Supply chain agility is key to keeping the logistics sector moving during strikes
| Following the recent wave of austerity strikes in Europe, emergency logistics specialist Evolution Time Critical is advising manufacturers and their suppliers to take a more creative approach to contingency planning. Spanish airlines operated just 40 percent of international flights during austerity strikes in September, while chaos was experienced on French road networks in October as strikes over pension reform closed the country’s oil refineries and caused a quarter of France’s 12,500 fuel stations to run dry. As standard routes and modes of transport suffer from increasingly debilitating strikes on a more regular basis, Evolution’s Brad Brennan believes that global supply chains can keep moving if they show sufficient agility. “With an increasing number of companies operating just-in-time supply chains, it is vital that logistics firms keep cargo moving even when the services offered by airlines, trucking firms, ports or shipping lines grind to a halt,” comments Brennan. “Having the ability to continue operations can help to avoid the hefty penalties associated with production delays. In the automotive sector, these can amount to €1million per hour. “The key to keeping transport networks moving is being able to adapt – changing modes of transport or finding unexpected solutions to the delays. We are increasingly building our global database of small regional airports, fixed wing and rotary aircraft, regionally-based sprinter vans and onboard couriers in order to be able to react quickly to any disruption.” Industrial action in 2010 has hit ports, airports, airlines, shipping lines and haulage firms, weakening supply chains as the logistics sector has struggled to cope with substantial disruption to transport networks. With EU governments aiming for maximum budget deficits of 3% of GDP by 2013, Brennan is advising the manufacturing community to brace itself for further strike action as countries across Europe react to austerity measures. “I recently spoke to several major automotive manufacturers about how they managed their supply chains during the disruption, and it was clear that there is no consistent approach when it comes to major industrial strikes,” continues Brennan. “Many manufacturers, certainly in the automotive sector, have traditionally relied on buffer stock during periods of strike action. However, since companies have adopted an increasingly ‘lean’ approach to manufacturing, buffer stocks are now lower, which has reduced the viability of this solution.” As European governments continue to make substantial budget cuts, the manufacturing community may need to prepare itself for further and more prolonged strikes. Revising existing contingency plans will play a fundamental part in establishing whether companies are ready for a scale of disruption that has not been experienced in recent years. About Evolution Time Critical Evolution Time Critical is the world’s leading specialist in emergency logistics for the automotive industry. Analysts are available 24 hours a day, ready to develop and implement solutions in any part of the world within a 15-minute response window, calling on a vast range of techniques, skills and contacts to ensure that goods reach their destination on time. The skills of Evolution’s team are also available for consulting projects, helping clients to achieve additional savings in their supply chains while also strengthening and improving manufacturing efficiency. Increasingly, Evolution has found that emergency logistics is playing an integral role in lean strategies as the automotive industry returns to higher production volumes, allowing further inventory reductions while maintaining the reliability of deliveries to manufacturing plants. The expertise and techniques developed by Evolution for the automotive sector are also benefitting the aerospace and marine industries, where the company helps clients to release capital trapped in spare parts by facilitating urgent parts deliveries, and return aircraft and ships to service more quickly. Quelle: Evolution Time Critical |
