Considering the persisting challenges in the Red Sea, we understand that all businesses worldwide are being inflicted with high financial risk, further delays, and loss of goods due to international freight disruption. The disruption is causing a lot of anxiety and concern.
Reports from Windward – a leading intelligence operator in maritime risk – are saying 50% of all Suez traffic could be rerouted with the Asia to Europe route most impacted by delays, further having a rippling effect on the US market. DHL Global commented that “the delay of containers, reduced capacity, and longer transit times all influence global shipping costs.”
What’s more, for many spirit and wine brands out there dependent on supply from the Far East, the problems are pinching a little more with upcoming celebrations of Chinese New Year causing production shutdowns at a critical time in the market.
It’s best practice to take moments to reflect on your priorities. Why is important that your production partners are based in the Far East?
Often the cost savings are a huge pull – which albeit is a highly influential consideration – but that could be at the cost of lead times, quality assurance, opposite time zones and unpredictable but high-risk factors like weather or in this case, conflict.
Taking time to work with your team and review your priorities around the strategic location and risk spread of your supply chain, is always advisable. Understand these factors you need to consider to inform your discussion and decision-making.
For Signet, we prioritise giving our clients access to expertise and as a result, have production sites in the UK and Europe. It’s also important to us that our clients benefit from the greater flexibility that proximity provides and the ability to stay agile alongside our ambitious clients’ deadlines is also a bonus.
As a result, we’re also continually innovating with our partners to develop bespoke innovations that will prepare for and mitigate the challenges as well as seize the opportunities our clients are facing now and in the future.
But let’s come back to you. What are your priorities as a brand?
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To stay up to date with the impact of the Red Sea Crisis here. If you require support with pivoting or spreading the risk of your supply chain, please get in contact with our team. We are always here to help: info@signetbranding.com
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