A global professional services firm recommends firms to move from a just-in-time inventory model to one fit for just-in-case, as the ongoing supply chain disruptions look set to continue.
A container ship docked at the Port of Lyttelton. (file pic) Photo: 123rf
JLL NZ supply chain director Mike DeDera said the just-in-case inventory model was a way for businesses to reduce their exposure to international shipping price increases and delays by increasing their inventory through larger, but fewer shipments.
"In a market where ocean shipping prices have risen more than 10 times over, there is plenty of incentive for businesses to change model," DeDera said.
He said businesses should be asking themselves how prepared they were to manage supply chain disruptions for another two years.
"While this will mean finding greater storage space within an already tight industrial property market, the additional warehouse rental expense can often be underwritten by the tens of thousands in savings made from an improved logistics network."
A review of an operating strategy was also an opportunity to become more energy-efficient, too, he said.
"Questions business leaders should be asking themselves right now include: Are we working with green carriers and suppliers who use sustainable vehicles for deliveries? Do we know what our carriers' and suppliers' sustainability strategies are and do they correlate with our own?
"Do we use electric forklifts instead of gas? Are our warehouses optimised for sustainability? And if not, should we retrofit or consider moving?"