The potential dock worker strike on the east and gulf coasts, which was previously a looming threat, has now become a reality. For the first time since 1977, members of the International Longshoremen's Association (ILA) have gone on strike, affecting major container ports from New Jersey to Texas, including the recently reopened Port of Baltimore. Around three-fifths of the nation's container shipments go through ports on the East and Gulf Coasts, indicating the wide-reaching effects of this strike. Pressures on supply across many industries are expected, depending on how long the strike lasts.
According to the New York Times, JPMorgan analysts estimate that the strike could cost the economy $5 billion per day, equivalent to about 6% of daily GDP. For each day of port closure, it could take approximately six days to clear the resulting backlog. However, companies equipped with value chain management are positioned to adapt swiftly and maintain their operational efficiency in these challenging times.
Many businesses have already taken proactive steps by:
- Accelerating imports, with some ordering holiday goods four months earlier than usual
- Redirecting cargo to west coast ports
- Diversifying supply routes and sources
Businesses that make proactive value chain management a habit have significantly enhanced ability to quantify, prioritize, and mitigate risk. As supply chain pressures and disruptions increase – whether from dock worker strikes, geopolitics, extreme weather, or simple accidents – the risk of inadequate exposure for businesses grows with it. But now, advances in artificial intelligence have unlocked the potential for a fundamental change in how to manage risk around supply chain disruptions.
Value Chain Management: A Strategic Imperative
In a situation where every day of this strike could lead to a six-day backlog, real-time visibility becomes paramount. Altana offers a comprehensive set of features for you to:
See across your extended supplier base to build an integrated picture of part-site visibility, capacity, inventory, and material flows across your value chain networks, empowering you to collect information about and from your suppliers to better understand hidden risks and continuously monitor and dynamically update your value chain source of truth as global supply chains evolve.
Focus on areas of exposure across your expansive business network, with contextualized insights and decision support that help to highlight existing risks like supplier concentrations and to quantify potential losses through simulated disruptions.
Act through a collaborative control tower with internal stakeholders and external value chain partners to design and manage resilient, efficient, and sustainable networks. With value chains that are resilient to disruptions, and not simply inherited from your tier 1 suppliers, your business is in control and strategically positioned.
A New Level of Visibility and Agility
Altana delivers unprecedented visibility, insights, and collaboration from the inside out, beginning with your own data, allowing companies to achieve long-term resilience across their accurate, product-specific value chains, minimizing the impact of disruptions on their operations and customer commitments, even in the face of potential unknowns.
Expanded visibility, scenario modeling, and continuous monitoring and updates are crucial for:
- Identifying potential vulnerabilities beyond immediate suppliers and developing effective contingency plans well in advance of disruptions
- Simulating various scenarios to prepare for multiple outcomes, evaluating the impact of port closures on inventory and production schedules while also assessing and implementing alternative sourcing options or trade routes
- Tracking shipments and inventory, diversifying suppliers, reducing single-source dependencies, and making data-driven decisions, improving collaboration and coordination with partners across the value chain
As businesses brace for supply chain fluctuations, those equipped with a proactive approach are best positioned to transform potential disruptions from challenges into opportunities.
Reach out to our team at Altana if you have any questions on how we can help equip you with the tools you need to manage, and master, your value chains.
