How to relax the supply chain and be able to react quickly

joypaul852

We are bad used to it. The appearance of Amazon and other e-commerce have changed our habits and ways of consumption. Even more so, if possible, after the outbreak of covid-19. We have become accustomed to the fact that, after a few clicks, any product we want appears in the hands of a delivery person at the door of our home in a matter of hours or, in the worst case, days. But what is behind all this? How do the products we order, often made in Asia, reach our homes? Who makes up the supply chain ? Why is it showing signs of fragility?

To answer this and many other questions around this atomized and complex world, Economía 3 has held a debate table in our Alcatí Business Sports Club , a differential space, in which nature, local gastronomy, Latin sailing and a Phone Number List privileged environment They come together to offer unique possibilities to the companies that this medium seeks to accompany on their path to success.

Transportation table.  Supply chain tension

Ignacio Ballester, deputy managing director of MSC Spain, participated in it ; Pablo Boix, president of the Association for the Development of Logistics (ADL) ; Salvador Furió, director of Innovation and Development of the Valenciaport Foundation Cluster ; Sergio Güerri, head of the Transport and Mobility Unit of the Technological Institute of Packaging, Transport and Logistics (Itene) and Fátima Zayed, manager of the Valencia Intermodal and Logistics Platform (VPI) of the Port Authority of Valencia (APV).

For her part, the general director of Economía 3, Elisa Valero , chaired the table and assured that "the logistics and transportation sector is fundamental in economic activity . " And, therefore, this medium wants to "make its importance visible." While Gemma Jimeno, editor-in-chief of the media , was in charge of moderating it.

You can access the photo gallery of the challenges and demands of the transport and logistics sector here.

Mismatch between supply and demand
Asked precisely about the causes of the breakdown of the supply chain, the deputy general director of MSC Spain explained that the main reason for this crisis is "a mismatch between supply and demand . " «During the pandemic, we all started buying more than we needed. When the demand is so excessive because we buy just in case, the world falls apart. Added to that is that aid was given to the population and then we had all the people at home with fresh money. And Covid-19 also weakened the companies' teams. But the great imbalance occurred due to the buying fever that has occurred in the world ," he added.

Transport table

"Added to that, when the restrictions were lifted, people went out to spend like crazy because they had also saved ," added the Itene representative.

«When we buy just in case, the world falls apart»




Zayed, for his part, indicated that "there is not a single factor" for this breakup, but rather "there are many. When the health crisis began, China went into lockdown and delays began. That was replicated in March in Europe, which stopped. At that moment that efficient maritime chain began to break. There was also psychosis and demand was increased just in case... Many factors were added and when everything works well the supply chain is not perceived .

Freight, lack of ships…
There is an unavoidable term in any debate or presentation related to the supply chain. That is, freight, which is basically the price to pay for the movement of a load in a means of transport. In the case at hand, in the maritime. But how important is this term so that the products and materials we import arrive in a timely manner?

At the table, Ballester explained that “freight rates are subject to supply and demand factors. Severe congestion problems around the world have obviously affected these market drivers, as we have already discussed. Until the balance of supply and demand is restored it will be difficult to predict any type of normalization in the freight market. “We believe congestion and disruption to the global supply chain will persist this year, but we cannot anticipate what will happen . ”

«Decarbonization efforts are not free»

In the end, added the deputy managing director of MSC Spain, freight is “the element that unites supply and demand. If there was no selling and buying capacity there would be nothing to offer. The elements, many times, prevent us from providing the service that we would like to the shipping companies .