May 17, 2020

CIPS event unites medical and supply chain purchasers

Supply Chain
Logistics
supply chain news
logistics news
Freddie Pierce
2 min
Medilink and CIPS seminar
A unique seminar that brought together purchasing and supply chain professionals within the medical industry has been hailed a great success. The semin...

A unique seminar that brought together purchasing and supply chain professionals within the medical industry has been hailed a great success.

The seminar, titled ‘Are you ruining your suppliers' performance?’ questioned whether supply chain replenishment processes can have a negative impact on procurement performance and was organised by Medilink East Midlands in partnership with Chartered Institute of Purchasing and Supply (CIPS) and in association with specialist medical consultancy, Lime Associates.

Keynote speaker, Simon Eagle from SmartChain LLP, addressed the 30 delegates on topical medical purchasing and supply chain issues including why ‘forecast push' destroys supplier performance, how demand driven supply chains work and how demand driven replenishment can help your company reduce procurement spend.

Simon's supply chain management experience covers both medical devices and generic pharmaceuticals. He has deep subject matter expertise in the area of ‘Demand Driven Planning & Replenishment' and has shared experience and knowledge with Professor Stephen Disney of Cardiff Business School, one of the world's leading authorities on Supply Chain Dynamics.

A round-table discussion on the subject of ‘How can Procurement influence our company's supply chain operating model?' followed the keynote speech and the event concluded with a networking session.

Of the event, delegate Steven Day, Country Head of Procurement UK and Ireland for French multinational pharmaceutical company Sanofi, said the event was an "opportunity for expert insight" and Paul Smith from Healthcare Print and Packaging Limited said it had given him a "better understanding of the supply chain"

Lime Associates' Lee Robinson, founder member and Chairman of the CIPS Health Technology Group, said: "I established the CIPS Health Technology Group to bring together purchasing and supply chain professionals and help to promote excellence in the highly regulated healthcare and medical industry and this was a great example of how to bridge the gap between Health Technology and Purchasing."

The free event was hosted at Medilink East Midlands headquarters at BioCity in Nottingham.

The groups involved

CIPS is an international organisation serving the purchasing and supply profession. Dedicated to promoting good practice, CIPS provides a wide range of services for the benefit of members and the wider business community.

Medilink EM is the East Midlands life science industry association, whose aim is to help companies establish, develop and grow. Medilink EM is a founding member of Medilink UK; a national network supporting over 3,000 companies across the entire UK.

Lime Associates is the only UK purchasing and supply chain consultancy that works exclusively with Medical Device, Biotech and Health Technology companies.

Lime Associates' team of consultants is currently engaged on supply chain, cost reduction and business start up assignments with prestigious clients including Bioventus, Scapa and Invibio.

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Jun 16, 2021

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

supplychain
Boeing
Airbus
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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