Buy back time in the supply chain

Published: Tuesday, 23 April 2024

The automotive logistics is only too aware of how disruptions in the supply chain can be costly in terms of time and money. The past five years have posed more challenges to the industry since the 1940s from the Covid pandemic, Brexit and war to semiconductor shortages.

Although some impacts are easing, there’s more on the horizon with extreme weather predictions, continuation of conflict in the Middle East and between Ukraine and Russia plus global carbon emission ambitions.

Global supply chain crises

Nearly every automotive logistics transport mode faces costly and unprecedented challenges. Global shipping is severely impacted, with two major canals largely inaccessible and conflict in the Red Sea prompting shippers to bypass the Suez Canal, increasing costs, delays, and carbon emissions.

Shippers have looked to rail and cargo alternatives, but they are also facing their own issues with rail strikes in Europe and capacity shortages in North America.

Road transport has also seen farmers striking in Europe, blocking roads, along with climate protestors on motorways increasing extreme weather predicted to be the top logistics disruptor for supply chains, (according to analytics firm Everstream.)

Buy back time in the supply chain

But how can you plan for something unprecedented? Stuart Stobie, Chief Commercial Officer at Priority Freight, says it’s simple – by having a backup plan.

“With the way global events are happening, and the fact that the supply chain is becoming more globalised, the need to have a backup to your standard inbound logistics is becoming more important for companies,” Stobie says. “We, at Priority Freight, excel where standard inbound logistics have failed. We offer supply chain certainty when our customers need it most.”

Priority Freight, a global time-critical logistics specialist, provides accelerated delivery solutions no matter what the geography, size, weight, distance, or mode of transport.

“The difference between a standardised freight network and a bespoke solution network, like Priority Freight’s, is that our people go the extra mile to make sure that those goods are delivered within the timeframe. We thrive on situations that require complex solutions to overcome seemingly unsurmountable logistical issues and never give up. In short, our role is to buy back time in the supply chain and assist in maintaining production,” says Stobie.

And for one OEM, going the “extra mile” meant Priority Freight travelling 600 miles across the UK/France border to deliver 300 semiconductors within 20 hours. The manufacturer faced production line delays due to a shortage of chips and extensive delays at UK ports but, within one hour of enquiry, Priority Freight had completed customs papers, organised high-value insurance and had a driver onsite to collect the goods. The rapid response, resulting in 300 semiconductor chips worth £110,000 ($140,000) being delivered safely to Le Mans, France from Birmingham, UK. The timely delivery prevented a costly line stop at the Le Mans plant, preserving manufacturing schedules and company reputation.

Cost-effective

While emergency logistics can be seen as expensive, Stobie says that the cost actually balances out, especially in comparison to how costs can snowball when something goes wrong.

“It’s seen as an expensive mode of transport but, often, it’s a cost reduction,” he says. “The cost of plant or production downtime is seriously more expensive than prioritising the movement of these premium freight goods. There is less capacity on shipping routes now, so there is a need to have alternative support measures in place, aside from the standardised freight network.”

“We give the customer the speed, security, control and visibility that they require,” he says. “Using GPS links lets customers stay in control of the transport. Our customers can log into our in-house transport management system to track their goods and trace where they are.”

Solutions

Whether supply chain disruption is due to adverse weather, strikes or supply shortages, Priority Freight says it is always flexible to find a solution to preserve manufacturing schedules.

Stobie says, “the most important thing is to ensure production lines keep running and it’s our team’s job to solve any logistical issues that would prevent that. Each solution is tailored to overcome that issue and maintain production, no matter the time of day or night.

“When it comes to goods moving between the EU and the UK, customs clearance can add to cross-border delays with declarations and increased amount of supporting paperwork needed, it adds further complexity to the transport. Our in-house customs team was set up post-Brexit to assist a speedy delivery.”  

Priority Freight’s highly experienced team of multilingual logistics specialists are committed to providing the fastest, most cost-effective and reliable solutions, time and time again. With a reaction time of under 15 minutes, and an on-time delivery rate of 99.6%, Priority Freight is dedicated to ensuring certainty of supply through disruption.