Supply Chain Impact From Bridge Collapse Will Be Minimal, Says De Bok

Yeah, the main impact of this one is more in the automotive roll-on, roll-off. It's less on the container part. Of course, there is a container element in there. Actually, we've got a few containers on the ship as well, which we need to manage at the moment. But I think if you see one thing, and we were discussing that earlier, if you see one common theme in supply chain management over the past four years, it is that ability to fast response, agility, to quickly make changes into how our supply chain is organized. And I think that's where you're going to see here as well. You're going to see a shift from container movements from these ports to other ports. So I think while the impact to the port itself is dramatic, while obviously the event itself is tragic, the overall impact on the global supply chain and the US supply chain, I think will not be as large as you would fear.

Yeah, I have not been directly involved in the discussion on that. But I mean, it's a few containers, so it's not compared to the number of containers we have there. But one of the things is you need to make sure that we get them released and how we can find alternative routes for them, how we make sure that our customers can plan the products that are in there, alternative routes, alternative plans or alternative products. So to keep those supply chains running. And I think I was saying that probably the last interview, which was actually with Bloomberg at the time, where he said there is something around the corner in supply chains every time. We just don't know what it is. I couldn't have guessed that. Now we will be talking about, obviously, this event. And I think one of the main things that you see is that both our customers and ourselves, but I would say everybody working around supply chain and actually also everybody working in other parts of our customers, is now far more attuned to having to respond fast, decision making, using data to make sure that we have the alternatives and quickly find alternative solutions. How to manage the supply chain.

Yeah, I think that is a very important point. Where in the past, let's say more than four years ago, it was all about just in time. It was all about having the lowest levels possible, having the most efficient and cost-effective supply chain. What you know, the strategy now is far more about the resilience of supply chains to make sure that they are organized in such a way that you can respond to these things. Because if you've got your minimum stock levels, then obviously a two-hour delay is actually dramatic. If you make sure that you built a supply chain in such a way that you can respond to that, it already helps. And I think that's something that you see happening at the moment. Is that rather that the, let's say, the minor cost is the main thing? Now it is making sure the supply chain keeps running because many of our customers have now realized that supply chains are more about availability and making sure you can continue to serve customers rather than only having minimal levels of minimum cost.

I think it's exactly the availability of products which becomes more and more far more of a priority than purely just-in-time. Because what we all have learned is that the cost of a disruption to my supply chain because of an event is way higher than having a five or ten percent lower or higher stock level. Now, obviously, with today's interest rates, stock levels have become obviously more relevant to reduce those. And that's I think where also the whole element of data analytics converting into AI, converting into generative AI comes in as well, to make sure that we plan and supply chain real time, better and better on the use of data and also the use of historical data. And there's a lot of historical data in the past four years that helps us to learn how you can respond to things.

And when we talk about port control, there actually is. So, for instance, in ports, there is a traffic control and the connection between the ports. So I think in shipping it's more advanced than it seems. And I think some of the elements that you could see in this event as well is that they have been able to respond pretty fast to avoid even more dramatic events because of good communication. That I watched. So. But you're right. And the use of data is fast evolving. And one of the things that you see in general in the logistics sector is that the amount of investments that goes into the sector compared to four years ago is exponentially more. That means that the amount of innovation in the sector is exponentially more. And you see that in data with what we can do with data and what we can do with analytics. You see that in robotic solutions and other innovations. So therefore you see a fast evolution. And I would say internally, I always say that if you look at the last four years, the speed of innovation in the logistics sector compared to the ten years before is mind-boggling. So it is. So that actually helps us to further increase and improve compared to the airline industry where you see the opposite when you look at the communication between the government people to judge again today, I mean,

I think the collaboration between public and private. But if you take, for instance, the example between ports, because ports in some cases public, some cases private, some case a mix of both. I think there is a good interaction. But I think if you look at the speed within which that has evolved on the business side. So, for instance, now the interactions with companies is far more on sea level than where that before would be to level down because CEOs and CFOs of our customers see the importance of being very close to what's happening in supply chains, because that's a differentiator in your profitability, your market share, your growth. I think gradually governments need to make that same step to make sure to understand how important it is for the success of the economy to really be close to the infrastructure. And that's not only hardware, but also software. And those investments need to come from there as well.

I think they are there to put that, to use different words. I think the capability to respond to the unexpected has evolved enormously, and the only point is that the unexpected happens more than in the past. So I think it has improved a lot, and that is because of bigger investments needed, the view of necessity of having those capabilities. But on the other hand, the number of events is evolving faster than that and in the development of the sector. But I must say, if you look at if I talk about detail, but also talk about the market in general and our customers, the capability of responding to things has evolved enormously.

Charge more and cost more are two different things, right? Because I think what you see is that because the professionalization of the sector has evolved, and therefore the value that it brings has evolved. So it might be that there is a higher price to pay, but actually the benefit might also be higher. So that doesn't necessarily translate into higher cost because the efficiencies might improve as well.