March 16, 2022 | Juliette Rowsell of Supply Management
The dependance on Russia for oil and gas has raised significant challenges and concerns for western countries forcing them to develop new strategies and sources for oil and gas. Supply Management Magazine reached out to VP of Technology and Supply Chain at TBM Consulting Group, Ken Koenemann, to gain insights on how long he estimates Russia-Ukraine war to last and what are his recommendations on how to deal with supplier and sourcing challenges.
Koenemann told Supply Management, “If I had a crystal ball that gave me an answer, I would be thinking that the impact will last 6-18 months. It is a wide range but has so many variables to consider unless Russia stops the conflict and settles for some type of arrangement that rolls back some of the sanctions.”
Koenemann added that if the conflict were to end shortly, the damage inflicted would have “ongoing ramifications” for supply chains. Koenemann outlined three considerations for procurement teams to help manage through the current and future supply chain challenges:
- Sourcing alternative suppliers
- Reviewing supply chains
- Hedging and identifying alternative commodities