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Make your supply chain resilient to the disruptions of international trade

Article publié le 6 April 2021 par Jérôme BOUR, CEO, DDS Logistics

Despite the Brexit, the health crisis, the transport shortage, international trade continues to grow. The WTO is forecasting an increase in the volume of world trade in goods of 7.2% in 2021.  The Covid-19 has therefore not put a stop to globalization. On the contrary, the pace of exports from China to Europe and the USA is increasing.

 

Increasing complexity of world trade

 

In this increasingly globalized economy, the challenges in terms of availability, costs and delivery times for goods are all the higher.

But the reappearance of customs barriers and borders, as well as the shortage of transport, are disrupting the flow of traffic, leading to increases in supply chain costs and delays. The capacity crisis in air and sea transport, the duration of which is unknown, is even a risk for the recovery of our economies.

And recent events, in the midst of a pandemic and 10 years after Fukushima, show that operational, political or climatic risks can occur and must therefore be anticipated.

International transport is no longer the simple low-cost convenience created by the container revolution. Now expensive and complex, it is at the center of many manufacturers’ and distributors’ concerns. It leads them to review their supply chain, in terms of sourcing choices as well as transport scheme and stock policy, in order to adapt in a sustainable and efficient way.

 

Digital solutions to improve the efficiency of the international supply chain

 

To understand and rethink these international supply chains, companies can rely on dedicated digital solutions. These solutions enable companies to work on all stages of the supply chain: sourcing, controlling product costs, managing transport operations and reducing their environmental impact.

 

Reviewing sourcing strategy

 

Inbound of the supply chain, one of the first things to think about in order to overcome the various current crises concerns sourcing. Thinking about purchasing zones, reviewing sourcing strategy and diversifying it in order to reduce the various risks are important levers in this context. And to manage profitability, perfect control of the full cost of products is necessary. Digital solutions such as DDS Sourcing can simulate the full cost of production at destination. They allow you to identify the most relevant supply zones in terms of cost. In the end, customers are able to make the right decisions for their supply chain.

 

Anticipate, collaborate and manage your supply chain

 

The most precise management of transport is a prerequisite for any company wishing to operate internationally. This precise management of flows relies first of all on the ability to share needs in real time and thus to strengthen relationships with forwarding agents. It also facilitates the ability to anticipate and plan flows according to different needs and hazards. For example, through a very fine-tuned management of operations, the shipper can seize the opportunity of a container as soon as it becomes available at a port and thus adjust the shipment of his order portfolio according to the available capacities.

These tools also offer the ability to prepare several transport plans, in different modes, and to activate the most relevant one according to current conditions. Finally, they provide visibility of flows, by consolidating data from the various players in the transport chains, and by alerting in the event of delays or anomalies.

A number of digital tools such as DDS Import are available to help you anticipate and manage your flows in collaboration with forwarding agents and shipping companies.

 

Ensure financial and environmental control

 

Finally, after reviewing its sourcing and ensuring the management of its flows, it is important to control its costs. Faced with the volatility of flows and prices, digital tools offer import management control, with the ability to manage these price variations, and to allocate and analyze these costs to products.

In addition, there is an increasingly important environmental component to reduce the emissions of imported products, driven by the desire to reduce the environmental impact of their products.

In addition, there is an increasingly important environmental component to reduce the emissions of imported products, driven by strong consumer expectations an national, european and worlwide regulations.

These long and complex calculations can be greatly facilitated by digital solutions such as “Green Move dedicated to transport. These solutions will be able to automate a real time calculation of CO2 emissions per unit, to ensure the management of orders and transport and to offer a vision of management control to the product despite the increasing multiplicity and complexity of flows.

 

Because no one can predict future developments, and because resilience and agility are now prerequisites for development, ensuring control of flows and costs is essential. New technologies help us to achieve this. Thus, the supply chain adapts, anticipates, reacts and optimizes itself.

This post is also available in : frFrançais (French)