EV Cargo Founder, Chairman and CEO Heath Zarin has provided expert analysis of the challenges facing global supply chains to viewers of leading news network CNBC.
Managing supply chains for the world’s leading brands, EV Cargo has used its extensive global logistics network and technology-led solutions to help customers navigate global challenges over the last two years and maintain robust supply chains in the face of unprecedented disruption.
Heath told CNBC’s Squawk Box programme: “At EV Cargo, we are working with our customers on different measures to enhance supply chain resilience – increase dual sourcing, increase safety stock, and increase visibility and predictive analytics.
“The global supply chain is incredibly important to the global economy, enabling trade, and we play an indispensable role. The industry has responded well to challenges in the last few years.”
Companies should look to source products from multiple different countries, carry higher levels of inventory for components or finished goods and have clear visibility of where their goods are at all times.
Heath said the effects of Covid are still being felt and disruption could continue for another two years, while Russia’s invasion of Ukraine has hit supply chains not only to those countries but on routes which pass through them.
He added: “Increased demand coming out of the initial slowdowns of Covid has exacerbated imbalances in available capacity for end-to-end ocean freight logistics.
“The industry will take the next two years to work its way through the supply chain challenge; there is the potential for continued disruption from geopolitical events as well as Covid. There will be a persistent period of higher freight costs in order to provide the levels of resiliency that our customers and the industry needs.
“The lesson of the last few years is to expect the unexpected, to run significant business continuity and scenario analysis, and prepare contingencies.”
Last year EV Cargo moved $32 billion worth of freight meeting its purpose to power the global economy and this month acquired European freight forwarder Fast Forward Freight as part of its global growth strategy.
Heath added: “We pursue a more conventional M&A model, like other private equity backed or corporate acquirers, while also running an internal VC model seeking to lead the digitalisation of the industry from the inside out.”