3 minute read
The b Issue
Bridging the Resilience Gap
When you need to be sure of your road shipments to and from the EU
Steve O’Sullivan, SCM Consultant with SGS Ireland
The global economy has been operating in an age of turbulence for decades, compounded by forces of globalisation along the dimensions of replenishment, time, sea-borne distance, technology and climate change, that are accelerating beyond organisational adaptability. A resilience gap has arisen, where such turbulence is increasing faster than organisations are becoming resilient. A reported 80% of companies are concerned with the resilience of their supply chains and an estimated 75% of companies experience a supply chain disruption annually. Accumulating costs and other negative consequences have been demonstrably more severe than actual disturbances due to a disproportionate effect on demand, through panic. Nevertheless, the invisible profession of Supply Chain Management (SCM) has performed a critical function in the shadows to minimise the impact on consumers. It is now supply chains that compete, not companies, and our trust is SCM has always been rewarded. The recent catastrophic and tangible events of Brexit and the COVID-19 pandemic changed the world in a precipitous way, and elevated SCM to public awareness like never before. A perception emerged that somehow the SCM and Logistics sector was suddenly broken. Panic had a significant impact on bathroom products and pasta, and this extended to Irish SMEs trading with the EU through road movements, who were strongly advised by the Department of Transport to avoid ‘at all costs’ the GB Landbridge and the post-Brexit Customs regime implemented on 1st January 2021, and transition instead to direct shipping routes. It is challenging to argue that there was not a political agenda behind the Government’s “ACT and Prepare to Switch” campaign that warned of the unimaginable disruption caused to SMEs by continued GB Landbridge use. The Ferry industry promptly responded with 12 direct EU RoRo services now in operation, compared to 5 in 2019, and according to the Irish Maritime Development Office (IMDO), in the first 6 months of 2021, ROI to GB RoRo units declined 29% compared to the same period in 2019. So where is the trust in SCM gone? Are SMEs solely guided by the narrative in the mainstream media, driven by both politics and port authorities that grow significantly from an increase in direct services? The GB Landbridge remains a safe alternative and is available to SMEs ‘when you need to be sure’, here’s why: • The IMDO reported decline in RoRo movements to GB is largely due to COVID-19, and year to date (with a total of 122715 ‘transits’), a steady month on month increase in volumes has been recorded as restrictions are eased • The Landbridge offers a faster and more cost-effective option for SMEs, critical to time-sensitive sectors, such as Food and Live
Animals. A 13-hour transit enables greater driver productivity when compared to direct routes that can take 24-28 hours • SMEs concerned with pre-requisite financial guarantees, can transit goods via SGS Ireland who guarantee up to, and in excess of 28% of the total value of the goods being transported. SGS
Ireland also has Authorised Consignor Status, enabling transits to be commenced at the SME’s premises, a further time-saving measure. To find our more visit www.sgs.ie. • Be Winter Ready: Expected storms in the
Bay of Biscay and Celtic Sea over the next 4 months will put direct ferries under pressure with cancellations and capacity issues. Before this impacts your business, speak to your
Logistics agent and suppliers about sending test shipments through the Landbridge Trust SCM and trust the superior expertise of the Irish Customs sector. Use the Landbridge. To find out more you can email Steve@tiwto.com or visit SGS Ireland on www.sgs.ie.