The Supply Chain crisis is about to take a turn for the worse

The supply chain is in turmoil – and violence is growing. Airports at Shanghai Pudong Airport were closed due to strict Covid testing protocols put in place in China’s largest city following a local incident. At the port city, Shanghai-Ningbo, more than 120 cruise ships are docked. In Shenzhen, a major industrial center in the south of the country, car prices have risen by 300 percent due to a backlog of orders and the number of drivers following the introduction of similar carriers. Covid. The world’s major ports, which worked like clockwork, were plagued by delays, with cruise ships lining up for days in some of the worst ever recorded. The list goes on.

More than a million passengers traveling to Europe from China by train – on the way through Russia – have to make their journey by sea as penalties. Russia’s invasion of Ukraine has also cut off supply lines for nickel, aluminum, flour, and sunflower oil, causing prices to rise sharply. Countries in the Middle East and Africa that rely on products from Ukraine are likely to see a big round in the coming weeks and months. Some European railway lines have cut off their production due to the shortage of conventional wires from factories in Ukraine. If the epidemic, which had fueled the rise in sales of goods, the world supply chain was broken, Russia’s invasion of Ukraine and the continuation of the zero- Covid of China will be completely devastating.

The supply chain is too hard, tight, and fragile to withstand earthquakes, especially seismic events such as a catastrophe or a major war. But the new reality requires companies to use new technologies to keep products moving. In this reality, backlogs and breaches are the most common, there is more to go through in turmoil than is possible.

“We’ve had black events at times,” said Richard Wilding, professor of supply chain design at Cranfield University in the UK, referring to small events and how difficult it is to predict big events. “The problem now is we have a whole family of black swans coming at us.” Wilding said driving a supply chain used to be about 80 percent about forecasting and 20 percent about dealing with shocks, numbers that have now changed. He says many businesses are using tools to provide more insight into the flow of goods, and can sometimes predict choke numbers. “You have to keep an eye on it,” he said. In a year where everything is connected, the global supply chain – a stream of highways connecting products to manufacturers to customers – still continues analogingly. analog. It can be navigated in the past, but the years of constant termination of the chain send businesses looking for more data.

Everstream Analytics is a company that collects supply chain data by clicking on open source information, including delivery stories, news stories, and social media, as well as data provided by customers. more about logistics, shipping, and sales services. Buyers are available from DHL, Dupont, and BMW. Julie Gerdeman, CEO of the company, said she uses analysts that try to predict problem areas, but she also feeds the data collected into machine -learning models. To look for problems. Everstream predicted, for example, that last week’s closure in Shenzhen will have ripple effects in terms of backlogs, delivery delays, and high volume. as recorded by the Suez Canal blockade in March 2021.

Different types of data can help build the image of the gridlock when it is unlocked. For example, Windward facilitates marine information, sending ship, satellite imagery, and port and container information to look at supply chain types and problems. Chris Rogers, an economist at Flexport, an organization that helps businesses move assets and provides live data as they move, says it’s not enough just to know where the assets are. product. “There’s a progressive industry that’s building that kind of forecasting,” he said.

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