Stakeholder calls for resilience building amid supply chain disruptions
As the novel coronavirus pandemic continues to expose the vulnerabilities of global supply chains, Mark Williams, chief executive officer (ceo) of Kingston Wharves, has called for the building of resilience in the shipping industry in order for countries to minimise the risk of future shocks.
Speaking at a webinar held by the Institute of Chartered Accountants of Jamaica (ICAJ) last Thursday, Williams said that a part of this resilience was the urgent need for manufacturers to diversify supply chains whilst integrating it as a key objective of risk management strategies.
“We need to build a resilient global supply chain and we need to diversify supply chains. We need to begin to ensure that there is more than one supplier for raw materials hence we should begin to look to other regions,” he stated.
Williams said that while China has so far maintained its position as the global factory, continued long-term shifts in the global supply chain could cause it to lose its position to other emerging markets. As such he believes the time is ripe to engage new markets and unlock new opportunities.
The situation at global ports, which he said has been exacerbated by rising cost and the pile up of containers, has further heightened the need for countries to venture into the emergence of nearshoring opportunities.
Locally, he believes the establishment of a logistics hub and special economic zone (SEZ) regime has better positioned Jamaica to take advantage of these opportunities.
Williams noted that with the Caribbean and Latin America fast becoming a place for nearshoring, his company, as a local player, is also seeking to capitalise on the growth potentials and has made significant investments towards the build out of requisite facilities. This, as other territories such as the Dominican Republic aggressively positions for these opportunities.
Outlining other strategies, Williams also highlighted the need for greater reshoring or increased manufacturing in countries of origin following decades of off-shoring, and as these countries stimulate local production for self-sufficiency.
“Given the supply chain issues, there are some opportunities for Jamaica to take hold of. There are lots of land around which we can also use to pursue farming/agriculture underpinned with science and move to become the market for the Caribbean,” Williams said.
The CEO in underscoring more required actions needed locally, indicated that the utilisation of digital methodologies was also useful in addressing some of the existing challenges inherited from supply chain disruptions. He said that the launch of KWL’S Click N Collect contactless cargo clearance services has been positively impacting the business in this regard.