From home renovations to automobile manufacturing, there isn’t a business sector that hasn’t been significantly affected by the pandemic, most often in unprecedented ways.
As the post-pandemic world takes shape, and we all rush into the new normal, many businesses are being challenged by supply-chain issues. Issues that began almost from the moment the pandemic began.
The Globe & Mail recently reported on a range of supply chain problems being faced in a variety of sectors in their article “Canadian companies deal with supply-chain bottlenecks amid recovery”.
In researching the article, its author, Mark Rendell, reached out to Jon Chiniborch, Vice-President of Sales at PiVAL, for his insights on the challenges we are seeing right now in supply chains.
The first point Jon makes maybe the most basic, yet profound for many of our clients.
“We’re speaking to customers that are saying, ‘We haven’t had an import container in four to six weeks, prices have quadrupled, and our margins can’t really manage that,’ ” said Jon Chiniborch, vice-president of sales and marketing at Pival International, a third-party logistics company based in Montreal. “We’re not expecting this to change over the next six months.”
Further, in the article, Jon gets into the downstream effect of the increased demand for warehousing space: higher labour costs.
In cities such as Vancouver, said Mr. Chiniborch of Pival, “the demand on warehousing is so high that the local warehouse associate can go next door and demand $5 or $10 an hour more because he’s a skilled forklift operator, and they’re gone.”
In his final contribution to the article, Jon strikes an optimistic note for the long-term, set against the reality of the short-term.
“We do foresee that it’s going to shift in the next 12 to 18 months back to normal,” Mr. Chiniborch said. “But consumer spending is still going to be strong for Q2 and Q3. … And when consumables are up, this means strong imports and container demand.”
In addition to Jon’s input specific to container shipping and warehousing space, the extensive article touches on many other issues we’ve covered here on the PiVAL blog.
Raw Materials Supply
The article mentions that “Canadian manufacturers are scrambling to sources raw materials”. Our “Raw Materials Supply” Case Study outlines one way that a manufacturer ensures a prompt supply.
The Affect of Natural & Man-Made Events
In addition to the pandemic, the article highlights issues like the Suez Canal blockage and the disruption they trigger in manufacturing and trade. In our article “Recent Events Make Third-Party Logistics More Crucial than Ever” we outline how 3PL services can help keep supply chains moving in cases of extreme weather, social issues like protests and even pandemics.
The Importance of Transportation Management
While transportation management isn’t mentioned specifically, there’s more than one part of the article where the points we outline in “4 Benefits of Transportation Management Systems” would help the issue. This includes the increased “use of air freight in response to delayed cargo ship sailings” and “… congestion across the Canadian transportation system..”.
If your business faces new disruptions as the economy starts to shift into the new normal, we here at PiVAL would appreciate the opportunity to show you how we can help.
What challenges are you currently facing that are disrupting your supply chain, ultimately impacting how you service your customers? My team and I are ready to help you optimize your supply chain. Contact me today to discuss how we can support your growth.