Supply Chain Archives | Page 88 of 91

The World Economic Forum’s resilient supply chain formula – how it can assist you to continue to succeed in a challenging environment

Aug 12, 2021 | Supply Chain, Technology

The World Economic Forum (WEF) has identified eight points of resilience to help manufacturers and trading companies prepare for supply chain disruptions.

The qualities of the most resilient supply chains are based on a survey of 400 senior supply chain executives and representatives from government and academia.

Of those surveyed, only 12% of businesses were identified as “resilience leaders”, with the “remaining 88% needing to take immediate action to build resilience”.

This is all really quite interesting and worth a read and referencing from industry-leading ‘experts’ that sums up the current challenges faced across all sectors and industries, including the logistics field.

The report said the pandemic, cyber attacks, climate crisis and geopolitical tensions were leading to an increase in supply chain disruptions. Still, most companies were not prepared for such events, with 75% of respondents spending more than 75% of their time on resilience-related challenges.

Initially, this may seem a pessimistic synopsis on global activity, but this can actually be interpreted as optimistic and deliver advantage if action and strategy are applied using the data and findings from the report provided. This is why we have included it in this weeks circulation.

1) Inventory

Ensuring product availability with simplified portfolios designed to allow interchangeable inputs and production arrangements when supply shortages or factory interruptions occur.

Only 13% of companies displayed what the report called a “high degree of capability” in this regard.

2) Customer orientation

Smart customer orientation ensures demand can be met while remaining agile and flexible. This may be more of a long-term investment due to the challenges of shared manufacturing space across business divisions, regions and even industries.

3) Financial viability

Financial health across end-to-end value chains is vital so that companies can adjust their cost base to subsidise key suppliers, ensure input materials, and remain cash positive.

While larger companies are more likely to excel in this area, 86% of firms were either not prepared for major disruption or had to shed costs to cope with the financial implications of COVID-19.

4) Go-to-market channels

The WEF said 39% of businesses needed to urgently modernise their go-to-market approach if they want to remain ahead of market disruptions.

Diversified customer distribution networks incorporate multiple channels and automation to increase reliability.

Smaller firms are more successful at this than larger ones, with 64% of smaller firms adapting to customers’ changing needs, such as new channel preferences, new geographies, or new customers.

5) Logistics

Strong logistics systems are “the holy grail” to many firms, yet only 14% of companies felt satisfied in their logistics setup.

A strong logistics system relies on close collaboration and focuses on building long-term relationships between firms and their logistics partner across the supply chain.

6) Manufacturing networks

Resilient and responsive manufacturing networks allow for production continuity by adapting production locations and products as necessary. The report found 40% of firms were still “highly dependent” on region-specific manufacturers, which may limit adaptability.

7) Supplier landscapes

Companies that are reliant on particular suppliers, regions or commodity products are “vulnerable” to disruptions.

Striking a balance between diversifying the supplier base and creating strategic partnerships with key vendors is “crucial” to protecting the availability of essential materials.

As a result of COVID-19, 13% of firms have already begun to improve their balance in this area, and a further 47% said they were in the process of developing their supplier strategy.

8) Advanced planning

With just 12.5% of companies - predominantly consumer and retail - incorporating new technologies and planning tools to quickly and effectively adapt to change, an overwhelming majority still need to transform their supply chain to sense shifts in demand.

We proactively invest in many ways (including intellectually and financially) to power the supply chains of both our British and international customers, with our freight management and outsourcing teams and our multi-award winning MVT supply chain platform.

The MVT platform harnesses every supply chain participant, process, and milestone from suppliers and manufacturers to carriers, distribution networks, and, of course, our customers to provide the real-time visibility, control and intelligence necessary to create resilient, flexible and fit supply chains.

For further information on our MVT tool and to discuss how we can enhance your supply chains, please get in touch with Grant Liddell or Simon George.

We will deliver a bespoke, unique and tailored solution, ensuring that your products are in the right place, at the right time, with every available option available in the current global market. It is what we do and differentiates our culture.

Metro ready for UK’s new single customs platform – are you?

Aug 12, 2021 | Customs, EU, Metro, MVT, Supply Chain, Technology

HM Revenue and Customs (HMRC) announced last week that the Customs Declaration Service (CDS), a system integrated with our market-leading technology, will serve as the UK’s single customs platform from 31st March 2023.

Operating since 1994, HMRC is finally retiring its Customs Handling of Import and Export Freight (CHIEF) system on 31st March 2023, from when all customs declarations will be submitted through the Customs Declaration Service (CDS).

HMRC’s announcement that the Customs Declaration Service (CDS) will serve as the UK’s single customs platform from 2023 will end the current period of dual-running that has been operating with CHIEF.

CDS is currently used for Northern Ireland and Rest of World declarations and has already processed more than one million declarations since it went live in 2018.

Ahead of the complete CHIEF closure on the 31st March 2023, services on CHIEF will be withdrawn in two stages:

30th September 2022: import declarations close on CHIEF
31st March 2023: export declarations close on CHIEF / National Exports System (NES)

CDS is a key part of the government’s plans for a fully digitised border, in line with its 2025 UK border strategy.

Metro has been directly involved in the development of CDS, through the Joint Customs Consultative Committee (JCCC), as active members of The Association of Freight Software Suppliers and the British International Freight Association.

With the UK’s exit from the EU, and the migration to the new Customs Declaration Service (CDS) the changes to Customs procedures and systems will have a huge impact on importers and exporters.

Our brokerage team, which is one of the UK’s largest dedicated team of customs experts, are available to review your situation and provide advice on CDS migration and compliance.

Metro automate and submit customs declarations via CHIEF and CDS platforms through our CuDoS system, which is optimised in line with HMRC and EU regimes.

Please contact Simon George, leading our customs and brokerage business unit, for further information and assistance on CDS and automating your customs declarations.

COVID-19: The critical worker crisis

Aug 12, 2021 | Coronavirus, Metro, Road, Supply Chain

In an effort to protect supply chains and essential services the government released a list of sectors where fully vaccinated workers may be exempt from isolation if they are told to quarantine after coming into close contact with a positive COVID-19 case. Many of these are within the supply chain and global logistics platforms that are essential to businesses functioning successfully.

Fully vaccinated adults will no longer have to self isolate if they are ‘pinged’ from 7th August in Wales; 9th August in Scotland; and 16th August in England.

Instead, they will be advised to take a PCR ( if you have ever wondered what it stands for - polymerase chain reaction) test and can stop self-isolating if the result is negative. If the result is positive, they will need to self-isolate just like anyone else.

Until the 16th of August in England employers providing the critical services listed below can request a self-isolating exemption for named employees who are fully vaccinated.

Energy
Civil nuclear
Digital infrastructure
Food production and supply
Waste
Water
Veterinary medicines
Essential chemicals
Essential transport
Medicines and medical devices
Clinical consumable supplies
Emergency services
Border control
Essential defence outputs
Local government

Supermarket depot workers and food manufacturers will be exempt whatever their vaccination status and this is being extended to transport and freight workers, plus those working in the selected critical sectors.

Despite the government’s moves supply chains are missing critical personnel at every point, including ports, freight terminals, railheads and shipper warehouses, not to mention the continuing HGV driver crisis.

So far the government has ignored pleas to relax Brexit immigration rules to allow foreign drivers to return on a temporary basis and calls for the MoD to provide drivers is unlikely to have any impact on the situation. The government’s moves to increase working hours and streamline driver testing systems, to aid recruitment, will only have a marginal impact.

With the shortfall of drivers already standing at 100,000, any personnel loss through illness, self-isolation or move to higher-paying retailers is having a profound impact on haulier operations across the country and particularly around key ports and airports.

After years of underpayment and poor working conditions, a job as an HGV driver has become more attractive in recent months as a growing number of firms offer up-front bonuses and wage uplifts in an effort to attract and retain staff, though shippers are increasingly picking up the tab, through driver surcharges.

All the signs are that we are heading for worsening disruption, as drivers taking holidays are added to COVID-19 shortfalls, without any drivers to cover.

Road transport cannot be avoided, as part of the movement of goods, with drivers critical for container movements, international and domestic haulage.

Metro work with a number of reliable, selected long-term haulage and rail partners across the UK, to give us access to the widest pool of equipment and driver resource.

We frequently audit and manage our associated partners' standards and ensure the safety of all individuals within our platforms are always compliant with the current regulations and legislation.

To learn more, or to discuss your road transport requirements, please contact Elliot Carlile or Grant Liddell (or Simon Balfe who leads our UK multimodal transport operations) who can talk you through the options.

COVID disruptions continue to impact global supply chains

Aug 12, 2021 | Air, China, Coronavirus, Sea, Sea/Air, Supply Chain

The delta variant has broken through virus defences across the Indian Subcontinent and the whole of Asia and reached nearly half of China’s 32 provinces in just two weeks, threatening more supply chain disruption.

Developments are raising the threat of delays at ports and airports as authorities screen crews of incoming vessels and aircraft, with factory production potentially halted, or at least stymied, if widespread lockdowns are imposed.

The situation is unfurling at a daily rate of knots…….

The strict lockdown in Bangladesh was lifted yesterday in a government announcement and factories can return to full operation, though we do not anticipate any significant improvement in ocean freight performance yet. Rates continue to increase, due to huge demand for containers and restrictions at Chittagong Port as a consequence of recent action.

Airport operations have resumed, though the market is relatively soft due to factory productivity being reduced and there are very few unloading bays for screening shipments, as construction continues inside the cargo village.

Cambodia, Myanmar, Indonesia, Vietnam and Sri Lanka continue to be affected by the spread of the delta variant and supply chain disruption, with many factories being forced to temporarily shutting production in the regions to stem the spread of the virus.

Port and airport facilities are still operating and there are no significant delays beyond those already being experienced, presently, although this is being monitored.

As we reported a fortnight ago, the lockdown in South Vietnam has many ships lying at anchor, which has now created a reported 100,000 TEU backlog at Ho Chi Minh City’s Cat Lai Port.

According to Saigon Newport (SNP), yard density at Cat Lai is currently around 85%, after it experienced a “rapid surge in the volume of over-dwelled import containers” - because many factories had closed or reduced production to 50%-70% during the lockdown - which had negatively impacted vessel handling.

Some factories are expected to reopen next week, but a resurgence in demand, caused by delayed production, may mean that empty container availability could worsen as manufacturing starts up and global demand continues to increase in the final half of the year.

The industry expectation is anticipating severe equipment shortages in the southern provinces of Vietnam for at least a few weeks, while equipment supply in the north is also extremely tight.

With congestion already increasing in Shanghai, following Typhoon In-fa, the world’s largest port, Ningbo, is now turning ships away, after a Meidong Container Terminal worker tested positive for COVID on Tuesday.

Operations were suspended yesterday following the 34-year-old worker testing positive, with the port authority initially claiming that its operating system was down before the Ningbo Municipal Health Commission confirmed an infected worker was part of the workforce at Meidong terminal.

Large vessel numbers are already backing up outside Ningbo-Zhoushanas. This map by maritime consultancy eeSea shows the huge volume of container ships at anchor waiting for berth space. This is not good news for the logistics sector and could potentially spread to other gateways if similar outbreaks occur in China further hampering the already disrupted supply chains.

Ningbo-Zhoushan handled 1.17bn tons in 2020 making it the largest port in the world, with annual box throughput of 30million TEU. To put it into perspective.

When a COVID-19 outbreak was detected at Yantian Port in late May, operational capacity at the key southern port was cut by 70% for most of June.

Since last July COVID infections have been confirmed in roughly half of China’s provinces, sparking mass testing operations and localised lockdowns.

Newly reported cases have forced the country to re-introduce restrictions to curb the spread of the virus, with ports now requiring a nucleic acid test (NAT) for all crew, with vessels forced to remain at anchor until negative results are confirmed.

Many ports in the country are also requiring vessels to quarantine for 14 to 28 days if they previously berthed in India or performed a crew change within 14 days of arriving in China.

For urgent and must have shipments from Asia, we have access to freighter capacity from our Sea/Air hub in Singapore and can move consignments of up to 200cbm per flight to Europe.

Our commercial and operations teams work closely with our partners across Asia, monitoring air and sea freight operations and the port congestion that continues to impact most regions.

Please do continue to send us your forecast data and order information, at the earliest opportunity, so that we can manage cargo bookings and transit deadlines, to meet your expectations.

If you have any questions, concerns, or would like any further information regarding any of the issues raised here, please don’t hesitate to contact Elliot Carlile or Grant Liddell.