This is your weekly supply chain bulletin from B2BE for the week starting 24th 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.
Saudi Arabia pleads 10 billion riyals to attract investments in supply chains
Saudi Arabia’s crown prince launched an initiative to attract supply chain investments up to the value of 40 billion riyals ($10.64 billion). Initially allocating 10 billion riyals in incentives for investors, the state wishes to spend this investment on new infrastructure, including airports and sea ports. It’s been deemed a bid to become a transport and logistics hub under economic diversification strategy.
Cutting off imports from China would cost Japan 10% of GDP
Cutting off imports from China has been reported to cost Japan 53 trillion yen in lost production. Without parts and materials imported from China, production of Japan’s consumer electronics, autos and clothing could come to a halt in less than two months. Switching suppliers however would increase the costs of these goods by up to 50%.
Is the pandemic-era supply chain crisis over? Not quite
The cost difference of sending a 40-foot shipping container from Asia to the US west coast is now under $3,000 which is a huge difference compared to the highs of more than $20,000 during the pandemic. However, the supply chain crisis isn’t completely over, there are still delays, price hikes and shortages that organisations are facing.
Can the holiday season survive the supply chain issues?
The end of year holiday season is the busiest time for online shopping, meaning more consumer goods get shipped out from distribution centers than during normal trading seasons. Anticipation sets in for potential delivery delays, price inflation and supply chain issues. This year there is a looming threat of security, inventory, assets, and spaces. Will the supply chain be able to keep up with the growing demand or could opportunities for risk lead to a downturn during the busiest season?
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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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