Major global supply chain disruptions have presented an opportunity for businesses to diversify their supply channel partners and explore alternate markets, according to the head of CCIWA’s International Trade and Investment Centre.
Michael Carter says some businesses are experiencing freight and logistics issues, while others are reporting production and dispatch/freight problems.
In a CCIWA survey this month, 72 per cent of respondents said international supply chain disruptions were impacting their business.
The issues affecting global shipping reportedly include a potential spike in COVID-19 cases in China after Chinese New Year travel, forcing factory and port closures; union negotiations at the Port of Los Angeles; and increased protectionism amongst ocean carriers.
With the situation unlikely to change over the next 12 to 18 months, it was important importers and exporters alike took stock of current arrangements, Carter says.
“It’s the silver lining,” he says. “This is more of an opportunity for businesses to derisk and diversify their supply channel partner arrangements.”
However, Carter cautions: “It’s not about throwing the baby out with the bathwater and saying goodbye to your existing suppliers; it’s about maintaining those relationships but also thinking about a plan B or plan C and developing some additional or alternate supply channel partners.”
ITIC can assist importers in sourcing goods and products from alternative markets and assist in diversifying supply channel partners to identify other sources of supply or supplies in alternate international markets.
“We can help you to perhaps identify other new suppliers or complementary suppliers in alternate markets,” Carter says.
“This is an opportunity to invest in shoring up and broadening your supply channel base. It makes good business sense.”
At CCIWA’s International Trade and Investment Centre (ITIC) we are here to help businesses reduce the time, cost and risk of going global. Contact the team for a free consultation on (08) 9365 7620 or via [email protected].
