4 minute read
OPINION
There is an old saying, ‘no man is an island’. Possibly, us here in Ireland may have forgotten that we are an actual island. But with a combination of Brexit, Covid and the uncertainty created by the Russian invasion of Ukraine, has brought this back into focus.
In the 1950s and 60s production managers had the security of knowing that there was enough product on their premises to ensure the factory floor operated effectively. With the arrival of JIT (just in time) as a concept and then a practice, companies were slow to adopt it as part of their processes.
So what changed their minds? Well, money of course! Companies that adopted a JIT strategy accumilated savings and improved profit margins immediately. Very soon the use of JIT became the norm and companies that did not embrace best practice in terms of JIT, in reducing stock levels and refining their supply chains were likely to find themselves uncompetitive. As production companies witnessed these efficiencies and cost reductions that could be achieved by removing the stock and raw materials from their premises to the site of their suppliers, logistics as an industry evolved and thrived. Raw materials arrived at their facilities and finished product left, travelling seamlessly and efficiently through what we now called “supply trains”. As the EU moved towards a single market, customs documents and the sometimes cumbersome procedures that previously existed were eliminated. This action alone took significant cost out of the manufacturing process, while adding efficiency. Raw material and finished product could be stored any place in the EU and because Ireland has developed such an efficient road transport industry, delivery was not a problem. Any reference to supply chains up to Covid was generally about how important they were and the need to improve them. Investing in this area was always seen as being necessary, in terms of IT capability and the need to make freight more visible. Logistics as an industry was becoming center stage and the profession of “Logistician” was seen as a very worthy career path.
So where are we with Logistics and supply chains now? Well, the past four years have made things more challenging by events that we are all too well aware of. Firstly Brexit, followed by Covid and now the invasion of the Ukraine by Russia. While the blocking of the Suez Canal for a week or so by the “Ever Given” in March of 2021 may not have been a massive disruption, it did however highlight another weak point is the free movement of freight. Throw in the shortage of truck drivers and now you have production managers all over Ireland concerned about the security of supply.
Logisticians now have to deal with new challenges. Holding inbound or outbound product in the UK is not ideal. Having venders that can only supply product from the UK is not feasible. Removing the “Landbridge” to Europe has created a bottle neck on the longer route to Mainland Europe. While in theory the direct route to French, Flemish and Spanish ports seems to be a good idea, it is probably better described as the only option.
Direct ferries have been available to Irish Hauliers and exporters for almost fifty years, if it was the best option, all continental freight would be on them by now. Long crossings are likely to be disrupted by weather in a way that short crossings are not. From a strategic point of view the Government must work to get the UK authorities to introduce a transit system for Irish trucks and other trucks with freight travelling under custom seal. Not to have to go through the queues in Dover and other channel ports, is a must. One of the changes, a positive one, brought about by the extra capacity on the direct routes is the increase in the use of un-accompanied trailer freight. There are some efficiencies and savings to be made here.
All of the above points lead to one glaring problem, we are an island nation. It was camouflaged in the past because short hops on ferries was never a problem, when custom’s clearances were not an issue.
Recently the port of Rosslare Europort announced some major investments. There are many developments planned for the Port, but an as an Island nation the most important issue is accessibility. In the plan extra jobs are mentioned and the establishment of the Port as an Offshore Renewable Energy (ORE) Most important for the country is the linking of the Port to the Motorway network, bypassing all the small towns and villages in the area.
Wexford County Council and the local communities need to be on board, because if the money invested here does not allow 24 hour access for truck and ferry operations, then maybe a Greenfield site should be considered. If a container ship could block the Suez Canal for a week and cause disruption, consider the chaos that would be caused by a truck blocking access to the port at the Bottom of the hill at the entrance / exit to the Port.
While it is often said: “Thank God we are surrounded by water and sea” it does bring challenges.
