Archives November 2021

Inflation in the US is at a thirty year high standing at 6.2% and in the UK the Consumer Price Index stands at 4.2% in November up 1.1% from a month ago. As demand goes up and supply remains short inflation is one consequence. In this episode Tony Hines discusses cause and effect and what it means for supply chains.

Shipping is such an important part of global supply chains and 90 per cent of global trade is moved at some point by ships. As container vessels get bigger and bigger what is the shipping industry doing to lower carbon emissions? Also what other impacts does this growth in shipping have for the planet and people as well as for profit? Is the shipping industry on track to play its part in a greener, cleaner more sustainable world?

In the UK this week apart from some disturbing inflation measures we had news that the UK Government would not be proceeding with part of its investment in the rail network for the High Speed 2 Project (HS2). This has major implications for the North of England particularly the North East where the Government had previously indicated it wanted to invest to level up. If you don't have the investment in infrastructure it is unlikely you will develop the economy to do that.

In this episode Tony Hines provides a short summing up of the recent COP26 event in Glasgow UK and discusses what's next for supply chains beyond COP. He also takes a look at the importance of supply chain partnerships and the benefits they bring to organizations. It is a way of accessing complementary skills. He revisits some early lessons that he thinks are just as important as ever for supply chain professionals and businesses that want to improve performance.  Cost, Time, Quality, Capabilities, Capacities, Experience and Expertise are all part of the rich mix that organizations manage to improve supply chain performance. This is discussed in the context of his 7V Framework used to do just that. He takes a look at some of the early lessons managing inventories and what it means for profitability. 

In this episode Tony Hines discusses greener, cleaner, frictionless trade as well as catching up on some news issues. The fire on the container ship off the coast of Victoria British Columbia is another reminder of the hazards involved in transporting chemicals. A new way to produce electric vehicles is discussed focusing on Arrival's Oxfordshire site. Some interesting innovations point to the green vehicle revolution and how it will differe from anything the industry has previously seen. It promises to deliver some real benefits. Moving freight by rail is discussed as a future option that has some environmental benefits too. Transaction costs causing friction in supply chains is discussed in the context of the UK's departure from the European Union and why friction is bad for supply chains. Externalities and the cost of pollution moving from producer to consumers and public clean up operations. Eighty per cent of the world's plastic bottles end up in land fill, in the oceans of the world or are burned releasing Co2 in the process. Producers keep the profits and externalise their costs.

In this episode Tony Hines discusses why supply chain research is such a rich area of knowledge generation with both practical relevance and academic rigour. The episode will be of particular interest to those doing research into supply chains as well as new entrants to supply chain management.