The collapse of the Francis Scott Key Bridge in Baltimore has sent shockwaves through the global supply chain, particularly impacting the automotive industry. Our hearts go out to the people and families affected.
As community and essential commerce need to continue, a vast array of affected businesses looks for ways to manage a fast and effective recovery. The need for innovative solutions to avoid and mitigate supply chain disruptions is as urgent as ever. And when disruption happens, anywhere from a near-miss that diverts resources to a large-scale event that crosses industries and geographies, businesses cannot help but to focus on restoring logistics plans and operations.
The ability to prevent, avoid, and recover is the essence of resilience. In other words, businesses with the processes and tools to prevent, avoid and recover from disruption are more resilient, both for their customers and their shareholders. Here's how harnessing technology can drive resilience in the face of such supply chain challenges.
Understanding the Disruption
Baltimore's role as a critical link in the automotive supply chain cannot be overstated. With over 800,000 vehicles passing through its port annually, and over 11 million vehicles crossing Key Bridge annually, the collapse of the bridge has severely disrupted the flow of goods though this key port serving the eastern seaboard of the U.S., leading to delays, increased costs, and logistical bottlenecks.
The port of Baltimore is also:
- A leading port for coal
- A cruise ship terminal
- A Maritime Ready Reserve pier serving ongoing global relief efforts
- A telecom hub for cable laying/repair ships
Furthermore, regarding the Key Bridge, the infrastructure serviced critical HAZMAT traffic which are prohibited from the two Baltimore harbor tunnels. Essential first responders will need to take a more circuitous route around the city, adding time, cost and sustainability degradation for public safety services.
The Role of SAP Business Network for Logistics
In times of crisis, technology often emerges as a powerful ally. SAP Business Network for Logistics offers a comprehensive suite of solutions designed to navigate supply chain disruptions. The logistics collaboration solutions of SAP Business Network are designed to enhance visibility, optimize operations, and mitigate risks by working beyond the walls of one’s own organization. By collaborating with carriers and service providers on core transportation activities, businesses can act and react strategically and tactically to execute on customer and production commitments. And by leveraging real-time data insights and analytics from global sources, businesses can proactively identify and address potential disruptions before they escalate.
Intelligent Insights for Proactive Management
The SAP Business Network intelligent insights add-on empowers companies to achieve next-level situational awareness of the timeliness, performance and risks of shipments in transit. This enables businesses to assess supply chain risks through integration with external global risk data providers like Everstream - https://www.everstream.ai/ - and plan for avoidance and mitigating actions more effectively. Businesses with situational awareness are not only better at planning transportation, but also have the improved information basis for operational supply chain planning and inventory management, for enhanced supply chain resilience and forecast reliability.
Real-Time Visibility
One of the key advantages of logistics collaboration through SAP Business Network is the ability to leverage real-time logistics visibility through SAP Business Network Global Track and Trace. Gaining global logistics visibility enables businesses to identify shipment and location risks, plan and communicate based on predictive analysis and estimated times of arrival, and make informed decisions promptly to meet production schedules and customer promises. This is the type of supply chain transparency that helps ensure continuity in operations and customer loyalty even amidst disruptions.
Ecosystem Collaboration
SAP Business Network also facilitates seamless collaboration and connectivity across the supply chain logistics ecosystem through the SAP Business Network Freight Collaboration solution. Shippers, carriers and logistics services providers can exchange information, coordinate activities, and resolve issues, from contract-to-settlement, fostering greater resilience and agility across the ecosystem. This level of connectivity enables businesses to manage cost and collaborate at high efficiency, when responding swiftly to changing market dynamics and unforeseen events.
Demonstration
Here (forthcoming) is a concise demonstration of a shipment/Freight Booking (from Port of Baltimore – USBAL) to Port of Shanghai, showing how logistics collaboration on SAP Business Network enhances supply chain resilience.
In this demo, you will see:
- The SAP Business Network intelligent insights add-on integrate risk data from SAP partner Everstream, showing a High-Risk score of 17 affecting the shipment
- The SAP Business Network intelligent insights add-on show specifically the Phenomena – Waterway Closure / Disruption
Conclusion: Preparation through Technological Innovation
The collapse of the Key Bridge in Baltimore is a most unfortunate event, which when looking forward, can serve as a reminder of the importance of technological innovation as a key means to build supply chain resilience. By leveraging logistics collaboration on SAP Business Network, businesses can proactively manage disruptions, optimize operations, and safeguard against future risks. In navigating the challenges posed by supply chain disruptions, technology remains a critical enabler of resilience and competitive advantage.
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