Archives August 2022

This episode takes a look at ESG and its relevance for supply chain management. This is part of the series explaining supply chain concepts in under 5 minutes. ESG is a way of assessing risk in relation to environment, social and givernance factors. When it thcomse to protecting or minimising the harm done to the environment through industrial or business processes a company's supply chain is critical. How organizations procure, produce and distribute their products can impact beyond the organization. For example, choices in relation to transport and distribution can result in higher or lower CO2 emissions. The fule used to produce goods can be green energy usuing renewable sources or it can be fossil fuel (oil, gas, coal) and the output can benefit or harm the environment depending onthose choices. Social conditions are influenced by the way organizations structure their arrangements with other companies to procure and produce goods. For example, if you choose to source from countries where their employment conditions exploit people the n you are contributing to the harm done to that community regardless of the income they earn from your purchase. This may seem a harsh assessment but it is a fact. If you want to be ethical and sustainable the way forward is to ensure that you influence social conditions across your supply chains by maintaing standards applied consistently across the supply chain. Governance is a key mechanism for achieving environmental and social goals.

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All things impacting global supply chains this week.

• Energy, Inflation, Strikes
• UK This week Energy Costs Up for Businesses and Consumers
• Energy costs add to inflationary pressures
• The Horn of Africa facing drought and food crops
• Ford cuts payroll in North America and India as it transitions to EV's
• Global Market for EV batteries growing
• Profits lower in China industries -growth slows
• Big Pharma –  Moderna sues Pfizer and Biontec of Covid vaccines
• Russia in search of new markets for LNG
• Inflation running rampant for many economies more than half caused by conflict in Ukraine
• Energy price hikes impact small businesses
• CEO of NHS England talks about the impact of inflation
• CF Fertilizers closures cause problems for food, packaging and fizzy drinks find out why
• US Port Congestion
• Felixstowe strikes UK
• Sewage discharges into rivers and sea UK impacts the shell fish supply chain
• Food prices increase in Australia due to labor shortages
• Additive manufacturing can help meet demand for some

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All things impacting global supply chains this week.

• UK Inflation hits 10.1% year on year
• Wayfair Online Furniture Retailer cuts 870 jobs
• Tessla cust delivery times to 4 weeks
• Airbus cuts delivery forecasts
• Boeing also cuts its forecasts for output
• Labor strikes adding to supply chain disruptions
• Wage offers frome employers fall well below inflation
• Felixstowe and Liverpool two major UK Ports have strike action
• UK Rail industry strikes continue (40,000 employees)
• Amazon warehouse strikes
• Energy costs will add to inflationary pressure
• Tessla switches EV batteries to cylindrical from prismatic
• Eve Chinese EV battery manufacturer is building new plant in Debrecan, Hungary
• Autonomous vehicles
• VW manufacturing plant in Mexico impacted by labor strikes
• Plastic bottles switch to 100% recyclable
• Pepsico building its largest manufacturing facility in Denver
• Port in a desert to ease pressure on Los Angeles and Longbeach
• President Joe Biden signs the Inflation Reduction Act
• GAP  hires out its logistics and supply chain systems – This is a growing trend for big retail.
• PFAS 'forever chemicals' new science to break them down – 97% of Americans have PFAS in their bodies
• Catch Up with all Episodes

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In this episode Tony Hines talks about the global energy crisis and how it is impacting supply chains.  Is it more than supply and demand determining prices and energy inflation. When it comes to energy supply most countries want to protect security of supply. Russia's war in Ukraine has disturbed the balance not only in Europe but across the world pushing up prices and contributing to inflationary pressure. At some point physics demands a return to equilibrium but where exactly will that be? 

China has oil reserves and coal yet it is only able to meet 20 per cent of its oil demand. This was not a problem 35 years ago when China only contributed 1.6% to World GDP. Today, however it is the powerhouse of the Global Economy. It has invested heavily in rare earth minerals and it imports oil from the Persian Gulf and from states bordering its territories including Russia.  Listen to how this is changing the goegraphy and security of South East Asia and the Word.

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All things impacting global supply chains this week.

• $430 bn approved by the House of Representatives – Inflation Reduction Act
• Brent Crude down
• US Inflation
• Energy Prices
• Russia's economy in recession
• Five Chinese companies listed on the NYSE suspended
• AI to rate company ESG
• Eastern European inflation on the rise
• Cuba oil storage facility fire
• Sri Lanka Port
• Peloton revise strategy to improve cash flow and revenue
• Southern Ukraine Nuclear Plant under attack
• Kahzakstan sell oil through Azeri pipeline to Turkey
• Heat waves cause fires and drought in Europe

Up next 'Energy' next week
Also listen to the new 'SC Concepts in Under 5 Minutes'

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What is different about service supply chains? Tony Hines discusses differences and similarities between service and goods supply chains in this episode. Service requires the organization to be customer focused not product focused. It is something that some product organizations have difficulty with. Find out how your organization can become customer focused and provide service.

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This is a new series of shorts explaining supply chain concepts in under five minutes. In this first episode just as Oscar Wilde said news of his demise was greatly exagerated we can say the same about Just-in-Time (JiT) systems. In this episode Tony Hines explains why he thinks Just in Time is here to stay.

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All things impacting global supply chains this week.

Nancy Pelosi visits Taiwan and China responds angrily
Gasoline prices at the pump going down
Market for electric aircraft growing year on year
Automobile markets for new vehicles are volatile
Electric vehicle makers search for deals to secure rare earth metals for batteries
Re-engineering the toilet can make a contribution to recycling
The first grain ship leaves Odesa destination Lebanon via Istanbul
China acknowledges climate change higher than elsewhere in the world
Interest rates rise in the UK and the Bank of England says recession likely
US adamant that there will not be a recession

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Tony Hines says that two of the most important words uttered around supply chains in the past year have been resilience and sustainability and what they mean in differente contexts. In this episodes he revisits some of the episodes in which guests discussed the topic along with some of his thoughts about them and what they mean for leaders in government and in organizations.

He spoke to Professor Wendy Phillips earlier about humanatarian logistics and discusses what resilience means in this context and in healthcare. He also spoke to Professor Eoin Plant-O'Toole about resilience and particular skills needed to become a supply chain professional. He reflects on why the US and Europe have allowed China to dominate the mineral markets that are necessary to build new technologies of the future particularly electric transport.

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This is the 10 minute update from the corporate world and government policies impacting supply chains.

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