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Supply chains brace for more disruption as storm season intensifies

From wildfires and floods to scorching heatwaves, the consequences of climate change are becoming more pronounced, and as we enter the peak shipping season, businesses are scrambling to prepare for what is predicted to be one of the most disruptive storm seasons in recent memory.

So far in 2024 supply chain disruptions caused by extreme weather are estimated to have cost companies billions of pounds, and the storm season is far from over. Hurricanes, wildfires, and floods have already stretched global supply lines thin, and the arrival of storms like Typhoon Bebinca, which threatened Shanghai this week, adds a fresh layer of concern.

Increased visibility allows managers to pinpoint disruptions and adjust supply chains accordingly, and the key to weathering these events lies in preparation. Shippers are diversifying their carrier bases and building inventory buffers to keep goods moving in the face of challenges. Strategic planning, such as maintaining safety stock for high-demand items, has become essential in managing supply chain risks.

The heightened storm season comes as companies are already reeling from the effects of wildfires in California and Australia, as well as floods that have caused widespread damage to transportation networks in Asia.

While technology and data-driven insights have made supply chains more resilient, this year’s relentless barrage of natural disasters is proving particularly difficult to navigate. While technology can help predict and respond to the impact of storms, it is only effective when paired with clear communication and regular updates on shipments.

The threat posed by Typhoon Bebinca is yet another reminder of the supply chain vulnerabilities that remain, with Shanghai closing ports, cancelling, and halting transportation links to ensure safety. With more storms likely in the coming months, companies must remain agile and vigilant, ready to adapt to further disruptions.

The need for resilience and adaptability is more pressing than ever, as companies navigate the challenges ahead. This season may prove to be one of the toughest in recent memory, but for those prepared, there are still opportunities to maintain operational continuity in the face of adversity.

Extreme weather events consistently highlight the vulnerability of supply chains and the importance of robust contingency plans and marine insurance to protect against risk.

We have been maintaining supply chain resilience in the face of unforeseen challenges for decades. To learn how we can develop and support your supply chain resilience EMAIL our Chief Commercial Officer, Andy Smith.

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IT platform developments: Enhancing customer experience

We are committed to continuously improving the services we deliver to our customers, with significant IT developments, which will give them greater visibility, faster access to critical information, and a more seamless experience in managing their supply chains.

Our current roadmap focuses on enhancing our customer-facing platform, MVT, which serves as the backbone of customer visibility into their supply chains. By prioritising agility, integration, and data-driven insights, we aim to create a more seamless and efficient experience for our customers.

Agility and efficiency
To ensure our systems remain adaptable and ready for the future, we have moved from a single, all-in-one system to a more flexible, modular approach. This change allows us to update and improve specific parts of our platform quicker, making it easier to respond to customer needs and industry changes. It also sets the foundation for growth, ensuring our platform can continue to evolve as customer demands and technology progress.

Integration and collaboration
We are focused on ensuring seamless integration between our core operating system, third-party applications, customer systems, and our MVT platform. This integration provides a unified view of the supply chain, allowing customers to collaborate more effectively and make faster, better-informed decisions.

Data-driven insights
Data is at the heart of our strategy. We have invested heavily in improving our data infrastructure to ensure accuracy, consistency, and compliance across all data assets. These enhancements allow us to transform raw data into actionable insights, empowering customers with advanced reporting and analytics.

Looking ahead
Looking ahead, our future development pipeline includes the launch of several new applications designed to further enhance customer interaction and data accessibility, including the integration of in-App reporting and analytics.

In September, we will hold our annual Blue Sky Thinking Development Day, where we will define the roadmap for 2025 and beyond. The core focus will be on identifying key supply chain challenges and translating them into technical solutions that enhance the capabilities of our existing MVT application, delivering even greater customer value..

As we roll out these updates and continue to build upon our platform, we are confident that these advancements will significantly enhance the value we deliver to our customers.

Key application developments

Application | Upgrade | Status

MVT Portal | Enhanced user interface | Now Live
Track & Trace | Upgraded with new features | Now Live
POMs (Customer) | Fully migrated to new technology stack | Now Live
POMs Notifications | Brand new application | Now Live
ECO Part 1 | Refreshed design and functionality | Now Live
POMs (Supplier) | Transitioning to advanced technology | Launching October
DCM | Revamped with new internal tools | Launching September
EBSA | New technology with enhanced features | Launching December
Booking App | Introducing a new application | Launching January
Digital Customer Tariff App | New digital solution | Pending
ECO Part 2 | Powerful new data insights tool | Pending

For further information on how our technology platforms can help enhance and simplify your supply chain EMAIL Ian Powell, Customer and Technical Solutions Director.

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Import Control System 2

Enhancing supply chain security and safety, Import Control System 2 (ICS2) is the Import Control system for movements both ways between the UK and the EU, including Norway, Switzerland, and Northern Ireland.

Based on similar worldwide systems that pre-declare shipments, to determine risk, security and safety of the cargo, ICS2 is the EU’s advanced cargo information system, which has been rolling out since 2021. 

The process has long been in place from the Far East and USA, with responsibility of making a declaration to the first European port of call of the vessel, for all goods entering, moving through or leaving the EU before they arrive. This system helps EU customs authorities ensure security and safety, and compliance is crucial to avoid delays, scrutiny, and penalties.

The full scope of data to be provided now include the commodity code (to 6 digits), a clear and plain description of the product, and the consignees EORI.

Given that the description and commodity code will reflect all the goods within the shipment then the declaration has the ability, for full container loads of multiple SKUs to become quite cumbersome.

One of the key pieces of data is around establishing credibility of the consignee, this is done through the EORI which can be checked to determine the establishment of a company in the EU.

Without an EORI it will raise a red flag to the destination authorities. The process is due to be introduced on the 1st October of this year,

Key Benefits of ICS2
ICS2 aims to secure the EU’s supply chain and streamline customs procedures by:

– Accurately identifying high-risk consignments and allowing proactive intervention
– Facilitating faster, smoother cross-border clearance, reducing delays and costs
– Simplifying information exchange between Economic Operators (EOs) and EU Customs Authorities

Enhanced Data Requirements
With ICS2 Release 3, exporters must provide comprehensive information about goods, including their origin, destination, and specific attributes. This enhanced data collection improves risk assessment and overall security measures in global trade.

Who is Affected?
ICS2 affects all Economic Operators (any business or other organisation which supplies goods, works or services) involved in handling, shipping, and transporting cargo. They must submit safety and security data to the ICS2 portal via the Entry Summary Declaration (ENS). Manufacturers and exporters outside the EU must provide necessary information to their freight forwarder or carrier.

Implementation Phases
ICS2 is being implemented in three releases, with Release 3 launched on 3 June 2024. This includes maritime carriers, express operators, and air cargo operators. Release 3 will proceed in three phases:

– 3rd June 2024: Maritime and inland waterways carriers
– 1st October 2024 EORI number required for EU consignees
– 4th December 2024: Maritime and inland waterways house-level filers
– 1st April 2025: Road and rail carriers

Exporter Obligations
Exporters must provide detailed information about their shipments to carriers, including:

– A 6-digit Harmonised System Code
– A complete and accurate commercial description of the goods
– The EORI number of all parties involved, registered in the EU
– Additional details of parties involved, such as the seller, buyer, and consignee

By meeting these requirements, exporters help facilitate accurate risk assessments and enhance overall security.

Conclusion
Understanding and complying with ICS2 is essential for anyone involved in exporting to the EU. By providing detailed and accurate shipment information, you can help ensure smoother customs procedures and contribute to a more secure global supply chain, while avoiding delays, scrutiny, and penalties.

When the ENS information is not provided to EU customs, shipments will be stopped and will not be processed for customs clearance, which will lead to delays and potential fines.

We can guide you on the ICS2 changes, help you to educate your suppliers and provide full support for all your import and export documentary needs.

Metro are at the forefront of customs brokerage solutions, with our automated CuDoS declaration platform and dedicated team of customs experts, reacting swiftly to any changes in the UK and EU’s trading regimes.

To learn more about ICS2, or to see how we can simplify and automate customs declarations for your businesses, please EMAIL Andy Fitchett, Brokerage Manager.

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Taking track & trace to the highest level

Metro’s multi-award winning supply chain management platform, MVT, has been optimising supply chains for over two decades and the latest release of its AI-powered track & trace module is a Masterclass in shipment visibility.

MVT is a global operations platform, which has been designed to simplify supply chains, with a wide range of modules including customs automation, DC delivery management, PO management, CO2 reporting/offsetting and track & trace.

Conceived, developed and supported by Metro’s technical solutions team, MVT embraces leading-edge technology, including Artificial Intelligence, machine learning and automation technology to power its wide range of modules.

Metro customers have been automatically transitioned to the latest version of the track & trace module, which was released on the 20th May 2024, making it even more intuitive and easier to navigate, while improving the overall user experience.

There are over a dozen enhancements and new features, including a new landing page, which provides a visual dashboard for high level reporting, with easy drill down access to live shipments and a zoomable global map view, with AI tracking for the most accurate location fix.

Because Metro customers are busy, there are notification tools, which alert them to recent changes and critical shipments can be pinned to their dashboard for live updates, while document pop-ups gives them immediate access to anything important.

With a whole bunch of filters, download and data interrogation tools, Metro’s track and trace is much more than T&T, and it’s a free ‘added-value’ benefit to customers.

Click HERE to download the full list of the new MVT Track &Trace features, or EMAIL Ian Powell to arrange a demo.