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#Business Consulting #Supply Chain #Operations, warehousing & logistics

Supply chain strain under the weight of energy transition

Friday 11/08/2023

The Green Deal and the upcoming shift towards cleaner energy will greatly increase the need for important raw materials like lithium, copper, cobalt, and nickel in the years ahead. With demand rising exponentially, the energy sector is set to become the largest consumer of critical minerals. This in terms will put pressure on the supply chains of a lot of other sectors such as automotive, telecom, medical devices and steel production as these are sectors that are heavily dependent on critical materials. How can your company handle this pressure?

Understanding the supply network

The first step is to meticulously map out your network of suppliers and subcontractors. It is important not only to map the main suppliers you directly work with (Tier 1), but also to trace their suppliers of partly processed materials (Tier 2), and particularly the vital suppliers providing essential raw materials (Tier 3). One should also not forget to integrate the sourcing strategy and inventory buffers within the organization into this network mapping.

Managing supply risks

The next step is a risk analysis based on the mapped the network. This allows you to assign impact scores to potential risks and their possible effects on your organization. These scores allow you to respond proactively to risks that can cause the greatest disruptions. This in turn allows you to take timely and targeted action.

Enhancing collaboration through logistic system integration

Comprehensive integration of inventory systems is also crucial across all companies. Swift investment in collaborative planning will help prevent the bullwhip effects that might arise from gradual shortages of critical materials.

As part of these efforts, Moore Belgium has collaborated with ASCM (Association for Supply Chain Management) to create a Resilience Framework that bolsters supply chains.

Would you like to know more about this? Then feel free to contact us. We will be happy to advise your company.

Contact one of our experts

Frederik Van Lokeren

Frederik Van Lokeren

supply chain; sector life science