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Tag: supply chain

Ashworth joins Kinaxia board

Posted on by David Priestman

Kinaxia Logistics has appointed leading industry figure Neil Ashworth to its board to support the development and roll-out of its digitalisation strategy.

Ashworth has more than 25 years’ board level experience in the logistics, supply chain, retail and e-commerce industries, with a track record of helping companies and organisations remain at the forefront of market innovation and transform their operations into the digital era.

He is a former chairman of the Chartered Institute of Logistics & Transport and in a recent role was the director of delivery channels for the Department of Health and Social Care’s Covid-19 testing programme across the UK.

Before that post he was chief strategy officer and chief commercial officer at Yodel Delivery Network and chief executive of Collect+. He previously also held senior roles at companies including Tesco and Woolworths.

Currently Ashworth is non-executive chairman of private equity-backed e-commerce fulfilment specialist Selazar, a non-executive director of global healthcare supplies business 2San Global and an adviser to product data technology business IVIS Group.

Kinaxia chief executive Simon Hobbs said: “Neil brings a great deal of experience to our board, both from a supply chain and retail perspective, and will help us refine and implement the digitalisation of the business.

“I look forward to working closely with Neil and benefiting from his proven expertise.”

Ashworth said: “I am delighted to be joining the team at Kinaxia Logistics as they build on their already impressive journey to create a leading force in the UK logistics market.

“My experience complements the capabilities of the existing team, and I look forward to working closely with Simon to drive future growth as a non-executive on the board of directors, which reinforces and highlights the board’s commitment to promoting good corporate governance.”

Kinaxia employs more than 1,600 staff across its businesses and has a fleet of more than 800 vehicles which transport goods for supermarkets and other retailers as well as the leisure, food and drink and manufacturing sectors.

Headquartered in Macclesfield, Cheshire (UK), Kinaxia offers contract packing, e-fulfilment, returns management and storage services from its nationwide warehouse facilities.

DHL Index: Globalisation resilient during pandemic

Posted on by Keith McKinley

DHL and the NYU Stern School of Business have released the 2021 update of the DHL Global Connectedness Index. Now in its 10th year, this report provides a fresh view on the impact of the pandemic on globalisation by analysing international flows of trade, capital, information, and people. While there are different trends across types of flows, the overall DHL Global Connectedness Index just declined very modestly in 2020 and is on track to rise in 2021. Nonetheless, the Covid-19 ‘stress test’ also revealed longstanding vulnerabilities that demand attention moving forward.

“Many feared that the global crisis would jeopardise the progress of globalisation,” said John Pearson, CEO DHL Express. “We have been analysing the various international flows worldwide for years and after 1.5 years of the pandemic, we can now safely assure: the pandemic has not caused globalisation to collapse. After initial dips in 2020, the DHL Global Connectedness Index is already on the rise again this year. Trade has provided a lifeline for countries around the world, and DHL Express has played a key role in areas ranging from vaccine distribution to e-commerce.”

After steeply plummeting early in the pandemic, trade in goods rebounded to above its pre-pandemic level before the end of 2020. Global trade in goods has set new records in 2021. Foreign direct investment flows shrunk even more than trade in 2020, but they are on track for a full recovery in 2021.

International data flows surged in 2020 as in-person interactions went online, but this did not break a longer-term slowdown in the globalisation of information flows. Finally, international flows of people were hit the hardest by the pandemic, and they are recovering slowly. International travel fell 73% in 2020, but there are glimmers of a recovery starting in mid-2021.

“The resilience of global flows is good news, because a connected world offers the best prospects for a strong and sustainable recovery from the Covid-19 pandemic,” said Steven A. Altman (pictured), Senior Research Scholar and Director of the DHL Initiative on Globalisation, NYU Stern. “When a crisis strikes, many of us naturally feel a strong impulse to hunker down behind borders. But the more extreme the challenge, the more urgent it becomes to draw upon the best ideas and resources from at home and abroad.”

The surge of international trade since mid-2020 far surpassed initial forecasts, even as the mix of goods traded changed more than usual. Trade in goods used to fight the pandemic soared while trade in many other products declined. Meanwhile, contrary to expectations that the pandemic would cause a shift to more regionalised trade, trade in goods took place over longer distances, on average, in 2020. Data on capital, information, and people flows also show no clear evidence of a shift underway from globalisation to regionalisation.

The world’s poorest countries, meanwhile, are still lagging behind in the globalisation recovery. Even as global trade was setting new records in early 2021, the countries with the lowest per-capita incomes were still trading less than they did in 2019. Likewise, foreign direct investment into low-income countries fell over the same period, while it grew strongly in middle- and high-income countries. The world’s poorest countries are still dangerously disconnected, and stronger links to the wider world could help accelerate their recoveries from the Covid-19 pandemic.

In a special report on the 10th anniversary of the DHL Global Connectedness Index, DHL and the NYU Stern School of Business highlight strong links between global connectedness and prosperity. This report shows how policymakers can actively impact the connectedness of their countries. Five key areas for improving a country’s connectedness are peace and security, an attractive domestic business environment, openness to international flows, regional integration, and societal support. Remarkably, an attractive domestic business environment may boost a country’s global connectedness even more than traditional pro-globalisation policies.

The report also examines five countries (Mexico, The Netherlands, Sierra Leone, The United Arab Emirates, Viet Nam) that have stood out for their strong or rising connectedness over the past two decades. The various paths these countries took to greater connectedness show that there is no one size-fits-all prescription – instead, each country can pursue the international opportunities that make the most sense in its own local context

Both reports highlight how, despite setbacks, the world remains close to a record high level of globalisation. At the same time, they also show that globalisation is still limited, with large untapped opportunities available for countries and companies. Most business activity still takes place inside national borders, and the flows that do cross national borders mainly take place between neighbouring countries. Prevailing trends still point to a future with large opportunities to gain from stronger links to the wider world.

Conqueror Freight Network celebrates 10th anniversary

Posted on by David Priestman

Conqueror Freight Network, the largest exclusive freight forwarders network in the world, has this year completed 10 years in the industry. It has celebrated this special occasion during the Conqueror’s 2nd Virtual Meeting, held on 29th and 30th November. As a token of appreciation, a touching video with the best highlights during the past decade was screened before the Speech delivered by Antonio Torres, Conqueror’s President and Founder.

During the event, which saw network members representing more than 50 countries worldwide coming together, the delegates conveyed their appreciation for the video and expressed their pride to be a part of the Conqueror family.

“I have been a member of Conqueror since 2011 and have seen it grow. The video played at the Event was very heart-warming, since it made me remember all the good moments we have had at the Meetings, the friends we have met there and all the work and efforts we made along these years”, says one of the Conqueror members in India.

Conqueror was launched back in 2011 as an exclusive network for freight forwarders. Since then, it has been helping independent freight forwarders from around the world to effectively compete against the largest multinationals of this sector. The network started its operations with 47 cities in 33 countries and now it has more than 260 members across 137 countries, becoming the largest exclusive international freight forwarders network.

Torres  said: “We have come a long way since the foundation of our network. All these years, we have grown together, expanded our business, established long-term relationships, being present in 10 editions of Virtual and Annual Meetings. Since the very first moment, there has been a fantastic personal and professional relationship among all Conqueror members, that is why I would like to thank all of them for their trust throughout these years, and even more in these difficult moments.”

During all these years, Conqueror’s Annual Meetings have helped freight forwarders to get together for enhanced networking and better prospects of project exchanges. “Conqueror’s 1st Annual Meeting at Phuket in 2012 gave the members the first insight into the immense potential of this network. This is why there couldn’t have been a better time to celebrate our 10th Anniversary with our members than the Second Virtual Meeting,” continued Torres.

Conqueror’s custom-made meeting platform allowed each delegate to schedule a maximum of 28 videoconferences with their international logistics partners, scheduling a total of 1680 videoconferences. Additionally, this year, the participants got the option of accessing a chat room with up to five random partners and engaging in friendly chitchats.

The delegates also attended the FreightViewer workshops where Andrea Martin, Conqueror’s FreightViewer coordinator showcased the several utilities of Conqueror’s member-exclusive TMS.

“One of the Conqueror’s biggest achievements in the last ten years is the creation of our own digital freight quote generation platform. We are the first international network with global coverage to launch instant quoting ability for our members, through FreightViewer,” continued Torres. “Our team always strives for more and better services, in order to provide members with the most innovative and unique benefits – apart from FreightViewer, every year we increase the wide range of logistics and marketing services we offer our members.”

Research: Customer relationships grow stronger despite challenges

Posted on by Keith McKinley

Most Board-level executives believe that customer relationships have grown stronger during the pandemic, despite significant supply chain disruption, according to research* conducted by management consultancy, Vendigital.

54% of the C-Suite executives surveyed at UK-based businesses said that their customer relationships are stronger now than they were before Brexit and the onset of the pandemic, despite the significant disruption that these events have caused. Most believe that this positive change is due to their focus on continuous improvement and their agile response in adapting their operating models to meet unexpected shifts in customer demand and behaviour.

Jeff Kennelly, a director and industrial engineering sector specialist at management consultancy, Vendigital, said: “When consumer and/or customer behaviours changed at the start of the pandemic, businesses had little choice but to stop what they were doing and rethink ways to adjust to meet new areas of demand. Those that responded quickly have been able to strengthen customer relationships as a result.

“Not all businesses were able to do this however, and when supply backlogs accumulated as demand levels bounced back earlier this year, some customer relationships felt the strain. Despite the positive outcome for most businesses, one in five (21%) of C-Suite executives believe their customer relationships have suffered during the pandemic due to the knock-on effect of missed deadlines and demand unpredictability.”

Against a backdrop of rising energy costs and ongoing supply shortages, which are affecting a host of vital components and raw materials, most Board-level executives are aware that the year ahead will test their customer relationships further. 84% of C-Suite executives said managing customer relationships, while keeping a close eye on costs, will be key to the survival of their business in the year ahead. To nurture their customer relationships, 71% of C-Suite executives are intending to invest in customer relationship management and most see this as a long-term investment.

Balancing customers’ needs and cost constraints is going to be more difficult for some businesses than others. The research revealed that businesses that had reported a dip in revenues during the pandemic were more likely to be prioritising cost control, whereas those that reported an increase in revenues were more likely to be focused on investing in innovation to meet customers’ current and future demands.

Kennelly said: “During times of uncertainty, businesses know how important it is to stay close to their customers and suppliers. This will involve staying agile and continuing to innovate to meet customers’ demands, but managing costs remains a critical part of this process.

“Balancing customer demands and cost constraints will be easier to achieve if there are strong relationships in place, allowing accurate availability and demand data to be shared openly across the supply chain. Accurate real-time customer data is now a Boardroom essential.”

To support businesses in balancing customer needs and costs on the road to recovery, Vendigital has produced guidance for Board-level decision makers, which has been published in a report, entitled Redefining Customer Relationships in a Changing Market. The guidance covers 15 critical questions designed to help businesses review each stage of their operating model through a customer-focused lens.

CLICK HERE to download a copy of Vendigital’s report about redefining customer relationships.

* Vendigital’s research has been conducted with 151 C-Suite executives at UK-based businesses. 

 

DHL makes senior management changes

Posted on by David Priestman

DHL Supply Chain has made significant changes to its senior leadership team as part of its future growth strategy. Current Chief Executive Officer DHL Supply Chain UK & Ireland, José F. Nava, moves to a new global role as Head of Next Generation Services program, DHL Supply Chain. Saul Resnick, currently Chief Executive Officer DHL Supply Chain Australia & New Zealand, replaces him as CEO, DHL Supply Chain, UK & Ireland.

The changes will be effective from 1st January 2022, with both reporting directly to Oscar de Bok, CEO, DHL Supply Chain and member of the global DHL Supply Chain Board.

Nava was appointed CEO, DHL Supply Chain UK&I in 2018 and in this time has been responsible for refocusing the business, strengthening core operations and achieving considerable productivity and profit growth. In his new role, Nava will take on responsibility for seeking out future growth opportunities and helping define the business strategy beyond 2025.

His successor, Resnick, joined DHL Supply Chain in 2005 as Director, Healthcare Australia. In 2016 he stepped into his current role as CEO Australia & New Zealand and also assumed responsibility for the Life Sciences & Healthcare business within the APAC region.

In this role, Resnick was responsible for the impressive growth of both revenue and profitability for the Australian and New Zealand businesses for the past 5+ years.

Nava said: “Over the past three-and-a-half years we have accelerated our investment on a number of fronts to consolidate our leadership position in the UK&I. These include cutting edge warehousing and fleet that lead the way in sustainability and technology, to the latest warehouse and transportation management systems.

“I’ve also learned a lot from our customers and built some great relationships; but what I’m most proud of is our expert team of colleagues who are all committed to go the extra mile for our customers while keeping each other safe day in and day out.  It’s been an amazing experience that will stay with me forever, with many great memories.”

Commenting on his appointment, Resnick added: “I’m excited to be taking on the role of CEO UK&I and building on the excellent platform created by José and his team. I look forward to the UK&I business growing its market share, and creating even more opportunities for our colleagues to develop into. We have a fantastic reputation, not just globally, but within the UK&I, and I consider it a great honour to lead our business at this time. I would like to thank José for all the effort he has put into the role, and for placing us in the strong position we find ourselves in today.”

FM Logistic expands Bauhaus contract

Posted on by David Priestman

Third-party logistics company FM Logistic has renewed and expanded its e-commerce logistics contract with the German DIY retailer Bauhaus. The new contract has led to doubling the size of the Lovosice fulfilment centre, in the Czech Republic, from 30,000 to 60,000 sq m.

FM Logistic is managing Bauhaus’ online orders and distribution to consumers in Austria and Germany from Lovosice, a Czech town located near the German border. The cooperation started in 2018. Under the new contract, FM Logistic will handle a broader range of Bauhaus products. Bauhaus is indeed planning to bring the range of products stored in Lovosice from 30,000 to 100,000 SKU by 2030.

“In 2020, we handled 66% more orders than the year before. In 2021, we expect volume to increase by another 34%, which brings us to more than one million orders per year. To support this growth, we have been closely cooperating with Bauhaus to co-design and automate warehouse processes,” says Guilhem Vicaire, Business Solutions Director Central Europe at FM Logistic.

The contract covers further investments in automation. FM Logistic and Bauhaus have set up an on-demand packaging machine to produce the right size box for non-conveyable items. They have also invested in automated sorters and a goods-to-person picking system to improve order processing.

The additional warehousing space was delivered by P3 Logistic Parks. It was inaugurated in October 2021 by Johannes Wechsler, SVP E-Commerce & Digital at Bauhaus, and Jean-Christophe Machet, FM Logistic’s CEO.

“We decided to work with FM Logistic in 2018. Together we have succeeded in setting up an important link in our e-commerce logistics chain. We see FM Logistic as a strategic partner. That is why we have decided to extend our partnership by investing heavily in this fulfilment facility,” said Jérôme Biencourt, head of e-commerce logistics at Bauhaus.

New research highlights massive supply chain challenges

Posted on by Keith McKinley

To better understand the state of European supply chains, FourKites, the real-time supply chain visibility platform, partnered with Reuters Events to survey over 450 supply chain leaders across the continent, with particular emphasis on the United Kingdom, Germany and the Netherlands. The responses represent a broad perspective of the concerns and challenges surrounding European supply chains, sustainability and the role of real-time visibility in streamlining operations.

Coming in the midst of ongoing disruptions caused by COVID-19, State of the European Supply Chain: Logistics, Sustainability and Visibility Report 2022 reveals that the demand shock, labour shortages, port disruptions and capacity constraints have accelerated the adoption of supply chain visibility solutions throughout Europe. However, while many companies have adopted new digital practices, more than 60% of European companies admitted they’re slow to react to changing trends in logistics technologies, according to the report.

Key findings include:

  • Over half of all respondents are currently using supply chain visibility solutions, but one-third (33%) are having trouble improving data-driven processes such as forecasting, receiving operations and labour.
  • The majority of respondents (67%) cited end-to-end freight traceability as their biggest pain point when transporting goods.
  • More than half of respondents (63%) cited carriers providing inaccurate ETAs as a persistent problem.

“If we have visibility, we can be efficient and flexible,” said Ferenc Polgar, Global Distribution Operational Excellence Lead at Bayer. “We can communicate delays to our customers so they can adjust their operations and improve their experience. We can be more effective during peak distribution periods to make sure plans are going accordingly.”

“Being able to see your goods in transit is one piece of the puzzle, but it doesn’t help navigate the many disruptions and delays that inevitably take place once the product leaves the ship or warehouse,” said Matt Elenjickal, founder and CEO of FourKites. “For that reason, the paradigm is shifting to full end-to-end supply chain visibility, wherein the goal is total predictive visibility across the entire supply chain, enabling proactive risk management vs. reactive problem-solving.”

Pain points vary

Looking at their three biggest pain points in transporting goods, respondents from the UK, Germany and the Netherlands had surprisingly different answers:

  • The UK was relatively balanced, with 71% of respondents citing end-to-end freight traceability, carrier relationships, and dwell times as their biggest pain points.
  • In the Netherlands, 75% of retailers and manufacturers said their biggest pain point was carrier relationships.
  • In Germany, 100% of respondents were struggling with ensuring end-to-end freight traceability.

Overall, respondents indicated supply chain visibility improved their planning and inventory management (60%), customer service (56%) and increased efficiency (38%). In the Netherlands, 40% saw an improvement to customer service whereas in Germany that number was even higher at 100%. Meanwhile, in the UK 63% said that improved planning and inventory management is the primary benefit of visibility.

Even the most commonly used mode of transportation also varied widely across the continent: 63% of UK respondents cited full truckload as their key mode of freight, while 80% of Netherlands respondents are using less than truckload, and 100% of German respondents are transporting freight by air, both domestically and internationally.

Sustainability is a priority

The survey illustrates that sustainability is top of mind for today’s supply chain leaders. Over 80% indicated that they were either holding steady (44%) or increasing (40%) their commitment to sustainability, emphasising the urgency with which businesses understand they are required to act.

The two key supply chain sustainability goals articulated by respondents were the reduction of carbon emissions in transportation (39%) and manufacturing (31%), as well as the reduction of non-renewable packaging materials (31%). However, over a quarter of respondents also reported mapping sustainability impact throughout their supply chain as a challenge to modernising transportation assets.

“We use supply chain visibility data to understand better where there’s waste within the supply chain. Where do we have excessive empty miles?” said Paul Avampato, Head of International Logistics at Henkel. “We believe by reducing dwell time that we can keep the network moving smoother. The more we reduce dwell time, the less trucks that you have to put on the road.”

CLICK HERE to read the full report.

Kent sees record growth in logistics

Posted on by Keith McKinley

According to data sourced from the Office for National Statistics, the logistics and distribution sector across the Kent and Medway region of the UK has grown by 60.6% since 2016, with 2,000 jobs created over the same period and 3,600 businesses now operating in the sector.

Gravesham, Dartford, Medway, Maidstone and Swale are performing above the national average in terms of sector size, contributing to an industry that has seen a 48.1% increase in GVA countywide since 2000. That figure, as of 2018, stood at an estimated £2.3bn per year.

Gavin Cleary, CEO of Locate in Kent, explains there are several factors at play including the availability of lower cost industrial and commercial spaces on brownfield sites, increased housing development across the county and the strategic location of Kent and Medway as a gateway between London and Europe.

“Franzosini & Butti, Coyote Logistics UK Limited, TNT Express Limited and Amazon UK are some of the large operators that have chosen Kent & Medway since 2015, confirming our region as a prime location for logistics for nearly every sector,” said Cleary. “And we’re seeing no sign of that easing as the UK emerges from the pandemic with continued strong demand. We have a number of exciting new sites coming through between now and the end of 2023, with a significant number already pre-let.”

One of the biggest drivers for this success has been the rise of e-commerce and the continued shift towards online retail, with the Covid-19 pandemic only serving to accelerate that trend. And with prime locations in the sector’s Golden Triangle along the M1 corridor in the East Midlands at saturation point, Kent and Medway is one of the areas benefitting as couriers and distributors look elsewhere.

Companies working in the sector have also highlighted driver welfare and environmental concerns as important factors that are helping to increase the competitiveness of Kent and Medway as a key hub for the logistics and distribution sector.

Neil Cursons, Managing Director of Kent firm George Cursons which launched its new frozen foods processing and distribution plant for the UK hotel and catering trade at Manston, Thanet, in October, said: “Kent is a fantastic location for business. With its proximity to London and the Channel Ports and the sector’s drive to be more sustainable, the county has great potential to grow further in the logistics and distribution space.

“Dover is one of the main arrival points for frozen fish, but rather than those shipments going up north to be processed we chose to keep it here, saving on transport and cutting pollution. That’s the opportunity we saw in wanting to open this facility.

“We are looking at how we can expand on this further to help us meet regional demand. Our belief is that local is better. We can tap into existing supply chains and build from there.”

The following schemes are expected to launch by 2023, adding an estimated 12.5 million sq ft (1.16 million sq m) of additional space for the logistics and transportation sector, with Mid and North Kent the areas to benefit.

  • 3.92 million sq ft (365,000 sq m) of logistics and manufacturing space at J4/M20 with Panattoni securing permission to transform the former Aylesford Newsprint Site.
  • 5.2 million sq ft (483,000 sq m) of logistics, manufacturing, and energy production at the former Kingsnorth Power Station in Medway
  • 500,000 sq ft (46,500 sq m) of warehouse and office space at Woodcut Farm in Maidstone, located off Junction 8 of the M20
  • 800,000 sq ft (74,500 sq m) of warehouse and office space at Kingstanding in Tunbridge Wells
  • 450,000 sq ft (42,000 sq m) of warehouse space at Powerhouse in Dartford
  • 100,000 sq ft (9,250 sq m) of speculative warehouses at Goodmans in Dartford
  • Enhanced production corridors, including Innovation Park Medway which once complete, will provide over one million sq ft (93,000 sq m) of space for high-value technology, advanced manufacturing, engineering, and knowledge-intensive businesses

Locate in Kent is the inward investment agency for Kent and Medway. Its aim is to encourage and support more businesses to set up and expand in the county. It offers a bespoke support to investors including market insights, property searches, advice on financial support available, and connections to local partners, suppliers and business networks.

‘Nirvana’ for nervous importers

Posted on by Keith McKinley

As supply chain disruptions continue to dominate news headlines, a noted inbound supply chain software specialist is making sure that nervous importers are guaranteed a good night’s sleep. Logistics Business magazine editor Paul Hamblin meets Setlog.

In the logistics industry, much of the noise around Digital Integration and Real-time Visibility (RTV) software and their ability to improve both service and efficiencies has been focused on the last-mile sector, on the journey of goods around a warehouse and then out to the end consumer. Indeed, end-consumer comfort with the technology is a key component of its raison d’être.

But what about the much longer, more complex and decidedly uncertain route taken by the goods before they even arrive at the warehouse? In other words, their journey from a producer or supplier in Asia or Africa to, say, their European-based importer? In a world where disruption has been perhaps the most common word in the global supply chain lexicon over the past 24 months – and with no likelihood of unexpected disruptions ceasing any time soon – ­importers will be happy to hear about a software provider able to offer solutions aimed at full collaboration and visibility of the total inbound supply chain.

Founded 20 years ago, now with offices in New York and Bochum (Germany) serving over 150 customers and brands, Setlog offers a digital ecosystem in which every stakeholder in the supply chain takes part. It includes the importer’s WMS and ERP and all constituent parts, plus suppliers, factories, forwarders, laboratories, buying offices, warehouses and quality control mechanisms, all linked to a common, easy-to-use, 100% integrated Digital Independence and visible gateway that enables all parties at all locations to see all data and all workflows at all relevant times. And all managed by easy-to-use, downloadable software.

It’s called Online Supply Chain Accelerator, or OSCA. “Data silos are everywhere, and they are killing businesses,” Guido Brackelsberg, Setlog co-founder and MD Sales, tells me. “Those businesses need shorter lead times. It’s driven by the Amazons of this world and it’s leading to more decentralised supply chains that are not optimally connected. To achieve the agility they need, our view is that businesses need digital independence, a digital core to manage sourcing, procurement and their global logistics processes. It’s why we focus on API integration and better movement of data. Collaboration of inbound supply chains is going to be a must for everyone, whether you are in fashion or frying pans.”

The obvious immediate benefit is faster lead times – 2-4 months, rather than the 8-12 months of a traditional or not fully integrated supply chain. Put that win against an autumn of doom-laden headlines about global shortages, blocked ports and stranded container ships and you have a story to make a Setlog target customer sit up and take notice.

As supply chain disruptions continue to dominate news headlines, a noted inbound supply chain software specialist is making sure that nervous importers are guaranteed a good night’s sleep. Paul Hamblin meets Setlog. “Let’s not even talk about how bad it is out there,” agrees Guido Brackelsberg.

“The benefit we offer against this backdrop is security, reassurance. You have a much better grip on your supply chain because your supplier is sharing all of his/her information. Our customers say to us: ‘I can sleep at night now, because of OSCA. If something goes wrong in my supply chain outside my control – and I know it’s going to – I can alleviate the pain. I can act, rather than react.’” Clearly it is a highly intricate network, but for the core user it is easy to operate via the software. “That’s what 20 years of experience gives us,” says Brackelsberg. “Knowing what a warehouse worker in Bangladesh is confident about operating intuitively in the same way as counterparts around the world. Everyone sees the same screens.”

A SaaS business model, Setlog is migrating OSCA to a platform approach so a supplier will only need to be added to the ecosystem once. That same supplier might work with five different customers with five different workflows. In each case, full end-to-end visibility with integrated API and data analytics are promised, all with nirvana in mind for the importer – digital independence.

BSI launches significant global intelligence report

Posted on by Keith McKinley

Today (16th November 2021), BSI, the business improvement and standards company and leading global provider of supply chain intelligence, unveiled its annual Supply Chain Risk Insights Report – the new report lands at a time when supply chains are dominating discussion both in boardrooms and households.

The report identifies the trends and associated risks impacting global supply chains over the coming year and highlights five key themes to enable organisations to achieve resilience:

  • Supplier transparency as a key decider of business success
  • A shifting Environmental, Social and Governance (ESG) regulatory environment
  • A holistic understanding of ‘pain points’
  • Adapting to ‘convergences’ of business challenges
  • Identifying opportunities in emerging trends

Crime, climate and a convergence of threats emerge as dominant risks to the global supply chain. The report, which is powered by analysis of the global data in BSI’s proprietary web-based intelligence system, Connect Screen, provides valuable insight into the significance of these threats while offering analysis and practical guidance to organisations on best practices to mitigate and counter risks.

Susan Taylor Martin, BSI Chief Executive, said: “The past few years have put a spotlight on global supply chains and reinforced their crucial role in our day-to-day life. Because of this unprecedented moment, the supply chain is about to have a make-or-break year and needs to be right at the top of the C-suite agenda. It’s clear that the importance of supply chains will only increase as we head into 2022, and the steps organisations take now will ultimately determine their success or failure.”

Harold Pradal, BSI Chief Commercial Officer, said: “Supply chain threats will remain one of the most serious issues global businesses will face in 2022. Widespread product shortages and scarcely qualified operators, including lorry drivers, are only the tip of the iceberg when it comes to the ongoing global supply chain crisis.

“With manufacturers and freight companies already spending much effort to address these issues, organisations along the supply chain increasingly fall vulnerable to a convergence of additional threats. Those include more frequent and damaging natural disasters and more opportunistic criminal cartels. Unless these threats are addressed holistically and quickly by supply chain leaders, consumers are likely to see current challenges continue and worsen over time.”

Jim Yarbrough, BSI’s Global Intelligence Program Manager, added: “As we continue to manage a multitude of challenges, including COVID, climate change and natural disasters, we have seen the convergence of impacts on organisations and the global community, illustrating the broad-brush consequences of disruptions and threats to our supply chains and the importance of not underestimating their complexities.

“To protect the integrity of this vital part of our global way of life, business leaders must stay ahead of the latest trends that threaten to disrupt it. We’ve published a supply chain risk report every year since 2013, but there has never been a more vital time for business leaders and decision-makers to take note.”

The threats highlighted in the report include:

Crime: The importance of verifying, then trusting

The pandemic showed companies of all sizes from around the world the importance of adaptability, and criminal organisations were no exception. Over the past year, BSI has observed a significant number of criminal organisations trying to infiltrate the logistics supply chain, masquerading as legitimate companies working in warehousing, transportation and distribution. BSI has also noted the issue of fake carriers in an increasing number of countries. Additionally, over 2021, BSI reported that increasing unemployment closely correlated with an increase in organised crime and cargo truck hijackings in South Africa; as unemployment rates increased to 32.6% in the first half of 2021, hijacking crimes also increased by approximately 24.6%.

Similarly, drug cartels around the world are becoming more creative. BSI saw the numbers and quantities of cocaine seizures in Europe increase steadily in 2020 and 2021, and they are expected to continue to rise in 2022. Criminal organisations in Ecuador, Brazil and Colombia ship large quantities into ports in Europe. Although the ports of Antwerp in Belgium and Rotterdam in the Netherlands generally record the most and largest seizures of cocaine from Latin America, there have been notable shipments stopped in Ireland, France, Montenegro and Greece, further showcasing the cartels’ ability to diversify routes.

BSI says these issues underscore the need for organisations to ensure they undertake proper due diligence when onboarding their suppliers. Critically, an end-to-end risk assessment of a company’s supply chain will mitigate the risks inherent to partnering with separate companies from around the world.

Climate: Green-proofing the supply chain

From all corners of the globe, companies are seeking to both protect their supply chains from the effects of climate change and ensure they play their role in a greener future. Maintaining ESG compliance in evolving regulatory environments should now involve considering the impact on the entire supply chain. For example, BSI noted that this year, at least 18 companies-spanning several industries were identified as sourcing products from companies contributing to deforestation in the Amazon. This type of association has the potential to bring significant reputational damage to an organisation and could ultimately result in a drop in revenue.

Additionally, while 2021 has seen a trend of higher-than-average shipping delays rebound, disruptions to the global supply chain like Hurricane Ida in August in the US and Typhoon Chanthu in September in China, have cumulatively caused various delays of shipment volume arriving infrequently at Californian facilities. This has put renewed stress on the ports of Los Angeles and Long Beach, which account for about one-third of all US imports. With climate change likely to increase the frequency of natural disasters, it is against this volatile backdrop that organisations need to reassess and look beyond traditional supply chain partners, methods and technologies.

Convergence: Problems piling up

An overarching threat to supply chains is the risk that individual considerations such as business continuity, sustainability, Corporate Social Responsibility (CSR) and security are not addressed comprehensively, and that organisations fail to acknowledge that they are interrelated. Business continuity threats can lead to security threats and vice versa.

The global shortage of semiconductors exemplifies this convergence. Taiwan holds roughly 90% of the world’s manufacturing capacity to produce semiconductor chips, an over-reliance that contributed to a global shortage of this component. In addition, factors such as droughts and COVID outbreaks in Taiwan between April and July impacted operational capacity, compounding the global shortage. This shortage also created security concerns; for example, a group of criminals attacked a truck driver’s assistant as he was transporting a high-value cargo of semiconductor chips in Hong Kong in June, stealing $650,000 worth of goods.

Convergence can be addressed by companies doubling down on collaboration, ensuring that all parts of an organisation and their partners understand the integrated threats to a supply chain and that teams work together to address them.

It’s essential that organisations have clear insight into the global supply chain landscape and how its ever-evolving dynamics will impact the future.

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