Supply Chain Management | Supplier & Contractor
It is a must to secure a strong supply chain to support your operation and project, from vendors who can manufacture, design, distribute to installation works. Especially during and right after the pandemic COVID-19 in which it affects most of the players from upstream, midstream to downstream. Therefore, besides coping with existing challenges, corporations shall also build a more resilient backbone to support their day-to-day procurement, operation and project. Experiences count but some might be painful to get through, best is to construct a preventive system for the sake of issues that could arise when there is the next macroeconomic crisis that is caused by health, safety, raw material shortage, trade war, world war to any specific financial or non-financial risks. On the other hand, we have to also manage the quality of vendors as they must be able to deliver what has been committed while not neglecting the quantities so you can get alternative solutions whenever you need to.
Handling projects need high attentiveness and responsiveness to the market information because supply and demand determine the final cost too. Letter of Award (LOA) usually has stipulated the amount priced in the contract and usually cannot be modified at all. A forward contract is one of the methods to lock in your project cost, especially the raw materials such as steel, cement, timber and many more. Countries’ policies do play an essential role too when it comes to import and export between nations’ trades. Beware of these criticalities also when the material you require is demanding huge in volume and it is related to a foreign country that is having instability in political condition, from a relationship with your home country to indirect “cold war” of a third-party country which your own nation has relationship with. Of course, if there are some projects you are tendering or have already gotten the award based in another city of a foreign nation, it will put you in a fragile position that has to be hedged against multiple risks too, manpower to currency factor in addition to language and culture barriers.
Another aspect that we can strengthen is to put up a team of installers for your projects, just to mitigate the probability of not being able to complete your jobs when multiple sites are ongoing. Projects are always having complicated timelines where scheduled work progress might clash with each other and tighten up your capacity. When the time is right, everything seems smooth but when an unexpected incident is hooked up halfway, might delay your ongoing job as well as other pending tasks to begin one. Moreover, project managers might burn out themselves when rushing a few projects on hand and human’s health in terms of biological as well as psychological could be highly affected by work on progress. Definitely, the safety element of all project sites should be put at the highest priority. Many irresponsible contractors will take risks just to save cost on material, equipment and time might cause breaches of rules and regulations, subsequently making workers and properties into adverse conditions. Be careful in selections of who you appoint and engage with, from procurement to workmanship contracts.
Where to Get a Reliable Supply Chain Management Company in Malaysia
Contact us today, as we are able to do the whole supply chain manage