Archives April 2022

Everything happening in supply chains this week: Shanghai in lock down and the impact on China and the rest of the world. Food and energy supplies, inflationary pressures and the economy. The price of Brexit continues to impact the UK economy as the government delays border controls yet again. Port Authorities threaten to sue governmnet. Flying taxis and how they could impact supply chains. 

This is why you should listen to the Chain Reaction Podcast – All About Supply Chain Advantage. Evidenced based opinion delivered directly to you about everything happening in supply chains affecting business. Stay informed about supply chains by listening to Chain Reaction – subscribe today.

Inflation is driving supply chain costs and disruptions remain. Listen to the news from around the world affecting supply chains this week.

• Retail sales were lower last month as spiralling price increases hit discretionary spend.
• It cost Apple $6 billion dollars in each of the past two quarters due to microchip shortages.
• Update on US Port delays.
• Further delays likely on customs checks at British ports after departure from the EU says British Government.
• Price increases choke demand for private fuel use.
• Leader of the World Bank expects food prices to increase by 37%.
• Amazon announces delivery cost increases to third party sellers.
• Update on Los Angeles port.
• Two UK Government Supply Chain Initiatives were parked shortly after announcement.
• Eggs short due to chicken feed cost.
• Nestle announce price hikes due to commodity price increases and supply disruptions.

This is why you should listen to the Chain Reaction Podcast – All About Supply Chain Advantage. Evidenced based opinion delivered directly to you about everything happening in supply chains affecting business. Stay informed about supply chains by listening to Chain Reaction – subscribe today.

Global Supply Chains have been the dominant paradigm for the past thirty years or more. In this episode learn why that is so. Listen to what Professor Hines has to say on this topic.
 
” Volatility suggests instability and unpredictability. Chain reactions occur when chemicals added to existing chemicals cause further reactions that spread throughout the system. ” Volatility in supply chains has a similar effect “A series of events happen each caused by the previous event. Supply chains are said to be volatile when there is uncertainty in a part of the network that causes reactions elsewhere in the system. Supply chains are dynamic systems and a change in one node in the network can impact the whole system.” This is what Tony Hines said about volatility in his article of the same title: Volatile Global Supply Chains – Tony Hines Blog (wordpress.com)

So how can we minimise disruptions or manage them better?

This is why you should listen to the Chain Reaction Podcast – All About Supply Chain Advantage. Evidenced based opinion delivered directly to you about everything happening in supply chains affecting business. Stay informed about supply chains by listening to Chain Reaction – subscribe today.

Food prices are rising and consumers are paying a heavy price. CPI reached 7% in the UK in the year to March 2022 and 8% in the US. Pork prices are up 25% year on year.

• Energy prices have increased starkly too. Diesel and Gasoline have risen too making transport costs much higher.
• Problems at UK ports persist and there are still serious labour shortages including HGV drivers.
• Shanghai is still locked down with consequential impact on factory closures and ports at a standstill.
• P&O Ferries are still not working in the UK causing port congestion and delays and in addition there are still significant Brexit issues causing problems.
• World Bank Chief says it's time to diversify away from China.
• Minerals and metals are in short supply which has an impact on other products such as microchips.
• Avian flu gives rise to price increase in eggs (52%) and chicken meat.
• Canada invests $1.6 bn. In minerals to support EVB technology.
• Stagflation on the horizon?
• Catch up on the White House view of supply chains.

This is why you should listen to the Chain Reaction Podcast – All About Supply Chain Advantage. Evidenced based opinion delivered directly to you about everything happening in supply chains affecting business. Stay informed about supply chains by listening to Chain Reaction – subscribe today.

The Supply Chain News Round Up for April 2nd reports on events around the world impacting supply chains.
P&O The UK CEO dismisses 800 employees on a Zoom call wiyhout notice. The UK Government has instigated criminal proceedings.

• Shanghai is in lockdown again with Covid.
• The OBR says Brexit will cause a loss of 4 per cent. 
• The Sustainable Apparel Coalition Higg Index gives polyester a green light. Experts are highly critical.
• UK productivity slow down causes identified by Cambridge University Bennet Institute.
• News of another Evergreen ship stranded in Baltimore.
• Scania's new electrified truck breaks new ground.
• Is it the end of more than thirty years of globalization?

This is why you should listen to the Chain Reaction Podcast – All About Supply Chain Advantage. Evidenced based opinion delivered directly to you about everything happening in supply chains affecting business. Stay informed about supply chains by listening to Chain Reaction – subscribe today.

Risk – When you deliver goods to a port to be loaded on a ship that is when risk begins. Transporting the goods that you have produced with all the cost that has gone into those goods is value that can be lost if you do not protect your assets. This is where insurance comes into play. Having the right contractual arrangements with customers and suppliers is central to having the right protections in place. In this episode Tony Hines discusses Cost Insurance Freight and Free On Board options. He emphasises that insurance is necessary to reduce risk.

Reputations take years to build. Organizations invest millions of dollars to build a brand but all of this can be destroyed in a moment. P&O has become such a company at risk in the United Kingdom by the CEO admitting he broke the law when he dismissed 800 employees in a Zoom call without notice.

Tony Hines also gives his 3 minute tip to build supply chain advantage by focusing on his 7V Framework.

This is why you should listen to the Chain Reaction Podcast – All About Supply Chain Advantage. Evidenced based opinion delivered directly to you about everything happening in supply chains affecting business. Stay informed about supply chains by listening to Chain Reaction – subscribe today.