The deepening crisis in the Gulf, a vital region for global oil, petrochemicals and energy supplies, will disrupt supply chain activities by increasing energy costs, delaying shipments, and causing resource shortages like fuel.
For Sri Lanka, which relies heavily on Gulf imports for oil, petrochemicals and trade routes, this could lead to inflation, production cost spikes, and supply shortages, opined Jayantha Gallehewa, President, Institute of Supply and Materials Management (ISMM) at the media launch of the National Supply Chain Day celebration to be held on October 24.
To face these challenges, he said Sri Lanka must improve supply chain resilience by diversifying suppliers, finding alternatives, strengthening local production capacity and adopting digital tools for better supply chain visibility and agility.
The ISMM Chief said to face the challenges of the Gulf crisis, Sri Lanka should adopt recommendations such as: Diversify energy sources by investing in alternative energy like renewable sources (solar, wind) to reduce reliance on Gulf oil and also strengthen local supply chains by enhancing domestic production capacity for essential goods to decrease dependence on foreign imports.
Gallehewa also mentioned the need to adopt supply chain technology by implementing digital tools such as AI, Big data etc. to improve supply chain visibility and agility, to enable quicker responses to disruptions. He emphasized the need for optimizing logistics and inventory management to reduce inefficiencies in logistics and better manage inventory to ensure smoother supply of goods during disruptions and urged the necessity of engaging in strategic partnerships by establishing relationships with new suppliers and alternative trade routes to mitigate risks associated with the Gulf.
Meanwhile, ISMM will have its National Supply Chain Day International Seminar on October 24 in Shangri-La under the theme Supply Chain Innovations in Crisis: Exploring New Avenues & Adapting to Global Shifts.
Prime Minister Dr.Harini Amarasuriya is scheduled to participate as Chief Guest with Chris Oanda, President of the International Federation of Purchasing and Supply Management (IFPSM) as Guest of Honour. Markku Hentinen, Chief Executive Officer of the International Federation of Purchasing and Supply Management (|FPSM) will be a special guest with A. A. M. Thassim, Deputy Governor, Central Bank of Sri Lanka being the Keynote Speaker.
The National Supply Chain Day Seminar and CEO Forum will bring together industry leaders, experts and professionals to discuss the latest trends, best practices,and innovations in the sector.