Andy Coussins, Senior Vice President and Head of International Sales at leading ERP company Epicor comments on the growing threat of UK strike action.
Over the past two and a half years, supply chain resilience has been put to the test and, in some cases, at breaking point. The most recent news about a possible strike action at Felixstowe Port is another illustration of how complex national and international supply chains can be impacted by just one weak link.
Courtesy of the Port of Felixstowe
Strike action at Felixstowe Port: How manufacturers can mitigate impact
Felixstowe Port
Construction, manufacturing, the automobile industry, and of course the supply chain network of distributors and logistics firms that supports them all will all be impacted by this.
Getting insight into the future supply chain and developing lines of communication with partners are the most critical things to focus on in terms of what these firms can do, starting from today, to plan for this. If all the companies who get materials and components through Felixstowe have up-to-date, accurate information on what products are arriving and when, they can help manage their stock levels and establish consumer expectations considerably more successfully.
We've seen that businesses are adopting a pragmatic approach to acquiring goods and they want to maintain a strong partner network, even if there are some hiccups along the road, because supply chains came under pressure at the start of 2020. But communication is essential. Even though the anticipated delivery date for all or a portion of their order may vary, businesses still want to be informed in advance of what will be delivered and when. Due to the sheer volume of data involved, this approach requires automation and sophisticated supply chain planning systems.
Beyond the Felixstowe crisis, businesses can consider futureproofing in this area. Stress testing – the process of understanding the performance and current resiliency of supply chains and identifying any weak links – is crucial. By simulating specific scenarios, organisations can understand the risks they face and the potential threats to their operation. As a result, they can increase the supply chain's adaptability and resilience, helping businesses protect themselves against future threats.
“Every step in the supply chain has the potential to be a weak link, especially in the post-Brexit era where there are more challenges across international borders. Businesses can meet end-to-end expectations by moving to less complex supply chains, by purchasing more goods that are made in Britain.
Interplas Insights approached the BPF’s Director Philip Law for his thoughts on how a potential strike would be disruptive to the UK’s plastics industry, he said: “Ports are the crucial points of entry to our trading economy. Unless they are operating smoothly, we can’t properly function as an economy or as an industry. We import over half of our plastics raw materials and most of our machinery. We are in the top ten exporting sectors with very considerable exports to the EU. Many of our supply chains, inward and outward, depend on just-in-time deliveries that have to be finely calibrated. A lot of plastics-related imports are crucial to national security, such as food supplies that depend on packaging and defence products that rely on resilient materials. Ports need to be kept open.”