I interviewed Alessandro Menezes who discussed The Future of Supply Chains and Reliable Supply Using Ocean Transportation.
It’s good to speak with you again, Alessandro. This is going to be interesting. I’m looking forward to hearing your views on the future of supply chains and reliable supply using ocean transportation. Can you first describe what you see as the future of supply chains?
Hey, Dustin, it’s a pleasure to be back and talking to you once more about this interesting part of the supply chain. We have all seen that certain chains are getting more relevance and are becoming as important as, or even more than, product chains. Let’s take, for example, the big shipping alliances is that they own the cover page of the major logistics and shipping magazines anywhere.
In spite, at first, anyone could say that these big alliances would play a big role toward increasing even more the degree of service commercialization that is being offered by the vast majority of the shipping lines because at the end of the day, the shipping lines are now increasingly offering more and more transportation using the same ship, which, of course, they share the space and exchange lots. Therefore, they are also offering the same date of arrival and departure and so on. What we see, the reality is that it seems that these came to open the eyes of most of the shipping lines, the global carriers, to the need of really diversifying their product.
We see in the reality is a huge massive effort of the shipping lines to get away from this commercialization and diversifying this service in a direction that would really be in accordance with which is the most of the requirements for the shippers, which is related to visibility, reliability, and flexibility because these are really kind of metrics from a shipper standpoint that will be related to the security of supply they need.
How can this be implemented?
It’s a great question. The biggest challenge is to have any simple strategy and implement it. These really make sure that it’s reflected on the operational practice; that whatever actions are being done are really lining up with proper business strategies. Let’s talk back to visibility, which is a key component of the services chain. The shipping lines, for example, terminals and other third-party logistics providers, they must be able to link their strategy for connectivity, for systems, their operational network to the core business of the business strategy. By doing so, what I mean by that is they have to really understand let’s talk about our terminal. The customer needs.
For example, terminal must understand that global shippers are those who indeed drive the business volume. They are loading with a specific shipping line, and as knowledge goes, as information’s available, they might decide to change their gateway if they see that this visibility, the service has changed, is being linked in terms of continuous improvement because they’re dealing with, for example, a partner who might not have a connected system and they might be without shared visibility, cloud-based and all those kinds of technology. Shipping-wise on the other side, taking this example, they are highly concerned about, also, the wasteful time that they have to create a buffer on the services scale of the ships, which is very costly.
At the end of the day, you are in a situation where you have shippers and ocean carriers really with lack of insight and control in order to become more competitive. To implement, it’s critical to enforce these needs and have the relationship together. It really requires a well-executed supply chain, a strategy that results in daily value creation in all levels of the organization.
Can you share with us where you’ve seen some success?
There is a lot of work to be done yet, because new technology and approaches are bringing solutions they’ve never seen before. There are new solutions to problems, but taking our example, we are very proud of the advancements we’ve made so far. We have invested recently in a lot of resources in analytics despite, as I said, there’s a long way to go. Some of the success that we are active in and are very confident that we continue to bring, they include hire other fulfillment rates, improve the customer service levels, higher profitability, increase operation officials, and, according to the last survey, an ongoing improvement on the customer satisfaction, which is the key to the core business strategy that most of the companies pursue about having really a long-term sustainable growth within the organization.
Thank you. Can you provide a brief background of yourself and your experience?
Certainly, Dustin. I have worked for 16 years within the ocean-transportation sector, holding global and regional product-management and trade-management functions within the container liner industry. I was also in charge of some deep-sea services before and have some experiences in the coastal obligations in South America, especially within Brazilian firms. My previous experience also includes global logistics roles based in Europe—Germany—with the optimization of empty reposition fleet. We’re talking about a fleet of over three hundred containers dispersed globally.
After leaving the industry, I also had an experience with another side of the ocean shipping: the dry-boat shipping, where we were specifically providing international glass makers, soap, and detergent manufacturers with a high-quality bulk product, where they needed. Right now I am leading the supply chain and customer service operations for major chemical companies, a few additives for the fuel, the petroleum industry.
My education included a bachelor’s in business administration, M.B.A., a master’s in logistics and training in some top schools related to supply chain and leadership-negotiation talks.
Thank you for sharing your views today on this topic.
Thank you, it’s my pleasure.
About Alessandro Menezes
International Logistics, Supply Chain, Transportation, Shipping, Trade Management, Ocean, Freight, Strategy, Procurement