Afternoon Coffee: Colonial Pipeline restarts after hack; Proactis goes low-code with Aurachain; US lumber demand drives European competition for wood

Adobe Stock

Colonial Pipeline has begun delivering millions of gallons of fuel every hour after a recent cyberattack forced the company to shut down its network just over a week ago, according to CNBC.

The ransomware attack forced the company to shut down 5,500 miles of its fuel pipeline, triggering shortages throughout the Southeast United States. Widespread fuel shortages remain in several states. A US official said that Colonial Pipeline paid nearly $5 million as a ransom to the cybercriminals, CNBC reported.

Are you digitally transforming your company’s procurement organization? Start here and track your progress with the free Spend Matters Capability & Technology Roadmap templates for e-procurement, invoice-to-pay, sourcing, analytics, CLM, SRM & risk.

Charles Clark, the Founder of digital risk management solution Darkbeam, said in an email that the Colonial Pipeline hack alerted procurement and supply chain professionals of the seriousness of cyber and digital threats to suppliers and businesses. Clark developed a model for procurement managers to assess monetary costs/exposure of negative digital events in categories and supply chains.

“Over the last 10 years, we have rapidly accelerated the digital transformation of not just our businesses but also our private lives and homes. All this incredible innovation was developed on the internet, which initially never had security in mind. As a result, our security teams are in a relentless sprint to keep up which for large businesses it is a material commitment but for small businesses is a non-trivial challenge,” Clark wrote in the email.

Proactis partners with Aurachain low-code platform

Proactis, a spend management solution provider, announced it will start to use the Aurachain low-code platform.

Aurachain is known for its low-code platform that streamlines workflows and builds digital process applications. In a press release announcing the partnership, Proactis said it hopes to enhance its solutions portfolio with Aurachain. Aurachain’s platform can deliver and evolve client offerings faster than previously possible, enhance the client user experience and reduce the costs of maintaining its code base.

"The Aurachain platform represents a new and exciting set of possibilities for Proactis, as we look to expand and enhance our market-leading portfolio of international spend management solutions" Paul Massey, Product Director for Proactis, said in a press release. "The speed at which we can roll out new client services while managing future change cycles will translate to increased agility and certainly enhanced value for our customers."

High lumber demand in US leads to competition for European wood

As lumber prices soar in the US, American importers are driving competition for European wood and winning many deals, according to Bloomberg.

The frenzy comes as the industry faces record North American demand. Lumber prices are reaching new peaks on a near daily basis, quadrupling from a year ago. The unprecedented rates have been spurred by low borrowing rates, an increased market for larger homes and many do-it-yourself renovations during the pandemic.

Unrelenting demand means US sawmills are unable to keep up. Suppliers are looking to Europe for a reprieve because it is one of the few parts in the world seeing a surplus, according to the article. Europe can sell faster than expected, although international shipping and US trucking is limiting some of the supply chain capabilities.

“European producers will always look for the best markets. Right now that’s still the US,” Thomas Mende, CEO of Binderholz Timber Inc. in Georgia, told Bloomberg. “The Chinese have been more aggressive and are willing to pay higher prices, so are the Indian buyers.”

The Spend Matters global monthly newsletter for May goes out soon! Are you on the list? Don't miss out for 2021!

Share on Procurious

Discuss this:

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.