Industry and government must work together to recognise there are multiple factors causing supply chain disruption, says Logistics UK

“During the past 12 months there were many new developments within the logistics industry, while trying to restabilise the country, and product availability was impacted,” says Jonathan Walker, Head of Cities and Infrastructure Policy, Logistics UK.  

“Furthermore, transit times increased and the cost for businesses to ship one container globally rose eightfold, although this pricing increase has since dropped back to 2019 levels. While pressure has eased slightly as consumer demand has returned to pre-pandemic levels, there are other threats still facing our supply chains.”   

MULTIPLE FACTORS 

Earlier this year the country faced some empty shelves in supermarkets once again, following food shortages of fresh produce such as cucumbers, lettuces and tomatoes. With UK farmers having to reduce their production levels due to rising energy prices and overseas supply chains disrupted, the situation demonstrated the short-term fragility of some trading routes.  

“It’s crucial that industry and government work together to recognise that there are multiple factors that cause supply chain disruption and therefore should not single out one issue,” urges Walker.   

CYBER THREATS 

Cyber attacks are an enormous threat to supply chains but can easily be overlooked due to lack of awareness on the scale of the issue.  

Speaking at Logistics UK’s Supply Chain Resilience conference in 2023, Alan McKinnon, Professor of Logistics at Kuehne Logistics University, highlighted how logistics systems and supply chains are becoming increasingly digitalised, leading to a higher exposure for potential cyber threats.  

The country has seen how these attacks can be achieved at a national level through cyber warfare and so it is crucial that government and the sector acknowledges the danger cyber attacks can inflict and look at better securing IT systems.  

“In the view of Logistics UK,” says Walker, “it’s important to note that criminal attacks are not the only cause for concern, threats can also come in the form of accidental, malicious damage and geopolitical.  

“Due to a lack of antivirus software, the supply chains are becoming increasingly vulnerable and so it’s vital that logistics businesses stay alert to these threats and seek both professional support and the ongoing advice provided by agencies such as the National Cyber Security Centre.”  

In 2022, The Business Continuity Institute (BCI) carried out its annual survey of the top five causes of disruption in supply chains. Unsurprisingly the top response was loss of talent and skills, combined with a labour shortage within logistics and other related sectors.  

“Logistics UK is calling for action to address skills shortages in the sector,” assures Walker. “For example, by amending the apprenticeship levy into a training levy, it will allow more flexibility as apprenticeships have a vital role to play in the development of a skilled workforce and solving the sector’s long-term skills shortage. In a 10-year projection – published by the World Economic Forum in its annual survey for 2022 - it was noted that all potential risks were environmental and climate change related. 

“Logistics UK believes that these reports highlight the vital role government must take in these issues to ensure that its efforts are aligned with the sector’s determination and dedication to improve resilience within supply chains.”  

DECARB DISRUPTION 

Decarbonisation also has potential to cause disruption to supply chains as industry looks to shift freight to lower carbon transport modes, as well as optimise the use of logistics assets – both in vehicles and warehouses – and improve energy efficiency to reach decarbonisation targets.  

Some of the ways this could be achieved is through diversifying the supply base, relaxing ‘just in time’ pressures and in turn increasing the amount of inventory in our supply chains and extending order lead times.  

“Industry has its own part to play in addressing the challenges of decarbonisation, both in its own operations and in supporting the wider transition of the economy,” says Walker. “The logistics sector has taken enormous strides forward in recent years and must be supported to go further.”  

COMPLEX INDUSTRY 

The logistics industry is highly complex and as a result, there are many factors that could disrupt the supply chain. One of the key ways to improve resilience is via awareness of the issues so that mitigations can be sought before the challenges fully arise.  

“Logistics UK will continue to work with members,” says Walker, “to ensure they are up to date on key challenges, and to work together to proactively seek solutions.”   

*www.logistics.org.uk/campaigns 

Published On: 08/06/2023 12:00:00

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