring. We are proactive, always looking for the right talent for our clients.
If you are a business looking for procurement talent, or a procurement professional looking for a new role, please get in touch. We would be happy to discuss your specific needs and how we can help.
