Managing your stock levels through global shipping challenges
19th February, 2021
We have previously pressed on the need to extend your order lead times due to the many challenges presented with shipping as result of Covid-19. With 2021 now upon us this need is continuing and it seems to be more acute.
We all waded through the blank sailings, port strikes and vessel re-routings of 2020 and are now presented with a significant short fall of empty containers in the wrong port locations. Along with significantly increased global stock orders as companies seek to hold more inventory, port congestion at key port hubs including Singapore and Los Angeles. With delays being experienced at many global ports transit times are being extended when necessary and or vessels are re-routing to alternative ports when the bottle neck is too great.
With Chinese New Year coming to its conclusion it is normally a time for rates to start reducing and capacity to return to some normality. However, we do not see this being the case for the time being with many global advisers and shipping industry experts indicating that rates and space challenges will persist throughout 2021.
In addition to the shipping issues most manufacturer’s are running behind on production timelines, this resulting from increased demand, COVID working restrictions and reduced access to an International workforce.
To sit still and wait for some clear waters is not an option, as detailed above rates, space and production lead times are expected to be problematic throughout 2021.
At SCC we are not sitting still on these challenges with any of our customers orders and shipments, working closely with each of you allows us to work on the necessary solutions to manage your important cargo. We are heavily invested in our customer service team, IT and digital initiatives to assist with the movement of your goods in the most efficient manner.
If you are not already sharing with us your purchase orders regardless of the goods ready date as soon as they are prepared we ask that you please do so. This allows us to get your orders into our system and start the dialogue with your respective suppliers ensuring they are on time with their production for your stock. It also allows us and overseas freight partners to be allocating space for the movement of your cargo.
Takeaways:
- Forecasting is imperative
- Allow a buffer for shipping lead times
- Allow a buffer for manufacturing lead times
- Share your PO’s with SCC ASAP
- Talk to us anytime
As mentioned we are investing heavily into our IT/Digital solutions to allow us to work more closely with our customers, if you are not already connected for purchase order management, shipment tracking and data sharing contact us at sales@sccargo.com.au and we will gladly provide these solutions for you.
