Supply chain disruption: Over 50% of businesses affected worldwide.
Supply chain disruption : Over 50% of businesses are affected worldwide. ”
“Most of us”, in the logistics business, faced the classic GRI (General rate increase). We learned to manage around. No one could imagine what was coming with the covid pandemic, all the “shipping rules” collapsed. The market became uncertain because of 2 main factors, space and price. Prices skyrocketed at a level we had never experienced before, leaving freight forwarders, importers and many businesses in need of solutions, in precarious conditions. The supply chain disruption is real and deserves to be taken seriously.
More than 50% of the businesses whatever their size had to adapt to find quick and reliable solutions. The container issues aren’t the only factor businesses had to look out for. The entire supply chain was affected, from the skyrocketing rates of raw materials to the deficit of workers on production lines, and the difficulty to equip employees quickly with IT equipment to work from home. Both the service and product sector got affected.
“We saw a revolution in our view, way of working, communicating, adapting and delivering work.
The supply chain crisis emphasized the need for flexibility and a “long-term Temporary strategy”. After almost 3 years, uncertain stability seems to be back despite the fact some lanes’ prices are still 400% higher than pre-covid. Globally freight rates are lower by 45% compared to 1 year ago, nonetheless, TEU’s prices are still nearly four times more expensive than pre-covid standards. Pre-covid container rates were closer to USD 1,500/2,000 for the Asian-Europe Lane.
This impacts your margins, and stocks and disrupts your entire supply creating a lack of raw materials and supplies.
How did you cope with the supply chain disruption including ocean freight rates and raw material increase? How did your company evolve and use this crisis to review its strength and weaknesses?
If you would like to read more articles: Productivity : Why is your company facing issues?
Ceicia’s founder