In a crisis, organisations show their value – very clearly, very quickly. At the start of the COVID-19 pandemic, HNK’s Supply Chain & Procurement team helped many customers remain open for business by providing the essential equipment they needed to operate safely.
When the COVID-19 pandemic hit in early 2020, relevant PPE (personal protective equipment), hand sanitiser and detergents were very quickly in short supply. From cleaning disinfectant to masks and gloves, demand was huge. Suppliers were running out of stock and many companies were struggling to get hold of enough basic equipment to ensure the safety of their employees and customers.
At this point, HNK’s strategic supplier strategy and fully integrated global supply chain made the difference.
Going the extra mile
“When the crisis started, there were certain items that everyone wanted,” explains Emmanuel Buyse, Head of Group Supply Chain & Procurement at HNK. “When it came to relevant PPE and other essential supplies, manufacturers rightfully prioritised essential services, such as healthcare and elderly care. After that it came down to relationships, and we were one of the next buyers on the list.”
HNK is one of the world’s largest buying organisations for products such as hand sanitisers and detergents. Over the past few years, we have shifted from a multi-supplier policy to a strategic supplier strategy, actively consolidating volumes. Today, this means we work very closely with a number of trusted suppliers, which ensures we have access to a constant supply of high-quality products made by companies that share our high ethical standards and follow our corporate responsibility guidelines.
As the crisis progressed, we were in contact with suppliers daily – sometimes hourly – explaining our requirements and forecasting, so they could plan production and distribution. This helped reduce uncertainty and shortages for customers and stopped prices from spiking.
We also talked to customers regularly. In fact, many customers began calling directly to ask if we could help procure items – just as readily as they might contact their own procurement and supply chain department.
Global teamwork reduces local shortages
The supplier relationship is only half the story. When demand for PPE, sanitisers and detergents was at its peak, our global procurement and supply chain team – one of the most flexible and integrated in the world – came into its own.
Due to the nature of the pandemic, our teams in Asia were ahead of the curve and could warn our other teams what to expect. Very early on, our country teams stepped up dialogue with local sites to understand their volumes and requirements. We began scouring for secondary and tertiary suppliers. Demand that couldn’t be met locally was escalated to our regional or global teams – who met every day at the peak of the crisis – enabling us to mitigate local shortage through global supply.
Solutions no-one else can see
The combination of close supplier relationships and global thinking had another key benefit: it allowed us to see opportunities others didn’t.
We procure a huge variety of products, from food and beverages to vans and cleaning chemicals, utensils and machinery. Our procurement staff contacted strategic suppliers with new requests: A juice manufacturer in Denmark, for example, began producing hand sanitiser.
As the crisis began to fade in some countries, we also realised that companies would need a new way of working. So, HNK worked with a key supplier to develop a new product, which helps companies create the hygiene routines required to return to work in a socially distanced world.
Are you are interested in our services or do you have questions about something else? We are here to help.
