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New eruption of Icelandic volcano likely, but no Threat to Global Supply Chain
With news of the likely eruption of yet another Icelandic volcano, there is a very real risk of further disruption to the global economy. How can companies prepare themselves for the worst case scenario and minimise the damage?
This is may well lead to a repeat of flight restrictions and disruptions to the global supply chain. Companies will need to allow for longer lead times associated with transporting goods by other means and explore options for sourcing products from other areas. The good news is that international trade relies more heavily on road, rail and sea freight than it does on air freight. However, many companies depend upon air travel to shorten lead times.
Some companies will be disproportionately affected by any disruptions, particularly those trading perishable goods, such as food and flowers that depend on air freight. Other sectors may also face difficulties. During the Eyjafjallajö
So what lessons can be learnt from the problems created by volcanic eruptions? Mark Brannan, General Manager of AEB (International)
“Very often global supply chains do not provide the transparency required to ensure a continuous flow of goods or parts under changing circumstances”
As Monitoring & Alerting is a central platform that not only connects all parties in the supply chain, but can also be accessed by e.g. customers and suppliers, it is possible for them to get a view on the situation without having to call the administrator or service provider in the event of a crisis. If transports need to be rearranged urgently, the ASSIST4 system can be used to assess, share and - based on stored tolerances and preferences - even initiate available options quickly. So, if outbound flights to Eastern Europe are not possible, then the system can quickly calculate the costs and duration of available road transport options, and proactively inform the user accordingly to make a timely and informed decision.
There is of course no telling what catastrophe might next befall the aviation industry, but supply chain managers would do well to prepare a contingency plan for air shipment disruptions, be they due to an Icelandic volcano or other natural disasters. What we can learn from Eyjafjallajö
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For further press information, or interview requests, please contact Andrea Krug, Krug Communications, tel. +44 (0)7740 245 867, email: firstname.lastname@example.org.
To find out more about AEB’s supply chain management software solutions, please contact AEB (International)
Notes to Editors
About AEB (International)
AEB is one of Europe's leading providers of supply chain logistics software and has been delivering solutions to customers for over thirty years.
The company has over 5000 customers worldwide supported by offices in the UK, Germany, Singapore, and the US. AEB’s Warwick office celebrates its 10th Anniversary this year.
AEB’s core product - ASSIST4 - is the comprehensive solution suite for all logistics processes in global business. ASSIST4 offers a complete set of business services for end-to-end logistics, including international goods movements, making it possible to standardise and automate business processes in supply chain execution. ASSIST4 also creates transparency and provides a reliable basis for making the right decisions about the planning, monitoring, control and continual optimisation of supply networks - even beyond the boundaries of the business.
The ASSIST4 suite offers comprehensive functionality via a wide range of modules including Warehouse Management, Freight Management, Transport Management, Customs Management, Monitoring & Alerting and Compliance.
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Page Updated Last on: Jan 13, 2011