May 17, 2020

Barloworld to provide optimization to Nexus

Freddie Pierce
1 min
Colin Ward, managing consultant, Barloworld

Following a thorough procurement process, Nexus selected ‘Optimiza from Barloworld Supply Chain Software to streamline processes surrounding the...

Following a thorough procurement process, Nexus selected ‘Optimiza’ from Barloworld Supply Chain Software to streamline processes surrounding the distribution of goods in the UK.

Nexus said the inventory optimization application will enable it to simplify the procurement process, improve stock turn and prevent excess stock in the supply chain.

“By changing the way we approach the management of inventory, we are committed to maximizing customer availability levels. Optimiza will help us determine what inventory is needed to achieve those service levels, while taking into account our specific business needs,” explained Geoff Flegg, head of supply chain at Nexus Industries.

“In the meantime, it offers the tools to calculate and maintain the optimal safety stock and replenishment orders and project future investment and warehousing requirements for our business.”

The contract between Nexus and Barloworld Supply Chain Software was signed in July 2010, with work beginning immediately.

It is anticipated that the application will go live in Autumn 2010.

Colin Ward, managing consultant at Barloworld, said: “Our experience working with businesses in the electrical goods and hardware industries offers us an insight into the challenges they face.

“We can apply our tools, processes, people and experience in inventory optimization, along with this knowledge to support Nexus to better exploit the value of inventory and improve customer service.”

Edited by Ian Armitage


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Jun 16, 2021

EU and US agree end to Airbus-Boeing supply chain tariffs

3 min
Supply chains embroiled in Airbus-Boeing dispute will no longer be impacted by $11.5bn tariffs imposed on food and beverage, aircraft and tobacco

The EU and US have agreed to resolve a 17-year dispute over aircraft subsidies, suspending tariffs on billions of dollars' worth of goods that have plagued procurement leaders on both sides of the Atlantic. 

Under an agreement reached by European Commission Executive Vice-President Valdis Dombrovskis and US Trade Representative Katherine Tai on Tuesday, the tariffs will be halted for a period of at least five years. 

It will bring an end to punitive and disruptive levies on supply chains that have little to do with the argument, which became embroiled in the trade battle. Businesses on both sides of the dispute have been hit with more than $3.3bn in duties since they were first imposed by the US in October 2019, according the EC. 

The US imposed charges on goods upto $7.5bn in response to a World Trade Organisation ruling that judged the EU’s support of Airbus, its biggest aircraft manufacturer, unlawful. A year later in November 2020, the EU hit back. The WTO found the US had violated trade rules in its favourable treatment of Boeing, and was hit with EU duties worth $4bn. 

In all the tariffs affected $11.5bn worth of goods, including French cheese, Scotch whisky, aircraft and machinery in Europe, and sugarcane products, handbags and tobacco in America. Procurement leaders on both sides of the fence were forced to wrestle with tariffs of 15% on aircraft and components, and 25% on non-aircraft related products. 

Boeing-Airbus dispute by the numbers  

  • The dispute began in 2004
  • Tariffs suspended for 5 years 
  • $11.5bn worth of goods affected by tariffs
  • $3.3bn in duties paid by businesses to date 
  • 15% levy on aircraft and 25% on non-aircraft goods suspended

Both sides welcome end to tariffs 

European Commission President Ursula von der Leyen branded the truce a “major step” in ending what is the longest running dispute in WTO history. It began in 2004.

“I am happy to see that after intensive work between the European Commission and the US administration, our transatlantic partnership is on its way to reaching cruising speed. This shows the new spirit of cooperation between the EU and the US and that we can solve the other issues to our mutual benefit,” she added.

Both aircraft manufacturers have welcomed the news. Airbus said in a statement that it will hopefully bring to an end the “lose-lose tariffs” that are affecting industries already facing “many challenges”. Boeing added that it will “fully support the U.S. Government’s efforts to ensure that the principles in this understanding are respected”. 

The US aerospace firm added: "The understanding reached today commits the EU to addressing launch aid, and leaves in place the necessary rules to ensure that the EU and United States live up to that commitment, without requiring further WTO action."

This week’s decision expands upon a short-term tariff truce announced in March this year. The EC says it will work closely with the US to try and further resolve the dispute, establishing a Working Group on Large Civil Aircraft led by each side’s trade minister.

Airbus last month signalled to suppliers that post-pandemic recovery was on the horizon, telling them to scale up to meet a return to pre-COVID manufacturing levels. “The aviation sector is beginning to recover from the COVID-19 crisis,” said Airbus chief executive Guillaume Faury, adding that suppliers should prepare for a period of intensive production “when market conditions call for it.”

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