Think Sustainability, Innovate Transformation
The Inaugural National Dialogue on Procurement and Supply Chain &
SPURS Excellence Awards 2021
Transforming Supply Chain Management to Drive Economic Recovery and Social Impact
Doing More Than Business Part 1: The Pathway to Recovery
PrideInn, Paradise Hotel Mombasa
13th – 17th December 2021
Discussion Outline
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The Local, National & Global Challenge in SCM
Africa’s Demographic Dividend
2022 Outlook Scenarios
Beyond Covid-19 –The Recovery Approach
Purpose - Doing More Than Business = Recovery
Emerging Themes in SCM & Drivers of Recovery
Impact of Economic Recovery Scenarios
A Four-Stage Process
Checklist for Covid-19 Business Recovery
From Reaction to Reimagination in Shaping Future
Recovery
Embedding Resilience in Supply Chains
Principles and Elements of Resilience in the Supply
Chain.
Principles and Elements of Resilience in the Supply
Chain.
SCM Sustainability Shift for Business Learning &
Reporting
Conclusion
The Local, National & Global Challenge in SCM
Africa’s Demographic Dividend
•
Sub-Saharan Africa comprise
14% of the world’s current total
population and represents 13%
of the world's economy
•
Population in SSA is projected
to rise from ~ 1.1 billion in
2019 to 3.8 billion in 2100.
•
Green jobs & Skills for Work
is a priority especially for the
youth (future decision-makers)
Source: UN Population Division (2019a)
Pillars of Post Covid-19 Sustainable Recovery
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Enhancing budgetary allocations to strengthen healthcare systems
Enhancing the role of the Private Sector in the recovery process
Supporting MSMEs
Pursuing full & timely implementation of the Economic Stimulus Programme (ESP)
Making provisions for additional investments in ICT & digital infrastructure
Facilitating a Clean, Green & Resilient Growth Strategy
Enhancement of targeted social protection
Strengthening the national capacity for disaster risk management
Mainstreaming diaspora financial & intellectual resources
Strengthening governance & economic management
Enhanced budgetary support to police & security-related services to enforce
compliance to Covid-19 containment regulations & rules
12. Expediting the implementation of policy, legal and institutional reforms
2022 Outlook Scenarios
Three dominant themes appear set to take precedence in
the investment world in 2022. These megatrends will
define the broad contours of the market outlook for next
year, so an understanding of them is crucial for making
investment decisions in the months ahead.
The three megatrends are:
1. the normalization of economies from the coronavirus
crisis, including Covid-induced macro-economic
trends (SCs)
2. the ongoing search for alternative sources of return
3. the accelerating transition towards a more sustainable
economy
2021 - After another extraordinary year for investors, expectations are
mounting that 2022 will form a turning point for the global economy
and markets: in the face of rising inflation, central bankers aim to
withdraw the stimulus that has provided an extremely supportive
backdrop for risk assets, stabilization and quick recovery.
Beyond Covid-19 –The Recovery Approach
What do we do with the numbers we just heard about to drive transformation & embed
sustainability transition in public and private efforts for impactful recovery?
Underlying Transformation = Purpose, Agility & Sustainability
Purpose - Doing More Than Business for Recovery
1.
2.
3.
4.
Transformation has never been easy & it will never be.
Amid the Covid-19 pandemic, it’s never been more essential/cut back on 20 years
We must ask and answer authentically – what our purpose is - Why do we exist?
Purpose – a key driver of agile transformation and embedding sustainability in recovery
Emerging Themes in SCM & Drivers of Recovery
Supply chain is undergoing great transformations that in part have been prompted by Covid-19 &
accelerated critical & major changes within 6 to 12 months that would have taken 20 years to achieve
under the normal global supply & demand matrix.
1. Agile Supply Chains that Shift from Production/Growth to Resilience & Sustainability is now
essential in the wake of increased focus on responsible business, climate change &
environmental conservation (ESG).
2. Supply Chain Digitization & Pooling of Warehouse/Storage Facilities
3.
Supply Chain Solutions continue to Move to the Cloud
4. Digitalization & Customization/Omnichannel Supply Chains are becoming the Norm (focusing
on individual customers)
5. Growth in circular supply chains supported the shift in the circular economy
6. Internet of Things, Big Data Analytics, and Supply Chain Logistics Coming Together
7. Artificial Intelligence (AI) and Machine Learning = Robotics and Automation in Logistics
8. Using Prescriptive Analytics to Move Beyond the Limitations of Predictive Supply Chain
Analytics
Impact of Economic Recovery Scenarios
– Ambiguity is a Given – Implications for Stability
– Paralysis is NOT an Option – How to handle the Severity
High likelihood that Covid-19 evolves in waves across most geographies,
Delta, Beta, Omicron…
A Four-Stage Process for Advancing Competitive &
Sustainable Recovery
Checklist for Covid-19 Business Recovery
Actions for embedding a sustainable recovery in a “new normal”
Role, Agility & Authentic Leadership Beyond Covid-19
Resilience, Agility
& Sustainability
From Reaction to Reimagination in Shaping Future Recovery
- Five Critical Imperatives
The coronavirus crisis has both accelerated existing trends and posed fundamentall
y new challenges. For business leaders, five imperatives are key in all regions - EMs.
Embedding Resilience in Supply Chains
The Question of How - Embedding Resilience in SC
Principles and Elements of Resilience in the Supply Chain
Addressing Risk within the Resilience Framework
Sustainability Shift for Business Learning & Reporting
Companies must address key business drivers – such as
performance, managing risk and integration on one hand while
also focusing their local, national and global value chains on
resilience & sustainability.
The main sustainability challenges are embedded in actual
traceability of green production, measuring impact (ESG) and
engagement within the stakeholder capitalism framework.
At the most basic level companies are concerned about risk
management and compliance with local and international
regulation. At this level, the objective is to identify key
sustainability risks in the supply chain and develop a supplier code
of conduct that covers social and environmental concerns, as well
as auditing procedures.
Once the basic structures are in place to address non-compliance,
purchasing organisations tend to focus more on driving
improvement and gathering performance data from their suppliers
on key social and environmental criteria.
Areas to Improve for Sustainability in SCM
• Taking a 360% view of Sustainability far beyond financial aspects (bottom line issues in
business)
• Focusing on the real challenge of sustainability leadership and governance that is ethical.
The sustainability agenda thrives or dies within an organization due to its integration
process right from the Board of Directors, to CEO/MDs office and senior management.
It cannot be a pet subject for junior staffers only then expect it to succeed.
• Transparency in our sourcing and purchasing including reporting and learning
• Measuring the sustainable impact & reporting
• Managing risk and innovating new pathways to sustainability as opposed to rudimentary
traditional ways of addressing risk
• Digitalization process and Customization of Supply Chain in the wake of Covid-19
Conclusion
• Covid-19 has dramatically changed our lives, and its impacts will reverberate for many
years to come.
• Younger consumers have experienced some of the greatest changes in their patterns of
consumption, and they will lead the charge as these shifts extend through society.
• Marketers should target these generations and act now to adjust to the new paradigm—or
risk missing out on a once-in-a-generation opportunity.
• How to Meet Customers’ Needs in Uncertain Times? Emerging New Opportunities?
Customers’ needs and preferences are changing at lightning speed. Simply tracking sales
trends is no longer sufficient to serve customers and stay competitive.
Businesses need real-time insights into the nuances of customer behavior.
• Tech and the New Consumer have Reshaped Today’s Emerging Markets Supply Chains to
become Unchained in all aspects
The End – Q & A
Need to keep an eye on Kenya's fiscal policy and sovereign debt - its sustainability…debt is not the problem the problem is
the deficit…
(people are dying of malaria then you blame the mortuary attendant).
This has major policy implications for future development and project financing
Asanteni Sana