Think about the last time you went to a shopping centre and noticed empty shelves – chances are it wasn’t that long ago – and now ask yourself whether you truly knew the reasons why.
If you don’t know the answer, you’re likely not alone, as I would argue that the majority of Australians don’t have a strong understanding of how our supply chain operates, and exactly how many products we import daily.
And yet, we should.
While the empty shelves of the pandemic years cast a harsh spotlight on supply chain operations, as things returned to ‘normal’ and shelves were once again stocked, scrutiny and concern largely dissipated and for the most part, consumers haven’t really given the supply chain another thought.
With the potential of empty shelves in the lead up to Christmas as a result of continued re-routing away from the Red Sea and ongoing congestion at Singapore Port, it’s a timely reminder that businesses and consumers more broadly stand to benefit from knowing more about supply chain operations.
This is particularly true here in the West, where we rely heavily on containerised shipping for most of our consumer goods, whether it arrives via Fremantle or the east coast.
Clothing, furniture, confectionary, construction materials and hardware, electronic goods and whitegoods are just a few examples of the wide range of items that arrive in WA via container.
With such a heavy reliance on the supply chain, it’s in everyone’s best interests to understand where potential pressure points are, and where things can and do go wrong.
The supply chain is made up of a number of different moving parts, including shipping lines, vessel crews, Port and cargo terminal operators, tugboat pilots, union organisations, government departments such as customs and biosecurity, transport companies, rail operators and freight forwarders and logistics specialists like ourselves.
Problems with any one of these elements can set off a chain of events that has wider flow on effects, if not immediately then in coming weeks, and take even longer to ease.
While the supply chain operates 24/7, Australia as a whole does not, which can create bottlenecks and different ebbs and flows throughout the chain.
Industry infrastructure is expensive to purchase, operate, maintain and upgrade, and in the current economic environment, these costs are rising and will be passed on through the supply chain.
Global events also have a significant impact, even indirectly, as bottlenecks and delays on certain shipping routes will flow through to other routes.
A key example is the ongoing tension in the Red Sea which has resulted in shipping companies re-routing away from the area, adding delays to vessel schedules and causing congestion at Ports such as Singapore.
The issue has particularly impacted goods heading to Fremantle, as geography dictates that almost all freight coming to WA must come via Singapore.
Added to this, global shipping company MSC recently suspended two direct services to Fremantle and Adelaide, instead servicing these Ports via the east coast.
This puts further pressure on an already strained supply chain and has the potential to create extra delays for goods coming into Western Australia.
When collaboration is high and all elements of the supply chain are working smoothly, consumers lives are unaffected. However, the fragility of the system means that it only takes a small ripple to create a larger, more impactful wave that is felt thousands of kilometres away.
While it’s true that the consumer has little control over what happens within the supply chain, by increasing our overall understanding and knowledge, there is the opportunity to stay ahead of the curve.
Hearing of congestion building at major Ports? It might be worth placing orders sooner.
Hearing that delays are occurring for goods heading to Australia? Perhaps don’t put off making that necessary purchase, in case you miss out altogether.
As the old saying goes, knowledge is power.
