SUPPLY CHAIN MANAGEMENT
‣ large number of products that go into a compound , with multiple duty implications . “ In some cases , we ’ ve looked at the customer ’ s problem – the VAT , the duty implications , where the goods are coming from , especially if it is from the US – and in some cases , our advice has had to be ‘ It ’ s not worth it to you to bring it to the UK ’.” Instead , Rhenus has advised them to ship to Antwerp or Rotterdam and let their colleagues there store and distribute the goods . The chemical distributors Rhenus works with tend to have many “ tentacles into the supply chain ”, Mulligan says . Pure manufacturers are the ones who are really affected . Formerly , when a UK manufacturer shipped goods to a distributor in an EU country , that distributor was not the importer of record and did not own the goods . Now , they must ship direct to multiple companies and face multiple uncertainties . Some have established subsidiaries and registered for VAT in the EU , enabling them to ship against their own entity and change the terms . This is not unduly difficult for large companies . For SMEs , it is not and Rhenus has to put solutions in place for them .
COVID strikes
And then came COVID ... Broadly , Rhenus has coped well in the UK ; it had a COVID-secure environment in place and the distribution network remained intact . There was more of an impact in continental EU services , particularly in COVID hotspots and mainly among end users . “ The network itself remained intact , we just had to change our approach ,” Mulligan says . Rather than do pointto-point deliveries in a seamless transaction , Rhenus stopped cargos in its depots and check that the destination was actually open . Transit times would be confirmed but with the caveat that the customer could accept the goods . “ Particularly in the chemical industry , we really didn ’ t want hazardous cargo sitting around in warehouses ,” Mulligan says . Although many EU warehouses have full accreditation , the EU insurance system means that ADR storage is only allowed for a short time , typically 48-96 hours . After that , short-term storage contracts have to become long-term ones and the whole premise changes . “ With a network as wide as ours , we were bound to find pinch points whereby the ADR cargo has to stay in the main hub ,” he says . “ We had to learn very quickly where those pinch points were and asked customers to tell us before booking their cargo if the customer was open .”
If so , Rhenus would store the cargo in its UK warehouses and ship it to a rearranged schedule ; if not , it would advise the customer to hold on to the order . “ What we wanted to do was remove the risk of charges coming back to us in any way , shape or form . As much as we try to avoid that , we can ’ t predict what would happen . The safest place is at the point of origin and we will give them a call when it is able to go ahead .” Generally speaking , that system worked well and it also maintained the flow of goods , avoiding trailer stock and warehouses being unable to cope , even as stories went around about EU networks closing down . There was a downturn because of COVID , but services were maintained . “ You ’ ve got to be able to adapt and improvise on what you ’ re faced with ,” Mulligan says , thinking of incidents like the Suez Canal blockage as much as COVID . “ That ’ s key in the logistics industry . You can ’ t sit still and think that next week or next month , it ’ ll all be fine . You ’ ve got to have one eye on what ’ s coming and what you have to be prepared for . Sometimes you only get told once the container hits the port .” •
Rob Mulligan
GENERAL MANAGER
RHENUS LOGISTICS k + 44 161 886 4200 J rob . mulligan @ uk-rhenus . com j www . rhenus . com
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