Feature
Distribution and Logistics
Distribution dilemmas Brexit, that was supposed to be the big bad problem facing UK businesses in 2020, how wrong we were. Instead, it was a global pandemic that caused significant disruption and drama in addition to the added paperwork involved after Britain left the EU. And while we all hoped the pandemic would be a short blip, sadly it has dragged on for over 18 months and the impact is continuing to be felt in many different ways across industry, within workplaces, economically and in regards to distribution and logistics. And with different regions and countries at different stages in their Covid recovery, the impacts are going to continue for some time. We have all heard some horror stories about delays and problems
with distribution and logistics domestically and internationally due to a number of factors. There are shortages in a variety of areas - raw material shortages, labour shortages or just staff being unable to work, container shortages, and even transport driver shortages. Freight costs are on the rise across all sectors, whether its air, sea, rail or road. Many businesses have faced increased demand but may not have the facilities or staff to be able to manage that demand given the circumstances. Yet even with the issues being faced by businesses, it isn’t all doom and gloom when some clever planning and ingenuity can help the situation as we learn from our industry experts.
Viewpoints Kathleen Schicht, senior director supply chain management dining & lifestyle, Villeroy & Boch Have you faced any distribution and logistical issues in the wake of the pandemic? A strong increase in demand from our online-shop brought a lot of challenges to our logistics and distribution system. But luckily we had planned a new order picking and packaging system before the pandemic and we were able to speed up the installation. It started April 2020 under critical conditions as we and the construction companies had to follow all legal pandemic constraints. But we managed to complete on time just before the Black Week and the Christmas shopping season. The start-up of the new machinery helped us get keep up with the huge market requirements and meet demand faster than before and on time. What are the biggest challenges your business is facing when it comes to international distribution? Our American and Asian customers are supplied by regional warehouses. To ensure product availability there we deliver to our warehouses via container ships. Right now, this is difficult because containers are scarce and expensive, resulting in long delivery times. Have you had any problems within your supply chain? Due to the coincidence of the high order volumes and of the Corona-related ongoing raw material procurement bottlenecks we have experienced some supply chain delays and production difficulties. Some novelty launches have unfortunately been slightly delayed this year, but we hope to get back on track in the second half of the year. By working closely together with our suppliers and logistic partners we manage the situation and try to minimize the impact on our customers.
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