This is your weekly supply chain bulletin from B2BE for the week starting 19th September 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.
EU proposes supply chain emergency powers – what does this mean?
Europe-based companies could be made to priortise production of key products and stockpile goods under draft EU rules. This would give Brussels emergency powers to tackle the supply chain crisis. The proposal follows similar measurers already adopted by the United States and Japan, and would allow the commission to order EU states to reorganise supply chains and increase supplies of crisis-relevant goods as quickly as possible. This would include repurposing existing production capacities or setting up new ones, placing crisis-relevant goods on the market. Find out more about the proposed rules here.
The race for the electric car supply chain
Lithium is a key component for the electrical car industry. China has established a greater control of the supply chain for electric vehicles, meaning Europe’s automotive sector faces the challenge of catching up. It’s expected that China will produce 76% of global lithium-ion battery cells this year meaning it’s expected that Europe will need to rely on China if it’s due to meet big ambitions of phasing out sales of new petrol and diesel powered cars by 2035. Find out more in this recent article.
As port congestion continues to delay shipments, is moving to planes the right choice?
The pandemic, war in Ukraine and port strikes have all caused a large backlog of on-time shipping delivery. Containership operators have been purchasing aircrafts as their customers are opting for pricier, but more reliable shipping options. The need for products to be delivered on-time is a must for some industries which is leading the charge for air travel. For example, auto-parts suppliers, clothing manufacturers and tech companies are relying on air travel for their goods, due to concerns that the snarls at ports would disrupt just-in-time supply chains, or cause them to miss important holiday seasons. Read more about this shift in transport here.
Automotive industry profits down due to supply-chain crisis
Automotive manufacturers are warning investors to expect lower deliveries and higher costs when it comes to reporting. The industry is facing challenges sourcing parts. For example, Ford shared that roughly 40,000 to 45,000 vehicles will be in inventory at the end of the third quarter because Ford doesn’t have the parts to finish them. It’s these challenges that are the reasoning behind lower profits than predicted for the year. Read more here.
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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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