Global megatrends affecting supply chains was the topic that kicked off the Glocalisation-themed Smart Procurement World Indaba 2022 last month. Held at Gallagher Estate in Gauteng, the annual indaba is the largest procurement conference in South Africa, and was opened by keynote speaker and futurist, Dr Marcell Vollmer, CEO of the Prospitalia Group based in Germany.
Dr Vollmer pointed out that supply chains continue to be fragile. One disruptive event can have major repercussions, as evidenced by the recent pandemic, floods and social unrest. He explained how a blend of global and local sourcing – glocalisation – will provide some of the answers to the challenges we face.
In 2021, the Global GDP stood at US $94 trillion, with China and the United States leading the world’s economies, followed by Japan, Germany and the UK.
Glocalisation is the pairing of global concepts and ideas with local and regional needs. Thinking “glocally” means using the concepts and ideas created globally, for example, in healthcare and IT, and using them to source, manufacture and distribute products locally. Dr Vollmer identified four megatrends that we should focus on that will impact the way we procure goods and services:
- Economic – some countries are becoming more industrialised, there are more megacities, we are living in a two-speed world with developing nations in poorer regions
- Terra – There is a drive towards more sustainability, infrastructure constraints continue
- Technology – the impact of the growth of e-commerce, more digitisation, the use of AI and robotics
- Meta – shifting demographics, the war in Europe, impact on society
Companies must adopt a glocalisation strategy and look for innovative solutions to ensure success in the future. Glocalisation will allow us to incorporate worldwide ideas and innovations into our sourcing processes while fulfilling local and regional needs.
