Supply Chains have become critical. They are not yet in the emergency room or on life support but they are severely distressed. One development that will help is the insatiable demand for data since the pandemic began in the first quarter of 2020. Data has become the new fuel to drive decision-making. In the United States the Biden Administration views supply chains as central to the well-being of people and the economy. They have taken steps to gather data to understand data and what it is telling them about supply chains. Just after Thanksgiving weekend President Biden gathered a mixed group of retailers, suppliers and businesses together to ask a number of questions about supply chains.
In the United Kingdom since the pandemic started the Office of National Statistics (ONS) has used regular surveys to understand the pandemic and this was extended to how business has been affected. The Business Insights and Conditions Survey is conducted fortnightly to test the temperature of the business environment. There are a number of questions on the survey that examine the impact of Brexit and how supply chains have been affected by shifts in conditions.
Supply Chain Critical Disrupting World Trade
In the US
Supply Chain Critical could well describe many supply chains around the globe right now. In this episode Tony Hines takes a look at US food and other supply chain disruptions following President Biden’s initiative to get parties around the table to discuss issues. On November 29th the Federal Trade Commission (FTC) issued an order to discuss what’s going on in those supply chains. The FTC stated “Supply chain disruptions are upending the provision and delivery of a wide array of goods, ranging from computer chips and medicines to meat and lumber.” Price hikes and anti-competitive practices are also under the spotlight. With US inflation at 6.2% and some goods coming in at higher than that for consumers this is cause for concern. Availability of products is also of concern. Ranges have thinned and there are reported shortages in specific categories.
“The FTC is issuing the orders under Section 6(b) of the FTC Act, which authorizes the Commission to conduct wide-ranging studies that do not have a specific law enforcement purpose. The orders are being sent to Walmart Inc., Amazon.com, Inc., Kroger Co., C&S Wholesale Grocers, Inc., Associated Wholesale Grocers, Inc., McLane Co, Inc. Procter & Gamble Co., Tyson Foods, Inc., and Kraft Heinz Co. The companies will have 45 days from the date they received the order to respond.”
Source: FTC (see the link in the text)
In the UK Data Are Key To Understand What’s Going On
In the UK inflation is 4.2% and on the rise. There is also concern about shelf availability for many goods. The Office for National Statistics has been gathering data fortnightly from businesses in the UK. We take a look at some of the findings from the data and what it means for supply chains. The ONS Business Industry and Conditions Survey reports on ‘the impact of challenges facing the economy and other events on UK businesses.’ The survey is based on responses from the voluntary fortnightly business survey (BICS) including financial performance, workforce, trade, and business resilience. Businesses currently trading who reported that the prices of materials, goods or services bought in the last month had increased compared with normal expectations for this time of year was 38%. In the last month, 17% of businesses reported they were either not able to get the materials, goods or services they needed from within the UK, or had to change suppliers or find alternative solutions to do so.
Nurdles in the Oceans Time For The IMO To Classify As Hazardous Waste?
A few weeks back I reported the distressed ship Xpress Pearl was on fire and sinking off the coast of Sri Lanka with diesel and other chemicals on board the vessel leaking into the Indian Ocean. Since then it has come to light that nurdles were also on board, Nurdles a small plastic pellets that are used to produce packaging materials. Being plastic they are of course produced from oil (fossil fuel). However, nurdles are not classified by the International Maritime Organization (IMO) as hazardous waste. The damage to the local ecology and economy from the leakage has been devastating to livelihoods of fisherman in Sri Lanka. Listen to the episode to find out more.
Notes:
1. 250,000 tons of plastic pellets known as nurdles pollute our oceans every year. https://cbsn.ws/2QXCkxO Trillions of small plastic pellets have been escaping from petrochemical plants into waterways and oceans for decades.
2. The IMO is aware of the problem but so far has not classified nurdles as hazardous waste which they clearly are.
Up Next
- A look back at 2021 – Retrospective on Supply Chains – The Ghost of Christmas Past.
- A look forward to 2022 – The Future of Supply Chains.
- A special edition on Trade Policies and Supply Chains in January 2022
- Special Report Examining the Supply Chain for Batteries to power the electric car revolution in January 2022
Catch Up – Listen to All Available Episodes Here…
The Only Way Is UP
Inflation in the US is at a thirty year high standing at 6.2% and in the UK the Consumer Price Index stands at 4.2% in November up 1.1% from a month ago. As demand goes up and supply remains short inflation is one consequence. In this episode Tony Hines discusses cause and effect and what it means for supply chains. Shipping accounts for 90 per cent of the moveent in gloabl trade and it is still reliant on the dirtiest fuel to drive them around the world. So what can be done to clean up the industry? What will the UK Government decision to pull back from investing in rail infrastructure in the Nort really mean for the economy including future supply chains?
TONY HINES BLOG 