Why talk supply chain?
The pressure is on. Rising transportation costs, sourcing shifts, retaliatory tariffs and increasing consumer expectations are just some of the challenges that are impacting global trade in 2019. Top industry experts have predicted that global supply chains will continue to feel the pressures of increasing freight rates, transportation capacity struggles and continued volatility in global trade policy.
What can be done to mitigate these challenges and the risks that come with them? How can small business successfully navigate these minefields? Is the answer to invest in big data, automation and technology solutions?
We asked a panel of supply chain gurus in January’s #TradeElite Twitter chat and gathered some valuable insights:
- Challenges can also present opportunities – taking a fresh look at your operations, sourcing and product lines is beneficial and may potentially even lead to cost savings opportunities
- Appreciate the power of research, knowledge and training – more you know, the more you can plan and mitigate your risk – invest in your people in your supply chain
- Be diligent with forward planning to mitigate the shipping, capacity and logistics pressures
- Importance of strong partnerships, collaboration and communication with partners, suppliers and customers
- Be careful about jumping to tech solutions – technology can help but only when it’s used to make the right decisions
Moderated by FITT (@FITTNews), this chat featured these four excellent panelists:
- Sarah Barnes Humphrey, CITP (@bevictoryus), the CEO of Shipz Inc, as well as founder and host of the “Let’s Talk Supply Chain” podcast.
- Irina Rosca (@sustain_SCM), global supply chain and logistics expert.
- Audrey Ross, CITP (@tresAudrey), expert on global shipping, supply chain operations, customs compliance, free trade agreements and international tax.
- Simon Slyper, CITP (@SimonTradeBuzz), Senior Customs Compliance Specialist.
The ‘global trade scramble’ is on. We’re facing changing trade agreements, retaliatory tariffs, rising transportation costs and sourcing shifts but some say that the uncertainty might be the most difficult part to contend with – do you agree?
A1- Uncertainty is a fact #supplychainmanagement deals with daily, as professionals we cannot continue to use this as an excuse for not thinking ahead & outside the protocols we put in place. #globaltrade #TradeElite
— Irina Rosca (@sustain_SCM) January 31, 2019
A1: Yes, with things changing so fast companies are tasked in very different ways then they used be, but this can also be a great challenge. Look at the resources you need internally to keep up to date so you can pivot quickly ie. think outside of the box #TradeElite
— Sarah Barnes (@bevictoryus) January 31, 2019
A1. Abs agree. More than enough variables in managing a Global #SupplyChain (import/export rules, Customs, Country reqs, lang & market culture etc) adding uncertainty from players who don’t understand the game / benefits is challenging! #TradeElite
— audrey ross citp|fibp (@tresAudrey) January 31, 2019
A1: Uncertainty is all around us, but through challenges there is opportunity. Taking a fresh look at your #operations, #sourcing, product lines, etc. is most certainly beneficial and may potentially even lead to cost savings opportunities #TradeElite
— Simon Slyper (@SimonTradeBuzz) January 31, 2019
A1. It’s so often media & people outside the sphere of Global #SupplyChain who create a hysteria or uncertainty. There are loads of industry #TradeElite professionals who can plan & prepare themselves for shifts. #TradeElite
— audrey ross citp|fibp (@tresAudrey) January 31, 2019
A1 – Uncertainty is disruptive but as all disruptions it can be an opportunity for some. Also an opportunity to review current #supplychain and processes #TradeElite
— Dr Anna Jerzewska (@AnnaJerzewska) January 31, 2019
Experts are predicting that trends of ecommerce, global trade destabilization and the transportation capacity shortage will continue in 2019. How can businesses, especially small biz, prepare and deal with all this in 2019?
A2: Businesses need to know their capabilities and in turn may be more suited to respond more intelligently to the fast changing environment. Responding too quickly and not making calculated decisions can be risky. #TradeElite
— Simon Slyper (@SimonTradeBuzz) January 31, 2019
A2: They don’t have access to the same types of resources as Enterprise so it will be new technology companies to the industry and innovators in the space that will help them. #TradeElite
— Sarah Barnes (@bevictoryus) January 31, 2019
A2- #smallbusiness need to understand who their #customer is, their #business goals, know their product & analyze how the marketplace interracts with it- COMMUNICATE this to all their #supplychain partners, build strong #partnerships to carry them through uncertainty #TradeElite
— Irina Rosca (@sustain_SCM) January 31, 2019
A2. Agree w/ @sustain_SCM – our communication w/ our customers & being upfront has really helped w/ increased Tariff situation. It always helps w/ delays. Be honest, don’t try to fudge what is actually happening. #tradeelite
— audrey ross citp|fibp (@tresAudrey) January 31, 2019
A2. Spec Transportation Capacity – get very familiar w/ times of the year that are busiest – Sept, Nov, Dec & Jan (esp in AIR). If you have projects shipping then
– book earlier
– plan to pay 20% more than other times of year.
– avoid (LOL)#TradeElite— audrey ross citp|fibp (@tresAudrey) January 31, 2019
A2. Where possible – build in extra time for transportation.
If you take on a project w/ tight timelines be prepared to Air ship. Plan for it up front. Maybe you can pull off another mode, if not you already budgeted for it. #tradeelite— audrey ross citp|fibp (@tresAudrey) January 31, 2019
There’s a lot of talk about ‘agile’ supply chains. What does this mean and should it be a priority now?
A3: Being agile is to be flexibility and that is what we will need to pivot with all the changes that are coming our way now and into the future. It should def be a priority but most don’t know where to start…. #TradeElite
— Sarah Barnes (@bevictoryus) January 31, 2019
A3: continued…First ask yourself, what are the changes that are making the most impact to our industry and to our business? find solutions there and expand #TradeElite
— Sarah Barnes (@bevictoryus) January 31, 2019
A3. Being agile means not relying on 1 or 2 partners. Ex. Orchard has cosmetics manufacturers in China, Taiwan, South Korea, Italy, UK, Czech Republic, USA & Canada etc… when Tariffs or geo-political hiccups happen, we can shift. #TradeElite
— audrey ross citp|fibp (@tresAudrey) January 31, 2019
A3. I think a lot of businesses are realizing how important it is now & smart supply chains already were agile – more than 1 partner, checking out the marketplace, small trials, etc. SME’s def need to be agile to survive. #TradeElite
— audrey ross citp|fibp (@tresAudrey) January 31, 2019
A3: A #digital #supplychain strategy needs to consider a multitude of areas such as smart warehousing, supply chain analytics, autonomous and B2C logistics, etc. A digital supply chain strategy needs to be able to leverage these areas to the max. #TradeElite
— Simon Slyper (@SimonTradeBuzz) January 31, 2019
I just interviewed someone today about this very topic for an upcoming episode! He made a great point that customer centricity, sustainability, visibility and innovation are the key driving factors to the digital economy and we must consider all angles #TradeElite
— Sarah Barnes (@bevictoryus) January 31, 2019
A3: It should always be a priority to work towards an agile #supplychain; having the #budget, #resources and internal support is another story . #Reactive vs. #Proactive #TradeElite
— Simon Slyper (@SimonTradeBuzz) January 31, 2019
Exactly, always challenges but will force us to get creative and collaborate! #TradeElite https://t.co/zJREimjaFl
— Sarah Barnes (@bevictoryus) January 31, 2019
Absolutely! But I think we also need to encourage a collaborative environment and get out of traditional way of thinking #TradeElite
— Sarah Barnes (@bevictoryus) January 31, 2019
A3: Having an agile #supplychain is important, but #business relationships are incredibly important too. Pulling the plug on a long time partner to save a few $$ may not be the best option. #Relationships take time to build. #worktogether #TradeElite
— Simon Slyper (@SimonTradeBuzz) January 31, 2019
A3- For me it starts with a deep understanding of your supply chain and customs footprint. Agile requires built-in flexibility and fast decision making+ readiness to change internal procedures at short notice. Agile supl chain needs to be a part of the compny’s culture
— Dr Anna Jerzewska (@AnnaJerzewska) January 31, 2019
For sure! The old environment was very secretive & every company for themselves & it’s awesomesauce to see people SHARE their knowledge, collaborate more & focus on relationship success over $$$ success. Bringing others up w/ them & not shutting them out. #TradeElite
— audrey ross citp|fibp (@tresAudrey) January 31, 2019
The trade and shipping environment has changed drastically. Ocean freight and air shipping rates are increasing and capacity is fluctuating. How to deal with this rapidly shifting situation?
A4- Plan ahead! #oceanfreight rates are not growing nearly as much as #air, ifthe #supplyplaning systems are in place & #demand is accurately analyzed then companies should not have to rush #shipments for #air. #TradeElite
— Irina Rosca (@sustain_SCM) January 31, 2019
A4: As @sustain_SCM planning is super important so you are proactive instead of reactive. Build the right team of expertise and see what innovation is out there to help you manage it #TradeElite
— Sarah Barnes (@bevictoryus) January 31, 2019
A4. Build relationships, learn how shipping works & when it’s the most price-y & congested & try to plan around it…
& When all that fails b/c you have a super urg project, buy Murphy a drink while typing your daily “no change on delivery” updates. #TradeElite— audrey ross citp|fibp (@tresAudrey) January 31, 2019
A4: #Plan as far in advance as possible. Last minute #freight arrangements will most certainly lead to higher #shipping costs #TradeElite
— Simon Slyper (@SimonTradeBuzz) January 31, 2019
A4: Consider #consolidating your #shipments if your needs do not exceed #LTL #TradeElite
— Simon Slyper (@SimonTradeBuzz) January 31, 2019
Sometimes you can’t throw money at it either… there simply is no space. https://t.co/5ZnRRV8mZM
— audrey ross citp|fibp (@tresAudrey) January 31, 2019
SO MUCH YES.
Or… pay for the full load option even if you don’t have a full load because on some routes it’s totally worth it. (balanced against the potential cost of air shipping or missing an in-store launch date). My job is never boring. https://t.co/HN8tYcnye8— audrey ross citp|fibp (@tresAudrey) January 31, 2019
Investments in digital and tech are accelerating, to yield better demand planning, product traceability, real-time visibility, and anomaly detection. It can be a game changer but it comes at a cost. How can small biz get in on the game?
A5 – technology can help but only when it’s used to make the right decisions. Invest in ppl in your supply chain/customs team #TradeElite
— Dr Anna Jerzewska (@AnnaJerzewska) January 31, 2019
A5: By Collaborating, by partnering, by looking at new technology and new companies to the space. Leverage Consultants in the specific field to learn more and gain insight. Hire for your gaps – tech, supply chain etc #TradeElite
— Sarah Barnes (@bevictoryus) January 31, 2019
@tresAudrey most of the time you should not throw money at it- decisions need to startegically align with the #company goals and long term vision. Do not think in silo and do not react! #TradeElite
— Irina Rosca (@sustain_SCM) January 31, 2019
A5: #Smallbiz should consider using #SaaS-based #supplychain solutions to avoid heavy capital investments. Digital #3PL providers utilizing #cloudstorage and nible platforms are helping drive down costs for #traders #TradeElite
— Simon Slyper (@SimonTradeBuzz) January 31, 2019
True but it still makes such a difference to have someone who can interpret results and make decisions internally, someone who understands the implications #TradeElite
— Dr Anna Jerzewska (@AnnaJerzewska) January 31, 2019
That is for certain and goes hand-in-hand in the decision making process. It’s critical to vet providers and understand if their services can really make a difference for your business #TradeElite
— Simon Slyper (@SimonTradeBuzz) January 31, 2019
Some companies are making decisions in silos and reacting to changes by rushing their decisions. How do you balance the need to move quickly to get to market with risk mitigation? How do you best manage risk in this unpredictable environment?
A6. Being able to move quickly means the whole team has to be on board & leadership needs to emphasize team work & collaboration as a priority. Making sure your company goals are clear, helps employees take initiative while being diligent. #TradeElite
— audrey ross citp|fibp (@tresAudrey) January 31, 2019
A6: By doing your research and getting the right training for international trade. Organizations like FITT offer training and courses to fit with all time constraints and the more you know, the more you can plan and mitigate your risk. #TradeElite
— Sarah Barnes (@bevictoryus) January 31, 2019
This is key. Supply chain, customs etc highly technical areas but a lot of good training is available. #tradeelite
— Dr Anna Jerzewska (@AnnaJerzewska) January 31, 2019
A6 – Can’t see many cases where moving quickly would be more important than reviewing risk. Prioritise what works for your business, what’s doable for you. Specially since supply chain failures affect many areas. #tradeelite
— Dr Anna Jerzewska (@AnnaJerzewska) January 31, 2019
Read the rest of the chat and join future discussions by following the #TradeElite hashtag. Stay tuned for the next #TradeElite chat, coming up Thursday, February 21 at 2:30-3:30 PM ET, and if you haven’t yet, join us on Twitter at @FITTNews.
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