Effective supply chain and logistics management: A solution to economic crisis

If supply chain and logistics is handled professionally and strategically it will give solutions to the economic crisis to a great extent, Institute of Supply and Materials Management (ISMM) President and Vice President Organization of Professional Associations (OPA) Sarath Gamage said. 

“Take for example, countries such as Singapore and Hong Kong were with less resources but the economy has grown due to the contributions from supply chain and logistics. When analysing the ports they have more transshipments to meet the global demand specially focusing on value addition, trading and re-exports with attractive margins,” Gamage said. 

“Here in Sri Lanka more resources are available but are underutilised. We as supply chain professionals should think strategically and analyse on how to use the country’s existing resources in the most productive manner. Colombo and Hambantota ports are geographically located in high important zones where global demand can be created for transshipment, value adding and bunkering,” he added.

“We hear through the media on the unprofessional handling of procurement and supply chain in different institutions, and as a result the country is losing on the long term. This is the time when supply chain professionals are required for key decision making irrespective of private or public sectors for procurement and supply chain decisions.”

ISMM was established on 24 October 1972 and became a member of OPA in 1976. It is affiliated to the International Federation of Purchasing and Supply Management. ISMM is ready to serve the nation whenever required to enhance the country’s productivity and prosperity. ISMM is the pioneer Supply Chain Management (SCM) institution offering Certificate level, Management Level and Diploma level courses in SCM. Further ISMM supports public and private sector organisations by conducting consultancies, workshops and seminars to enhance their performance. Moreover on the successful completion of the ISMM Graduate Diploma in Purchasing and Supply Chain Management together with three years executive experience in Purchasing and Supply Chain Management field will lead to the Corporate Membership of the ISMM. The Government of Sri Lanka recognises the Corporate Membership of the ISMM equivalent to a First or Second Class Honours Degree relevant to the field of Purchasing and Supply Chain Management awarded by a recognised university.

Supply Chain Management is a fast-developing field of management, having a major influence on economic development and trade both at domestic and international levels. Globalisation and regionalisation are taking pride in international trade and development of competition is taking precedence over other factors as the driver of business. The benefits of Supply Chain Management are immense and to name a few; higher productivity, reduce cost, raise output, raise efficient/effective levels, boost cooperation, lowers delay in processes and enhances the effectiveness of Supply Chain Networks.

It is pivotal that Supply Chain Management has taken an imperative role with the Sri Lankan Government development plan to procure and manage resources wisely with limited resources available. 

As it is leading private sector organisations in Sri Lanka has employed most of our highly skilled professionals to manage the high spend of the organisation by understanding the importance of the effective and efficient management of supply chain. The impact of supply chain will be felt in all activities and no institution could carry on with its activities devoid of material resources. As a result, the role of purchasing and Supply Chain Management is assuming a strategic role for the progressive development of the country.