ISMM Sri Lanka delegation attends IFPSM Asia Pacific Council meeting in Manila

ISMM President Danesha Perera and Senior Delegate and Past President Gerry Hidelaratchi attended the International Federation of Purchasing and Supply Management (IFPSM) Asia Pacific Council Meeting in Manila, Philippines on 22 and 23 April. The Asia Pacific Council Meeting was organised by the Purchasing Institute Supply Management (PISM) in Philippines under the guidance of the International Federation of Purchasing and Supply Management. The delegates from Asia Pacific Countries attended including India, China, Thailand, Malaysia, Hong Kong, Singapore and Sri Lanka.

The meeting was headed by Vice President, Asia Pacific, Stephan Wkng from the IPSHK Hong Kong and facilitated by IFPSM President Svante Axelsson from Sweden and Charles Holden Director General IFPSM UK.  

Perera said that during the meeting, subjects discussed were regional collaboration, Asia Pacific professional’s profile, Asia Pacific’s identity, global standards and Purchasing Managers Index (PMI).

Global standards introduced by IFPSM was discussed and it was agreed to introduce same to one program conducted by each of the institutes within the next three years since it will have substantial opportunity to raise the professional profile and level of internationally recognised qualification in the region.

Purchasing Managers Index (PMI) and development of a PMI Asia was agreed as a worthwhile feasibility study as a regional project. PISM agreed to be the lead component in such a project.

Perera contributed to the subject ‘Asia Pacific Identity’ by tabling a paper and a short presentation. He explained the importance of the following.

 

1. Improvement from the present status of IT facilities in the region which has a direct impact on supply chain

IT is one of the utmost important tools to develop Supply Chain Management in the Asia Pacific Region. China and India are in the forefront of other Asian countries. The contribution from the IT industry to the economy of China and India are unascertainable.

Main reason for slow development in the economy of other countries is not having sufficient IT facilities. Countries developing rapidly need to focus on the IT.

  2. Improvement in the present status of physical infrastructure of roads, ports, air ports and railways are directly related to the supply chains

China and India are far ahead of other Asian countries with regard to infrastructure development. The most economical transport mode for the country needs to be identified as well as for the region. Railway is the most efficient and effective transport mode.  Buses are next best. Transport modes such as cars and vans are found to be expensive when compared to other transport modes. It is vital to have a regional strategy to develop transport in Asia Pacific countries.

3. Large regional population, especially in China and India has provided an opportunity to build up supply chains

Once more China and India’s huge population can contribute to most development projects on many skilled levels. It has cheap labour where the products manufactured are very competitive in the market. The products manufactured within the country have great potential for internal marketing. Other countries such as Sri Lanka need to look out for the markets. Cheap labour due to excess supply as against the demand too is advantageous to China and India. Therefore small countries such as Sri Lanka will depend on expensive labour and foreign markets to sell its products. Supply Chain Management in such countries need to be competitive within the region as well as outside the region by doing Value Analysis, Value Engineering and Value Addition.

4.     Development of educational and health standards in the region has enhanced supply chains

Literacy levels in countries also contribute largely to development. Sri Lanka is one of the best rated countries in the world providing free education. It is also very important to focus on education streams on SCM. Health standards of a country will decide how healthy the nation is and it is important to focus on health not only providing the health facilities but making arrangements for young generation to understand the importance of physical fitness. When a young generation is sick, it is difficult to continue development programs to meet the ultimate targets.

Simplification and standardisation of regulatory and procedural requirements will necessarily improve the efficiency of existing supply chains.

Simplification and standardisation of regulatory bodies and procedural requirement will certainly improve the efficiency of a country’s decision making process.

The political situation in a country directly contributes to its development. Independent decision making process will facilitate regulatory bodies to avoid red tape and expedite the development process of the country.

Therefore professionals are required to make decisions based on the country’s requirements. Supply Chain professional should take leadership when it comes to spending money for large projects provided that they are rightly selected for the job. It is proven that large sum of money is wasted in many projects due to wrong buying and total malpractices in the supplier selection process. In certain countries red tape is introduced to control the activities based on likes and dislikes of controlling bodies. If the systems are simplified it is difficult for certain controlling parties to survive.

Also it is required to understand the importance of control when it comes to malpractices etc.

How geographical, weather, and natural disasters contributes to SCM function

Geographical differences, weather, and natural disasters also contributes to the development of a country. Most of the Asia Pacific countries are having very favourable weather as per the geographical situation. It vastly contributes to Agriculture sector of a country. It is also very important to mention that Tectonic Belt covers countries such as Philippines etc, and natural disasters are unavoidable at any given time.

In this context SCM function has a leading role to play in such conditions to development of such countries.

Multi-cultural and multi-lingual and multi religious societies will contribute to SCM function in many ways.

A multi-cultural population contributes very positively to the development of respective economies. Culture of respective nations too has given a lot of help to keep the Happiness Index of the population high and maintain discipline. Respect for elders of Asians too has contributed to growth. Multi-lingual societies will have great strength to serve in many different situations very strongly. A multi-religious population will always adopt the good as against the bad by experiencing situations. It also could work negatively if the literacy level of the general public is low.

The complexity of the region contributes largely for SCM functions. The different knowledge and experience will always be promulgated to expand the SCM functions.

All member countries appreciated the submission of the paper and presentation from Sri Lanka and commended.

Further Perera said that the next Asia Pacific council meeting will be held in Sunday 30 September in Toronto, Canada and Global Summit will be held in 2013 in Thailand and arrangements were being prepared with PSCMT for the event in Bangkok during the period 17-22 September 2013.

In conclusion, Perera stressed that it is important for SCM professionals in Sri Lanka participating in such conferences to interact with SCM professionals in the region and other parts of the world and to be proactive in competitive business environment.