This is your weekly supply chain bulletin from B2BE for the week beginning 13 June 2022.
Each week, we publish a summary of the latest news stories from across the supply chain industry. We cover the issues important to you, providing useful links to longer articles. This ranges from news about different supply chain disruptions to strategies to mitigate the damage. We also include other relevant supply chain related updates. If you missed it, you can read last week’s edition here. Read on to see what’s making the news this week.
How supply-chain turmoil is re-making the car industry
Technology and de-globalisation are changing the global economy. In few places is this clearer than the car industry. Not only is it shifting from the internal-combustion engine and towards electric vehicles, cars are also becoming, effectively, computers on wheels, running as much on processing power as on horsepower. The pandemic has already caused disruption to car companies’ complex global supply chains, most prominently with semiconductors. Carmakers are electrifying, computerising and refashioning their supply chains for the new reality. The automobile sector is undergoing its greatest transformation in decades.
DHL warns supply chain will not recover to pre-Covid days in 2023
Port congestion should ease next year with the delivery of new container vessels and demand from shippers softens from pandemic highs, but not enough to restore global supply-chain flows to where they were before Covid, according to the head of DHL’s freight-forwarding unit. Coronavirus outbreaks and restrictions led to a worker shortage at major ports around the world last year, slowing the movement of goods in and out of hubs and pushing shipping rates to record highs. Spot prices to Los Angeles from China jumped more than eightfold to as high as $12,424 in September from the end of 2019.
Chronic food shortages from lettuce to sriracha and the rise of chicken
- In Australia, consumers are paying exorbitant prices for lettuce, around A$12 for a head of. Even fast-food giant KFC is putting cabbage in its burgers.
- In less than a decade, humans for the first time will consume far more chicken than any other kind of protein as inflation makes red meat too expensive for more of the population.
- In the US, one maker of a beloved condiment has suspended production of its iconic sriracha sauce due to a shortage of chili peppers.
- Chaos in supply chains caused by the pandemic and the war in Ukraine has only reinforced these trends.
U.S. faces tampon shortage as companies struggle with supply chain issues
With high demand and supply chain issues leading to a national shortage, tampons, like baby formula, have become another essential product that is hard to find in U.S. stores. The shortage means that groups that collect menstrual hygiene products for people on low incomes are seeing donations decline. It has also created an opportunity for Amazon sellers to hike up their prices, as Time reported. Procter & Gamble, the producer of Tampax tampons, says it has experienced a 7.7% increase in demand since 2020, which it attributes to the success of an ad campaign that year with comedian Amy Schumer, according to Time.
Thank you for reading our weekly supply chain bulletin! Is your organisation currently dealing with disruptions to your supply chain? If so, what strategies are you currently using to protect your transactions? For years, B2BE has supplied a range of innovative solutions designed to automate and streamline processes across your company’s supply networks. If you would like to find out more, contact us.