Supply chains in the automotive industry are now 100 percent stabilized, but it is true that 20 percent fewer cars are being produced, although this has different causes. In our case, the problem is not so much transportation, but labor, as is the case throughout Europe.
There is a paradox in the automotive industry, considering that it is a relatively closed society. You cannot come in with the lowest price and produce for any car manufacturers. Quality and reliability are essential, after which you can negotiate the price more or less – said Zlatko Bogadi, a member of the Management Board for production, logistics, and quality at AD Plastik, at the 10th Lider Export Conference.
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As already mentioned, car manufacturers produced 20 percent fewer cars last year, but still achieved extra profit. They adapted their business to the existing supply chain, in which AD Plastik is one of the most important factors. Although the price of materials posed a significant challenge, Bogadi noted that good contracts and fair relationships with customers prevail among companies in the automotive industry. Additionally, they revise prices with suppliers every three to six months, considering transportation and labor costs in the market.
– During the pandemic, our achievements were far above expectations. The reason for this is primarily the organization and strategy that our company has and the speed of adaptation to all these new situations. During the pandemic, we were almost the only air carrier that could ensure global trade throughout the entire period. These opportunities contributed to growth far above expectations. Our job is to prepare and deliver goods, and we are very successful in that… Like the vast majority of carriers, we grew double digits from 2020 to 2022, and that growth is still present, but it is slowing down – explained Srebrenka Saks, CEO of DHL International.
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Sustainability is becoming key to competitiveness
Saks further emphasized that DHL is constantly adapting to economic (un)favorable conditions, as well as new sustainability rules. Sustainable logistics is what DHL strives for, and it is not just something on the agenda of their group, but of all entrepreneurs. However, when we talk about DHL, great importance is attached to the issue of sustainability. One percent of EBITDA goes towards the sustainability of the entire group, emphasizes Saks, and this amounts to billions of euros.
The first stage is an investment of seven billion euros by 2026, aimed at electrifying their fleet, as the company is a major consumer of road and air transport, and by 2050 they plan to be 100 percent carbon neutral.
– In maritime transport, freight rates are currently very low, and there is as much space on ships as you want, unlike last year when it was the opposite. Shipowners are currently not satisfied at all because with such freight rates they are losing revenue.
In the last two years, order books have increased and ships have been ordered; however, in the long term, there is a global fleet shortage, and this will certainly reflect and become a problem at some point. The lack of the global fleet in general shipping and short sea shipping is a problem. We will primarily feel the rise in freight rates due to the green transition as they must adapt to it, and a rise in freight rates will happen very quickly, I hope not at the level we had the opportunity to see in the past – commented Marin Škufca, CEO of Liburnia Maritime Agency.
Last year was the most successful ever for Liburnia, and Škufca revealed that their strength lies precisely in flexible operations and absolute adaptation to all changes in the economy, to which they respond very quickly and effectively.
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