Post by Martijn Lofvers

Dutch supply chain directors prepared for disruptions Dutch supply chain directors regard high energy and fuel costs as their greatest vulnerability – a direct consequence of the blockade of the Strait of Hormuz. The key measure they have taken to address this is the use of scenario planning and risk models. This is according to a recent survey by Supply Chain Media of 63 Dutch supply chain directors. Since the coronavirus pandemic, companies’ global supply chains have faced a wide range of disruptions almost continuously. Supply Chain Media therefore asked 63 supply chain directors in the Netherlands a number of questions about the key trends affecting their companies in the long term. They were also asked what is currently high on the management agenda. The topical issue of geopolitical tensions is specifically reflected in the current, highly tense situation in the Middle East and a blockade of the Strait of Hormuz. Almost all respondents (95%) cite high energy and fuel costs as the greatest vulnerability in this situation. Nearly a third are concerned about dependence on critical raw materials and about logistics routes via Hormuz. It is striking that companies hardly regard dependence on individual suppliers (13%) or limited visibility in the supply chain (9%) as the greatest risk. This suggests that many of the respondents have already strengthened these aspects of their supply chains in recent years. Scenario planning and risk modelling The measures taken by supply chain directors confirm this picture. For two-thirds of respondents, scenario planning and risk modelling have now become the standard response to geopolitical uncertainty. Nearly two in five companies have renegotiated their transport and energy contracts. In addition, a third of companies have established alternative transport routes, and just over a quarter have increased their stock levels. One in five companies has also added new or alternative suppliers to reduce dependencies. Only a very small minority have not yet taken any concrete action. Production relocation (near-shoring or reshoring) remains limited for the time being, suggesting that companies are opting for flexibility within existing networks rather than making radical changes to their production footprint. Digitalisation and AI When asked which two megatrends will affect the company most in the long term, the response ‘digitalisation and developments in AI’ scored highest at 63 per cent. ‘Geopolitical developments and trade wars’ followed with 52 per cent. Read the complete article here: https://lnkd.in/eWvFPHdP