This is your weekly supply chain bulletin from B2BE for the week starting 31st October 2022.
Each week, we bring you a rundown of the latest trends in the news from across the supply chain industry. We cover the issues most important to you, bringing you useful links to the full articles. This ranges from news on various supply chain disruptions to strategies to lessen 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.
Supply chain processes have become the new normal
Volkswagen warned that supply chain delays are becoming the new normal and a permanent issue. The car manufacturer went as far as to downgrade its delivery targets citing a lack of parts. Several organisations in the automotive industry have highlighted issues sourcing key parts. For example, early in the pandemic there was an undersupply of chips used to vehicle control, there recently have been reports of semiconductor shortages. With parts being hard to come by, this industry doesn’t see a way out of the current supply chain crisis.
Deforestation pledges by organisations have barely impacted forest clearance
Organisations pledged not to buy soybeans produced on land deforest after 2006 have reduced the forest clearance in the Amazon by only 1.6% between 06 and 15. Researchers found that the zero-deforestation commitments have not been adopted effectively, which meant leaving over 50% of soy-suitable forests without protection.
Has the U.S solved their supply chain problems?
The supply chain crisis has impacted countries around the globe, caused initially by the global pandemic, no country was left unscathed. As the U.S faces geopolitical tensions, a shortage of truck drivers and potential logistic striking, the New York Federal Reserve’s global supply chain pressure index soared to an all-time high. Recently however, global shipping container prices, a key indicator of the supply chain crisis, have fallen by 70% and the Biden administration helped mediate a deal to avert a nationwide rail strike – Could this be the solution to fixing the supply chain crisis?
Crackdown on forced labour in supply chains
Gilbert Houngbo, the new director general of the international labour organisation has called for a fresh inquiry into allegations of forced labour in global supply chains, particularly China. There have been recent reports of forced labour in the textile industry, and the mining industry where there have been calls for global reports into these areas and others.
More information
Thank you for reading our weekly supply chain bulletin where we summarise the latest news! Is your organisation facing disruptions to your supply chain? If so, what strategies are you currently using to protect your transactions?
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