Summer’s Start Features Supply Chain Hightlights

Stormy weather. As storms continue to strike supply chains across the nation, a new report from DHL has been crafted to help managers mitigate risk and anticipate disruption. In the run-up to the 2019 hurricane season, Resilience 360 has released a report on the potential supply chain impacts of these disastrous events. “Stormy Weather Ahead: A Global Outlook on the 2019 Season,” examines the 2018 storm seasons in the Northern Hemisphere and provides an outlook on the the one ahead, including the typical storm paths in each region as well as vulnerable areas and industries. Also included are recommendations for representatives from procurement, logistics and business continuity management for mitigating the impact of these storms on supply chains. At the same time, Resilience360 is launching its improved weather shape tracking and alerting capability. The algorithm analyzes the projected path of a hurricane or cyclone and notifies users of possible impacts on their specific supply chains.

Gartner rankings. Among the most anticipated announcements coming from the Gartner Supply Chain Executive Conference in Phoenix, AZ last May, was the annual “Supply Chain Top 25,” which identifies and highlights industry leaders. Colgate-Palmolive scored the top spot in the ranking for the first time, followed by Nestlé, PepsiCo and Cisco. Chinese e-commerce company, Alibaba, and Dutch chemical company, Akzo Nobel, joined the Supply Chain Top 25 for the first time. After seven consecutive years of scoring in the top five of the Supply Chain Top 25, Unilever joined Apple, P&G, Amazon and McDonald's in the “Masters” category, which Gartner introduced in 2015 to recognize sustained leadership over the last 10 years. Unilever continues to lead the way with solid digital supply chain processes, including leveraging automation, data science and machine learning,” says Gartner “The company also recognizes the importance of improving digital-enabled manufacturing initiatives by using emerging technologies for maintenance and process control.”

Money talks. The “2019 Supply Chain Salary and Career Survey Report,” produced by the Association for Supply Chain Management (ASCM) contains encouraging findings for companies seeking new talent and retaining the best they have currently. Now in its second year, the survey captured the responses of 1700 respondents who shared their views on a variety of issues related to job satisfaction. Among them were rising salaries, and benefits contributing to a healthy work and life balance…all of which contributed to strong job stability. “It came as no surprise that the new generation of executives will be expecting a better balance of career and family life,” says ASCM. When asked to rate their overall satisfaction with working in the supply chain field on a 0-10 scale, 80% of respondents provided a rating of 8 and above. Furthermore, an overwhelming majority (82%) said they are likely to stay working in the supply chain field for the next five years.

Carbon cuts. CEVA Logistics and CMA CGM have combined their expertise and service capabilities in Thailand and Laos to launch a new cross-border service for ocean freight containers used by shippers across both countries. The new service provides new solutions for importers and exporters and helps them reduce their carbon footprint as empty containers no longer have to be returned to their origin. The new combined ocean freight and cross-border trucking service enables importers to drop off their empty containers at a newly expanded CMA CGM container depot, operated by CEVA, outside the Laos capital, Vientiane. This means there is no need for an empty return leg where equipment would be previously unused and would have been sent back to the Thai port of Laem Chabang where it entered the country. Exporters from both Laos and Northeastern Thailand benefit from less delay in accessing containers in their region, say spokesmen.

River routes. The “Containers on the Inland Waterways” panel discussion at FreightWeekSTL in St. Louis, Missouri highlighted the global demand for containers from a Midwest perspective. The discussion also included how the Midwest agriculture industry is positioning itself to meet the competitive logistics needs of farmers and the role of local ports in supporting the efforts through leadership and infrastructure investment. It also provided insight on the different business models currently being used or being proposed to grow container volume on this vital river corridor. “The nation's inland port system clearly plays a critical role in the global supply chain,” says Mary Lamie, Executive Director of the St. Louis Regional Freightway. “With the new wave of larger ocean carrier container vessels, the projected global growth in the container market by 2030, and the emphasis to reduce truck traffic on the nation's highway system, ports and regions are working together to provide container-on-barge and a proposed container-on-vessel service.”

PNW outcries. A report released by the Washington Council on International Trade (WCIT) illustrates how widely and deeply the impacts of the trade wars are being felt across the state. “Collateral Damage: How Global Disputes are Disrupting Trade in Washington State,” highlights industries in every congressional district that are dependent on robust international trade for their success. “We should absolutely be working to level the playing field for U.S. goods and services in markets around the world,” says Lori Otto Punke, president of WCIT. “However, the current tariff-first strategy is creating uncertainty and risk for the incredibly diverse industries, businesses, and workers in Washington state who rely on trade.” The report looks at Washington producers of everything from frozen French fries to ultrasound equipment, cloud computing services, hops, and video games — which are all among the state's largest exporters. It examines how the largest global markets for Washington goods are faring, and assesses the maritime, rail, and air cargo industries that make Washington a critical hub for global trade.

Indonesian investment. The Indonesian government has outlined a plan for infrastructure development costing the equivalent of over half a trillion U.S dollars. According to the London-based consultancy, Transport Intelligence (Ti), the government intended to spend 5,957 trillion rupiah – approximately $565 million – between 2020 and 2024 on a mix of projects, 60% of which will be transport related. Reports suggest that the plan pays particular attention to air transport, with the improvement or building of 165 airports. Other than that, there is little mention of the need for the expansion of seaports or of roads although this must be in the plan somewhere.
Indonesia's economy has been growing at around 5% a year, which is regarded as an under-performance for a government which says that it aspires to become the fifth largest economy in the world by 2040. Fundamental to sustaining such growth is logistics, infrastructure and services, however these remain inadequate despite previous large scale initiatives.

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