Supply chain transformation necessary, stakeholders say

The need to rethink and further strengthen international supply chains was a key message by stakeholders attending the Supply Chain & Logistics Conference & Exhibition recently held in Nicosia.

The event sought to examine the prospects and challenges facing supply chains since the Covid-19 pandemic, with the levels of disruption being likened to those seen during times of war.

“The coronavirus outbreak showed how delicate supply chains are and how necessary it is to transform them,” business development executive for the digital supply chain at SAP Hellas, Cyprus and Malta George Michalos said at the event.

Regarding new trends, Michalos said that the industry has witnessed the growth of logistics 4.0, denoting the integration of the Internet of Things (IoT) into the production and manufacturing environment.

According to a study by researchers from the School of Applied Sciences at Cranfield University and the School of Industrial Engineering at the University of Vigo, “the vision of Industry 4.0 emphasises the global networks of machines in a smart factory setting capable of autonomously exchanging information and controlling each other,” adding that “this cyber-physical system allows the smart factory to operate autonomously.”

“We have seen how the Internet of Things has not only allowed people to track their shipments but also how it has helped to develop new business models for service providers,” Michalos said.

“Also, another important aspect is how it has helped organisations to achieve their sustainability goals, meaning that in parallel to the development of their logistics, they are also able to decrease their carbon footprint, reduce waste, and eliminate imbalances within their structures,” he added.

In terms of Cyprus and how it has been affected by supply chain challenges, Cyprus Supply Chain And Operations (Kyfea) president George Loizides said that there many challenges facing the island, which have been exacerbated by the pandemic.

“These include the high cost of the supply chain for imports, primarily cargo shipments from Asia, as well as labour shortages, which have been made worse by the pandemic,” Loizides said.

“There are also challenges in terms of education, with some people lacking the necessary skills or knowledge, resulting in two-speed organisations,” he added.

Moreover, Loizides said that there is a lack of a cohesive, national strategy when it comes to supply chains, while also noting that there is a deficiency in terms of networking and coordination by stakeholders along the supply chain.

Thanos Mavros, supply chain and operations leader at Ernst & Young (EY) Greece and CESA, with the latter representing the shipbuilding industry and its supply chain from EU member states, Norway and Turkey, said that the sector is becoming “faster, smarter and cleaner”, mainly due to the better allocation of resources and more sustainable development.