Peder Winther from Samskip; 'Thrive in an Era of Fluctuating Rates and Insecure Capacity'
Start Stop Logistics 1
The Logistics Landscape is Changing Instability in Global Supply Chains which have become more Demand Driven Capacity Shortage across the Supply Chain Slow Steaming on Major Deep Sea Routes Government Regulations and Punitive Measures for Road Transport leading to Increased Demand for Rail and Barge Transport 2
Opportunities to Balance Risks Clear Communication of Trading Conditions Service Level Agreements including Daily/Weekly Fluctuations High Understanding of Customers Operational Requirements Escape Clauses Prioritise Legal Contracts Complex Supply Chains need operationally minded Commercial People Reciprocal Carrot and Stick Arrangements 13
Contract Management Reduced Profits Increasing Competition Less Resources Less Time Increasing Customer DemandsHave you ever thought about cutting a Corner ? 14
Conclusion Manufactures and Retailers have become more Risk adverse vis a vis Inventory Management Start Stop Logistics will increase weekly and daily Fluctuations Visibility and Agility will improve but at a Cost Both Customers and Service Providers will need to invest in additional Resources for the Forecasting Process The current Situation where Service Providers take most of the Risk is not Sustainable in the middle to long Term 3PL/4PL Providers can take advantage but need to improve Communication and Risk and Reward Sharing with the Asset Providers 16