Deep sea mining is gaining momentum, and it could reshape supply chains. In this Supply Chain Byte, Lisa Anderson explains recent developments in deep sea mining and why they create new opportunities for manufacturers.
There are vast critical minerals and commodities such as zinc, copper, cobalt, nickel, and other items required to produce batteries, electronics and defense on the ocean floor. Thus, American Ocean Mining Corporation is merging with Odyssey Marine Exploration in a $1 billion dollar deal. The goal is to achieve a fully integrated supply chain from the seabed to processing to better support future requirements. Since China dominates the field currently, it is critical to build regional, local and company-specific capabilities with vertical integration and strategic supply arrangements. Since you are only as strong as your weakest link in your supply chain, the key is to find creative solutions to ensure your ability to successfully scale and meet customer needs.
Review your end-to-end supply chain, assess your dependencies, and determine what critical steps are required to secure your supply chain and ensure you can supply your future customer needs. Companies are concerned about taking the leap into new programs with what seems like “too many” priorities; however, if you don’t take tangible steps forward, you will be left in the dust by competition that is willing to take prudent risks and roll out the appropriate infrastructure, process upgrades, and new technologies to ensure success. To gain additional ideas on what’s relevant in your business, download our SIOP (Sales Inventory Operations Planning) eBook to better align demand and supply, check out our eBook on artificial intelligence for manufacturers and how it powers smart supply chains and smarter decisions, and/or brainstorm with your supply chain partners.
By enabling more direct access to critical materials, companies can begin thinking about integrating supply chains from the ocean floor to the manufacturing site, improving control, responsiveness and long-term supply security.
If you are interested in reading more on this topic:
What to Learn from the Iran War: Demand, Supply, Location & Flow