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The impact of supply chain bottlenecks remains very high, with 97 percent of international managers reporting that their countries’ economies have been affected.
This globalise conversation between Paola Mucci, HR Partner at Duke & Kay, Italy, Betrand Grimm, Associate Partner at Valtus France and Dr. Harald Linné, Managing Partner and CEO of Atreus, Germany, assess the current status of supply chain bottlenecks in the three countries.
Dr. Harald Linné:
When we asked about the three biggest challenges for companies, we learned that the increase in costs due to other sources of procurement is a big problem and that the loss of sales that results from this has just as big an impact as the fact that the substitution of raw materials cannot be dealt with within weeks or months. Sometimes it takes two, three or even five years.
„The S&OP process is very important in these turbulent times to improve contacts between different departments within the company.“
Betrand Grim:
Some of the measures are obvious to everyone, such as developing new local suppliers, diversifying suppliers, managing cost growth and increasing inventory. Therefore, I would like to highlight inter-functional planning as an important measure. The S&OP process is very important in these turbulent times to improve contacts between different departments within the company. The frequency of contacts between the companies and their customers and suppliers must also be increased to cope with the situation.
Paola Mucci:
It depends on the business sector but more or less it will take 19 to 24 months.
Betrand Grimm
I would say the same, but things are still in progress: There is good news, such as shipping costs from Asia, which have dropped sharply, but other things can get worse.
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