FRC Global’s Role In The Steel Supply Chain
This unpredictable demand and supply chain was also exacerbated by shortfalls in international freight supply, delayed shipping, and huge increases in shipping costs, both domestically and internationally.
Although some steel plants were able to keep up their normal production with only a slight decrease in productivity, others had to significantly reduce their production or close down.
Due to the pandemic, the time it takes to ship products overseas has increased dramatically. In addition, overall costs have reached sky high due to the pressure of demand placed on the supply and shipping industry.
Since even one part of the chain is affected, it has a domino effect on the rest of the systems. That is why the industry is still experiencing wide-ranging consequences.
Shortage of Shipping Containers
The supply chain crisis has been further exacerbated by the shortage of shipping containers in Asian ports, which resulted in a smaller amount of space for overseas transport as well as soaring shipping costs.
Since thousands of containers were stuck in ports in western countries, it has resulted in port saturation and backlogs since they could not all be accepted at the same time in foreign ports.
Jammed International Ports
International ports are experiencing extreme congestion of ships, resulting in long queues to offload their cargo and creating bottlenecks at ports. In addition, there is a very small amount of space for unloading cargo, in addition to pandemic-related restrictions and a shortage of staffing.
Whenever an outbreak of the novel coronavirus is detected somewhere, it results in the closure of major ports and product slowdowns. Every time a large port closes, it results in delivery delays of merchandise and heightened demand, which cannot be fulfilled on time.
Role of FRC Global in the Steel Supply Chain
Transparent Communication: Global believes that the only way to restore the global steel supply chain back to order is to have open and fast communication between steel suppliers and clients. The refractory engineering company aims to keep its clients aware of the changing costs of transportation and creates contingency plans to deal with order delays.
Customers in the steel industry are advised to make their orders in advance so that unexpected delays may not affect this. It is a good idea for clients to contact us before they run out of inventory so that we can make sure the order arrives in time.
FRC Global is also committed to selecting vendors that are honest about the shortage of cargo containers, expected time of arrival of products, and other shipping-related issues.
FRC Global will continue to stay updated with the latest news in the global steel supply chain industry and will be transparent about all shipping information so clients can make an informed decision.
Responsible Sourcing: Today, we are experiencing a growing movement towards sustainable and responsible sourcing and supply chains relating to products across the globe. The steel industry is not immune to the risks that range from climate change, loss of biodiversity, health and safety, human rights, the rights of indigenous people, and more. As such, customers, investors, and other stakeholders are expecting companies to show corporate social responsibility.
FRC Global is committed to assessing the steel industry supply chain and investigating the impact of steel production on the environment and society. With the result, we aim to prioritize and eventually minimize the negative impacts on steel supply chains, in accordance with government regulations.
Invest in ERP: FRC Global has also invested in an Enterprise Resource Planning system that helped it manage its production as well as supply chain issues and resulted in increased innovation, efficiency, and transparency.
The system is effective at helping the company manage its international operations as we continue to grow and thrive as a global refractory supplier of recycled and new steel and a developer of steel technologies.
By staying strong with our policies, we will be better positioned to help our clients even amidst the supply chain crisis.