INTERNATIONAL TRADE
Moving PPE into the NHS supply chain
A 90% reduction in air traffic and in some cases, country restrictions, has combined with the unprecedented demand on personal protective equipment (PPE) and other urgent medical supplies. This has meant freight forwarding and logistics have become key services in the fight against Covid-19 during this global crisis. A squeeze on capacity, a spike in
demand and a shortage of PPE has created the perfect storm A global supply chain is common
across most industry sectors. This is because over the past two decades of the World Wide Web, businesses have been able to source from practically anywhere via the internet. Brands like Amazon trailblazed
and global logistics became more sophisticated to accommodate the diverse and disparate ecommerce marketplace. This meant even the smallest of businesses could extend their reach to a global stage. Movement of freight globally was
integrated across rail, sea and road for bulk shipments and air freight for more fast-moving cargo. However, when passenger airlines became grounded as a result of the coronavirus pandemic, the global supply chain lost 90% of air traffic movements. This ‘removal of hold cargo’ from
the global supply chain capacity has put unimaginable stresses on the dedicated cargo routes. Even with additional cargo flights, capacity remains seriously strained.
A SIMPLE COST V SPEED CHOICE The demand for PPE and other critical medical equipment is high with global demand, because it really is a matter of life and death. Manufacturers are responding to
this need by adapting their production lines, switching processes and upscaling production of PPE and other critical supplies, in the battle against the coronavirus pandemic. However, with the products needed immediately, manufacturers are finding they are unable to get space on air freight routes. With sea routes being too slow
to meet the demands of the world’s fight against the disease, air freight capacity is being squeezed even more. As a result, air freight premiums are running at over 600% above pre-crisis consignment fees - and that's if you can get space on a flight. Freight forwarding and logistics specialist Spatial Global has been called to help several key suppliers to the NHS. Each had a similar challenge, getting product from an overseas manufacturer, into the NHS supply chain. Consequently, each one has had
a successful result and vital products are now entering the NHS supply chain. In reaching the hospitals on the frontline, the products are saving lives. The supplies including
ventilators, PPE, dialysis equipment, and other critical inventory, have been imported from a variety of different locations. But one size doesn't fit all when
it comes to freight forwarding in the present crisis. The solutions have been through a combination of expert 'logistical and freight forwarding' interventions. They have been both innovative
and collaborative, involving project teams representing the NHS suppliers, their manufacturers, a network of local agents and the airfreight companies – all working with Spatial Global as the coordinator.
ONE SIZE DOESN’T FIT ALL If there was ever a time when being an expert in freight and logistics, plus being a trusted player in the market was essential to success, it’s now. What’s more, the shipping solutions have provided more than simply getting the product successfully delivered, they’ve reduced costs. On one contract, by advising on volume, Spatial Global was able to reduce the packaging used. In turn this reduced the ‘price to fly’ per mask down from 11p to 7p. Then, by working with the overseas manufacturer to get two production cycles aligned, it enabled the fortnightly charter of a dedicated cargo plane. All of which brought the price
down even more, to 5p per mask, less than 50% of the original price to ship each unit. When the contracts are for millions of masks
26 business networkMay 2020
per month, this makes a considerable difference. On another contract, Spatial
Global was able to collaborate with a friendly forwarder in China. Pre- crisis, they would normally be shipping huge volumes for fashion and department store retail, from China to the UK. As demand has shifted to medical
supplies, Spatial Global was able to ring fence this released air freight capacity, and fill it with urgently needed medical supplies, as well as co-loading other products.
AN ETHICAL APPROACH IN THIS TIME OF NATIONAL EMERGENCY Mike Wallis, Executive Chairman of Spatial Global, said: “This type of collaboration provides the potential to co-load with some other freight on a house charter, reducing costs.
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