For most of their careers, procurement and supply chain leaders have operated in what might be termed “peacetime conditions” –…

For most of their careers, procurement and supply chain leaders have operated in what might be termed “peacetime conditions” – globalised markets, relatively stable politics and just-in-time models optimised for efficiency. Well, that era is well and truly over. To that end, we were honoured to be invited to September’s Exiger Executive Forum in London, a gathering of procurement leaders, financiers and politicians to see how procurement leaders can navigate a new phase of supply chain revolution: ‘war-time readiness’… 

18/9/2025. The scheduling of the Exiger Executive Forum couldn’t have been more timely. Just a week ago, NATO planes downed Russian drones over Poland. Saturday will see three Russian fighter aircraft enter Estonia’s airspace without permission. Sunday will see fighter jets from Germany and Sweden scrambling over the Baltic Sea to intercept and track an unidentified Russian surveillance plane. These are perilous times. 

The Re-Arm Europe programme, backed by more than €800bn in funding and EU initiatives such as EDIP and ASAP, is addressing these concerns by placing the EU onto a wartime footing. However, this is not simply about tanks, jets and missiles – its impact will ripple far beyond defence primes. From chemicals to chips, logistics to software, sectors once peripheral are now central to Europe’s security as their supply chains edge towards the frontline. 

From efficiency to fragility 

September’s Exiger Executive Forum is made up of three exceptional leaders: Tobias Ellwood, former MP, soldier and Chair of the Defence Select Committee from 2020 to 2023, who brings a defence and policymaker’s view of Europe’s readiness; Faysal Rahman, Head of Defence at Deutsche Bank AG, who is strategically placed regarding the unprecedented EU defence spend and Koray Köse, Chief Analyst and Founder of KOSE Advisory, senior fellow with GLOBSEC, futurist, technology and AI evangelist and former Gartner Analyst and Supply Chain Executive, who connects geopolitics, AI and supply chain resilience at the sharpest edge of disruption with his massive global audience. Their host is Exiger’s Tim Fowler. 

At the latest Exiger Executive Forum, the group tackles how wartime economics redraws supply networks, creates new critical suppliers and redefines what resilience and readiness mean for global supply chains already under significant pressure, where the impact of the Re-Arm Europe programme is but another stress test. After all, if your suppliers are suddenly required as part of the war effort, or are considered security risks due to their location, how will you replace them?  

Be prepared

“You should definitely prepare,” Ellwood reveals. “What would happen, if say London didn’t have water or electricity for 72 hours? Who would you turn to? These are the questions we need to be asking ourselves. And once you get your mindset around those sorts of things, you can start preparing yourselves more widely for being able to procure in these difficult environments. Where are your supply chains leading? If they all go to China, then where’s your plan B?” he posits. “That might take you to Canada who are ready with a lot of the minerals, say, but the processing capabilities there are woefully behind. So there needs to be some direction, some vision, certainly some strategy to say we need to think of these things were the proverbial to happen. These are very difficult, but important questions and I think it’s really very wise for us to now consider them, however dark.” 

War-time readiness is going to massively impact supply chains across all sectors, but are procurement leaders ready to respond when wartime economics collide with fragile, globalised supply chains? Köse, expert supply chain and technology strategist, pulls no punches. “No, they’re not, and it’s not only their fault, it’s the fault of the economy. We work in a way where you look at quarterly reports and three-year plans because the worst thing for a CFO is for uncertainty to be built into the budget. They hate that. So, what they minimise is that uncertainty in the budget that then reflects into stiff procurement and supply chain targets, which reflects into savings targets. However, targets should always be focused on value maximisation and if you don’t get that, you should get out of procurement and supply chain.” 

Procurement’s historic back-office status, Köse argues, has left organisations exposed. Risk has been a KPI, but not fragility or resilience. “We’ve always measured cost, quantity, quality,” he details. “Never fragility or resilience. That must change.” 

The numbers he cites are sobering. In Germany, it would take until 2121 to rebuild stockpiles of ammunition back to 2004 levels. “Nothing works without security,” he tells the room. “And nothing works without supply chains. Procurement is no longer about buying things at the lowest cost. It’s about national resilience.” 

“Most organisations only invest in resilience after the last shock,” offers one audience member. “The problem is that resilience looks like an insurance policy. Nobody wants to pay for it until it’s too late,” he continues. “Resilience also means securing skills, not just materials,” declares another. Both perspectives reinforcing a central theme: procurement must expand its definition of resilience, from materials to people, from efficiency to adaptability. 

No one will escape

The forum is clear that wartime economics will not stay within the defence silo. Energy, pharmaceuticals, FMCG and tech will all feel the squeeze. Köse cites the EU’s Critical Raw Materials Act, which sets ambitious targets for mining, processing and recycling within Europe. “If you’re a CPO in pharma or FMCG, don’t think this won’t touch you,” he cautions. “Aluminium, cobalt, lithium – these are not just defence issues. Inflationary pressures, resource competition and talent shortages will hit everyone.”  

According to Köse you first need to establish security and the visibility into supply tiers, to be able to control your supply chain. “Because supply chains define your economic success, which then bolsters the social fabric and so on. The ripple effect. “And when we’re thinking about supply chain, we have always underestimated the role that we played in this because we have always been pushed in the back office. But now it’s the flip side. Why? Because of those unprecedented events such as COVID. ‘Supply chain, can you please help us? We need PPE, we need availability of vials for the vaccine.’ And then Ukraine happened, and then inflation happened, and then AI. Suddenly, the CPO and the CSCO are both under pressure and the focal points. This is the time to act and not to sit and wait.” 

Procurement’s new KPIs: fragility, resilience and agility 

So, what does resilience look like in practice? Köse suggests that the three converging levers: people, process, and technology are now complemented with integrating politics and economics – without the amplification resilience remains an illusion. He also warns against procurement’s obsession with cost. “It’s not cost management anymore. It’s revenue protection and maximisation,” he argues. “That means funding hidden champions, backing innovative startups and leveraging the financial sector and banks to unlock capital.” 

The technological revolution is creating both the problems and the possible solutions when reshaping procurement and increasing resilience. “We are still coming to terms with unmanned warfare,” Ellwood explains. “Simple drones costing a few hundred pounds are neutralising tanks worth millions. That changes procurement priorities overnight. It’s about volume, adaptability and speed. The lesson for corporate procurement? Traditional innovation cycles are collapsing. From 3D printers producing drone parts on the Ukrainian frontline, to Boston Dynamics’ robotic “dogs” potentially repurposed as weapons, procurement leaders must think beyond cost and consider adaptability as a strategic metric.”   

Even with capital and innovation, Europe also faces a coordination problem. Faysal Rahman, Head of Defence at Deutsche Bank notes that “27 countries, 27 defence ministers, 27 bespoke tanks are creating inefficiencies. Soft EU guidance on joint procurement has yet to deliver real standardisation”. Ellwood illustrates the absurdity with examples: British artillery pieces unable to fire Lithuanian shells; aircraft unable to use interchangeable refuelling systems. “There is no commonality in NATO beyond small-calibre bullets,” he warns. “That is madness in this day and age.” For procurement leaders in every sector, the takeaway is simple: fragmentation kills resilience. Standardisation, interoperability and collaboration must be procurement priorities. 

Mind the gap

So, how do we bridge the gap between the governments involved in these programmes and the commercial organisations? What advice can we give commercial organisations when they’re talking to government and vice versa? How can government help? “I think collectively you need to work out yourselves what you’d like to see happen rather than waiting for it,” Ellwood explains. “I’ve spent 20 years in parliament and in government and there’s an awful lot of reaction and ‘working the day’, not looking at the bigger picture, not looking at long term.

“Half the problems we’ve got now, including recognising where our rare minerals should come from is because China is very good at looking ahead 34 years. It’s always a lot easier if you are the dictator and you’re going to still be in power in 34 years, but for a parliamentarian, for a government and for a minister, you’re actually looking at the electoral cycle. My advice would be collectively work out your recommendations and then seek good advice from the people that can influence the decision-making. The ones that when all the meetings are finished, stay up late around the fire with the prime minister and work out what we should actually do. When you want thoughts to be shared it’s more powerful and has more clout, if collectively you work out what your recommendations are, slightly ‘across the table’.” 

Financing resilience: banks stepping in 

If fragility is a major problem for war-time supply chains, finance is certainly part of the solution. For procurement leaders, the implication is clear: access to finance is becoming a core enabler of supply chain resilience, hence the €800bn Re-Arm Europe fund. But agility is also essential. Unlike slow governmental RFP processes, banks are innovating with guarantees and bespoke lending models to get cash where it’s most urgently needed.

Rahman explains how capital is now being redirected to strengthen the supply chain itself – not just the primes at the top. “It’s not only large corporates that need capital,” he reveals. “It’s the smaller suppliers who are critical to the ecosystem. If one of Lockheed Martin’s 1,050 suppliers fails to deliver, the entire F-35 programme is affected. That’s why we struck a €500mn deal with the European Investment Bank specifically to fund SMEs in defence supply chains. Demand has been overwhelming. We closed that deal just months ago,” he notes. “And already 70% of the capital is gone.” 

Conclusion: preparing for the next shock 

From finance to fragility, drones to data engineers, one theme echoed through the Exiger Executive Forum: resilience is now procurement’s ultimate KPI. Rahman illustrates: “We’re starting to factor in these black swan events that are unlikely to happen in theory, but are becoming more and more common in practice.

The one thing that is extremely challenging is the uncertainty. If you look at any deal-making, whether it’s acquiring a company or giving a loan, the number one ingredient for making a deal is confidence. If you don’t have confidence, you can’t make that deal. That’s what we’ve started grappling with because the last three to five years have seen a lot of unprecedented events. How you manage that is really important. We’re also looking at issues around cybersecurity becoming a lot more prominent in the defence industry. If a missile or a satellite gets hijacked, how do you manage that risk?” 

For procurement leaders, the war-time readiness challenge needs us to prepare not just for yesterday’s disruptions but for tomorrow’s ‘unthinkable’. As we’ve discussed, that means rethinking metrics, partnering with finance, investing in innovation, and engaging with government. Because in an era where geopolitics and economics collide, procurement isn’t just about sourcing. It’s about securing the future. 

COMING UP: https://www.exiger.com/perspectives/exiger-executive-forum-false-security-the-illusion-of-control-in-modern-day-value-chains

  • Events
  • Risk & Resilience

This month’s cover star is Marisa Schoeman, Diageo’s VP of Planning & Logistics for Africa. We spent some time with…

This month’s cover star is Marisa Schoeman, Diageo’s VP of Planning & Logistics for Africa. We spent some time with Schoeman at Diageo’s London HQ to hear how the beverage giant’s growth in Africa is being enabled by a robust supply chain transformation with the customer at its heart. 

Diageo plc is a British multinational alcoholic beverage company whose 30 malt distilleries in Scotland – that can only make Scotch whisky – are responsible for producing one in every three bottles of Scotch worldwide, with over 100 brands, such as Johnnie Walker, J&B and Buchanan’s. Its leading brands outside whisky include Guinness, Smirnoff, Baileys, Captain Morgan, Tanqueray and Gordon’s.  

At Diageo, Schoeman is responsible for directing the transformation of Diageo’s supply network operations in Africa, creating a simplified and integrated network designed to unlock agility, innovation, and long-term value.  

“Our ambition is to grow Africa, Diageo’s fastest growing region, into a multi-billion-pound imported spirits business,” she says. “But for that, we need a flexible, segmented supply chain. Africa represents huge untapped potential as a developing environment and our consumer base is growing all the time. So, for us there is a very big focus around how we grow into a multi-billion premium spirits business…” 

Read the full story here!

And that’s not all…

Elsewhere we have a host of big-name interviews from Kinexions 2025 – including Qualcomm and IBM – an exclusive report from the Exiger Executive Forum. Not only that, but we also sat down with Abe Eshkenazi, CEO of ASCM, to dig into the organisation’s current focus points, and how its conference – CHAINge – is addressing the supply chain landscape’s needs. And… we also have some highly insightful leadership pieces from DPW New York, including fascinating reveals from Beroe, Pactum AI, TealBook and AlixPartners on a host of topics relating to AI in supply chain. 

Enjoy! 

Read the latest issue here!

Global trade isn’t what it used to be. Now unstable and unpredictable, Dominic Capolongo, CRO at LiquidX says traditional finance tools can no longer keep pace, making his case for a modernised approach to working capital management.

Once known for its scale and speed, for years we saw global trade expand smoothly and rapidly; all companies had to do was focus on getting goods from A to B, as quickly and as cheaply as possible.

Today, however, things are wildly different and far more unpredictable. From the COVID-19 pandemic and the 2021 Suez Canal blockage to the more recent Red Sea shipping attacks and escalating US tariffs, global trade has faced shock after shock. 

Even this June, when Iran threatened to close the Strait of Hormuz – a vital passage for around 20% of global oil and a quarter of LNG exports – oil prices surged, not from anything concrete that had changed, but just from the fear of what might happen. This example, like many others, shows us all just how fragile global trade routes remain, and how quickly the “scale and speed” model can unravel.

For finance professionals, the knock-on effect is drastic. There are higher costs, tighter margins and strained working capital – as goods are delayed, stockpiled, or rerouted, tying up cash. Volatile currencies and commodities make hedging more complex and expensive, and there’s also a greater counterparty risk, as suppliers and customers face their own liquidity challenges. Accurate forecast planning also proves just as challenging, with supply chain timelines and input costs changing without warning.

Legacy tech is intensifying the pressure

Unfortunately, the above challenges – which are putting enormous pressure on finance teams as they are – are all being magnified simply because so many are still using outdated tools and manual processes that are no longer fit for purpose. 

Much of the industry is still running on analogue – paper, spreadsheets and systems that don’t talk to each other. The result? Patchy data, clunky workarounds and blind spots between teams. Risks get spotted too late, freight data can’t be pulled in fast enough to reroute shipments, and stock records don’t match up across locations – leaving companies with too much in one place and not enough in another.

Despite the fact decision-making is slowed, the risk of errors and missed opportunities is increased, and scaling operations efficiently is made very difficult (thanks to a lack of integration between tools), so many are still shying away from more advanced finance tech that can ease much of this chaos.

There are a number of reasons why this is the case, but it’s mainly down to the fact that legacy systems are so deeply embedded in workflows that replacing them can seem disruptive, costly or even risky. However, this resistance to change – particularly in the more volatile trade environment we’re currently in – can be more dangerous than the upgrade itself, leaving teams less able to pivot quickly or tap into real-time insights.

How digitised trade finance platforms can help 

Nobody knows where the next big shock to global trade will come from, or how it will hit finance teams. But what’s clear is that the job’s getting harder: politics, currency swings and shifting rules are piling on, and without real-time tools and joined-up data, keeping pace will be near impossible.

Here’s where digitised trade finance platforms come in, offering finance teams the ability to:
  • Access real-time visibility: see the true state of cash flow, inventory, and exposure across geographies instantly.
  • Accelerate liquidity: unlock working capital faster through automated approvals and integrated funding options.
  • Automate workflows: cut manual errors and free up resources for strategic decision-making.
  • Integrate critical data streams: connect freight, ERP, and risk data for a unified, live view of operations.
  • Pivot at speed: renegotiate payment terms, re-route shipments, or switch suppliers in hours, not weeks.
  • Reduce operational risk: spot issues earlier and strengthen supplier and funder relationships.
  • Future-proof operations: build the agility to outperform less nimble competitors when the next shock hits.

Getting more organisations on board with a modernised approach to working capital management isn’t just about swapping out old systems – it requires a strong executive buy-in, a clear ROI, and tools that integrate seamlessly with existing systems. But the direction of travel is clear and unavoidable, especially as volatility is fast becoming the norm. And with this in mind, platforms that can improve liquidity, agility, and resilience will soon move from “nice to have” to “can’t operate without.”

The early adopters are already ahead, with reports dating back a number of years showing the vast majority of CFOs (84%) admitted digitisation improves working capital, while more than 9 in 10 reported faster, more efficient transaction processing. 

So for me, the only real question now is whether those finance leaders not yet on board make the shift on their own terms, or wait until the next global disruption forces it upon them.

  • Risk & Resilience

Financing searches surged by up to 130% before august tariff implementation, according to new research from Crux Analytics.

American businesses showed striking levels of financial anxiety in the final weeks before new tariffs took effect on major trade partners, including Canada, Mexico, Japan, and the EU, according to a comprehensive analysis of Google search data across all 50 U.S. states by business relationship intelligence platform Crux Analytics.

The data reveals a clear geographic pattern of pre-implementation business distress, with port states, border regions, and manufacturing centers showing the most severe spikes in financial stress indicators as companies braced for supply chain disruptions.

Nationally, business loan-related searches increased an average of 23%, but border states averaged 32% increases. Cash flow-related searches rose 28% on average nationwide, with port states showing 98% average increases.

Regional Economic Impact Patterns Emerge

The data reveals distinct regional responses to the approaching tariff deadline, including 42 of 50 states showing statistically significant increases in at least one category:

  • Port and Trade Gateway States showed the highest cash flow-related stress (Maryland up by 130%, California by 107%, Louisiana by 97%), suggesting immediate working capital concerns as import costs prepared to spike.
    • On average, port states showed 98% average increases in cash flow searches.
  • Manufacturing Belt States balanced between loan searches and closure planning (Pennsylvania had a 53% increase in business loan interest, and a 51% increase in searches related to going out of business), indicating companies weighing expansion financing against shutdown scenarios.
    • Manufacturing states averaged 27% increases in searches related to “going out of business”.
  • Interior Agricultural States showed more moderate but still significant increases (Minnesota had a 61% increase in searches for cash flow, Iowa a 41% increase), reflecting concerns about input costs for farming operations and food processing. Southern manufacturing states also demonstrated stress, with South Carolina showing a 32% increase in cash flow searches.
  • Border Manufacturing Regions demonstrated broad-spectrum anxiety across all financial stress indicators, suggesting the most comprehensive preparation for supply chain disruption.
    • Border states averaged 35% increases across all business stress indicators.

Border States Showed Highest Anticipatory Anxiety

States along the Mexican border showed consistent patterns of business stress across multiple indicators:

  • Texas:
    • Searches for “going out of business” increased by 51%
    • Business loan-related searches increased by 30%
    • Cash flow-related searches increased by 39%
  • California:
    • Emergency loan-related searches increased by 55%
    • Cash flow-related searches increased by 107%
    • Business loan-related searches increased by 28%
  • Arizona:
    • Business loan-related searches increased by 50%
    • Searches for “going out of business” increased by 47%
    • Cash flow-related searches increased by 44%
  • New Mexico:
    • Searches for business loans increased by 29%

Emergency Financing Surge in Major Economic Centers

Beyond border regions, major metropolitan areas showed sharp increases in urgent financing searches:

  • Illinois: Business loan-related searches increased by 56% (Chicago manufacturing hub)
  • Pennsylvania: Business loan-related searches increased by 53%, emergency loan-related searches increased by 38%
  • Ohio: Business loan-related searches increased by 47%, emergency loan-related searches increased by 10%
  • Maryland: Business loan-related searches increased by 89% (highest in the nation)
  • New York: Emergency loan-related searches increased by 37%
  • Louisiana: Cash flow-related searches increased by 97% (Port of New Orleans – Gulf Coast trade hub)

Maryland’s 89% surge in business loan-related searches – the highest increase recorded – likely reflects the Port of Baltimore’s role as a major East Coast import gateway, with businesses anticipating significant supply chain cost increases.

“Going Out of Business” Fears Peak in Manufacturing States

Perhaps most concerning, searches for “going out of business” spiked across manufacturing-heavy regions:

  • North Carolina: +52% (textile and furniture manufacturing)
  • Texas: +51% (largest Gulf Coast port and border manufacturing)
  • Pennsylvania: +51% (steel and manufacturing)
  • Arizona: +47% (border manufacturing)
  • New York: +33%
  • Ohio: +22%

The concentration of business closure fears in manufacturing states suggests companies that rely heavily on imported raw materials or components were actively calculating worst-case scenarios as input costs prepared to rise.

Cash Flow Crisis Indicators

“Cash flow” searches – indicating immediate operational funding concerns – show the most dramatic increases nationwide:

  • Maryland: +130% (Port of Baltimore handles significant international imports)
  • California: +107% (primary Pacific gateway for Mexican imports)
  • Louisiana: +97% (Port of New Orleans – Gulf Coast trade hub)
  • Pennsylvania: +62% (Manufacturing heartland)
  • Minnesota: +61% (Agricultural processing centre)
  • Virginia: +60% (Port of Norfolk operations)

“What we’re seeing in this data is essentially a real-time window into business sentiment that traditional economic indicators often miss,” said Jacob BennettCo-Founder of Crux Analytics. “While it’s true that tariffs can ultimately benefit certain domestic industries and strengthen supply chain resilience, the immediate anxiety we’re tracking reflects the reality that small businesses often lack the capital reserves and diversified supplier networks that the US’ biggest corporations use to weather trade transitions. Cash flow-related searches increasing up to 130% particularly concerns us, because it suggests many smaller operations were scrambling for working capital just to bridge the implementation period.”

  • Procurement Strategy
  • Risk & Resilience

Tüpraş: Fostering sustainable operations There are few better examples of procurement’s transformation from back-office function to strategic imperative than at…

Tüpraş: Fostering sustainable operations

There are few better examples of procurement’s transformation from back-office function to strategic imperative than at oil and petrochemical company Tüpraş, the largest industrial enterprise in Turkey that operates four refineries located in İzmit, İzmir, Kırıkkale, and Batman, with a total annual crude oil processing capacity of over 30 million tonnes. Since its privatisation in 2006, as Koç Holding’s leading company in energy sector, its success has been supported by the contributions of its overhauled procurement function.  

Tüpraş’s procurement function has played a pivotal role in adopting innovative technologies, while its long-term strategies concerning ESG initiatives and further advancements in technology are also deeply reliant on this function. Effectively capturing, harnessing, and fostering the potential of procurement across such an extensive business operation is an immense challenge. Keen to learn more about the leadership behind Tüpraş’s procurement-focused successes, CPOstrategy sat down with four key players in the company’s roster. 

“Procurement has truly become a strategic partner to the business,” states Göksel Baydar, the company’s Supply Chain Executive Director, “It’s no longer just a cost-saving function but plays a critical role in driving innovation, managing risks, and supporting the overall business strategy. Our procurement strategy is centred around creating value for the company by leveraging data and insights to make informed decisions.” 

Read the full story here!

SEKO Logistics – building supply chain resilience through standardisation and engagement 

Venditti heads up the company’s supply chain operations, with over 30 years’ experience in the field across a huge breadth of industries and logistics specialisms. “I never envisioned staying in this business,” he says of starting out in logistics with a grocery chain. “All of a sudden the more I was in this business, the more I realised I was enjoying the opportunity. I became fascinated with all the intricacies of how a product moves from point A to point B.” 

As tariffs come into effect for many of the US’s major international economic partners, 3PL finds itself again bracing for impact. We speak to Mike Venditti, Former VP of Supply Chain at SEKO Logistics, who can see their impact already. “I do see a lot more of what I would call nearshoring, or bringing business within the states, than I saw prior,” he tells us. 

Plus, we have three exclusive interviews from the Kinexions event in Texas earlier this year. Jennifer Dorsch, Syensqo, Diane Melul, Sanofi and Andrew Bell, Kinaxis provide the expertise, plus we have a behind-the-scenes review of the event itself.

Read the new issue here! 

Thomas Hindré, VP EMEA Growth at Fluent Commerce, asks how IT and supply chain managers in the retail space can align on critical innovation.

Let’s face it, these are complex times for retail. Without a clear economic outlook, brands are sailing blind, scalded by disruptions in supply chains whose impact on operations they have too often underestimated. They are no longer innovating – or hardly at all – and are postponing their projects. In fact, for the past 2 years, the prevailing trend has been one of non-decision. A few signs point to an improvement in the first half of the year. But in the absence of visibility, CIOs are asking themselves the question: how can they launch projects, continue to innovate, remain attractive to young talent or meet business requirements with limited budgets?

Innovation: between stagnation and minimal investment.

Gartner recently pointed the finger at the fact that 81% of boards of directors have not made progress or achieved their objectives in terms of digital transformation. Forced to justify past technological investments and pressured by new expectations (around AI in particular), CIOs remain under pressure. They are even losing the upper hand in terms of investment, when price once again becomes the primary criterion. 

The CFO is becoming a key negotiating partner when it comes to assessing the viability of a project. On the whole, brands are becoming much more protectionist, moving away from a ‘sell more and sell better’ approach to a far more rational strategy, in which they will favour immobility, or a simple ‘upgrade’ if it is sufficient, over the acquisition of a new software solution.

How can we align the objectives of IT and supply chain managers?

The various disruptions to supply chains have exposed the vulnerabilities of the system. The announced introduction of export taxes in the USA could reshape international trade. Learning from past mistakes, retailers are now seeking to strike the right balance between scarcity and excess, while favouring, where possible, new sourcing strategies based on regional chains to reduce dependence on Asia.

Until now, to avoid investing in new solutions, retailers have relied on their existing ERP systems – whose role it is not – to manage stocks and orders as effectively as possible, at the risk of lacking agility and flexibility in business terms, increasing technical debt and reducing net income and sales in financial terms.

While we wait for better times to come, there are 3 possible ways of adding value to the business and sustaining the brand’s activity.

Path 1: better use of stocks to improve profitability

Supply chain managers study numerous indicators and focus on the most important. Some issues, which they may consider to be less of a priority, such as those relating to WHO, remain in the hands of the IT department.

Alongside the business units, the IT Departments will establish, model and prioritise the critical scenarios to be resolved. It is then up to the IT Department to provide a rapid response, without getting involved in often lengthy tunnel projects.

Implementing an OMS project is therefore less risky – and quicker – than an e-commerce project. Of course, a data-driven approach will be essential to maximise the company’s strategy. But OMS does not need all the content of a PIM (Product Information Management Solution) and a CMS (Content Management System) that feeds an e-commerce platform (visuals, product information, etc.). As a result, it will be possible in the space of a few weeks, or even a few months – and at a lower cost – to roll out high added-value projects. These projects could, for example, make it possible to reduce surplus stock so as to avoid mobilising capital and having to increase warehousing costs; or to improve stock visibility so as to reduce errors, stock-outs or overstocking.

Path 2: refining the use of data

A mine of information that is still under-exploited, data is proving to be indispensable in facilitating targeting and improving the effectiveness of campaigns.

For example, a retailer can use real-time sales data combined with weather forecasts to adjust stock levels. In this way, it can anticipate a cold snap and therefore greater demand for warm coats and accessories, enabling it to avoid stock-outs and maximise sales.

In addition to internal data, there is also external data from suppliers or partners. Let’s take the case of marketplaces such as Farfetch: a ready-to-wear brand can analyse browsing and purchase data from a marketplace to identify the most frequently viewed products and those left in the shopping baskets without completing the purchase.

Retailers can use this information to launch a targeted advertising campaign with specific offers on these items, thereby increasing the conversion rate.

By connecting with a marketplace, OMS shares real-time information on stock availability: by exploiting this existing data, it will be able to formulate a reliable customer promise, and thus increase the conversion rate. It will also make it possible to detect which products are the most successful in different regions, to understand which items are the most popular, or which have the highest return rates.

The IT Department must demonstrate its ability to integrate, manage, process and analyse this data, which is all too often still divided into silos, in order to offer unified information that can be used to improve all the company’s processes… starting with the supply chain.

Path 3: Defining more sustainable, forward-looking models 

Faced with major global challenges and changes, the supply chain needs to reinvent itself. New models – in particular those that are leaner and more sustainable – must support the ambitions of companies determined to move towards flows and processes that meet today’s challenges. Whether it’s a question of producing and transporting better, storing less, designing collaborative ecosystems or creating circular models for recycling, the IT Department must play its part in designing a new Supply Chain.

The aim will be to move towards a digitalised supply chain that is even more resilient and agile, and capable of anticipating needs and risks. A Gartner study predicts that by 2025, 50% of companies will be using AI to improve their logistics management.

Finally, environmental concerns and consumer expectations will drive companies to adopt more sustainable practices, as part of an ESG (environmental, social and governance) programme. This will include optimising transport to reduce fuel consumption.

  • Digital Supply Chain

Eddy Massaad, Founder of Swiss Butter, talks us through the systematic approach his business takes to structuring its supply chain to support its multi-country expansion, from Beirut to London.

When people ask how Swiss Butter scaled across five countries, and is now heading into three more, the answer is not flashy branding or viral marketing. It’s operations. It’s supply chain. And it’s system design.

From day one, we knew that if we wanted to offer the exact same product in Beirut, Dubai, Riyadh, Madrid, and London, right down to the texture of the sauce and the crisp of the fries, then the backend had to be treated like a core product, not a support function. 

We don’t outsource the hard parts. We build them.

Structure Beats Speed

Most restaurant groups expand and then try to retrofit operations to keep up. We flipped that. We designed our supply chain to scale before we even opened. That meant identifying strategic suppliers, designing the supply chain infrastructure, and investing in multi-market logistics flows to integrate sourcing, storage, and logistics systems across countries. 

Execution occurs when the volumes are met. Preparation for new markets is done thoroughly in advance rather than adapting on entry. 

Every country we enter starts with deep R&D: how to match product integrity under local regulations, how to mitigate delays at customs, how to reroute in case of geopolitical disruption or port backlog. That’s why we never had to scramble, we engineered resilience from the start.

Control Is Our Competitive Edge

We made a clear decision : no franchising. Not because we’re against scale, but because we’re for control. When you franchise, you outsource your problems. When you stay company-owned, you can move with agility, make decisions without red tape, and most importantly, protect the guest experience.

Our proprietary sauce is manufactured under strict controls. Our Beef and fries come from centralised sourcing channels. Even our furniture, fixtures, and equipment are part of the same supply philosophy, designed, produced, and distributed through us. Every touchpoint is intentional. That’s what allows us to deliver the same simplicity and soul, one store at a time.

Supplier Partnership > Price Negotiation

At Swiss Butter, we do not chase the lowest bidder. We build long term relationships. We work with suppliers who grow with us. That applies to everything from sauce and beef to fries and kitchen gear.

First, we secure volume. Then, we lock in pricing. And we coordinate shipments across markets to reduce risk and guarantee availability. This is how we protect our stock when others are stuck. At scale, we are no longer just a customer. We are a partner they prioritise.

Vertical Integration Is the Future

We do not wait for the market to solve our problems. We solve them ourselves. That means owning as much of the process as possible. From sourcing to shipping to what arrives on the plate, we stay involved.

Supply chain is not just a cost. It is a profit lever, a quality gatekeeper and a long term asset. We treat it like the foundation, not the overhead.

Consistency Is a Promise, and a System

The emotional experience of Swiss Butter, its warmth, tone, music, and flow, is only possible because the operational backbone never breaks. You can’t deliver emotional consistency without operational precision.

That’s why we’ve institutionalised training through our Swiss Butter Academy, aligned every process across borders, and built a rhythm of operations reviews, dashboards, and feedback loops. Every system, every country, every shift, same heartbeat.

The Invisible Work Is the Most Valuable

Restaurants get attention for what’s on the plate. But behind every consistent plate is a thousand invisible decisions: where it’s sourced, how it’s stored, how it’s shipped, how it’s forecasted, quality-checked, and corrected.

Most brands invest in front-of-house experience. We invest just as much, if not more, in what no one sees.

At Swiss Butter, we’re not chasing perfection. We’re building for longevity. And that means putting supply chain at the centre of strategy, not as an afterthought, but as the foundation.

Because in our world, consistency isn’t a goal, it’s a system.

  • Collaboration & Optimization
  • Sourcing & Procurement

Data by Planet Tracker has traced 2,153 fishing vessels to the world’s largest tuna harvesting companies, exposing a shocking lack of supply chain transparency.

A new report by Planet Tracker has highlighted a lack of transparency in the supply chains of some of the world’s largest tuna harvesting companies. The report highlighted several companies – including Albacora, Maruha Nichiro, Dongwon, Bolton Group and Sajo – finding that an estimated 56% of the 30 largest tuna companies’ catch is untraceable. Many ships “spend more time fishing with their tracking systems turned off than on,” according to the report. 

Murky waters in the tuna supply chain 

Planet Tracker, which used Global Fishing Watch data to create a database of 736,000 “likely tuna” fishing events for the year 2022, to analyse 2,153 vessels catching tuna, claims to have revealed “for the first time the actual catch” of the world’s 30 largest tuna harvesters despite their highly opaque disclosures.

The study, Tuna Turner: Investors Must Turn Up Transparency in the Tuna Industry, interrogates the Global Fishing Watch data to reconstruct catch volumes by species and region for all 2,153 industrial vessels fishing tuna globally. The research attributes these details for the first time to companies and the countries they are headquartered, aiming to fill in the gaps in company disclosure.

The report focuses on the 30 largest harvesters of tuna globally – the ‘Tuna 30*’ – accounting for 46% of global tuna catch. Only four out of 30 firms report any tuna catch volumes, with even lower transparency on species caught, location, catch methods and certification levels: just one of the 30 companies – Bolton Group – discloses this data.

Fish caught in a spinning seine fishing net on a French tuna seiner in the Seychelles Economic Zone and in international waters

Willful opacity in fishing fleets 

Without knowing what, where, how much and how companies fish, investors cannot know which of them are most exposed to sustainability risks. Whilst most tuna stocks are not overfished, tuna biomass has declined by 40% to 80%. And, major ecological damage persists in numerous tuna fisheries.

The Tuna 30 overall extract 12% of their catch from stocks that are not at healthy levels of abundance or that are experiencing or might experience overfishing. Planet Tracker estimates that over 40% of the harvest from SAPMER, China National Agricultural Development Group and Maruha Nichiro comes from such stocks.

Several tuna species currently face extinction. The research finds that Albacora, Maruha Nichiro, Dongwon, Bolton Group and Sajo are likely harvesters of these threatened species.

Planet Tracker also found that over half (56%) of the big 30’s catch is “dark”. This means it could not be tied to a specific fishing company or vessel due to missing ownership information or satellite data. Worse, companies may be spending more time fishing with their Automatic Identification System (AIS) switched off than on.

A better way 

It’s likely that the majority of harvesters undertake opaque (or disingenuous) fishing practices with a desire to secure revenues and protect profits. However, Planet Tracker’s report also suggests that better data on ownership information and eliminating AIS gaps could improve profits and valuations in the industry by an average of 0.6% and 1% respectively within five years.

Francois Mosnier, Head of Nature at Planet Tracker, said: “Better transparency, in the form of corporate disclosure on catch and AIS usage, is crucial to help investors understand the exact risks their portfolios are exposed to. We cannot distinguish good behaviour from bad behaviour without first knowing what is actually being caught, where and how on a company-by-company basis.”

Click here to read the full report. 

  • Sourcing & Procurement
  • Sustainability

Wayne Scott, GRC Solutions Lead at Escode, looks at the risk posed by supplier software fragility as third party platforms become increasingly essential to the supply chain.

Resilience has become a board-level priority in today’s supply chain landscape. While much attention is rightly given to geopolitical disruption, climate change, and raw material shortages, one risk is still frequently overlooked: financial instability in the software supply chain. As digital operations increasingly rely on third-party platforms, supplier fragility – driven by unpredictable and unpreventable economic pressures – is becoming a critical vulnerability that must be addressed.

From logistics and inventory systems to order management and supplier portals, critical applications form the backbone of modern supply chains. Yet many of the applications powering these operations are developed and maintained by small, specialist vendors with business models that can be fragile and volatile. The threat of supplier failure, degradation of service, or sudden end-of-life decisions is growing, and it’s one that traditional risk assessments often miss. Startup failures rose by over 25% in 2024, with many enterprise SaaS providers among them. If you haven’t yet considered the threat of a supplier failure on your own operation and the disruption it may cause, you have a significant risk hiding in plain sight.

Why software vendor fragility matters

Unlike physical disruptions, which tend to be visible and simpler to quantify, financial instability can quietly accumulate in the background – and should it crystalise, present a severe but plausible risk. A missed software update, a key developer leaving, or a product line being quietly wound down can all trigger significant operational disruption. This type of risk is often difficult to detect until the effects are already being felt. There have been some very high-profile examples of this happening in recent times, the collapse of Sungard Availability Services being one such case. 

The worrying thing is that economic shocks in the software supply chain cannot always be stopped or sidestepped. Even large companies are not immune to service deterioration, particularly in the age of cloud and SaaS. These platforms are typically built for availability and security. However, they aren’t always designed to ensure business continuity for their clients. Ultimately, it is the responsibility of the end user to mitigate the risk of supplier failure. It’s the end user that needs to plan ahead, build protections, and maintain resilience. Even if the supplier can’t be. 

Adding further complexity is concentration risk. The frequent acquisition of smaller tech vendors by larger firms in a buoyant tech market often results in sudden changes to product focus, support levels, or platform continuity. These changes can reshape supply chain dependencies quickly, introducing risks that are difficult to anticipate. So, a complex picture begins to emerge. 

A gap in resilience thinking

Unfortunately, these are not theoretical concerns. Within finance, frameworks like DORA and PRA specifically highlight supplier fragility, service degradation and concentration risk as resilience issues. Now, if these are recognised risks in an industry known for its control and scrutiny, surely they must be just as significant (not to mention damaging) in other sectors where operational downtime affects fulfilment, reputation or customer trust.

However, continuity planning and procurement practices across many industries have yet to address these realities. The level of consideration to these risks across different sectors is varied at best – likely non-existent in some others. Too often, contracts do not establish controls such as access to source code or recovery rights if a supplier ceases operations. Many services were not developed with supplier failure in mind, leaving organisations to urgently rebuild essential functions – sometimes without the instructions.

In my work with regulated firms in financial services and their critical suppliers, I’ve seen how even seemingly stable suppliers can quietly exit the market. The warning signs are often small. They could be slower updates or reduced communication. But often, by the time it’s recognised as an issue, the impact is already being felt. This risk deserves greater attention in resilience planning.

Procurement: where third party risk management begins

These risks can be mitigated with action – best taken as early as possible. In an ideal world, resilience planning should start at onboarding, assuming critical supplier failure by default. Procurement has become a key function in safeguarding continuity. It ensures contracts include appropriate risk controls and embeds ‘resilience by design’ from the outset.

One widely adopted approach is software escrow. This involves securing access to the source code, documentation and development materials for essential software through a neutral third party. Should the supplier fail, or support be withdrawn, the organisation retains the ability to maintain the software independently. This practice is well-established in regulated industries across the world – with uptake increasing too.

Another crucial step is ensuring the ability to carry out ‘stressed exits’. This means organisations must include contractual rights and practical measures that allow them to exit key supplier relationships in a structured and low-risk way.

AI’s impact on vendor resilience

Looking ahead, the growing use of AI in software products may disrupt traditional software providers. Vendors with narrow offerings could find their business models undermined and may face financial pressures as a result. This creates a different kind of risk, one based on strategic viability rather than technical failure.

Organisations should regularly assess the financial health and future plans of their suppliers. As these pressures grow, the case for building resilience into supplier relationships becomes even stronger.

Software failures can stall a supply chain just as effectively as a logistics breakdown. Businesses that aim to maintain continuity must start considering these digital risks alongside more visible ones.

It’s an uncomfortable truth, but one we must accept. Vendor failure is no longer a rare event, so preparing for it is essential.

  • Digital Supply Chain
  • Risk & Resilience

Lyall Cresswell, Founder and CEO of TEG, on why integrated supply chains systems are essential to weathering ongoing uncertainty.

HSBC’s latest study on the impact of international trade disruption revealed that 75% of logistics firms expect to be impacted by tariff changes, which tells a familiar story. When uncertainty strikes, the industry’s instinct is to batten down the hatches – delay investments, cut costs, and hope the storm passes.

But whilst most operators are pulling back, the most forward-thinking logistics providers are doing the opposite. They’re recognising that trade disruption isn’t a temporary blip to weather. Rather, it’s a fundamental shift that demands a completely different approach to how logistics operations are structured.

The traditional model – owning expensive, dedicated truck fleets and managing isolated systems for capacity, compliance, payments, and data – made sense in a stable trade environment. When supply chains were predictable and trade routes were fixed, having your own assets provided control and certainty.

Today, that model has become a liability. When trade patterns shift weekly and 28% of firms are delaying investments due to uncertainty (according to HSBC), being locked into fixed assets limits rather than enhances your ability to respond. The logistics providers thriving through this disruption are those rethinking their entire operational architecture.

The power of connected systems in logistics

The real opportunity lies in connecting the traditionally isolated components of the logistics puzzle. When capacity sourcing, compliance management, payment processing, and performance analytics work as an integrated system rather than separate silos, businesses gain something far more valuable than asset ownership: operational agility.

Consider what happens when these systems talk to each other. Real-time capacity data informs instant pricing decisions. Automated compliance checks enable rapid onboarding of new carriers when trade routes suddenly shift. Integrated payment systems eliminate the cash flow delays that can cripple operations during volatile periods. Performance analytics provide the insights needed to adapt quickly to changing market conditions.

This integration transforms how logistics providers respond to disruption. Rather than being constrained by the capacity they own, they can access on-demand resources precisely when and where needed. Instead of lengthy manual processes for vetting new partners, automated compliance frameworks enable rapid network expansion. And waiting weeks for payment reconciliation is replaced by integrated settlement systems maintain healthy cash flows even during turbulent times.

Platforms like TEG exemplify this approach. They combine carrier sourcing, compliance management, real-time execution, and automated payment processing in a single integrated system. This allows businesses to pivot quickly between different capacity sources whilst maintaining full operational control and visibility.

Resilience through flexibility

The HSBC study found that 21% of logistics firms are already reconfiguring their supply chains to match global demand. Others are sharing services to spread risk. These are exactly the right instincts, but they require the right technological foundation to execute effectively.

Traditional, asset-heavy operations struggle with this kind of rapid reconfiguration. How do you pivot to new trade routes when your trucks are committed to existing contracts? How do you rapidly scale capacity when your fleet is fixed? And, how do you ensure compliance with new international partners when your processes are manual and time-consuming?

Technology-enabled operations face none of these constraints. They can source capacity from diverse networks, automatically ensure compliance across jurisdictions, and maintain real-time visibility regardless of how complex their operations become. When trade patterns shift, they shift with them.

The competitive advantage

What we’re witnessing isn’t just a response to current trade uncertainty – it’s the emergence of a fundamentally more competitive operating model. Whilst asset-heavy competitors struggle with fixed costs and limited flexibility, technology-integrated operations can offer better service levels at lower costs precisely because they’re not constrained by physical infrastructure.

The logistics providers making this transition aren’t just surviving the current disruption – they’re positioning themselves to thrive in whatever comes next. Because in an increasingly uncertain world, the ability to adapt quickly isn’t just an advantage – it’s essential for survival.

The question facing every logistics provider today isn’t whether to invest in more assets, but whether to invest in the technology integration that makes assets irrelevant.

  • Digital Supply Chain
  • Risk & Resilience

James Smith, Co-CEO at A-SAFE, looks at the need for better transparency and risk management in the supply chain.

What if the real issue isn’t the risk, but your blind spot around it? Warehouses push harder for speed, scale and efficiency, yet the thinking behind how they manage risk still lags. It’s not the forklifts or the night shifts that are holding back operations. It’s the blurry, all-in-one approach to risk that masks real threats, like logging all incidents under one category or not analysing their root cause. This behaviour is what stifles performance and creates a culture of guesswork. 

If your risk map looks like a one-size-fits-all spreadsheet, then yes, poor risk understanding is probably dragging your efficiency down too. It’s time to reframe how we think about risk, not as a siloed compliance exercise, but as a driver of sharper operations and smarter business decisions.

The cast of characters in operational risk

Risk doesn’t float around as a general threat. It shows up through real people and physical systems, each bringing their own weight to the equation. You have machines, vehicles, people, workflows, site layout, external contractors, materials movement, visitors… all constantly interacting, all with potential friction points.

Operational risk comes to life through this web of movement and interaction. Yet, most companies still treat it as an abstract category, a box-ticking exercise that allows them to get on with ‘the important things of the business.’ Instead of dissecting the risk profile of each element, companies with a substandard safety infrastructure apply a blanket approach to risk management. For example, they use the same type of safety barrier across the entire facility regardless of the vehicle types operating nearby or enforce generic speed limits without accounting for the presence of pedestrian walkways. The one word to describe this approach is ‘dangerous.’

Risk must be classified in terms of its physical, behavioural and systemic origins. When each factor is visible and accounted for, the reactive cycle ends. A safety barrier that cannot suitably protect your people and assets from your site’s real impact angles or frequency patterns is not protection, but rather a false sense of safety. 

As a result of this misdirected investment in safety, efficiency and productivity suffer. For example, just because a safety barrier claims it can withstand X-thousand Joules, it does not mean it has been independently tested to that standard, or that it can withstand that force repeatedly or across its whole structure. This is why it is imperative to deploy safety solutions that are fit for purpose, independently tested and, most importantly, able to protect from your very own particular risks. Otherwise, you will be under the impression of being safe, yet you are leaving real risk unaddressed.

Your environment shapes your risk – not the other way around

Every facility has its own risk fingerprint defined by its layout, vehicle types, pedestrian walkways and traffic intensity. But too many sites still rely on standardised solutions that ignore this complexity. They segregate people and machines with painted lines on the floor, place the same barrier system near low-speed pallet trucks and high-impact forklifts, or have damaged safety solutions in place that do not guarantee protection in the event of a new impact.

These misalignments reflect a surface-level approach that ticks boxes instead of solving problems. Real risk management starts with questioning how people move, how machines behave and planning an efficient segregation between them. These are examples of what happens when safety infrastructure is not based on how a space is actually used. Misfit solutions offer false security. Real protection begins with matching infrastructure to operational conditions.

The future of risk management is proactive, not reactive

The old model of risk management was built around audits, forms and lagging indicators. But in modern operations, risk changes by the hour or even by the shift, whether that is at night with fewer staff, or a day or week of high e-commerce activity like Black Friday. Waiting for a weekly or monthly safety report to understand evolving risk and adjust does not cut it anymore.

Staff engagement is another benefit of having a good understanding of your own risk. When teams see their feedback reflected in real-time adjustments, they stop viewing safety as top-down enforcement. Instead, it becomes behavioural, part of how they do their jobs better. That change in attitude has a compounding effect. Workers become eyes on the floor, flagging issues before they escalate, feeding valuable insight back into the system.

Risk and efficiency are interlinked 

This is where risk and efficiency are linked because operational efficiency depends on fast feedback loops. That means switching from static documentation to live data. Smart safety infrastructure such as impact-tracking barriers, wearable sensors or predictive maintenance systems powered by the Industrial Internet of Things (IIoT) are what offer this level of visibility. You don’t just spot the problem after the fact. You see risk forming and deal with it in real time.

The payoff of investing in safety is worth it: more efficient and productive operations enabled by optimised internal routes for people and machines, reduced unscheduled downtime thanks to a lack of friction and, most importantly, fewer incidents. The financial case for proactive risk management could not be clearer. The average cost of one hour of downtime in UK factories is just over £5,000, although for larger companies in industries like automotive, it can reach up to £2m. With the average downtime per company per year reaching 49 hours, the costs skyrocket. 

With a sound safety infrastructure in place that helps you prevent downtime, the costs diminish and you create a suitable environment for productivity and long-term growth. The message is simple: in risk, proactivity always outperforms reactivity.

Final thoughts

If you are still seeing risk as a static compliance task, you are missing the bigger picture. The businesses that lead in growth are those that recognise risk as a personal reality, shaped by their unique context, challenges and goals – not as a universal constant. They map it and turn that data into stronger performance. Risk reduction is, effectively, a growth tool. But only if you treat it as a perpetual obligation, not a checklist.

Risk itself isn’t what holds you back. Unidentified risk is. Call it out, bring it into focus and address appropriately. Once you’ve done that, watch efficiency follow the clarity you’ve created.

  • Risk & Resilience

Camilla Gilone and Jorge Gouveia de Oliveira from Heidrick & Struggles, explore how supply chains can maximise the value of new AI tools.

The potential for artificial intelligence to transform supply chain costs and performance is immense. From forecasting and procurement to customer delivery and service, it’s a sector to which the data analytics, automation, and modelling capabilities of AI are ideally suited.

But despite the potential for a perfect partnership, AI adoption in supply chains remains low. What’s more, companies implementing AI solutions often seem to be doing so without a clear value proposition. Adoption is driven by hype, not business need.

The Chief Supply Chain Officer (CSCO) should be the driving force in achieving intelligent AI implementation through the supply chain. Successful adoption will require leaders who understand where to employ AI for the most significant impacts.

Why supply chain AI adoption is lagging

Adoption of AI in the sector is being delayed by several limiting factors. Foremost is the skillset gap. From the board to the CSPO, leadership needs to improve AI fluency in order to make the right implementation decisions. Competition is also fierce across the talent market for AI and data experts, with a premium on those experienced in the operational nuance of complex supply chains.

AI continues to receive criticism for not presenting its ‘thought process’. Poorly designed supply chain systems risk becoming ‘black boxes’, making unchallengeable decisions without giving stakeholders clear rationales. While GenAI can provide reasoning narratives, full explainability remains limited, especially for deep learning or complex statistical models.

Risk accompanies the introduction of any new technology, and is multiplied when rolled out across a complex supply chain. AI implementation requires meticulous design, with an emphasis on transparency. As AI expands into warehouse operations, maintenance, and planning, critical questions must be asked around whether systems should be modular or integrated end-to-end; and where governance for autonomous decision-making lies. 

A perception barrier to AI adoption also exists. By focusing on cost-cutting, and implementing point solutions to fix specific issues, organisations are overlooking AI’s strength in optimising value across the supply chain. By enhancing margins, resilience, and service levels, it can be a value creation enabler, not just an efficiency tool.

Where AI can benefit supply chain management

Overcoming these barriers presents opportunities to improve supply chain efficiencies, increase capacities, and lower costs, with use cases including:

Responding rapidly to market shifts

AI’s use of real-time data to predict, optimise, and adapt means it can prioritise inventory for high-margin products; guide dynamic pricing, allocation, and fulfilment; and circumvent bottlenecks.

Improving logistics decision-making

AI maps likely scenarios and plans responses, helping leadership to make faster, better-informed decisions. It uses learning loops to adapt, delivering smarter outcomes over time.

Bridging business and technology

GenAI improves accessibility and adds transparency by allowing users to interact directly with complex systems in natural language, making it a collaborative business partner.

Improving customer experience

By detecting patterns in customer churn, AI can drive operational improvements, while also performing sentiment analysis, aggregating high volumes of unstructured feedback to identify what issues influence customer satisfaction. 

Aligning stakeholders

For supply chain stakeholders, AI offers shared visibility on cross-function activities. By integrating planning and procurement through data, organisations can gain greater resilience and commercial agility.

Meeting ESG goals

AI tools can measure emissions, evaluate ethical sourcing, and ensure regional regulatory compliance to help reach sustainability targets.

The role of the CSPO in harnessing AI

With these advances, the role of the CSPO is evolving. What was once an operational and tactical job, focused on the movement of goods and management of supplier relationships, is now a broader strategic one, designing an AI-enabled central nervous system to create competitive advantage. 

To harness the potential of AI, CSCOs will need to be data-fluent: understanding how AI algorithms reason, and able to manage intelligent systems spanning automated procurement, real-time shipment routing, and inventory optimisation. They will oversee global supply chains via an AI dashboard, making fast, agile decisions based on multiple live information streams, and surfacing enterprise risk factors.

CSPOs will simultaneously have to spearhead a talent transformation, shifting teams from manual and operational roles to strategic ones where they work alongside machine intelligence. This means reskilling existing talent, creating cross-functional partnerships, and hiring data specialists who can apply their skills to supply chain challenges.

How the supply chain sector can reap the rewards of AI

The evolution of supply chains through AI is not a distant vision. It’s today’s reality, and it’s defining how organisations operate and compete. For the modern CSCO, AI is more than an efficiency tool. It is a catalyst for strategic leadership which enables smarter decisions, greater resilience, and customer engagement.

Realising the trechnology’s full potential goes beyond an adoption program. It demands thoughtful business strategy, cross-functional talent, and commitment to transparency and explainability. Companies that align AI initiatives with positive business outcomes and empower people to work with intelligent systems will unlock unprecedented value.

In an increasingly complex, volatile environment, AI-powered supply chains will be the difference-makers. The technology will turn risks into opportunities and supply chains into engines of innovation and growth.

  • AI in Supply Chain

Sebastian Dori, Chief Purchasing Officer, PHINIA, looks at the evolving tariff landscape and how supply chains can be strengthened to weather the storm.

Amid ongoing global shifts, trade disputes, and economic instability, building resilient supply chains remains an essential part of the automotive industry. Emerging tariffs now act both as hurdles and prompts, pushing companies to reevaluate their sourcing strategies, cultivate stronger supplier relationships, and boost procurement adaptability. The World Trade Organisation forecasts a 3% rise in global trade growth by 2025 driven by easing inflationary pressures. Despite this, trade uncertainty remains constant and conditions unpredictable, meaning this landscape could change rapidly.

Success in the automotive industry will hinge on the ability to anticipate and respond to trade disruptions with speed and precision. Manufacturers and suppliers that prioritise agility, diversify their sourcing, and invest in strategic, long-term supplier relationships will have a much easier time managing volatility. By embedding flexibility into procurement strategies, these companies can enhance resilience, safeguard continuity, and maintain a competitive edge in an increasingly unpredictable global market.

A typical motor vehicle can contain between 15,000 and 25,000 component parts that often cross multiple global borders before final assembly. With even small changes in trade agreements, there can be ripple effects across the entire production process. The industry is at a heightened risk of increased costs, delays, regulatory hurdles, and production bottlenecks. These issues can no longer be treated as temporary changes but must be addressed through proactive risk management and strategic planning.

Modernising procurement practices

Procurement in the automotive industry has been driven by price competitiveness historically. Changes in global trade are disrupting traditional sourcing models. As this happens, companies are finding a narrow focus on cost reduction can leave them vulnerable to sudden market shifts. Businesses are realising that a more sustainable approach prioritises supplier reliability, transparency, and shared business objectives.

Focusing solely on short-term cost savings in supplier selection, without considering broader factors such as reliability, transparency, and strategic alignment, can expose businesses to unnecessary risk. Cost competitiveness is still important consideration. However, organisations must balance it with a supplier’s ability to support long-term operational continuity and shared business goals. 

Establishing deeper collaboration with key suppliers helps to ensure a steady flow of high-quality components while safeguarding against unexpected disruptions. A 2023 survey by Deloitte found that 79% of manufacturing executives believe supplier collaboration is critical to supply chain resilience. Nevertheless, only 43% have structured programs in place. A strong supplier relationship won’t happen overnight. They need to be an evolving relationship built on mutual investment and a shared vision for growth.

Using supplier engagement programs

One of the most effective ways to manage tariff-related risks is through structured supplier engagement programs. Tiered supplier relationships — where businesses prioritise partners that demonstrate operational agility, proactive risk management, and long-term investment in innovation — offer a natural buffer against trade uncertainty. Companies that formalise supplier relationships will gain a significant advantage in managing trade-related disruptions.

Supplier engagement programs create incentives for suppliers to maintain high performance and invest in shared business objectives, from technological innovations to sustainability initiatives. In return, suppliers benefit from greater transparency, access to executive support, and long-term business continuity. This reciprocal approach not only strengthens the supply chain but also ensures that companies can pivot more quickly when faced with external disruptions. Manufacturers can future proof their procurement strategies while fostering stronger, more aligned supplier relationships by integrating a framework that rewards innovation, agility, and reliability.

Adapting through strategy: the evolving role of strategic sourcing

Tariffs present the chance for the automotive industry to reassess its sourcing strategies and uncover efficiencies that may have previously gone unnoticed. 

Some organisations are leveraging trade policy shifts to diversify their supplier base. This allows them to reduce dependence on single-source suppliers and explore alternative markets that offer competitive advantages. Nearshoring and regional manufacturing have gained traction as viable solutions, reducing logistics complexities and minimising exposure to volatile trade policies. Investing in regional suppliers not only mitigates risks associated with tariffs but also encourages economic growth in key markets.

At the same time, the shift towards reshoring manufacturing and reducing reliance on imports has the potential to reshape global supply chain dynamics. This trend creates opportunities for local industry. However, it can also lead to constrained global sourcing options, capacity bottlenecks, and intensified competition for domestic supply

Companies must weigh the benefits of proximity and control against rising input costs and potential limitations in supplier availability. Balancing these pressures with strategic diversification remains critical to building long-term supply chain resilience in a more fragmented trade landscape.

Closer supplier collaboration can drive joint innovation efforts, particularly in areas such as value engineering, alternative materials, and localised production. By working together to optimise component designs and streamline manufacturing processes, suppliers and original equipment manufacturers (OEMs) can uncover cost savings that help offset tariff-related expenses. 

This collaboration encourages suppliers to propose new materials or manufacturing techniques that enhance efficiency and sustainability. Auto companies that take a forward-thinking approach to supplier partnerships will be better positioned to capitalise on these opportunities. Not only that, but they will also be able to better mitigate the risks associated with shifting trade policies. The auto companies that continue to operate with rigid, transactional relationships will struggle to adapt when new challenges arise.

Sustainability and supply chain resilience: clash or complement?

A significant part of the conversation around supply chain resilience must also include sustainability and ESG considerations. Per a recent report from BCG and CDP, Scope 3 supply chain emissions were, on average, 26 times greater than their emissions from direct operations. Despite this, organisations continue to overlook Scope 3 emissions. Only 15% of corporates have set a supply chain emissions target according to the report.

As regulatory scrutiny on environmental, social, and governance factors increases, supplier selection should consider long-term sustainability commitments. Companies that align procurement strategies with sustainability goals can mitigate financial and regulatory risks. Not only that but they can also position themselves favorably in an industry where environmental impact is under growing scrutiny.

Suppliers with a high share of renewable energy in their mix seemingly managed to get through the European energy crisis in 2022/2023 much better than those relying on gas and oil. Hence embedding sustainability into the supplier relationship framework ensures that resilience is truly built into the supply chain.

The future of automotive supply chains

Disruption is not a new concept in the automotive industry. However, today’s industrial landscape, posed with emerging challenges, offers an opportunity to rethink procurement strategies, and strengthen supply networks. 

By staying agile and fostering long-term, strategic supplier relationships, companies can position themselves to navigate future trade uncertainties with greater confidence. The key to long-term success lies in transforming unpredictability into strategic advantage. 

With a focus on collaboration, innovation, and adaptability, the industry can build supply chains that are not only resilient but also prepared to support sustainable growth in the years ahead.

  • Risk & Resilience
  • Sourcing & Procurement

Marc Bouchet, Senior Investment Associate at TDK Ventures, takes stock of the role of robotics and automation in decarbonising supply chains.

Supply chains across the world are under extraordinary pressure. Regulations, geopolitical instability, changing political winds, resource insecurity, and rising labour costs are redrawing trade routes and reshaping how companies source and move goods.

It would be easy to think that one of the long-term casualties of this transformation would be decarbonisation. It follows that supply chains once aligned with climate goals are being broken up and reorganised in ways that make sustainability seem like an afterthought.

Yet this is not universally the case. As countries and companies shift towards localising and diversifying where they manufacture goods, where they buy them from, and to whom they sell them, there is a parallel and growing demand for robotics and automation.

Robots used for sorting and packing goods and automated systems are already a common feature across industrial, automotive, food, beverage, and consumer goods companies. But now, with new pressures, companies are looking to double down on smarter, faster, and more resilient solutions.

Robotics and automation allow for real-time monitoring, predictive maintenance, and agile decision-making, all of which have the potential to cut costs, strengthen supply chain resilience, and drive decarbonisation. While decarbonisation may not be what is driving their adoption, it may be one of its biggest collateral benefits. 

How robotics and automation can help decarbonise the supply chain

For companies reassessing their supply chains, robotics and automation are attractive options because they enable the deglobalisation of manufacturing. While this may sound daunting, for supply chain stakeholders and robotics and automation companies, it offers opportunity.

One of the impacts of deglobalisation is shorter supply chains. Initially, this comes with inefficiencies, labour costs may rise, and economies of scale may be lost.

But for firms looking to bring manufacturing back to their home country or relocate operations to a neighbouring one, robotics and automation can offset these pains. 

Crucially, any company looking to relocate manufacturing will be aiming to keep the cost the same or as close as possible to what it previously was. Introducing robotics and automation to this transition doesn’t just make this prospect more feasible but it can also make manufacturing as a whole more competitive, and greener.

With successful localisation, products no longer need to travel thousands of miles across continents, significantly reducing emissions associated with freight, especially high-carbon modes like air shipping.

Robotics and automation also allow firms to manage their energy more intelligently. Unlike traditional, human-led operations, more automated facilities can run outside of the traditional 9-to-5 or shift systems, making it possible to align production with peaks in the availability of renewable energy.

Manufacturers can then ramp up activity when renewable electricity is plentiful and scale down during peak demand, easing pressure on the grid, reducing the carbon intensity of their operations, and lowering energy costs.

Why decarbonisation may come last but certainly not least 

As promising as robotics and automation may be for the decarbonisation of supply chains, the pressure companies are under means that at present it is bottom lines that need to be prioritised, not climate goals.

Robotics and automation can improve the economic profile of any company’s operations and products but only as long as the robots are cheap enough and perform well.

So, for startups to be successful in this space, they must focus on addressing exactly that, unit economics and ROI. If a startup’s solution doesn’t fix the cost and ROI proposition for a specific customer base, it will never deliver on the climate mandate.

Deploying cost effective robots creates a double benefit. Automation drives efficiency, which in turn shortens supply chains and reduces emissions.

Targeting the in-between

There are several promising technologies where decarbonisation is just one of the potential upsides among a host of other things.

For example, automation technologies that target the “in-between” layers of the supply chain, particularly in automated intralogistics. These are the often-overlooked stages where goods move from one facility to the next, like from the manufacturer’s warehouse, to customs, to port facilities, and eventually to distribution centres.

While these journeys would typically be handled by diesel-powered trucks or specialised vehicles, there’s growing momentum around automating this space to drive both cost and carbon savings. 

The key here is combining more automated systems with electrification, whether this is in the automated systems themselves or in the vehicles used, to eliminate both the labour cost components and the fuel. It is this dual benefit, cutting costs and emissions, that makes the business case for decarbonised intralogistics so compelling for customers.

Automating inspection and optimising for real-time data

This dual benefit is a common thread across robotics and automation.

Take facility or infrastructure management, and how robots and automation can better leverage data to streamline operations and maintenance.

Robots can perform tasks more efficiently than humans, reducing the time and energy required to complete them. If you combine this with the fact that robots are excellent data collectors you now have an asset in your operation that can cut costs and emissions, while feeding back data to streamline your operations as it runs.

For the US, the electricity grid represents an enormous opportunity in this respect. As one of the most complex and expensive machines ever built, it faces a major upgrade cycle of new investment and new technology to meet the demands of electrification.

This is a significant opportunity for companies creating autonomous inspection robots. As supply chains are under pressure to support grid maintenance and renewal, the value of having a robot undertaking high-risk industrial facility maintenance and identifying grid maintenance issues and carrying out essential operations quickly becomes game changing.

Robots cut the labour costs of having people do a dangerous and often remote job, the emissions associated with that job, while also allowing people to focus on more high value tasks needed to renovate the grid. All the while, those robots are then able to feedback data that can help determine where resources would be best placed.

A convergence of benefits

Far from a single-issue solution, robotics and automation have the potential to reduce costs, improve productivity, increase resilience, and of course, cut emissions. In a world where supply chains are under pressure from all sides, the prospects for all forms of automation will only become more appealing.

  • Digital Supply Chain
  • Sustainability

Joe Gibson, Head of Digital Transformation and Julia Cullen, Digital Transformation Senior Analyst at 4C Associates, explain the pressing need for comprehensive digital safeguards as DORA takes effect across the EU.

Digital threats aren’t just escalating; they’re evolving with alarming speed. The statistics are compelling. A majority (78%) of European financial institutions reported third-party data breaches in 2023. Not only that, but the average cost of a data breach rose to hit £4.88 million in 2024. No longer a compliance checkbox, operational resilience is now a fundamental pillar for any organisation. 

This pressing requirement is precisely what the Digital Operational Resilience Act (DORA) aims to address. Effective January 17, 2025, this EU regulation aims to significantly bolster the Information and Communication Technology (ICT) security of financial entities, ensuring the financial services sector can withstand severe operational digital disruptions.

Who exactly does DORA apply to? 

DORA applies to a broad range of financial entities operating within the EU. These include traditional institutions like banks, insurers, investment firms or payment institutions. The scope also extends to investment firms, insurance and reinsurance undertakings, asset managers, crypto-asset service providers, crowdfunding service providers, and central securities depositories, among many others. 

Crucially, DORA’s reach extends beyond these direct financial entities. The regulations also encompass Information and Communication Technology (ICT) third-party service providers that offer services to financial institutions. Critically, these regulations apply regardless of where these providers are based globally. This includes critical services like cloud computing providers, data centre operators, and software vendors. It’s a welcome recognition of the fact tha weakness anywhere in the supply chain can jeopardise the entire ecosystem.

Even if your organisation falls outside DORA’s formal jurisdiction, its principles are highly relevant. Similar operational resilience frameworks, such as the UK FCA’s operational resilience framework and the US FFIEC guidelines, highlight the universal need for strong digital defences. Aligning with DORA’s best practices can sharpen your competitive edge, regardless of your specific regulatory jurisdiction.

What are the core areas covered by DORA Regulation? 

DORA establishes a holistic framework across key pillars, designed to provide a comprehensive approach to digital operational resilience. It mandates robust ICT Risk Management, requiring financial entities to develop, implement, and maintain resilient ICT systems and protocols. This includes identifying, assessing, mitigating, and monitoring ICT-related risks, ensuring a proactive stance against potential disruptions. DORA also introduces stringent requirements for ICT-Related Incident Management, Classification, and Reporting. Entities must establish processes to swiftly detect, manage, and classify significant incidents, reporting major events to competent authorities within specified deadlines and formats. 

The regulation emphasises Digital Operational Resilience Testing. Financial entities are required to regularly test their ICT systems to verify their preparedness and identify vulnerabilities. DORA places significant focus on ICT Third-Party Risk Management, acknowledging the growing reliance on external providers. It mandates thorough due diligence, robust contractual arrangements, and ongoing monitoring of these critical relationships to ensure third-party compliance with cybersecurity standards. Additionally, DORA encourages Information Sharing Arrangements on cyber threats and intelligence, fostering collaboration among financial entities to enhance collective defence capabilities, detection techniques, and overall resilience.

Why should organisations care about DORA?

The EU created DORA in direct response to the rising tide of operational and supply chain vulnerabilities across financial services and ICT networks. Here are some key areas that DORA seeks to address within the procurement and supply chain:

  • Escalating supply chain attacks: The supply chain has become a prime target. In 2024, a concerning 58% of large UK financial services firms reported at least one third-party supply chain attack, with 23% targeted three or more times. This trend highlights increasing vulnerability within supply chains and reinforces the need for a framework like DORA to help address these weaknesses.
  • Inadequate continuous risk assessment: A worrying 44% of financial institutions assess third-party risk only during initial onboarding, while a mere 14% engage in continuous risk assessment using dedicated tools. This fragmented approach leaves firms exposed and underscores the importance of consistent, end-to-end risk visibility.
  • Prevalence of third-party breaches: As mentioned, 78% of European financial institutions experienced third-party data breaches in 2023, with many also impacted by fourth-party breaches. Without strong governance, such as centralised spend management and integrated oversight, organisations are vulnerable to significant business disruption.

How to embed resilience in your procurement and supply chain strategy?

To ensure compliance with DORA’s requirements and enhance supply chain resilience, organisations should focus on three key areas:

1. Defined procurement and supply chain strategy


Clarity around your supply chain strategy goals is essential, and embedding the principle of due diligence is key. As BNP Paribas’ Global Head of Resilience notes, digital transformation plays a critical role in managing cyber and technology risks while strengthening customer trust. Developing and implementing digital transformation strategies aligned with an organisation’s procurement and supply chain strategies helps achieve long-term results through regular risk assessment, ensuring compliance and alignment with overall business goals.

2. Building continuous monitoring and controls

DORA requires robust controls across the Procure-to-Pay lifecycle. Modern platforms enable centralised spend management, streamline supplier onboarding, and unify risk processes. Such solutions simplify supplier risk assessments, financial verification, and regulatory compliance. Their flexible, configurable workflows allow organisations to rapidly adapt to new regulations. These capabilities are key to mitigating supplier-related risks and ensuring operational resilience.

3. Improving supplier relationships


Building strong, trust-based supplier partnerships is more important than ever to foster transparency and enable threat intelligence sharing. Under DORA, organisations must assess potential partners against specific criteria to evaluate their cybersecurity and digital resilience. Advanced risk orchestration platforms offer a streamlined approach to managing supplier relationships – improving visibility and efficiency in onboarding and selection. By focusing on collaboration, organisations can strengthen supply chain security and improve responsiveness in identifying any potential attacks.

The principles championed by DORA – clarity in strategy, continuous monitoring, and collaborative supplier relationships – are universally applicable, offering significant competitive advantages even beyond its formal jurisdictional reach. Building this resilience is an ongoing journey, one that requires strategic investment in digital enablement, and a commitment to fostering a culture of security throughout your organisation and its extended network.

Ultimately, resilience transcends compliance. It directly impacts your organisation’s reputation, its ability to reliably serve customers, and its readiness to withstand future disruptions. 

  • Collaboration & Optimization

Dr. Jan Kunkler, Principal Data Scientist at Lobster, looks at the potential of agentic AI to solve supply chain problems.

The global supply chain is in constant motion. Organisations face persistent disruptions, evolving regulations, and urgent calls for greater sustainability and resilience. Artificial Intelligence (AI) is widely seen as a transformative solution to this ongoing turbulence. 

Yet, beyond the general buzz, a specific evolution – agentic AI – offers a profound, actionable pathway to not just automate, but to fundamentally rethink and intelligently orchestrate future supply chains. This involves thoughtfully integrating AI systems not merely as tools, but as true digital collaborators.

The evolving AI landscape: from automation to agency

Making a case for thoughtful AI integration means noting that AI already plays a key role in logistics.

Logistics organisations have used traditional AI for years, with machine learning algorithms acting as a reliable workhorse. It is deeply embedded in optimising routes, forecasting demand by analysing vast datasets, and automating routine warehouse tasks, forming a robust foundation for efficiency gains.

Generative AI, particularly Large Language Models (LLMs), however, have become more prominent recently. This form of AI excels at creating new content, ranging from drafting communications, generating insightful reports, and enhancing human-computer interaction through more natural language interfaces. While valuable, agentic AI introduces a new paradigm. These are not merely predictive models or content creators; agentic AI systems are proactive, goal-oriented digital agents. 

They possess defined profiles (identity, objectives, constraints), maintain relevant knowledge bases, utilise memory for context, and crucially, feature reasoning and planning capabilities. This empowers them to autonomously decompose complex tasks, make inferences, develop sophisticated action plans, and interact with software systems and data sources to execute them. 

They are designed as ideal digital collaborators, working synergistically alongside human experts.

The core triad: what powers agentic AI? 

Agentic AI is successful when powered by three key things. The first is intelligent algorithms, or agentic systems. These engines orchestrate complex, multi-step processes. Multi-agent systems, for instance, involve specialised agents collaborating on intricate workflows, effectively mirroring the dynamic teamwork of human expert teams.

Another important factor is the use of high-quality data. This is the lifeblood of agentic AI, seeing as it is critically dependent on it. Reliable, integrated, and semantically rich data are vital for sound decisions and meaningful ecosystem interaction. Comprehensive supply chain visibility and robust data integration are the non-negotiable bedrock of intelligence.

The last factor to guarantee successful agentic AI use is to program it with the knowledge that it elevates, not replaces, the human’s role. People define strategic goals, oversee agent performance, and critically, manage novel situations beyond predefined parameters. 

Effective agent design requires a “behavioural lens”: data scientists and supply chain professionals collaborate to translate nuanced human expertise, critical judgment, and adaptive decision-making logic into the AI’s operational blueprint. This transforms professionals from process executors into architects of intelligent workflows, focusing their unique ingenuity on higher-value strategic challenges and innovation.

Agentic AI in action: towards the proactive and resilient supply chain

Agentic AI promises to shift supply chains from a predominantly reactive firefighting mode to one of proactive orchestration and significantly enhanced resilience.

It can revolutionise planning and proactive responses. Traditional AI enhances forecasting, but agentic AI takes this further. 

It can autonomously generate, evaluate, and dynamically adapt operational plans from these predictions. Imagine professionals using natural language for complex queries, like, “What’s our optimal strategy for the upcoming Singapore port closure, factoring in inventory, alternative routes, lead times, and contractual obligations?” agentic systems could then provide detailed, actionable recommendations or initiate pre-approved adjustments. When unforeseen disruptions strike – geopolitical turmoil, climate-driven weather, or abrupt tariff changes – a coordinated team of digital agents can act.

Similarly, it can help in transforming operational efficiency and achieving visibility. Beyond planning, agentic AI can fundamentally transform daily operations. It enables dynamic inventory optimisation across the network, reacting to live demand signals and anticipated disruptions, not just historical trends. These systems can also autonomously coordinate complex logistics, intelligently managing assets and adapting to fluctuating capacity constraints. This cohesive, intelligent action is key for achieving genuine end-to-end traceability—vital in sensitive sectors like food and pharmaceuticals—and for constructing a robust, shock-resilient supply network.

Lastly, it can elevate supplier relationships and strategic cost management. While fully autonomous AI negotiation is still nascent, current agentic AI can readily automate routine procurement, manage supplier communications, and track contract performance. This frees human procurement specialists for strategic relationship building and complex negotiations. Sustainable cost savings then result from enhanced operational efficiency, significant waste reduction (e.g., through better demand-supply matching or optimised routing), and proactive risk mitigation, rather than being a standalone, short-sighted objective.

Navigating the frontier: embracing opportunity and mitigating risk

Although agentic AI offers immense potential for adaptive, efficient, and intelligent supply chains, users must be cautious and aware of its risks. 

One cannot expect an agent to produce a good output if its input is poor. The adage “garbage in, garbage out” is critical here; agent efficacy depends entirely on data quality, timeliness, and integrity.

Similarly, agentic AI can face agent-specific challenges. These include:

  • “Hallucinations”: Poorly designed generative components can produce plausible but flawed outputs, leading to costly decisions.
  • Lack of Explainability: Difficulty understanding an agent’s decision-making can hinder error correction, accountability, and trust-building – vital for SLA-governed environments.
  • Unforeseen Consequences: Semi-autonomous actions could yield unintended negative outcomes if agents aren’t meticulously designed, constrained, and rigorously tested.

The solution is a human-centric, pragmatic approach focused on augmented intelligence. Agentic AI should be viewed as a powerful tool to amplify human capabilities, not blindly replace them. This means robust governance, rigorous testing (akin to critical software), and clearly defined roles for human oversight and intervention. 

Critical thinking, domain expertise, and the human touch remain indispensable. This is especially true when navigating unprecedented disruptions or making complex judgment calls when weighing strategic priorities and unquantifiable factors. A “reality check” is vital, focusing on clear use cases where agentic AI delivers measurable value for specific pain points like disruption management, regulatory compliance, or managing operational complexity.

Moving beyond hype to actionable intelligence

The conversation around artificial intelligence is often saturated with futuristic promises, yet agentic AI offers a clear path to tangible, present-day improvements within your supply chain. This isn’t about a distant technological horizon; it’s about deploying “digital collaborators” now to address persistent operational friction. 

Consider the immediate impact of agentic AI in coordinating swift responses to volatile demand surges across your multi-enterprise network, or its power to sift through millions of daily transactions to pinpoint that tiny fraction of critical shipments or processes that truly demand human insight, thereby unlocking unique competitive advantages. These are not abstract concepts but concrete operational advantages.

For supply chain leaders, the imperative is clear: move beyond observing the AI trend and begin a pragmatic exploration. Identify specific pain points where intelligent automation and collaborative AI can yield measurable results by focusing human talent where it’s most valuable. 

The future of the supply chain hinges on this intelligent augmentation – a dynamic partnership where human expertise is amplified by sophisticated agentive systems. This synergy is the key to navigating an ever-shifting global landscape, not with more buzzwords, but with enhanced operational control, resilience, and a distinct competitive edge.

  • AI in Supply Chain

John-David Klausner, GM International at Loop, breaks down the retail tech advancements making waves in the sector, and why retailers should be paying attention.

Retailers are currently navigating a complex landscape marked by challenges such as tariff fluctuations, escalating costs, and intense competition. The retail industry is rapidly innovating to keep up with these demands and technology is at the heart of this transformation.  

In addition to these external pressures, consumer expectations are evolving rapidly. Modern shoppers demand seamless, flexible shopping experiences across both physical and digital channels. A recent study highlights that 90% of consumers desire seamless interactions across all platforms, yet only 29% of businesses currently deliver on this expectation.

AI-powered hyperpersonalisation

To meet these heightened expectations, the retail industry is embracing technological innovations, with AI often at the forefront of this. AI-driven personalisation is transforming the customer journey – from tailored product recommendations based on previous purchases to intelligent return processes that suggest alternative products. 

Understanding trends and patterns in purchases, means retailers can be flexible with their offering, such as competitive pricing strategies. This level of hyper-personalisation not only enhances the shopping experience but also drives conversion rates and customer loyalty and is welcomed by customers and retailers alike.

Premium returns

Forward-thinking retailers are also using returns as an opportunity to build loyalty and improve margins, all through smart technology. For instance, Loop’s consumer-paid model, Offset, allows customers to pay a small fee upfront during checkout in exchange for free returns later. This model not only provides shoppers with peace of mind at checkout but also helps merchants offset the high costs associated with returns and reverse logistics, helping them grow their top line and protect their P&L. Charging for returns has become the norm as over 60% of merchants charge return fees today. 70% of shoppers agree they’re willing to pay for a premium return experience. With Offset, retailers can provide a premium experience that justifies a return fee while reaping the benefits of extra revenue.

Optimised inventory management with data analytics 

Another game changer is the use of advanced analytics and real-time data to optimise inventory management and supply chain visibility. 

With predictive analytics, retailers can better forecast demand, reduce overstock and stockouts, and respond quickly to shifting consumer preferences. This agility is crucial in a market where trends can change overnight.

Sustainability

Sustainability is also becoming a focal point in retail innovation. Technologies that enable carbon footprint tracking, support circular commerce platforms, and promote environmentally-friendly supply chain solutions are gaining traction. Consumers are increasingly environmentally conscious, and retailers investing in these technologies not only align with customer values but also future-proof their businesses against regulatory and reputational risks. 

Retailers who embrace these advancements aren’t just keeping up with the competition, they’re building more resilient, customer-centric, and future-ready businesses.

  • Digital Supply Chain

Jon White, Chief Commercial Officer, EMEA at InXpress, looks at the dual roles of humans and AI in the future of the supply chain.

AI and automation aren’t here to replace humans entirely. It is an important tool for businesses to incorporate into their strategies to remain competitive, but it is still crucial to preserve a human touch. 

One of the most important aspects of the new era of automation in logistics is how it is helping to mitigate supply chain disruptions and improve resilience, problems that have existed in the courier industry for years. Companies can utilise automation to make more informed decisions, improving overall efficiency. 

The power of automation and human fusion 

Modern supply chains are complex, with supply disruptions and ever evolving customer expectations. By fusing automation and a human touch, it can best utilise the strengths of both, creating a harmonious collaboration. Rather than viewing AI as a replacement for humans, it can be used to approach challenges as complementary partners. 

AI has a role in supply chain management. This is especially the in areas of demand forecasting. Here, advanced technologies analyse historical data and market trends to improve the demand accuracy. It is also vital for inventory management. In these cases, AI algorithms can dynamically balance inventory across locations to minimise stockouts and overstocks. By incorporating AI technology into these areas of the supply chain, it can transform supply chain management, optimising at scale. 

However, human judgment remains critical. AI may be powerful, but incorporating a human touch is crucial for effective strategic decision-making and ethical oversight. Humans provide contextual understanding with a long-term vision, inputting a strategy that AI can’t replicate to the same level. 

In crisis management, human adaptability is also so important. Unprecedented situations that require a human to reply and respond to customers need to be empathetic and understanding, helping customers feel heard and seen, as well as mapping out a response strategy that can’t be replicated by automation. 

Combining the two and integrating them into business strategies can help processes become efficient and seamless. 

Leadership in the era of AI

Leadership remains critical as AI technologies become integrated into logistics and planning. A strong leadership team can determine the correct steps to take in an evolving and competitive environment, along with the right level of emotional intelligence. 

Leaders must be able to lead people through disruption. Whereas AI can tackle the problem, leaders must communicate clearly with their teams and empower and reassure them. 

As technology becomes more advanced and is implemented into business strategies, leaders must understand their teams’ varying levels of comfort with new technologies. By having nuanced empathy for each member, leadership can acknowledge how jobs are shifting and help the team approach automation with enthusiasm and excitement. 

Automation should be designed to help speed up jobs, not replace them. Therefore, having skills of emotional intelligence cannot be replaced by AI. It is a critical skill in an increasingly AI-driven world. 

Ethical and cultural considerations 

AI systems can directly influence decision-making, customer experiences, setting standards, and the trust of the public. Therefore, having ethical and cultural considerations with the use of AI is important. 

AI bias can occur when the algorithm produces results that are systematically prejudiced by assumptions in the machine learning process. It can have severe business implications if not addressed or rectified. These can include reputational risk or being unable to meet compliance and regulation standards. AI is not advanced enough to overcome these hurdles by itself. 

We still have an ethical responsibility in the ways that we use AI, hoping to benefit the working environment and avoid any type of harm. It can have implications such as governance, long term viability, and social impact. 

By having a strong team, the human touch goes a long way to combat these issues that can occur. Fostering cross-functional teams that are well-trained with automation and regularly auditing and testing AI algorithms being implemented in business strategies can prevent this from becoming a problem in supply chain management. 

As AI and automation become integral to modern business strategies and supply chain management, it is clear that it is not a replacement for human intelligence. 

Only the human touch can deliver empathy and leadership, a role that remains paramount in logistics leaders. Automation has proven its value by enhancing supply chain resilience, but it’s the fusion of automation and human touch that creates an adaptive and forward-thinking business.

  • AI in Supply Chain

Anthony Michael, Global Practice Director of Location Intelligence at Searce, believes the global supply chain is headed for an inflection point, as frequent disruptions and regulatory pressures prompt a completely new approach to structuring supply chains.

The global supply chain is evolving into a smarter, more adaptive ecosystem, connected digitally, end-to-end. 

However, 45% of supply chain leaders report more frequent disruptions since 2020. Geopolitical tensions, like the Red Sea shipping crisis, have disrupted trade lanes and supplier networks. Climate events such as flooding in Southeast Asia and wildfires in Europe have impacted agricultural outputs and logistics hubs. Demand spikes and post-COVID consumption shifts caught many companies off guard, straining inventory systems.

On top of this, regulatory pressure is rising. Frameworks like the EU’s Corporate Sustainability Reporting Directive (CSRD) and the U.S. Uyghur Forced Labor Prevention Act (UFLPA) are forcing firms to increase transparency and rethink sourcing practices.

In response, organisations are completely rethinking their supply chain strategies by moving away from rigid planning and manual processes toward smarter, more adaptive systems that can sense change and respond in real-time.

Autonomous optimisation at scale

AI in supply chains is rapidly evolving from basic anomaly detection and dashboarding, to prescriptive and autonomous decision-making. Most organisations have achieved real-time visibility, but the competitive edge lies in how decisions are made and acted upon.

Companies are moving beyond basic data visualisation to implement AI systems capable of evaluating trade-offs, predicting disruptions, and recommending optimal responses in real-time.

Imagine a ride-hailing network navigating the chaos of a busy city. With AI-driven risk intelligence and real-time location data, the system spots patterns early, redirecting drivers to keep things on time and delivering insights that help teams perform better while keeping risks in check. Thus, the smartest systems are anticipating, adapting, and improving outcomes across the ecosystem.

A new sourcing paradigm

Geopolitical instability and trade shifts have dramatically altered the risk calculus and forced a reassessment of global sourcing strategies. While reshoring continues to make headlines, the real shift is more nuanced: the rise of regionally distributed, hybrid supply networks that strike a balance between efficiency and resilience. Think of it as designing a mesh-like supply chain that lets companies dynamically pivot between local and global sources based on real-time risk, cost, and market conditions.

Companies are moving beyond traditional cost-focused models, adopting a holistic approach that evaluates factors such as political stability, regulatory exposure, lead times, and sustainability. Businesses are adopting strategies that also weigh supply risk, sustainability, and market access – reflecting a more comprehensive risk management approach.

The focus now is on building supply networks that can flex with uncertainty by staying close to demand when it matters most, and bouncing back quickly when things go off track. That means localising where it’s smart to do so – and staying agile everywhere else.

From visibility to strategic simulation

Digital twins, virtual replicas of physical supply chain assets or operations, are no longer confined to engineering and factory floors. They’ve evolved into real-time simulation engines spanning the entire supply network. These tools now play a central role in prescriptive intelligence, enabling demand sensing, inventory management, and logistics optimisation.

For example, a logistics network might use a digital twin to simulate rerouting during a port shutdown, whilst a retailer could model inventory shifts in real-time during a seasonal demand spike. These simulations help companies ‘stress-test’ their supply chain strategies before taking real-world action.

The market for supply chain digital twins is projected to reach $5.98 billion by 2030, reflecting their expanding role in enabling predictive and prescriptive decision-making.

Optimising for ESG and economics

The old trade-off between going green and staying lean doesn’t hold up anymore. Today, forward-looking businesses are weaving sustainability into how they operate, right from sourcing materials to planning deliveries.

Carbon data is now being fed into procurement and production models, not just to report impact, but to actively shape smarter, lower-emission decisions. In fact, 74% of supply chain leaders expect profits to increase through 2025 as a result of applying circular economy principles.

Hence, sustainability is evolving from a compliance obligation into a true performance driver and, for many, a source of competitive advantage.

Breaking the silos

There’s no doubt that collaboration has become a performance multiplier. Organisations are increasingly partnering to share logistics infrastructure, supply capacity, and even real-time data and predictive intelligence. These collaborations are helping unlock synchronised planning and inventory precision, previously unattainable in siloed operations.

You could compare it to running a supply chain operation like a well-rehearsed routine where manufacturers and suppliers stay closely coordinated, producing only what’s needed, when it’s needed. 

However, partnerships don’t thrive on intention alone. From our experience, they work best when built on aligned data strategies, mutual accountability, and shared outcomes. Businesses should prioritise partners who can exchange operational data securely, support API-based integration, and co-own KPIs tied to real value.

It’s also worth considering that potential roadblocks like mismatched technology stacks, cultural misalignment, and unclear ownership can slow progress. The most successful collaborations are those that plan for these realities from the outset. Hence, such alliances go beyond cost savings by unlocking speed, precision, and resilience across the value chain.

People remain the edge

Technology is advancing rapidly, but people remain the true differentiator in supply chains. What’s changing is how they work. The most forward-thinking organisations are transforming traditional planners into ‘ecosystem architects’. These professionals blend operational expertise with digital fluency and strong data instincts.

Rather than replacing people, AI is becoming a trusted partner in decision-making. From copilots that support complex choices to embedded tools that guide everyday actions, intelligent systems are helping teams move faster and with more clarity.

The real advantage lies in how effectively organisations design and implement collaborative workflows between specialised human talent and intelligent automation. This will help amplify people’s judgement and creativity with intelligent systems.

As these shifts accelerate, the supply chains of tomorrow will be antifragile – built to flex, absorb shocks, and learn by turning disruption into momentum.

What will set the next wave of leaders apart isn’t their technology stack but how they weave intelligence, agility, and sustainability into everyday decisions, relationships, and roles across the supply chain.

  • Digital Supply Chain
  • Risk & Resilience

Stephen Williams, director and co-founder of Fidelity Fulfilment, conducts his analysis on the state of UK-EU fulfilment networks in the post-Brexit era.

When Brexit came into force, few supply chain professionals could have anticipated the full complexity it would introduce across logistics, customs, and trade compliance. The once seamless movement of goods between the UK and EU was suddenly undermined by layers of regulation, new customs requirements, and uncertainty. In the years since, fulfilment providers, brands, and technology platforms have had to rewire how cross-border trade works.

While the dust has largely settled, the logistics landscape today is very different from the one businesses operated in pre-2020, and it’s still evolving.

From firefighting to forward planning

In the early post-Brexit period, no one – not carriers, customs, nor fulfilment providers – had all the answers. Regulatory frameworks emerged in real time, holding up entire shipments due to a single missing data point or misclassified product code. The absence of a unified source of expertise meant that costly mistakes were common, and businesses had little choice but to learn through trial and error.

Thankfully, that reactive phase is now behind us. What emerged in its placef is a more resilient, tech led fulfilment ecosystem. The brands and logistics providers that weathered the post-Brexit storm are now operating with deeper in-house customs knowledge, better integration with digital platforms, and a clearer understanding of how to deliver consistent cross-border customer experiences.

Dual-entity warehousing as the new normal

One of the most significant structural changes has been the rise of dual-entity warehousing – where brands maintain inventory in both the UK and EU to minimise customs friction and delivery delays. This was inevitable for many, but Brexit made it a priority.

The Netherlands, in particular, has emerged as a hub for EU-side fulfilment, offering proximity to major ports and infrastructure, along with favourable tax and customs frameworks. For many 3PLs, acquiring existing fulfilment operations or warehousing space in the region has proven to be a fast track for expansion, but with that comes the need for cultural alignment, process integration, and – crucially – ownership of operations. Brands increasingly value direct control over their fulfilment touchpoints, rather than relying on third-party partner networks that can introduce communication gaps and dilute service quality.

Technology and customs automation no longer optional

Perhaps the most transformative development has been the rise of customs automation and API-driven compliance. Today, most major carriers have stabilised their DTC customs processes, and automated platforms are handling tasks that once required manual intervention. The shipping label now acts as a digital passport, embedding all required data – from product descriptions and values to origin details – directly into the logistics flow.

However, the picture is more complex for B2B shipments, where full-container loads and bulk freight still face significant scrutiny. One incorrect HS code or misdeclared value can delay or derail an entire shipment. As a result, many fulfilment providers have taken customs clearance in-house, supported by platforms that provide real-time validation and compliance checks.

Rebalancing demand across borders

There has also been a notable shift in client strategy. In the immediate wake of Brexit, many EU-based brands deprioritised the UK, choosing instead to focus on domestic or pan-EU growth. That’s now changing. Over the past 12 months, there’s been a renewed appetite for UK expansion – a recognition that revenue left on the table during the adjustment period is now worth pursuing again.

That said, the complexity of cross-border trade has forced hard choices. Some brands, particularly those with low basket value or lean technical capabilities, have exited certain markets altogether. The cost-to-serve has simply become too high for some use cases, especially where duties, delays, and customer dissatisfaction risk eroding already thin margins.

The policy reset and the road ahead

Recent political progress – particularly the SPS (Sanitary and Phytosanitary) agreement –  could bring meaningful change. For sectors like food and agriculture, where spoilage at ports due to delayed certification has been a major issue, the new rules offer hope for reduced waste and smoother transit. While the benefits for DTC/B2C may be minimal (since that part of the supply chain has adapted well), larger B2B shipments should see improved reliability and shorter lead times. But the real gains will be in efficiency and predictability for larger freight movements.

Looking further ahead, AI will likely be the next major catalyst for transformation including everything from intelligent routing to regulatory compliance automation. Combined with a natural market consolidation (a correction after the COVID-fuelled boom in logistics start-ups), we expect fulfilment companies that prioritise innovation, automation, and client value to emerge stronger.

This is already happening. The UK fulfilment services market will likely more than double by 2030, growing from $7.54 billion in 2024 to $17.3 billion. EU markets will follow a similar upward trajectory. It’s a signal that this is not just a phase – ecommerce fulfilment is becoming more central to global trade strategy.

Fulfilment is no longer just a backend function; it’s a growth enabler. The UK-EU corridor may have been disrupted, but it’s also forced the sector to evolve to become smarter, faster, and more focused on the long term. Visit Fidelity Fulfilment to learn more.

  • Risk & Resilience
  • Sourcing & Procurement

Nick Petheram, Founder, Chairman and CEO of Nomia, explores how procurement teams can leverage AI and new strategies to turn their tail spend into something more than a drag on the bottom line.

In the world of procurement, much attention is given to strategic spend – the high-value purchases that directly impact business operations. Yet, what about the low-value, high-frequency transactions that make up tail spend?

For many organisations, this area of expenditure often receives less focus that strategic spend. Essentially, tail spend comprises small or individual purchases, which tend to be a lower priority for procurement teams. There’s less perceived value versus the effort required to manage them. However, advancements in AI-driven procurement technology combined with the right expertise now provides businesses with an opportunity to better manage and optimise tail spend. With the right technology, procurement can turn tail spend into a powerful strategic asset.

The Nature of Tail Spend

Strategic spend, which typically accounts for around 80% of an enterprises total outlay, naturally commands greater attention. However, tail spend – the remaining 20% – can translate into hundreds of millions, even billions of dollars annually for large enterprises. This often fragmented, decentralised, and unstructured spending can lead to inefficiencies, maverick purchasing, and unoptimised costs.

Customers tell us lack of tail spend visibility is a key challenge they face as a business. Thousands of low-value transactions across multiple suppliers often fall outside standard procurement processes, making it difficult to track and control. Without a structured approach, companies risk losing savings opportunities, duplicating purchases, and increasing compliance risks.

Many businesses are coming to realise that by not actively managing tail spend may result in non-compliance with internal policies and external regulations. Companies may inadvertently work with non-compliant vendors or fail to meet Environmental, Social, and Governance (ESG) objectives. More effective oversight of tail spend helps mitigate these risks – and any financial and reputational consequences.

Unlocking Cost Savings and Efficiency

A more structured approach to tail spend can deliver substantial cost savings and operational efficiencies. By leveraging AI-powered analytics, businesses can achieve savings of 5% to 15% by monitoring spending across departments, consolidating purchases, and fostering competition among suppliers. For a Fortune 500 or Global 2000 company, that can be a significant saving. That a company with a total external spend of $10 billion, for instance. The potential savings from optimising tail spend could exceed $300 million.

AI can deliver enhanced visibility and data-driven insights. These benefitscan allow businesses to improve management of supplier relationships, reduce redundant purchases, and streamline procurement processes. AI-driven platforms, when paired with procurement expertise, can empower organisations to transform supplier matching, compliance tracking, and transaction processing for tail spend – reducing the manual and administrative workload.

Enhancing Compliance and ESG Alignment

Beyond cost savings, optimising tail spend also strengthens compliance and aligns purchasing with broader ESG objectives. Due to the sheer volume of low-value transactions, tail spend often cannot receive the rigorous compliance checks applied to strategic purchases. For many companies, finding ways to more closely manage tail spend helps to reduce exposure to regulatory risks, contract violations, and supplier-related reputational damage.

Enhancing visibility ensures that even low-value transactions align with internal procurement policies, regulatory requirements, and corporate responsibility initiatives. companies find that improving the strategic oversight of tail spend also helps them track compliance for audits, tenders, and internal reporting.

Tail spend optimisation can also support ESG goals by enabling companies to assess the environmental and social impact of their purchases, ensuring alignment with corporate responsibility and sustainability strategies. As stakeholders increasingly demand transparency in supply chain practices, strategic tail spend management helps businesses meet evolving expectations.

Unlocking Innovation and Agility

Unlike strategic spend, which often involves large, established vendors, more effective tail spend management can open access to innovative and agile suppliers by helping businesses to establish relationships with them. Many smaller, niche vendors offer unique solutions that can enhance business operations, drive innovation, and create competitive advantages. 

Many companies tell us they see value in the fact that AI-powered platforms. When used by experienced procurement professionals, these platforms enable them to streamline supplier onboarding, contracting, and management – making it easier for them to vet and engage with innovative vendors. By tapping into these suppliers’ expertise, companies find they introduce new technologies, services, and solutions that enhance their competitive positioning.

The Role of AI and Outsourcing

AI-driven procurement tools, guided by experienced procurement teams, continue to transform the way companies manage tail spend. Advanced AI-powered platforms consolidate supplier data, identify spending patterns, and automate procurement processes. This provides businesses with a centralised and data-driven approach to tail spend management.

Of course, not all organisations can afford to optimise tail spend with their internal resources. To tackle the issue without diverting internal resources, outsourcing this function to a specialist provider can be an effective strategy. Partnering with the right outside provider ensures companies leverage proven procurement expertise, a broader supplier network, and AI-driven analytics to achieve better outcomes. This approach allows businesses to maintain their focus on strategic procurement priorities while ensuring tail spend is handled more efficiently.

A Strategic Opportunity

Rather than being an administrative burden, tail spend presents a strategic opportunity when managed effectively. Businesses that apply the right tools, expertise, and technology, find that they unlock significant value from this area of procurement.

By taking a more structured approach to tail spend companies can turn it into a strategic asset, driving cost savings, compliance, ESG alignment, and innovation. AI-powered solutions and expert guidance can help businesses take firmer control of tail spend, building a source of competitive advantage.

  • Sourcing & Procurement

John Wegman, CEO of Customs Support Group, explores how customs can be transformed from reactive, transactional function into a vital source of foresight, stability and control.

Let’s be honest: customs has historically not been viewed as the most exciting part of the international trade process. 

For decades, it has been synonymous with queues, paperwork, and unpredictable delays, with arcane rules proving more of a bureaucratic headache than a factor that contributes to business growth. 

As such, most companies still approach customs with a ‘just get on with it’ mindset, seeing it as a sunken cost rather than the strategic opportunity it really is. Indeed, as global supply chains face unprecedented disruption – from erratically shifting tariffs and tighter regulations to geopolitical instabilities and climate-related challenges – the role of customs is undergoing a quiet revolution. What was once a reactive, transactional function is now emerging as a vital source of foresight, stability and control, where the right technology, expertise and approach can turn a compliance obligation into a hub for business strategy, shielding from shocks as it creates room for long-term sustainability, adaptability and growth. 

The question, then, is no longer how to minimise customs’ impact but how to maximise its potential. 

The cost of negative thinking

For too long, customs has been seen as a necessary back office evil – something to be endured rather than a vital part of smart business planning. However, the costs of ignoring its growing potential in the age of digitalisation are now glaring. 

Inefficient border administration and fragmented regulations can significantly hinder trade efficiency. For instance, internal trade barriers within countries can prove just as damaging as shifting international tariffs, leading to increased costs and critical business delays. Addressing these internal challenges could boost national productivity, whilst reducing individual business transaction costs and enhancing competitivity – all advantages that prove particularly crucial in the face of rising global protectionism. 

With tariffs and regulatory conditions now changing faster than many organisations can keep track of, the risks of non-compliance – and potential financial and reputational penalties associated – only grow. Simply surviving in this climate requires a new level of visibility and adaptability, where thriving demands something above and beyond: anticipatory intelligence and forward-looking insight.

The rise of predictive trade

Technology is key to unlocking this vision. By automating routine declarations and digitising both documentation and data collection, qualified customs professionals are no longer held back by form filling. Instead, they’re moving into more strategic roles, consolidating data, interpreting trade patterns, identifying inefficiencies and advising on sourcing, routing and compliance decisions. 

This shift mirrors wider trends in supply-chain digitisation. Companies with advanced supply-chain capabilities, including AI and generative technologies, consistently outperform their competitors on resilience and profitability. With leading customs agencies now embracing similar tools, these benefits no longer need to stop at the factory gates. 

Customs automation offers more than just speed – ensuring cleaner data, more reliable compliance and fewer manual errors, as well. The result is less time spent reacting to issues and more time for real customs expertise driving business value. This is where customs transforms from a defensive cost centre into a proactive control tower, so to speak. 

Smarter declarations for smarter savings

Classifying goods under the correct tariff codes is fundamental, yet often overlooked, with misclassifications leading to unnecessary duties or compliance penalties. Customs companies that use digitised documentation and AI-powered tools to ensure declarations are both correct and complete are not only achieving higher accuracy, but it also protects businesses from costly errors whilst also uncovering new opportunities for reductions in payments. 

With rules of origin under Free Trade Agreements (FTAs) likewise becoming increasingly complex, many companies miss out on lower tariffs that they may be eligible for. Skilled customs agents, equipped with full access to digital records, can trace product origins to ensure businesses reap the benefits, without the guesswork or manual burden. 

For companies that import and then export their goods, duty drawback schemes present yet another underutilised opportunity. Automating claims and matching data more effectively allows for faster, more frequent refunds, improving cash flow without adding administrative overheads. 

Building reputations

Digitising customs processes doesn’t just speed up clearance and identify potential for savings, however. It also boosts credibility. Companies that consistently provide accurate, compliant, timely documentation gain a reputation as more reliable partners, not only with authorities but with clients and suppliers alike. This can strengthen relationships across the value chain and even open up access to new markets. 

Beyond this, proactive customs planning helps to avoid common yet costly penalties like demurrage and detention fees, which can rack up quickly when goods sit too long in ports. There can also be issues when customers return containers late. But, with real-time coordination and pre-clearance, customs agents can ensure documentation is in place before arrival, preventing cost spikes and delays that prove particularly detrimental for time-sensitive cargo and perishable goods. 

Staying ahead of change

Perhaps the most significant advantage in today’s volatile landscape, however, is agility. Regulatory changes can happen overnight, whether it’s new sanctions, dual-use controls, or changes to country-of-origin rules and tariffs. Customs professionals who monitor such global developments in real time can nonetheless serve as an early-warning system, allowing companies to turn things around to their advantage. 

This used to be the remit of legal departments at major corporations, but today, thanks to digital partnerships, the same insight is now accessible for SMEs, as well. That’s a significant leveller and a major line of defence for businesses navigating difficulties with limited inside knowledge or resources. 

From paperwork to performance

Ultimately, reframing customs as a business opportunity is a must. As borders tighten, trade complexity rises and economic uncertainty continues, companies that treat customs as a tick-box exercise risk missing out on the insight, growth and efficiency that comes with working with the right, digitally enabled, data-first partners. 

In short, customs is no longer just about goods getting through, but building a business that can go further, faster, and with greater confidence – even in today’s uncertain trading world.

  • Collaboration & Optimization
  • Risk & Resilience

Niklas Adamsson, Chief Operations Officer at Envirotainer, looks at the process of preparing the pharma supply chain for the green transition.

The pharmaceutical industry is at a pivotal point as we approach the 2030 deadline for achieving the UN’s Sustainable Development Goals, designed to reduce emissions and take urgent action on climate change. 

Rising environmental pressures, coming from both governments and consumers alike, are driving pharma companies to accelerate technological adoption to transform operations and meet stringent emissions regulations. In fact, as of 2025, pharmaceutical companies are now investing $5.2bn annually in environmental programs to transform operations, reduce waste, and introduce innovative new technologies – a 300% increase from 2020.

With sustainability a non-negotiable, pharmaceutical companies must act now to meet the 2030 deadline. Supply chains and logistics must be a significant focus for this action. With one of the biggest contributors to the industry’s emission being transportation, and varying packaging, shipments and disruptions adding additional complexity to the journey, changes across the entire supply chain must be implemented effectively.

This then begs the question: how can the industry accomplish this, without impacting operational efficiency? 

How the pharmaceutical industry is shaping up ahead of the 2030 green imperative 

The pharmaceutical industry currently accounts for almost 5% of the world’s total greenhouse gas emissions. The most significant contributor to this is Scope 3 (indirect) emissions, which account for 80-90% of the sector’s total climate impact. Whilst several pharma companies have focused on initiatives to reduce Scope 1 and Scope 2 emissions, Scope 3 remains difficult to target. This is largely due to the multitude of sources of these emissions, which can come from drug manufacturers, raw material producers, transporters and even the patients using the medicines or vaccines. 

With green agendas front of mind, stakeholders within the pharmaceutical cold chain are introducing new initiatives, technologies, and infrastructure to ensure they can meet the 2030 deadline. Planning for this has required precision to make sure any green initiatives do not impact the efficiency or reliability of the delivery of life-saving pharmaceuticals. 

The sustainability and efficiency conundrum

A key way of addressing sustainability goals in logistics is through the choice of packaging. There are several considerations including the quantity of vaccines and medicines, the pharmaceutical’s temperature requirements, autonomy required, the varying climates along the journey, and the infrastructure available on the journey and at the destination. 

One option that has been gaining momentum in recent years is forever-use packaging. Engineered for reliability, longevity, and sustainability, forever-use packaging is repairable and built with high-grade materials that withstand extreme conditions. These qualities extend their lifespan significantly, helping reduce waste. Despite higher upfront costs, their durability makes them a cost-effective and sustainable solution in the long run.

However, in some instances forever-use packaging isn’t the best option. With the need to balance reliable and efficient delivery with sustainability, single-use packaging remains the most practical solution in less developed regions which often have more dated infrastructure and face more regular supply chain disruptions. The continued innovation and diversification of packaging options remains essential, to provide a perfect solution for any given scenario.

Integrating sustainability in the supply chain

Technological innovation is playing a significant part in helping providers effectively balance sustainability and efficiency in ever-changing supply chains. One of the most promising innovations in recent years has been AI. AI-driven insights can help providers determine which packaging is the most cost-effective and sustainable option by considering all the variables, including temperature requirements, climates, and available infrastructure.

By providing the technology with real-time data on transportation conditions, such as weather patterns, temperature fluctuations and route conditions, it can also determine the most sustainable and efficient route and mode of transport. Finally, the technology can also support with predicting demand, minimising overall waste of pharmaceuticals and other supplies.

Spinning up the circular economy 

Optimising routes and packing solutions is a vital first step. However, production waste reduction strategies and a circular economy approach must be implemented across the entire supply chain to ensure the minimisation of the industry’s environmental impact. Shipment monitoring technology can support with production waste reduction by helping logistics providers to track medicines and vaccines journeys, with live updates regarding temperature fluctuations and delays. If either route or temperature has deviated, the providers can intervene immediately to reduce the likelihood of waste.

Additionally, embracing circular economy principles can revolutionise how pharma companies develop, manufacture, and distribute medicines, making it a powerful tool in the fight against Scope 3 emissions. Embracing change, both big and small, across the supply chain can have a significant impact to Scope 3 reductions. In fact, Envirotainer has successfully reduced its Scope 3 emissions by almost 12% in just one year, driven primarily by reduced material usage. Other contributors to this reduction are decreased weights of solutions, increased use of sea freight and the adoption of sustainable aviation fuel.

Another way to take decisive climate action is by making sustainability a critical factor when selecting suppliers and partners. By forming partnerships that further drive green initiatives forward, supply chain emissions can be effectively reduced through collaboration. Selecting the right suppliers requires attention to several factors, such as environmental capabilities, efficiency, and total life cycle waste. Building long-term partnerships will add value, not only from an environmental compliance standpoint, but also for the stability and long-term savings it can provide. 

Making the business case for proactive sustainability

The pharmaceutical industry has made massive strides in recent years to reduce its impact on the environment ahead of the 2030 deadline. However, with five years left to build a green supply chain, the industry will still need to make further efforts to lessen its contributions to global emissions.

Success will be achieved through collaboration across the entire supply chain, especially when it comes to Scope 3 emissions. With innovations to routes, packaging and infrastructure, the industry is now finding sustainability and operational excellence inseparable benefits of these changes. As stakeholders and consumers across the globe continue to become increasingly environmentally conscious, those in the pharmaceutical industry must continue to push for comprehensive transformation, rather than incremental changes to ensure the success of the 2030 green supply chain. 

With five years to go, the industry must persevere to ensure the delivery of better outcomes for patients, businesses, and the planet.

  • Sourcing & Procurement
  • Sustainability

Patrick Brodie, Partner at RPC, and Eve Matthews, Associate at RPC, explore what the refreshed TISC guidance means for businesses – and why future-proofing supply chains starts with transparency.

When it first came into force ten years ago, many hailed the Modern Slavery Act 2015 (the Act) as a ‘world-leading’ piece of legislation in the fight against modern slavery. The Act was among the first legal frameworks to impose obligations on large businesses to scrutinise and report on forced labour and human trafficking within their supply chains. Despite this initial positivity, in the decade that has followed, critics have highlighted the fact that the Act “lacks teeth” and enforcement hasn’t been as meaningful as promised. The act was criticised most recently in the House of Lords, where it was argued that the legislation is “too limited to have significant practical impact”.

Now, in 2025, with global supply chains more complex and interconnected than ever, the Government has updated the Home Office’s Transparency in Supply Chains (TISC) guidance (the Guidance). The Guidance was first made available alongside the Act in October 2015 and is designed to provide practical guidance to in-scope businesses by explaining how they should comply with their obligations under section 54 of the Act. As a reminder, section 54 of the Act applies to large commercial organisations with a global annual turnover of £36 million or more, carrying on a business (or part of a business) in the UK.

Shifting from compliance to action 

This latest edition of the Guidance signifies a renewed focus on compliance. It urges businesses to move beyond box-ticking and to instead enact meaningful changes within their supply chain by effective due diligence and increased transparency. Essentially, it encourages organisations not merely to meet the letter of the law, but to embrace its spirit. An acknowledgement of the existence of slavery risks within their businesses and supply chains is a foundational first step. This acceptance will better enable an organisation to address any such risks, and to embed appropriate anti-slavery efforts into broader corporate strategy. To illustrate this point, the Minister for Safeguarding and Violence Against Women and Girls, Jess Phillips, has stressed that organisations that fail to identify risks and cases as part of their statutory obligations are “probably not looking hard enough”.

What businesses need to know

Businesses who must comply with Section 54, should pay close attention to the following changes: 

  • A new two-tier system of disclosures in relation to the recommended statement disclosures which will distinguish between organisations, drafting their statements for the first time, and organisations that are more familiar with the reporting requirements. The latter group should provide deeper insights and demonstrate progress over time, continuously improving their practices;
  • The clarification that while it remains permissible for a parent company to produce a single statement that its in-scope subsidiaries can also use, if the various organisations within a group structure operate across different sectors (and therefore attract different risks and responses) it is best practice for each in-scope organisation to produce their own tailored statement rather than relying on the parent company’s statement; and
  • The promotion of the Government’s Modern Slavery Statement Registry and the express encouragement of businesses to upload their statements to the centralised platform to allow for greater transparency and public scrutiny.

The Guidance also highlights the growing importance of modern slavery risk management underpinning Environmental, Social, and Governance (ESG) considerations. It recommends that businesses integrate anti-slavery efforts into a broader, unified strategy for risk mapping, due diligence, and remediation. 

How far do the changes actually go?

It’s important to note that, despite these updates clearly indicating the direction of travel that the Government intends to take on modern slavery reporting, the Guidance, by its nature, will not introduce any new mandatory requirements, with many of its recommendations remaining voluntary. Absent a legislative amendment, the introduction of the long awaited financial penalties for non-compliance or new civil enforcement powers remain out of reach. It’s notable that the Government hasn’t issued a single injunction since the Act’s inception.

In practice, this means that businesses are unlikely to face legal consequences for publishing vague statements, or for failing to act on identified risks. Nevertheless, these businesses still face potentially increased risk of public scrutiny, procurement exclusion, and reputational damage to businesses still failing to observe the spirit of their Section 54 obligations. For leaders responsible for organisations’ supply chains, the conversation has shifted: it’s no longer enough to simply publish a statement – it’s about the substance, frequency of updates, and the actions that follow. As ESG standards tighten, those who fail to adapt risk losing their competitive edge.

Where do we go from here?

Modern slavery is a current business risk, one that affects reputation, regulation, and responsibility. The Guidance challenges businesses to engage more deeply, act responsibly, and protect vulnerable workers, all while future-proofing their supply chains. Stronger legislation may be on the horizon. Irrespective of when it emerges, wider societal, economic (including from investors) and consumer pressures are driving organisations to better map, undertake due diligence and more clearly report on their supply chains and their associated risks. 

In turn, this has led to a tightening of supplier contracts.

The return of the modern slavery brief to the Safeguarding Minister signals renewed political commitment, but real progress will require legislative reform. The updated Guidance is a wake-up call. Businesses need to act now or risk falling behind on public and investor expectations, and being excluded from ethical supply chains.

  • Risk & Resilience
  • Sourcing & Procurement

Stuart Greenfield, Sales Director at Advanced Supply Chain, shares insights into why leading retailers are shifting their focus from cost-centric to speed-oriented approaches in managing customer returns.

Traditionally, the approach companies have taken to reverse logistics and decision-making has focused on ‘cost’. Retailers often debated whether to charge customers for return shipping or have prioritised efficiencies throughout storage, handling and distribution to generate cost savings. In both areas, the focusis on mitigating the financial impact of customers sending products back and minimising margin dilution.  

Controlling costs remains important, but emphasis is now shifting toward the speed and efficiency of processing returns. Fast, seamless returns processes are quickly becoming a key differentiator and a strategic priority.

Maximising Sales Opportunities

A central goal for senior retail leaders is to reduce the ‘returns void’—the period stock spends in reverse logistics. As return volumes increase, there’s a growing risk of SKUs worth tens or hundreds of thousands of pounds dwelling in returns processing, unavailable for sale. This can mean missed sales opportunities and also leads to costly product depreciation. Stock availability is particularly crucial for seasonal items and trend-sensitive products, where retailers already contend with short sales windows to achieve Optimum Selling Prices (OSPs).

By accelerating returns processing, retailers can quickly reintroduce stock into the sales cycle, avoiding out-of-stock situations that frustrate customers and drive them toward competitors’ websites. Efficient returns management enables retailers to maintain OSPs and protect profit margins.

Returns, Refunds and Reshopping 

Companies are increasingly seeing rapid refunds as a way to retain customer loyalty. When consumers receive their money back swiftly after a return, they are more likely to repurchase from the same retailer. Research by Advanced Supply Chain indicates that approximately two thirds of shoppers are inclined to shop again if they experience fast refunds. 

Being able to process speedy refunds requires robust connectivity and precise data in the reverse logistics process, as well as quick, diligent quality checks. These elements enable retailers to effectively rule out issues such as returns fraud and product damage, to rubber stamp the validity of the return. It creates the confidence to issue a timely refund and encourages customers to view returns not as a dead-end, but as an ongoing shopping journey. Reshopping after an item has been sent back can often prove more effective for protecting margins than cutting supply chain costs. 

Building Brand Loyalty

Today’s consumers want the flexibility to try products risk-free, trusting they can effortlessly return items that don’t meet expectations. A quick and hassle-free returns process can enhance brand loyalty, encourage repeat business and lead to positive customer reviews for retailers and brands.

Conversely, sluggish or complicated returns can cause customer dissatisfaction and negative online sentiment that damages brand reputation and deters sales. Transparency and communication throughout the returns process—keeping customers informed about the status of their return and refund—helps manage expectations and improve the overall customer experience. 

Prioritising time and speed in returns management is transforming reverse logistics from a cost centre into a strategic asset. Retailers adopting this mindset are strengthening their ability to make returns a cost-effective part of shoppers’ sales journeys and boosting opportunities to increase customer satisfaction, loyalty, and long-term profitability.

  • Collaboration & Optimization

Julian Skelly, Head of Retail at Publicis Sapient, explores why interconnected supply chain management solutions form the foundation of digital supply chain management solutions.

Historically, organisations geared their supply chains toward increasing volumes of open, cross-border trade. In a relatively stable world, this made a lot of sense. Suppliers enjoyed an abundant supply of materials, driving low prices and a single use mentality. Buyers focused on cost, often failing to consider the environmental and sustainability impact of linear supply routes. As companies pursued the mass market, supply chains stretched their processes. Understandably, just-in-time became the prevalent model. 

However, events like the pandemic and the war in Ukraine threw the risks of this approach sharp relief. In an increasingly uncertain world, thes crises exposed the inherent lack of resilience in global supply chains. In response, companies have invested in strengthening supply chain components, focusing on making them more cost efficient, robust, and sustainable.

For many, this investment has mirrored point-to-point thinking. New technologies like digital twins and AI improve the metrics and predictability of individual components within the end-to-end supply chain. Yet they are often built upon a traditional reliance on historical data and siloed systems. This approach falls short in today’s dynamic environment, where connected, real time data and predictive analytics are crucial for effective decision-making. 

The future of supply chain transformation will be defined not only by the implementation of new technologies but also by the ability to connect and operationalise them through a cohesive digital infrastructure.

When supply chains fail 

Supply chain failures can be catastrophic for businesses, leading to lost revenue, reputational damage, and even legal repercussions. These failures may arise from various causes: natural disasters, geopolitical events, cyber-attacks, pandemics, or supplier breakdowns. By understanding the root causes, it becomes clear why companies must adopt a more integrated, end-to-end view when investing in supply chain strategy.

Failures can stem from external factors. These can include a lack of diversification, over-reliance on a single supplier, raw material quality issues, or poor risk profiling. However, they also often stem from internal shortcomings in planning and ways of working. 

Disconnected systems 

The proliferation of disconnected supply chain data across enterprise, ecosystem, and external sources makes timely, well-informed decisions difficult. Recent investments in Control Tower solutions aim to aggregate these disjointed and often irrelevant data sources. Unsurprisingly, these efforts tend to produce insights of limited value. 

Disconnected systems also suffer from a kind of short-term memory loss. Even the most sophisticated planning solutions today operate like large, memory-less functions with no connection to the outcomes they’ve previously produced. As isolated systems, they are not required to retain historical context to function. Recommendations are therefore made with little regard for past performance, business exceptions, or known issues. This forces users into ongoing cycles of fire-fighting, as lessons go unlearned. Additionally, planning parameters are frequently stale and fail to reflect the current state of the business. Inaccurate, static variables -like plan adherence, yield, lead time variability, and actual production rates – skew expected outputs, making even the most optimised plans infeasible and fuelling an endless cycle of exception management.

Lack of visibility

When it comes to exception resolution, disconnected systems often lack visibility into the most relevant and impacted inputs. The absence of meaningful data persistence makes identifying root causes and calculating the cost implications of potential decisions extremely difficult. It also hampers Effect Simulation, Scenario Planning, and Cost-to-Serve Analysis. Today’s supply chain planning has a significant operational blind spot – and point solutions alone won’t solve it.

This stems from the fact that supply chain capabilities have traditionally been built on enterprise applications implemented using a point-to-point architecture. But this no longer has to be the case. Where data was once restricted to the enterprise and structured around application-specific data models, today’s landscape allows data to enable both network-level and facility-level optimisation. 

By connecting demand, supply, inventory, bottleneck constraints, IoT data, and more, companies can plan and execute across the supply chain more effectively in both steady-state and disruptive conditions. With cloud data storage and increasing access to data from supply chain partners and external sources, forward-thinking companies are revisiting their supply chain data strategy – connecting enterprise applications and laying the foundation for advanced AI-based decision support.

Integrated SCM solutions demand good data 

Companies with integrated supply chain management solutions can track inventory levels, manage suppliers, and monitor shipping and delivery times in a unified manner. Their investment integrates supply chain systems and enhances visibility across the entire value chain. It also better positions them to harness the power of AI and other emerging technologies. 

AI relies on high-quality, cause-and-effect data. Integrated supply chain systems can better train AI models and predict the impact of decisions and changes within the network. This gives businesses the resilience they need to navigate rising disruption and complexity.

By orchestrating across the supply chain, companies improve supplier communication, uphold the customer promise, and reduce operational churn and firefighting. A cohesive integration strategy will be vital to realising the full value of AI innovations, and to thriving in an increasingly interconnected and unpredictable supply chain environment.

  • Digital Supply Chain

Gopal Iyer, Founder of Waterfront Ventures, calls for real, ambitious efforts to decarbonise the global supply chain.

The climate clock is ticking. Supply chains are under pressure from all sides, including regulation, investors, rising costs, and the growing impact of extreme weather. 

Yet despite years of strategy development and net zero pledges, emissions across global value chains remain stubbornly high. We are no longer on track to limit warming to 1.5°C

That’s not a warning. It’s where we are heading. In boardrooms around the world, targets are being quietly softened, timelines extended, and ambition adjusted in response to economic uncertainty. But let’s be clear. Strategy is not the issue. Most companies already have targets in place. Reporting frameworks are active. Climate disclosures are now a regular feature in board packs. If anything, we’ve become highly skilled at planning.

The real challenge lies in execution.

This is not about compliance. It’s not about satisfying reporting requirements or presenting another carbon dashboard. Decarbonisation is not a box to tick. It is a supply chain to rewire.

At this year’s Innovation Zero World Congress, that message came through loud and clear. The era of setting vision is over. Leaders are looking for delivery not in five years, but now.

The ambition is there. The results are not

Across the Congress, the sentiment was consistent. Organisations have the tools. They have the frameworks. They have the intent. But they are still struggling to translate ambition into operational change. Dashboards exist. Scope 3 calculators are everywhere. Emissions baselines are mapped. But procurement still defaults to cost. Product design remains disconnected from sustainability goals. Transport teams aren’t equipped to consider carbon in their daily decisions.

The problem is not a lack of data. It’s that the data doesn’t flow into the systems where decisions are made. 

The structures that drive day-to-day operations, from incentives to KPIs to governance models, still seemed to be wired for speed, volume, and price. Until we shift those foundations, decarbonisation will remain a peripheral activity rather than a defining capability. 

We are at a crossroads like never before

Right now, four major forces are aligning. Taken together, they create a rare window for transformation.

  1. Policy is becoming enforceable. The EU’s Carbon Border Adjustment Mechanism and the UK’s SECR are just the start. Regulatory pressure to account for Scope 3 emissions is increasing across jurisdictions.
  1. Business intent is genuine. At Innovation Zero, companies were not just presenting case studies. They were asking real questions. There is energy, but also frustration at how difficult it is to get started.
  2. Technology is ready. Digital twins, AI-powered optimisation, and cloud-based emissions tracking are not future tools. They are available and being deployed in real environments.
  1. Innovation is flowing. Startups and established players are piloting solutions, including low-emission materials, closed-loop logistics, circular packaging, testing our limits of adopting innovation.

The question is not whether we know what to do. It’s whether we can take what works and scale it across complex, fragmented supply chains; from pilot to platform; from idea to infrastructure.

Circular thinking makes change deliverable

One of the clearest themes from Innovation Zero was that linear models no longer serve us. If we continue to build supply chains for single-use inputs and short-term optimisation, emissions will remain locked in.

Circularity shifts the equation. It enables decarbonisation by design, reducing both emissions and dependence on volatile resources. Take IKEA for instance; they redesigned their Eket shelving system using fewer materials and simple joinery. The result was a product that emitted less carbon, cost less to manufacture, and could be disassembled, reused, or resold. 

Or Philips, who took a much different route. By offering lighting-as-a-service, they retained ownership of the product, extended its usable life, and enabled modular repair. Emissions fell. Customer value rose.

These aren’t surface-level sustainability projects. They are structural shifts embedded in the business model and innovation. That’s the level we need to aim for. 

Scale is what separates intent from impact

Another key theme from the Congress: pilots are no longer enough. The future of supply chain transformation lies in scalable, repeatable solutions, and not handcrafted one-offs. DHL didn’t wait for a perfect solution. They tested electric vans in one Dutch city, measured performance, and then rolled out the model across Europe. It worked because it was designed to scale from day one.

Too many initiatives remain stuck in pilot mode because they’re not built to expand. The question to ask is no longer “does it work here?” but “can it work everywhere?”

Five practical moves to get started decarbonising the supply chain

For organisations looking to close the strategy-execution gap, here are five moves that unlock progress. Each one shifts the focus from ideas to delivery.

  1. Map influence, not just emissions: You don’t need to control every supplier to shape the outcome. Influence sits in design specs, procurement criteria, and volume commitments. Unilever embedded emissions thresholds in supplier scorecards. That turned sustainability into a prerequisite for long-term contracts.
  1. Build carbon into operational choices: If teams never see carbon data, they won’t use it. Make it visible in transport dashboards, sourcing tools, and RFQs. A major UK grocery retailer cut transport emissions by 8 percent simply by adding carbon metrics into route planning tools, with minimal infrastructure upgrades.
  1. Design for recovery and reuse: Circularity doesn’t need to start big. Focus on one product or process. Patagonia’s Worn Wear programme makes repairability a brand asset, extending product life and reducing material waste.
  1. Collaborate instead of audit: Auditing tells you where the issues are. Collaboration helps fix them. Nestlé worked directly with UK dairy suppliers to pilot low-emission feed alternatives, backing them with funding and technical support. West Midlands combined authority has been working on a regional circularity community, mapping how organisations collectively implement circular business models.
  1. Build pilots that can scale: If your pilot only works in one geography or team, it’s not transformation. Design for expansion. Nike’s Move to Zero started with sustainable materials in selected product lines. Now it informs design across the global portfolio.

From ideas to infrastructure

Decarbonisation is more than just a reporting challenge. In its core, it’s an operational one. It is not a mere marketing position, but a design mandate.

The tools exist. The intent is there. What’s missing is consistent, commercially grounded follow-through that rewires how supply chains function.

Profitability doesn’t have to be sacrificed for sustainability. But it cannot be the starting point. It’s the result of building supply chains that are resilient, circular, and designed for a carbon-constrained world.

But above everything, this is not about ticking boxes. It’s about building systems that allow us to thrive within the limits of the planet and still deliver commercial value.

  • Sustainability

From May 20-22, Home Delivery Middle East brings together the region’s retail logistics and supply chain professionals in the Dubai World Trade Centre.

Hosted at the luxurious Dubai World Trade Centre from May 20th to May 22nd, Home Delivery Middle East is a three day event that brings together the region’s retail logistics and supply chain professionals to explore new technological solutions, network with peers, and share experiences on dealing with the challenges that define the modern supply chain. 

The event encompasses every aspect of the retail logistics and supply chain process, from inventory management and fulfillment in the warehouse to delivery and the customer experience at the final destination, as well as returns — an increasingly pivotal element of the retail supply chain. 

This year’s conference and exhibition focuses on showcasing groundbreaking solutions for autonomous technology companies, delivery services, grocers, retailers, manufacturers, warehousing, and last mile logistics.

The event agenda aims to showcase the future of innovative supply chain and delivery solutions and addresses the challenges that many manufacturers, retailers, and grocers face.

Each track — including parcels, heavy goods, drones, grocery, reverse logistics, and more — includes a collection of presentations, panels, fireside chats, interactive roundtables and other events to help supply chain professionals learn, organise, and strategise to meet the challenges of the 2025 supply chain and beyond. 

The three day event will host over 5,000 attendees from around the world, with more than 200 speakers and over 200 companies exhibiting their solutions. 

This year’s speakers include some of the leading supply chain and logistics executives currently shaping the future of the industry. These include Thinh Vu, Chief Logistics Officer at Lazada; Anal Jha, Vice President of Groceries at Flipkart; Altaf AlTheKair, CEO at Circle; and many, many more. 

  • Digital Supply Chain
  • Event Newsroom
  • Sourcing & Procurement

From May 20-22, Seamless Digital Commerce brings together digital marketing, e-commerce, retail, and merchant payments professionals in Dubai.

Hosted at the Dubai World Trade Centre, Seamless Digital Commerce Middle East will bring together more than 25,000 digital marketing, e-commerce, retail, and merchant payments professionals. The three day event will take place between the 20th and 22nd of May, and feature 750 exhibitors and 800 speakers. 

At the event, payment providers will connect with merchants and SMEs eager to discover cutting-edge solutions, while retail and e-commerce leaders gather to network, share knowledge, and collaborate on the latest trends. 

Seamless Digital Commerce promises to be the perfect gathering for those looking to forge new partnerships, gain valuable insights from industry trailblazers, and drive innovation to stay ahead in the ever-evolving digital landscape. 

Speakers at this year’s event will include Daniel Finley, Group CEO at the UK’s Boohoo group; Antonio Marques, Chief Brand Officer at Restaurant Brands International (parent company to Burger King, Popeyes, and Tim Hortons); Anca Iordanesci, VP of Engineering and Stores of the Future at IKEA; and many more. 

The event will also play host to the biggest gathering of start-up talent for the Middle Eastern market. The Middle East’s start-up space is growing rapidly, with enthusiastic investment driving new innovation and tech technology. Seamless Middle East aims to be the place to see all the region’s digital commerce startups have to offer. Over 300 start-ups will attend the event on the #SeamlessDXB floor, providing customers and investors with a chance to see the latest tech shaping the industry.

Seamless Fintech 

Seamless Digital Commerce Middle East will also be co-located with The Middle East’s biggest fintech event for 25 years, Seamless Fintech. 

The event brings together big tech, government, banks, financial institutions, fintechs, investors, and media. Perfect for anyone passionate about the Middle East’s fintech and payments landscape, this event allows you to explore the fast-evolving ecosystem, engage with top industry players and innovators, and visit our Identity Showcase to discover cutting-edge solutions.

  • Collaboration & Optimization
  • Event Newsroom

BUSINESSES IN THE SUPPLY CHAIN CANNOT AFFORD TO ‘WAIT AND SEE’
Oliver Chapman – Group CEO of OCI, a procurement company which delivers structured supply chain solutions and optimisation programmes across sourcing, logistics and trade finance, responds to the unfolding trade negotiations between the UK and US.

The recently agreed UK-US trade deal has been hailed by both Westminster and Wall Street as a ‘breakthrough’ for transatlantic commerce. Yet the announcement has raised significant concerns across British supply chains – and understandably so. 

Looking a little closer

Underneath the congratulatory statements lies a problem: the universal, sustained 10% blanket tariff on most British exports to the US remains firmly in place, despite reductions in a handful of sectors. President Donald Trump has made it clear that, even after new agreements are reached, the baseline duty will endure across the board unless companies secure a limited number of exemptions. 

This means an extra cost on British goods will be unavoidable, adding layers of complexity for UK exporters.

On one hand, a trade deal should simplify and strengthen bilateral economic ties. But President Trump’s tariffs cast a shadow over the potential benefits of the new pact. UK businesses cannot assume exemptions or goodwill will hold under an administration focused on protectionism.

There seems to be a contradiction in policy signals. For example, the UK-US trade deal promises reduced barriers and streamlined trade, yet maintaining the 10% tariff would surely override those gains, sowing confusion among exporters, manufacturers and investors.

The real impact of the UK-US “deal”

These tariffs will inevitably ripple throughout global supply networks. UK businesses, particularly those supplying components to US-based manufacturers or reliant on US demand, are right to be concerned. Although the tariffs are aimed at imports into the US, supply chains are undeniably interconnected. UK businesses that are part of US-focused supply chains could feel indirect pressure.

Not only that, but UK firms expecting growth from new US market access may face price disadvantages too, reducing the competitiveness of British goods in the American market. Also, UK firms that export components or finished goods to the US may face reduced demand if US firms pass higher costs down the chain or seek alternatives.

Take the automotive sector as an example. While the deal trims tariffs on up to 100,000 UK-build cars from 27.5% to 10%, the duty snaps back into force the moment that annual ceiling is met. That effect alone is enough to prompt American assemblers to rethink their sourcing strategies. UK manufacturers and logistics companies, already grappling with post-Brexit challenges, now face the prospect of competition from more favourable trade routes via Mexico and Canada.

The bigger picture

Tariff announcements often trigger foreign exchange fluctuations, and the pound wobbled on the news of the trade deal. A weaker pound might partially offset tariff costs for US buyers—it offsets part of the 10 percent duty—but increases import costs for UK firms relying on expensive, raw and overseas materials.

However, some global companies may look to move production away from US-involved routes, potentially presenting both challenges and opportunities for the UK. UK firms could benefit from ‘tariff-avoidance’ reshuffling if positioned strategically. But changes in trade rules may increase the compliance costs for UK businesses, especially SMEs, and uncertainty may delay investment or disrupt long-term supply relationships.

The changes may hit the UK’s automotive and aerospace industries hardest due to their deep ties with both US and EU supply chains. Pharmaceuticals and agriculture will certainly face regulatory hurdles in addition to cost increases.

With US trade policy becoming increasingly unpredictable, UK companies and multinational corporations may divert investment to less volatile markets. Some UK businesses may need to rethink supply chains in their entirety, either by reshoring production, sourcing alternative suppliers, creating mini-hubs stateside, or establishing US-based subsidiaries to bypass tariffs. This will require investment, but the prize is continuity of trad, rather than catastrophic or costly disruption.

And time is not necessarily on our side. British firms should immediately assess their exposure to US markets, hedge and build in resilience, not just for tariffs, but for broader policy volatility.

It’s “not all doom and gloom”


Yet not all is doom and gloom. The fact that the US administration was willing to strike a deal, however limited, signals a pragmatism and opportunity for wider negotiations.

At OCI, we have already begun advising clients on these scenarios and our message is clear: Businesses cannot afford to wait and see. The UK government, under Prime Minister Keir Starmer, must seek clarity on how the new trade deal would impact the British economy. Beyond tariffs and currencies, the deal’s narrow focus leaves many questions unanswered.

We must act now—with agility, foresight and a focus on supply chain resilience—lest this so-called ‘breakthrough’ deal prove more restricting than liberating.

  • Collaboration & Optimization
  • Procurement Strategy
  • Risk & Resilience

Sophie Tuson, Senior Associate and Environment and Climate Change Practice Lead at RPC, marks the policy’s 10-year milestone and highlights its significant role in reshaping habits.

The plastic bag charge is a standout example of how a simple legal intervention can spark lasting behaviour change. Since its introduction in 2015, the tax has been a resounding success in reducing the number of plastic carrier bags used in the UK. 

According to government statistics, single-use plastic bag consumption has plummeted by more than 98% at major national retailers. The average person in England now buys just two plastic bags a year – down from a staggering 140. That’s a remarkable difference and demonstrates how effective policies can deliver powerful results.

Sparking a widespread cultural shift

The early grumbles over the 5p (turned 10p) fee have long faded, replaced by a widespread cultural shift. Today, reusable bags are the norm, and the once-ubiquitous rustle of plastic at the checkout has become a rare sound. Instead of single-use plastic, think trusty Bags for Life and trendy canvas totes. 

Ten years ago, the charge only applied to businesses with more than 250 employees, then in 2021, the governmented updated the law to apply to all businesses, no matter their size. Supermarkets, high-street retailers and large department stores have embraced the switch, and as a result, we’ve witnessed a dramatic decline in the use of plastic bags across UK retail.

While legislation is often seen as slow to catch-up with evolving social and technological developments – think AI regulation – in some cases, it leads the way. Much like the 2007 smoking ban, the plastic bag charge redefined what’s socially acceptable almost overnight. 

Moving towards a sustainable future

By and large, consumers want to shop more sustainably, and regulation like this provides the nudge to help them do so. It is also a useful signal for industry; by setting clear legal rules and regulatory frameworks, the introduction of the plastic bag charge has given businesses certainty, enabling them to plan and invest in product re-design. 

Its ripple effects are still being felt. The tax has paved the way for broader reforms in the UK packaging landscape, including the Plastic Packaging Tax (PPT), which targets packaging with less than 30% recycled content, the recently introduced Extended Producer Responsibility for packaging, and the upcoming Deposit Return Scheme for single-use drink containers. Each of these initiatives borrows from the plastic bag charge playbook, building on a sense of shared responsibility between government, business and the public.

Why it’s a policy win worth celebrating

A decade on, the plastic bag charge deserves recognition as a legal success story. It drove major change with minimal disruption and is a policy win worth celebrating. The impact of the tax is a timely reminder that smart, targeted regulation can do more than respond to problems; it can spark lasting cultural change. When consumers, organisations and policymakers align behind a clear, sustainable goal, the results can be transformative – even if they start with just 5p.

  • People & Culture
  • Sustainability

Notis Iliopoulos, VP of MRC at Obrela discusses how adopting a structured approach to supply chain risk management can safeguard your organisation against evolving cyber threats.

In the contemporary digital era, supply chains have transcended their traditional role as mere logistical networks. They have evolved into pivotal ecosystems that underpin the success of modern businesses. Nevertheless, as these intricate systems undergo digital transformation, they have become increasingly vulnerable to cyberattacks. 

A vulnerable third-party vendor or contractor frequently serves as an entry point for breaches. This makes it a necessity to implement compliance and risk management measures. For businesses aiming to safeguard their operations, supply chain risk management is more than a regulatory mandate. It’s a critical countermeasure for protecting sensitive data, maintaining operations and ensuring trust.

Obrela’s third party risk management offerings

Obrela recognises the complexities that organisations face in managing third-party cyber security risks. Through its Managed Risk and Controls (MRC) offering, Obrela helps businesses meet stringent compliance mandates while ensuring a robust security posture. MRC is designed to evaluate, monitor and mitigate risks associated with third-party providers, ensuring compliance with industry regulations and frameworks, including the likes of NIS2, DORA, and ISO 27001.

The unique value of Obrela’s MRC lies in its ability to deliver a holistic approach. MRC Services offer an umbrella of solutions that enable clients to effectively manage and orchestrate various aspects of cybersecurity such as governance, risk, compliance, and operations. The comprehensive approach streamlines these diverse facets of cybersecurity, providing clients with a cohesive and integrated security solution.  In particular, MRC for Supply Chain, encompass the collection, analysis, and evaluation of information on security processes and practices currently in place, enabling a thorough assessment of compliance with selected contractual requirements and identification of areas that require remediation actions.

Given the dynamic nature of contemporary supply chains, it is imperative that businesses maintain constant vigilance. Contractors and third-party providers frequently handle sensitive data or access critical systems, necessitating businesses to ensure that these external entities adhere to stringent cybersecurity standards. 

Risk monitoring, assessment, and going beyond compliance 

Obrela’s MRC offering addresses this requirement through a comprehensive four-pronged approach. 

Firstly, continuous risk monitoring delivers real-time insights into the cybersecurity posture of third-party vendors. Monitoring key risk indicators ensures businesses can promptly address vulnerabilities as they emerge.

Next, comprehensive compliance assessments using automated tools and standardised frameworks allow the MRC solution to evaluate third-party providers against both regulatory and organisational requirements. This ensures vendors align with critical security policies and standards.

Thirdly, beyond compliance, MRC emphasises proactive measures to reduce risk. Identifying weak points within the supply chain enables businesses to implement targeted solutions before vulnerabilities are exploited.

Finally, MRC delivers detailed reporting and visual dashboards, providing organisations with a clear picture of their third-party risk landscape. This transparency supports informed decision-making and prioritisation of mitigation efforts.

Benefits of proactive compliance score and third-party risk assessment

Central to Obrela’s MRC approach is the concept of compliance assessment. This provides a quantifiable measure of a third-party vendor’s adherence to cybersecurity standards, helping businesses streamline vendor selection, for example. A compliance assessment enables organisations to evaluate potential vendors at a glance, ensuring only those with robust cybersecurity practices are onboarded.

Clear compliance benchmarks also facilitate smoother contract discussions, as expectations around security and data protection are established upfront. Meanwhile, knowing the compliance status of each vendor allows businesses to act swiftly in the event of a breach, minimising potential damage.

A proactive approach to compliance demonstrates due diligence, satisfying regulators and reducing the risk of penalties or legal issues. Finally, by regularly assessing and improving the compliance of their supply chain partners, businesses can create a more resilient and secure ecosystem.

Why proactive supply chain cybersecurity management matters

The growing integration of cloud services, IoT devices, and advanced technologies into supply chains only serves to amplify their vulnerability. Cybercriminals often exploit the weakest link, making proactive risk management crucial. Obrela’s MRC offering not only identifies these weak links but also strengthens them, creating a fortified supply chain that supports business continuity.

Supply chain compliance is no longer optional; it’s an operational necessity in an era of escalating cyber threats. Obrela’s Managed Risk and Controls offering empowers businesses to navigate this complex landscape by providing the tools, insights and strategies needed to safeguard their supply chains. With continuous monitoring, thorough assessments, and actionable compliance recommendations, Obrela helps organisations protect their operations, their data and their reputation.

Incorporating Obrela’s MRC into your cybersecurity framework ensures the integrity and resilience of organizations’ supply chains, by thoroughly examining security processes and practices. MRC for the Supply Chain provides organisations with the confidence to mitigate risks, safeguard sensitive information, and maintain uninterrupted operations.

  • Digital Supply Chain
  • Risk & Resilience

The new agreement between the US and UK lowers tariffs on cars, steel, beef, and ethanol, providing much needed relief to businesses.

This week, UK Prime Minister Sir Kier Starmer and US President Donald Trump met to discuss the lowering of tariffs on goods imported to the US. In April, Trump instituted sweeping tariffs as part of his “Liberation Day” celebrations. 

In addition to a blanket 10% tariff on all US imports — a move which Trump said will revitalise US manufacturing and reset America’s trade agenda — many specific countries and industries also incurred additional levies. This included higher tariffs affecting the US’ automotive and steel imports — moves which were expected to severely afflict UK manufacturing.  

Now, following a meeting at 10, Downing Street, Starmer and Trump have this week come to an agreement that alleviates some, but not all, of the US’ imposed levies. The move, hailed by the Labour government as a successful effort to save “thousands of jobs” comes just days after the announcement of a new free-trade deal between the UK and India.

Relief for UK manufacturers 

As a result of the negotiated deal, car export tariffs will reduce from 27.5% to 10% — a change the government says will save “hundreds of millions a year for Jaguar Land Rover alone.” Above a quota of 100,000 UK cars — slightly less than the UK exported last year — the tariff rates rise again to 27.5%. Sir Kier Starmer called the deal “a huge and important reduction.” 

Cars are the UK’s biggest export to the US, selling roughly £9 billion per year. It’s also not clear if the UK will lift or alter the 10% levy the country currently charges on US car imports. 

The UK’s steel supply chain is also seeing tariff reductions. The industry was, according to the government, “on the brink of collapse just weeks ago,” and will now no longer face tariffs thanks to the new deal. The UK negotiated the 25% tariff down to zero, meaning UK steelmakers can carry on exporting to the US as before. The move follows the UK government’s move to temporarily renationalise Chinese-owned British Steel last month

Starmer and Trump also agreed on new reciprocal market access on beef – with UK farmers given a quota for 13,000 metric tonnes. The government was quick to assure citizens that the deal will result in no weakening of UK food standards on imports. The deal also saw the removal of the UK’s tariff on ethanol from the US, down to zero.

  • Risk & Resilience

Kelly van der Weg, Managing Director of Spring Global Delivery Solutions UK explores how rising global tariffs are disrupting international logistics, reshaping trade routes, and driving up supply chain costs for UK and European businesses.

Donald Trump’s return to the US presidency, and his subsequent decision to make good on the protectionist, pro-tariff trade policies from his first term and 2024 campaign, have intensified uncertainty surrounding global trade and economic growth. His trade policies not only affect the US economy but also have worldwide repercussions.

The rise in import tariffs has sparked growing international concern, impacting investment and destabilising global value chains. Europe was quick to respond to Trump’s “Liberation Day” tariffs, with the European Commission announcing a €26 billion retaliation package in April as a countermeasure against Washington’s tariffs.

This trade conflict will have a significant impact on global logistics and, even more critically, on international trade. But how will these effects materialise, and what can we expect in the coming months if the tariff war continues?

Rising Costs and Disruptions in Supply Chains

The increase in import costs will be inevitable. Businesses will have two choices: pass the added costs onto consumers—making goods more expensive—or absorb them, leading to financial losses and budget adjustments.

In this context, logistics will be directly affected. Additional fees at ports and customs will add to costs, some companies will relocate distribution centers to avoid tariffs, and regulatory compliance expenses will rise, further driving up supply chain costs.

Moreover, stricter customs inspections will cause shipping delays, disrupting deliveries and creating bottlenecks in distribution networks. As a result, many companies will face shortages of products or raw materials, limiting their production capacity and increasing the price of available goods. To counteract this, businesses will seek alternative suppliers—a process that comes with additional costs and complexities, further destabilizing supply chains.

Redefining Trade Routes and Sector Instability

As tariffs rise, many companies will reroute imports and exports through third-party countries to minimize costs. However, this strategy comes with major challenges: delivery times will increase due to more complex trade routes, administrative burdens will rise with new regulations, and congestion at alternative ports will further strain logistics efficiency. Consequently, global trade will slow down, leading to higher costs and more uncertainty across supply chains.

The higher cost of imported goods may also cause a drop in demand, further reducing global trade volumes. This will affect cargo transportation by sea, air, and land, disrupting operations at ports and logistics hubs. Additionally, uncertainty will discourage investment in infrastructure and logistics technology, limiting the industry’s ability to adapt to new challenges. As a result, the slowdown in global trade could trigger a ripple effect, impacting the broader economy.

In the UK, the automotive, machinery, and steel/aluminium industries and pharmaceuticals could experience reduced demand as US buyers face higher costs. While this week will likely see the US and UK announce a lower-tariff deal to spare the countries’ auto industries, top economists warn this will not be the kind of “free trade” deal that defined Anglo-American relations in the 1990s

The global tariff war is only just beginning. Constant changes in trade policies and unexpected announcements not only heighten political and economic instability but also significantly impact global logistics. Are we truly prepared for a new era of logistical challenges?

  • Risk & Resilience

IDS Fulfilment adds over 1.3 million square feet of warehouse space to DHL’s US portfolio, focused on supporting small and midsized customers.

In order to better target the e-commerce and small to medium enterprise (SME) segment of the market, DHL Supply Chain on Tuesday acquired US e-commerce fulfillment and retail distribution logistics provider IDS Fulfillment. 

The acquisition adds more than 1.3 million square feet of multi-customer warehouse and distribution space to DHL’s portfolio. This includes facilities in Indianapolis, Indiana; Salt Lake City, Utah; Atlanta, Georgia; and DHL’s home city of Plainfield, Indiana. 

IDS Fulfilment’s business model centres on supporting smaller e-commerce organisations — an area where DHL is keen to expand its reach. “E-Commerce has been a growth driver for DHL in recent years and is an important focus in our Strategy 2030 agenda,” said Patrick Kelleher, CEO of DHL Supply Chain North America. “The acquisition of IDS Fulfillment not only expands our operational footprint but also ensures small and midsized companies have access to our state-of-the-art logistics solutions designed for their specific requirements.”

Image courtesy of DHL Supply Chain.

In 2024, ecommerce sales in the US reached $1.192 trillion — more than double the total sales for 2019, before the pandemic, when US sales totalled $571.088 billion. 

E-Commerce from front to back 

The acquisition of IDS is DHL’s second major acquisition in 2025 targeting the e-commerce space. The company also purchased Inmar’s reverse logistics business in January, a move which added 14 return centres and around 800 associates to DHL’s Supply Chain business, expanding the company’s North American footprint to make it the largest returns processing provider in the region. 

“With global e-commerce set to grow at a CAGR of 8% per annum by 2029, DHL is targeting investments that further expand our capabilities to meet the needs of this growing segment and make our network and solutions easily accessible to businesses of all sizes. IDS Fulfillment complements our existing DHL Fulfillment Network, enhancing our ability to offer seamless global eCommerce solutions with local expertise and reach. Especially timely as more multi-national organizations are looking to establish fulfilment capabilities in North America,” said Oscar de Bok, Global CEO, DHL Supply Chain. 

As the world’s leading contract logistics provider is focused on offering scalable e-commerce solutions, the IDS acquisition not only adds a network of additional facilities, but also includes a diverse customer portfolio and additional fulfillment expertise. “These acquisitions demonstrate our commitment to continued growth in the e-commerce sector and reinforce DHL’s leadership position as the logistics provider of choice for customers of all sizes,” Kelleher added.

Committed to ensuring a seamless transition for customers and associates, DHL will continue to operate all IDS facilities under existing local leaders. 

  • Collaboration & Optimization

Michel Spruijt, President at Brain Corp International explores how robotics and AI are helping logistics functions mitigate the ongoing pain points caused by an increasingly volatile supply chain landscape.

It seems as though every new week (maybe even day) means a new, seismic change to the global economic order. The Trump administration’s tariffs have affected every import to the US. Many nations have responded in kind with their own tariffs designed to target President Trump’s electoral base. For example: the EU tariffs hitting US trucks, cigarettes, and ice cream last month. While all sectors are affected, some — including automakers and, most recently, the film industry — are faring worse than others. 

In response, companies with large, globalised supply chains are racing to relocate manufacturing and strike deals with new suppliers. Many are also trying to quickly move stock into US ahead of the next round of changes. In this unstable climate, inventory management has become an ever more pivotal aspect of managing the supply chain.  

To find out more, we caught up with Michel Spruijt, President at Brain Corp International. Brain Corp are a robotics and artificial intelligence (AI) company. Its solutions are helping logistics functions mitigate the pain points caused by an increasingly volatile supply chain landscape. 

Michel, how big of a challenge do inventory mismanagement and other supply chain inefficiencies pose for organisations today?

Inventory mismanagement and supply chain inefficiencies represent a significant challenge for European organisations. They have direct impacts on profitability, customer satisfaction, and operational resilience. Blind spots in supply chains can be extremely costly: research indicates that the average company could lose nearly half of one year’s profit over a decade from a single prolonged, severe disruption. 

Inefficiencies such as inaccurate inventory data, manual processes, and lack of real-time insights often result in lost revenue, overordering, waste, and missed sales opportunities. 

The scale of these problems is amplified by the complexity of modern supply chains. These systems can span continents and involve hundreds or thousands of suppliers. It makes visibility and control even tougher.

What’s causing these types of inefficiency and lack of visibility?

When we examine the European supply chain landscape, we’re witnessing several critical challenges that are holding companies back. First, there’s a significant technology shortfall. Many organisations are still operating on legacy systems that simply weren’t designed to handle the speed and complexity of today’s market disruptions.

Second, we’re facing what could be thought of as a talent crisis in logistics and manufacturing. The workforce is aging, recruitment isn’t keeping pace, and this labor shortage is creating real operational bottlenecks across the continent, according to the European Commission.

Third, supplier networks have become incredibly convoluted and opaque. Most businesses only have clear visibility into their internal contents, leaving them vulnerable to disruptions further upstream that can appear without warning.

“For the retail and supply chain sectors specifically, these tariffs represent a significant threat” — Michel Spruijt, President, Brain Corp International
“For the retail and supply chain sectors specifically, these tariffs represent a significant threat” — Michel Spruijt, President, Brain Corp International

Finally, despite all our technological advances, we’re still seeing an overreliance on manual processes for fundamental operations including inventory management. This not only introduces errors but also creates significant efficiency drags.

These factors combined are seriously impacting European businesses’ ability to maintain resilient, responsive supply chains in today’s volatile market conditions.

Do you see the ongoing uncertainty around Trump’s tariffs exacerbating these problems (not to mention their impact on businesses)?

For the retail and supply chain sectors specifically, these tariffs represent a significant threat. They’re impacting everything from product pricing to distribution networks, potentially compromising jobs, export competitiveness, and forcing many companies to fundamentally rethink their global sourcing and distribution strategies.

Perhaps most concerning from a business perspective is the broader uncertainty these policies create. It’s becoming increasingly difficult for retailers and supply chain operators to engage in effective long-term planning, make confident investment decisions, or maintain stable supplier relationships. This environment of uncertainty inevitably leads to inefficiencies and significant disruptions across the entire supply ecosystem.

The reality is that in today’s interconnected global marketplace, this level of trade policy volatility creates ripple effects that extend far beyond immediate tariff costs.

How does a business with a global supply chain consistently get their hands on real-time, accurate data?

We’re seeing a multi-layered approach – comprising new technology and a new attitude – that’s delivering results for forward-thinking organisations.

First off, there’s a shift toward IoT and Sensor deployment across the entire supply ecosystem. These technologies when deployed within intelligent solutions can offer continuous, granular visibility into inventories that simply wasn’t possible before. Equally critical is the move toward centralised, cloud-based data platforms, that are breaking down traditional information silos and creating a single source of truth that’s accessible across boundaries.

The real game-changer, though, is how we’re applying AI and advanced analytics to this data ecosystem. These tools aren’t just monitoring information—they’re identifying patterns, flagging anomalies, and generating insights that allow managers to address potential difficulties proactively rather than reactively.

We’re also seeing tremendous impact from automated robotics solutions like our own Inventory Scan technology that’s being used in global warehouses and logistics facilities. These solutions are capturing near real-time inventory data without adding operational headaches. This dramatically reduces dependence on error-prone manual processes while significantly boosting data quality and timeliness.

Where do robots and AI fit into this picture?

Robotics and AI are among the solutions leading the charge to transform supply chains. AI-powered robots, particularly those that collect inventory information, autonomously collect critical data on pricing, planogram compliance, and product location—freeing staff for customer engagement while reducing human error. These systems tackle both labor shortages and cost woes by consistently and accurately handling routine tasks.

What’s powerful is how this robotics-collected data feeds AI analytics, that can in turn improve decisions across operations, from maintenance to forecasting. Most importantly, when used in a well arranged stack, this technology dramatically enhances supply chain resilience, enabling faster disruption response and smarter resource allocation.

This robotics-AI–management convergence represents the future of intelligent supply chains, already delivering measurable advantages for early adopters.

Do you have any examples of retailers successfully navigating their way past these pain points?

European retailers are implementing inventory scanning technology with autonomous robots to automate inventory management. 

An example would be Sam’s Club in the US deploying Brain Corp-powered robots, which scan aisle inventories whilst cleaning. Benefits include faster data collection, freed staff time for customer service, reduced human error, and better responsiveness to demand changes. 

A recent study from ECR Community Shrinkage looking at seven European retailers found that correcting inventory discrepancies led to 4–8% sales growth, with the largest gains in high-volume and high-value items. For a typical European grocery retailer with €10 billion in sales, resolving inaccuracies could recover €0.4–0.8 billion in sales. 

  • Digital Supply Chain
  • Risk & Resilience

Niklas Adamsson, CEO and COO at Envirotainer, asks how global cold chains can adapt to a rapidly warming planet.

Global distribution of life-saving pharmaceuticals is incredibly complex, with several different components from warehouse to final delivery. At each stage, providers must make sure strict temperature requirements are met across varying climates and infrastructures.

As a result of global warming, increasingly unpredictable weather patterns and increased temperatures are making distribution even more challenging. To combat this, manufacturers, logistics providers and distributors are having to work together to implement new strategies and routes. However, they must do all this while trying to keep costs down. However, someone vital is often being missed out of the conversation.

As witnessed during the pandemic, packaging providers play a crucial role in the delivery of lifesaving medicines. By building relationships with these providers now, logistics can adapt to ensure continued effectiveness of cold chain distribution as we prepare for the increase of extreme weather.

Cold chain needs to be smarter, not just stronger

Supply chain disruptions can easily cause issues with the delivery of supplies and treatments. Global warming will create unpredictable conditions, with flooding, landslides and storm damage. These extreme weather fluctuations will impact routes. This means future packaging may need to handle freezing temperatures, extreme heat, and humidity all in one journey. 

Ensuring reliability and efficiency is vital. Availability of packaging solutions must be successfully managed. The industry must position itself to be ready to predict and prepare for any and all disruptions. The extreme weather fluctuations will mean a one-size-fits-all approach will no longer be viable. Instead, data-driven risk analysis and route-specific adaptation will be key. Manufacturers will need to factor in seasonal and regional climate risks when planning distribution.

One solution to these evolving challenges is integrating AI into the cold chain. AI-driven insights can help optimise routes, reduce waste and lower costs. By analysing historical data and predicting climate patterns, the most efficient, reliable and unaffected delivery routes can be determined. This not only cuts costs but also supports the timely and reliable delivery of medicine and minimises environmental impact. AI will need real-time data on transportation conditions, such as weather patterns and temperature fluctuations, to determine the correct route and solution type needed for a successful delivery. 

Sustainability matters, but it must be balanced with efficiency

Reducing the environmental impact of cold chain logistics is essential. Hwoever, it cannot come at the cost of efficiency and patient safety. AI also plays an important role here. The technology has potential to not only determine the right routes and solutions, but to unlock efficiencies that support sustainability requirements. 

There must be a focus on minimising waste through forever-use packaging, making sure it is returned and re-used wherever possible. Adopting lighter, space-efficient packaging can lower fuel consumption and reduce emissions, as well as optimise the amount of product shipped to reduce cost. However, to truly have an impact, sustainability requires collaboration across the entire supply chain.

Global warming’s impact on cold chain infrastructure

As temperatures increase, so will the demand for enhanced cold chain infrastructure. Packaging solutions with significant autonomy will be required to maintain temperature and safe delivery, even in the face of extreme conditions. Additionally, climate-related supply chain disruptions may call for alternative backup routes, meaning redundancy will need to be built into distribution systems. 

More frequent extreme weather events, such as heatwaves, flooding, wildfires, and landslides, will significantly disrupt supply chains. These events can lead to road closures, disrupted shipping lanes, and airport shutdowns, making it difficult to maintain consistent transportation routes. To address this challenge, it is crucial to collaborate with partners who have a wide global network to mitigate the risk of delays. These partners must also demonstrate agility and proactivity in adjusting plans as needed to ensure that patients receive their vital medicines without disruption.

Handling global warming requires a delicate balance

As learnt from any previous crisis, collaboration is key. Only by fostering collaboration between manufacturers, logistics partners and packaging providers can the pharmaceutical industry hope to balance sustainability, cost and reliability in the face of global warming. 

New technology like AI will be key, along with the agility to react fast to any potential disruption. Companies that prepare now and find the right balance will be more efficient and gain a competitive edge in a market that demands both resilience and responsibility.

  • Collaboration & Optimization
  • Sustainability

In today’s business world, change is the only constant, and supply chains feel this most. Between geopolitical conflicts, climate change,…

In today’s business world, change is the only constant, and supply chains feel this most. Between geopolitical conflicts, climate change, and economic volatility, resilience and adaptability is crucial for success—making digitisation essential. 

Digitisation has enabled greater supply chain efficiency, sustainability, and resilience. However, as companies adopt these digital solutions, they must also elevate their workforce with the skills needed for an increasingly digital supply chain. 

Between 2021 and 2023, Schneider Electric increased digital talents across our supply chain organisation by 67%, from the shopfloor to senior management. Here’s how we did it.

Balance technology with human intuition

The manufacturing industry is facing a huge labor shortage. According to the World Economic Forum, more than 10 million manufacturing positions are open today. So, while AI and machine learning has made significant advancements in recent years, people remain the backbone of any successful supply chain. Why this labor gap? One significant cause is the higher demand for tech skills.

As companies go through digital transformation, ensuring people remain at the heart of their supply chain strategy is critical. It’s a simple equation: training current industrial talent for the digital world while also investing in the new generation builds a more vibrant, efficient, and future-ready operation. It’s unlikely we will see a sudden surge of digital supply chain talents on the market, so the most obvious step for organisations to address this gap is to ensure their current talents are upskilling and reskilling for the future.

Empower the workforce with essential skills of the future 

No matter how advanced technology becomes, it is the people at the ground level who are its primary users. Employee skills can make or break the success of implemented technology. Any digital skills strategy must be inclusive and include your employees working in your factories and distribution centers.

At Schneider Electric, we are equipping our shop-floor employees to become data-driven wizards and automation gurus. One critical step is ensuring they are digitally connected. We have connected approximately 40,000 employees across 175 factories and distribution centers to a digital communication tool, enabling them to receive and send communication in real-time. This breaks down traditional barriers and connects the shop-floor teams to managers and remote experts. It also ensures the team has greater access to knowledge and problem-solving, sharing best practices and troubleshooting tips across sites. This helps us scale best practices, including digital solutions, across the organisation.

You can’t change what you don’t measure. That’s why we have mapped digital competency across the supply chain organisation – from individuals at the site level to leadership. This transparency has tangible benefits: personalised learning paths for talents across the organisation, skill-gap analysis that empowers managers to drive development of their teams, and executive visibility so we can make informed decisions on where to invest.

We have also created a dedicated program to develop and engage shopfloor employees in automation manufacturing, focusing on three critical domains: programing and automation, digital and technological proficiency, and data analysis interpretation. This ensures these employees can develop the skills and expertise they need for today and tomorrow.

Create a culture of curiosity  

    The volatility and uncertainty we have seen over the last few years has revealed the new skills, capabilities, and mindset needed for success. Our new world requires new ways of working, and it’s crucial to create a culture that values continuous learning, creative problem-solving, and innovation.

    It’s important for leaders to encourage curiosity and open-mindedness, recognise and reward behaviors that demonstrate learning and innovation, and offer flexible learning opportunities that accommodate individual needs. This way, both organisations and their employees can adapt to new technologies and changes in business operations at their own pace, ensuring a smooth digital transformation. Our Catalyst Leadership program gives our people managers the skills to be more agile leaders and support their teams in their development.

    But there are digital tools that can shape the culture too. Open Talent Market is an AI-driven technology that has helped Schneider Electric match our internal supply and demand of talent in a transparent, borderless, and unbiased way. Employees use it to develop, grow, and shape their futures, as they can select a mentor, contribute to a project, or even apply for a new role. 

    Unlock digital transformation with the power of people

      As we move toward an uncertain digital future, it’s vital to remember that people power technology. Organisations must invest in a skilled, adaptable workforce capable of navigating digital transformation. Developing digital expertise and fostering a culture of continuous learning within your supply chain isn’t easy, but those who invest will be better equipped to meet challenges, seize opportunities, and effectively manage supply chains.

      • Collaboration & Optimization

      SupplyChain Strategy descended upon Austin, Texas, to join the supply chain leaders keeping the world moving at Kinexions 2025.

      From agentic AI to a unified data foundation accelerated through its collaboration with Databricks, Kinaxis showed how it’s turning orchestration from aspiration to execution – with the speed and certainty today’s businesses demand. 

      Early morning and the sun was blazing outside the palatial Fairmont Hotel, in downtown Austin. Inside, there was a palpable excitement as a thousand attendees of Kinexions congregated for breakfast. We certainly felt honoured to be representing SupplyChain Strategy courtesy of Kinaxis. Kinaxis are the software gurus who have both transformed supply chain through their Maestro platform. They have also attracted the leading lights of the function from many of the world’s biggest companies. ExxonMobil, Eaton, Volvo Cars, Colgate-Palmolive, Merck & Co., General Motors, National Instruments, and Schneider Electric have all come to Texas.  

      Kinexions started as it meant to go on. The headline ‘A Revolution’ dominating the screens behind the huge, purple-tinted stage as the keynote speakers walked on to huge applause. Bob Courteau, Interim CEO, Kinaxis, Mark Morgan, President, Commercial Operations, Kinaxis and Andrew Bell, Chief Product Officer, Kinaxis kicked proceedings off with a blistering and inspirational set of presentations. The message was clear: true orchestration, meaning a fully connected, always aware, and-able-to act-instantly supply chain – is finally within reach. This places supply chains firmly at the table as strategic value creators and, crucially, as protectors of business. 

      It was a morning session that truly set the tone of this three-day event. Concerns raised by Kinaxis’ 45,000 global users – including tariffs, labour shortages, cyber-attacks and the effect of disruption on investment – were front and centre of this event with myriad symposiums, workshops and presentations that showcased how Kinaxis​​ Maestro can orchestrate and empower fully-connected supply chains globally. Indeed, the tariffs on imported goods into the US dropped during Kinexions and so the timing of this conference, entirely devoted to the bolstering of supply chain operations during highly uncertain times, seemed somewhat inspired. In short, those who are transforming are surviving and outperforming.  

      Unified data

      Kinaxis is transforming too, we were informed, as the new partnership with Databricks was unveiled. Kinaxis Maestro and Databricks’ Data Intelligence Platform have combined to power faster insights, unified data and scalable AI across global supply chains, enabling organisations to unify their data, accelerate AI adoption, and respond to change with speed and confidence. This collaboration meets growing demand for more agile, data-driven supply chains and strengthens Maestro’s supply chain data fabric. In short, this move is helping companies coalesce data from core systems like inventory and procurement, alongside external inputs such as meteorological patterns and market movement, all within one single source of governed truth, ripe for innovation. As supply chains continue to evolve, this collaboration positions both companies to lead the next era of AI-powered transformation, where decisions are faster, disruptions are less disruptive, and performance is driven by unified data. 

      Linked to the foundational collaboration between Kinaxis and Databricks was the second huge unveiling at Kinexions: agentic AI. Guests were shown just how easily they could create and deploy intelligent agents using an intuitive GenAI interface to enhance decision-making, respond to disruptions faster and optimise workflows, through a powerful, in-development feature of Maestro. These are agents that go beyond surfacing data to deliver real-time insights and perform actions ​like ​addressing exceptions, managing supply allocation, or adjusting safety stock. There were numerous workshops taking place over the three days where clients could get their hands on the new tools and see just how easily they could transform their supply chain operations through AI. As was stressed throughout Kinexions, this is something that is happening right now.  

      A community of innovation 

      Kinaxis places real value on keeping the dialogue open with its clients and that’s the core motivation behind Kinexions, North America and its APAC and EMEA sister events set to take place in Tokyo and Amsterdam later this year. Indeed, during our time in Austin, we were lucky enough to sit down with supply chain leaders from Sanofi, IBM, Qualcomm and Syensqo as well as leading lights from Kinaxis. You can read the interviews from those discussions, and more from Kinexions, in next month’s SCS

      The quality of the guest speakers during the three days was incredible. Staale Gjervik, President, Supply Chain, ExxonMobil discussed how the giant is bringing orchestration to its multinational supply chain, solidifying ExxonMobil’s position as ​a ​global leader by establishing an enterprise-wide global supply chain organisation. Elsewhere, Global Director of Strategy and Planning for GM, Vijay Bharadwaj and Director of Supply Chain, Alexander Heavin shared how they are now able to run a global S&OP process to better serve customers and “stay on the road to success”. 

      Diego Pantoja-Navajas, Managing Director, Enterprise AI Value Strategy at Accenture and Chris Reynolds, Senior Director, Digital Supply Chain Planning & Intelligence at Pfizer provided a thought-provoking discussion on how multi-agentic AI is transforming the pharmaceutical supply chain. Abhijit Pattewar, Senior Manager, Global Modelling & Network Design at Schneider Electric – the leader in sustainable energy management and digital automation – delivered an engaging talk on emerging techniques for reducing CO2 emissions without sacrificing efficiency or growth.  

      Paying it forward 

      One of the standout discussions at this year’s Kinexions was an inspiring lunch session hosted by Lizet Tymon, VP Supply Chain, Rehlko and Rozena Dendy, Global Sales & Operations Planning Leader, ExxonMobil designed to celebrate, empower, and connect women who are making a difference in their workplaces and communities. Candid stories of the moments when mentorship, support, and solidarity helped them break barriers and build bridges to success will resonate with the audience for years. Each participant wrote down one action they committed to taking to support another woman, as part of the Pay-It-Forward Commitment. “Let’s build a legacy of women helping women, together!” 

      One woman who has long been an inspiration is real estate mogul and business expert Barbara Corcoran who presented ‘How to build your business through troubled times and prosper’. Corcoran, currently a Shark on ABC’s hit reality show, Shark Tank, knows that bad times are the best times to move ahead. Indeed, she survived and prospered amid 18% interest rates, the bankruptcy of New York, the subprime mortgage crisis, and the tragedy of 9/11. In this session, Barbara shared “lessons from the trenches” to demonstrate her leadership methodology on how to adapt quickly, pivot, and turn every obstacle into the new opportunity it really wants to be. It’s an ethos she has certainly embodied through her career, evident in the establishment and success of The Corcoran Group, started with a mere $1,000 loan. 

      And the winner is… 

      The winners of the 2025 Kinaxis Customer Awards were also announced in Austin, further cementing links between Kinaxis and its community. “These awards honour companies and individuals pushing the boundaries of supply chain innovation, efficiency and sustainability.” 

      ExxonMobil, Sanofi, Schneider Electric, and British American Tobacco (BAT) were recognised for their excellence in supply chain transformation. Additionally, Hanu Gadila (Merck & Co.) received the Champion Award, and Jeffrey Jones (Qualcomm) was honoured with the Lifetime Achievement Award for their industry contributions. 

      2025 Kinaxis Customer Award Winners 

      • Pioneer Award: ExxonMobil 
        Recognising companies that have implemented Kinaxis within the past three years. 
        ExxonMobil is changing how the industry applies sales and operations planning. They’re leading the way in fuels, setting a new standard for Advance Planning Solution capabilities for the industry. 
      • Champion Award: Hanu Gadila, Merck & Co.  
        Honoring individuals demonstrating leadership, vision, and perseverance in supply chain transformation.  
        Hanu Gadila has enhanced Merck’s use of Kinaxis Maestro™, optimising planning capabilities and efficiency through collaboration and advocacy. 
      • Lifetime Achievement Award: Jeffrey Jones, Qualcomm  
        Recognising long-term contributions to the supply chain industry.  
        A steadfast Kinaxis advocate for nearly 20 years, Jeffrey Jones has championed Maestro, supporting industry-wide transformation. Jones stated, “It has been a privilege to work alongside such talented professionals and to contribute to the evolution of our industry. I look forward to continuing our journey of innovation.” 
      • Excellence Award: Sanofi  
        Awarded for measurable business impact through supply chain strategy.  
        Sanofi is modernising its supply chain to reach best-in-class performance for unleashing its ambition to become the world’s leading immunology company. By leveraging digitalisation and tailored Kinaxis Maestro implementations, Sanofi has enhanced agility, resilience, and efficiency, enabling faster decisions, better risk mitigation, and seamless end-to-end operations. 
      • Impact Award: Schneider Electric  
        Recognising positive environmental and social contributions.  
        Schneider Electric, the leader in sustainable energy management and digital automation, successfully conceptualised incorporating emerging CO2tools & techniques of Maestro for achieving growth and profitability with planet-friendly practices. 
      • Innovation Award: British American Tobacco (BAT)  
        Highlighting innovative applications of Kinaxis technology.  
        BAT co-developed the first-ever production wheel and interchangeability functionalities, enhancing constraint management, SKU transitions, and automation. 

      Parting thoughts 

      As a veteran to many events such as Kinexions, it was refreshing to feel a jolt of genuine excitement at an event that was showing how things can actually change today, rather than in the future. This wasn’t an exercise in hypothesis, it was a call to action. If you want to harness what AI can do in orchestrating your supply chains in these unpredictable times, then act. Now. 

      As the four floors of symposiums, workshops and speeches were wrapping up, there was no time for rest for the guests, as it was left to none-other than the three-time Grammy-award-winning and Austin-born, Nelly to finish things off to a rapturous reception from the crowd. Hot In Herre boomed around the room, Nelly spraying the crowd with water, as another highly successful Kinexions drew to a close. It was an event that will live long in the memory. And as we departed the hospitable Austin and the incredible team behind Kinexions, it was clear that we would have to return. 

      Kinexions 2025 is made possible by its platinum sponsors Accenture, Capgemini and Scott Sheldon; and gold sponsors 4flow, Genpact, Microsoft, Google Cloud and Spinnaker SCA. For more information about Kinexions, including Kinexions EMEA 2025 and Kinexions APAC 2025, please visit www.kinexions.com. 

      • Events
      • Host Perspectives

      Aman Parmar, Head of Marketing at BizSpace, argues that, while the challenges facing global supply chains are significant, the opportunities for innovation are equally substantial.

      The global supply chain landscape has always been dynamic. However, recent years have seen a dramatic shift in how businesses and professionals approach logistics, distribution and sourcing. 

      From the upheavals caused by the COVID-19 pandemic to the rise of technological advancements such as digital twins, Artificial Intelligence (AI) and the increasing urgency of addressing climate change, the challenges are clear. But so too are the opportunities. Now more than ever, supply chain professionals must adopt innovative strategies and embrace new technologies to stay resilient and competitive in a constantly shifting environment.

      Adapting to Disruption: The Need for Resilience

      One of the most profound lessons from the past few years has been the need for supply chain resilience. The pandemic exposed the fragility of just-in-time (JIT) systems and highlighted how quickly global disruptions can escalate. While many companies had previously focused on cost-efficiency and speed, the crisis forced them to re-evaluate their supply chain strategies. In response, businesses are moving towards more resilient models that incorporate flexibility, agility, and risk management.

      “Businesses we work with are increasingly aware of the need for diversification in their supply chains,” says Aman Parmar, Head of Marketing at BizSpace, a provider of industrial space to UK based SMEs. “Nearshoring and diversifying suppliers can help mitigate the risk of disruptions. This is especially important as companies move away from heavy reliance on single-source suppliers or geographically concentrated regions, such as in Asia.”

      Nearshoring, or bringing production and sourcing closer to home, is a critical response to global disruptions. It offers companies an opportunity to reduce lead times and limit exposure to geopolitical tensions. It can also help address environmental concerns around long-distance shipping.

      Technological Innovation: The Rise of Digital Twins and AI

      Technology continues to be one of the most transformative factors in the evolution of supply chains. Among the innovations driving change is the concept of “digital twins.” A digital twin is a virtual model of a physical asset, process, or system. It allows companies to simulate and analyse different scenarios in real time. By creating a digital replica of their supply chains, businesses can gain valuable insights. These include exposing inefficiencies, forecasting disruptions, and testing out various strategies for improvement.

      “Digital twins enable businesses to better predict demand fluctuations, supply shortages, and logistical issues,” says Parmar. “This technology provides a way to make data-driven decisions, reduce costs, and improve decision-making accuracy.”

      In parallel, AI is playing an increasingly crucial role in optimising supply chains. From automating warehouse management systems to enhancing route planning for transportation, AI is streamlining operations across industries. AI-powered predictive analytics are helping businesses better forecast demand, which in turn allows for better inventory management and less waste.

      Decarbonisation: Navigating the Climate Crisis

      Businesses across the world face increasing pressure to reduce their carbon footprints. As a result, decarbonising supply chains has become a major are of focus. The transportation sector accounts for a significant portion of global emissions. Therefore, it is one of the primary areas in which companies are looking to make changes. From using electric vehicles (EVs) for last-mile delivery to implementing greener packaging solutions, many businesses are rethinking how they operate to reduce their environmental impact.

      The UK government has set ambitious targets to achieve net-zero emissions by 2050, and supply chain professionals must find ways to align with these goals. This includes making decisions on energy-efficient logistics, sustainable sourcing, and reducing waste in packaging. Innovations such as biodegradable packaging and the use of RFID (Radio Frequency Identification) to optimise inventory management are examples of how businesses are embracing sustainability.

      “Decarbonisation is not just a regulatory requirement; it’s increasingly a competitive differentiator,” says Parmar. “Consumers, especially younger generations, are more aware of the environmental impact of their purchases, and they prefer companies that are transparent and committed to sustainability.”

      AI, IoT, and the Future of Supply Chains

      The Internet of Things (IoT) is another transformative force in supply chain management. By connecting devices, sensors, and equipment across the supply chain, businesses can collect real-time data on everything from inventory levels to the temperature of goods in transit. This data allows for greater transparency, improved traceability, and more proactive decision-making.

      In particular, the food and retail industries have benefited from IoT’s ability to track perishable goods through the cold chain. By ensuring that products are kept at the right temperature throughout their journey, businesses can reduce waste and maintain the integrity of the products they deliver.

      Embracing Change: The Role of Supplier Relationships and Third-Party Logistics

      As global supply chains become more complex, maintaining strong supplier relationships and leveraging third-party logistics (3PL) providers is essential. By collaborating with suppliers to share information and streamline processes, businesses can increase visibility across their supply chains, which ultimately enhances efficiency.

      The rise of e-commerce has also brought about an increased reliance on 3PLs, as businesses look to outsource logistics operations to companies that can handle everything from warehousing to last-mile delivery. For many smaller businesses, working with a 3PL offers access to a level of expertise and infrastructure that they would otherwise not be able to afford on their own.

      Conclusion

      The challenges facing global supply chains are significant, but the opportunities for innovation are equally substantial. By focusing on resilience, adopting cutting-edge technologies, and prioritising sustainability, businesses can not only weather disruptions but thrive in the face of change. The future of supply chains will require agility, transparency, and a commitment to ongoing transformation.

      As Parmar concludes, “The future of supply chains lies in adaptability. Those who can embrace new technologies, collaborate with partners, and prioritise sustainability will be the ones leading the way forward in a rapidly evolving global market.”

      Through exploring these key trends and strategies, businesses can position themselves to not only survive but thrive as the supply chain landscape continues to evolve.

      • Risk & Resilience

      Adrian Wood, Director of Strategic Business Development at DELMIA, explores the idea that the need to react to unexpected global disruption is now a fundamental requirement for all companies; tariffs are only the latest incarnation of what manufacturers have to deal with.

      Personally, and professionally, the impact of recent US government policy around trade and tariffs is felt by all of us. From a business perspective, tariffs represent a major concern for companies looking at corporate goals and metrics in both the short and long-term. It has now become unclear exactly what the cost of doing business will be, and how consumer demand may shift, based upon personal preferences and spending ability.

      But this is not really uncharted territory. Over the last decade, the world has faced many disruptive events: Brexit, COVID, the Suez Canal, geo-political conflicts, climate changes, and so on. Each one is unique in its nature, but they all have similar impacts on supply chains and manufacturing; causing breaks in global supply, extreme fluctuations in demand, and unknown costs and barriers to competing.

      Tariffs & Twins – The critical connection between disruption, AI and virtual twins

      The need to react to unexpected global disruption is now a fundamental requirement for all companies; tariffs are only the latest incarnation of what manufacturers have to deal with. In each case, business leaders in supply chain and manufacturing are forced to face with the same basic questions:

      1. What is the impact of the disruption?
      2. What should I do now?
      3. What can I do to prepare for the future?

      Prior to globalisation of trade and the increase in product and supply chain complexity, the first two questions were difficult, but not impossible to solve. Because of that, organisations largely ignored or deprioritised the third question. Today (with COVID being the pivot point in my opinion), all three questions have become a) critical and b) impossible to answer without the help of technology.

      This is where Virtual Twins and AI capabilities have become essential to helping companies become agile and resilient to disruption. Let’s look at how they help with each of the basic questions:

      What is the impact of the disruption?

      This was the biggest (certainly the first) question from companies at the start of COVID, and led to much analysis and investment in the “control tower” concept. A control tower is only part of the solution though. What people were actually asking for was a precise digital representation of the entire supply chain with end-to-end and top-to-bottom detail and real-time operational status of facilities, resources and products – also known as the Virtual Twin.

      With tariffs, the virtual twin acts as a source of truth that enables companies to see the current state of production and fulfillment, the source of all materials, and the process by which inventory and products are moved across borders before reaching customers. Additionally, it allows companies to immediately identify vulnerable points of supply, new costs, and opportunities to leverage existing contingencies based upon real-time availability and capabilities.

      What should I do now?

      Even with a precision virtual twin, the complexity of global supply chains and the number of possible business permutations are beyond human comprehension to evaluate and analyse effectively. However, traditional AI methods (such as optimisation) are now adept and considering competing business priorities to balance supply and demand while considering any number of physical and logical constraints. Used along with the virtual twin model, manufacturing and supply chain leaders can use AI to experience unlimited what-if scenarios to determine tactical responses.

      Tariffs don’t represent a physical constraint, but cost is a major driving factor in the optimisation of the supply chain and production plans. Experimentation also allows companies to play games with the possible limits. For example, at what tariff percentage might we be able to absorb costs to protect margin without having to pass all the costs along to the consumer and impacting demand? These are logical questions that are extraordinarily difficult to answer without technology.

      What can I do to prepare for the future?

      One of the stated goals of recent policy is to bring manufacturing back to the United States, essentially on-shoring production that has developed in areas previously seen as economically more cost-effective. Without debating the policy, let’s look at the basic decision process to evaluate strategic changes to mitigate the impact of tariffs on production locations:

      1. What is the increase in operational costs most likely to be based upon movement of inventory and products?
      2. What would the reduction in operational costs assuming similar production capabilities in the US?
      3. What capital investment do I need in order to expand or build new manufacturing capacity?

      The virtual twin of the supply chain will help us answer questions a) and b) by applying AI to the existing model of the enterprise and a variety of what-if models that supply chain teams can quickly create. Question c) requires a virtual twin model of production systems, so that we can accurately evaluate what our new or changed facilities and manufacturing process should look like. These virtual twins need to work in orchestration so that we can ensure confidence in what is likely to be billion-dollar decisions.

      The precision of the virtual twins is so important because there are so many factors to consider. For example, it’s unclear whether there will be enough skilled workers to support a resurgence in manufacturing. Therefore, organisations need to consider robotics and automation as part of the manufacturing process. The smallest of details can have such a major impact on the final result.

      Preparing for the future

      There are also other ways to address the challenges in the short and mid-term. One strategy might be rapidly re-designing products to reduce the reliance upon supply and parts that need multiple border crossings, another great leverage of the virtual twin and what-if simulation.Of course, the best course of action to be prepared for the future, is to consider virtual twin technology today, if you have not done so already. Ironically, today’s uncertainty will undoubtedly be the biggest barrier to making an investment in digital transformation as budgets become frozen pending a more confident outlook. The challenge though, is that the next disruption is right around the corner, and from another unexpected direction. There is rarely a “best time” to wait for, but there is never a “wrong time” to make a start.

      • Digital Supply Chain
      • Risk & Resilience

      Mike McGuire, Senior Manager and OSSRA Data Advisor at Black Duck, breaks down the limitations of SBOM, and how software producers and consumers can augment their SBOM workflows to account for those limitations.

      On May 12, 2021, US Executive Order (EO) 14028 made software bills of materials (SBOMs) part of every open source risk management and software supply chain security conversation. The EO didn’t define any requirements surrounding SBOMs. However, it did ignite relevant efforts for software producers and consumers across the globe. 

      Since the issuing of the EO, we have seen some clarification around SBOM requirements. These include those outlined by NIST, but requirements vary across different industries, jurisdictions, and private customers. Regardless, it’s important for software producers and consumers to understand the limitations of SBOMs across the board. Doing so will help them understand how to best augment their SBOM workflows to account for those limitations. 

      SBOM limitations: It’s just a list of ingredients

      Just like any data source, the effectiveness of an SBOM is dictated by its accuracy. If an SBOM doesn’t accurately list its components and their effective versions, then there is a chance of unaccounted risk. However, establishing complete visibility of application dependencies is harder than ever. 

      The 2025 Open Source Security and Risk Analysis (OSSRA) Report by Black Duck found that 70% of open source dependencies in the average commercial application are transitive. Also, only 77% of all open source dependencies can be identified by scanning package manager manifests. This means that nearly one quarter of all open source dependencies in commercial applications are introduced though other means. These include manual inclusion, AI coding assistants, non-standard package managers, and so on. Identifying all these dependencies for inclusion in an SBOM is growing increasingly difficult, emphasizing the concern of inaccurate SBOMs. 

      Should teams overcome the challenge of SBOM inaccuracy, then comes the task of identifying risk. Essentially, an SBOM is just a list of ingredients. It does not provide any insights into potential risk associated with the listed dependencies. For example, an SBOM could mention the inclusion of Apache 2.12.2. However, it will not tell you that component contains a critical vulnerability that has been exploited in the wild. All the SBOM generation and ingestion efforts made by teams will be for naut should they be unable to associate SBOM components with risk. 

      SBOMs Under Threat 

      Adding to the complexity is that SBOMs themselves can become targets of attack. Just like attackers can compromise a software artifact in the build or deployment stage, just as they did with SolarWinds and Codecov, respectively, they can do the same with SBOMs. Should an attacker gain access to a build environment to inject malicious packages, it wouldn’t be a far leap for them to also intercept a legitimate SBOM to remove references to the malicious package before sending it along to their unsuspecting victims. If this is done early enough in the software development lifecycle, the producer may even sign the corrupted SBOM, verifying its authenticity. 

      These examples of challenges and limitations represent a few among several others, like lack of standardization and compatibility, difficulty keeping SBOMs dynamic and updated, overcoming limited visibility of dependencies, and so on.  All of this leads to perhaps the biggest issue, which is the overhead that this introduced to a business. Companies building software in regulated spaces have no choice but to build SBOMs and grapple with these challenges, meaning that more resources must be onboarded or shifted towards solving these problems. 

      Using automation to shift SBOMs from liabilities to assets

      Considering that the average application contains 911 open source dependencies, manually identifying and tracking these dependencies is not a scalable approach. Leveraging the use of a tool, like software composition analysis (SCA), automates this task, among others, to bring accuracy alongside velocity. 

      Depending on the quality of the tool, SCA can automatically detect open source, commercial, and custom components before, during, and after builds. Additionally, some can import third-party SBOMs and automatically add the listed dependencies to the consumer’s own projects. The result is a complete and accurate SBOM, ideally exported in a standardized format like SPDX or CycloneDX. 

      Given the pace of modern application development, SBOM generation isn’t something that should be done on a pre-determined basis. Some studies suggest that even the slowest DevOps shops have an average cycle time of less than a week. As soon as a change is committed to a project, an SBOM is out of date. For this reason, building dependency analysis and SBOM generation directly into the software development lifecycle is crucial. This includes triggering scans and SBOM generation via integrations with CI/CD tools like GitHub, Jenkins, or Artifactory. Doing so prevents SBOMs from being static and chronically outdated. 

      Connecting the Dots

      These same tools and integrations can be used to connect the dots between SBOMs and associated risk. An SCA tool will include a database of known vulnerabilities. This will alert teams to vulnerable components that violate custom policy. This will prevent them from getting built into projects and making it into the final SBOM. 

      Some solutions will even continuously monitor SBOMs long after the application has been shipped, evaluating them for newly disclosed dependencies that impact included dependencies. As a matter of fact, some software consumers require vulnerability information be included alongside SBOMs, perhaps in Vulnerability Exploitability Exchange (VEX) format, which many tools also offer support for. 

      Finally, SBOMs need to be treated like any other software artifact when it comes to secure sharing. There’s no shortage of free and commercial solutions available offering secure APIs and storage for public and private SBOM distribution. This enables teams to leverage automation to detect application dependencies, continuously analyze them for risk, dynamically build SBOMs at the pace of development, and make them securely accessible to key stakeholders via APIs or direct CI/CD integrations. 

      SBOMs: Another powerful tool to combat cyber risk

      SBOMs enhance software security by improving vulnerability detection, compliance, and supply chain transparency

      They help identify risks like Log4j and manage dependencies, but they have limitations. SBOMs can be incomplete or outdated, lack exploitability context, face standardization challenges, and introduce business friction. To be fully effective, SBOMs must be paired with real-time monitoring, vulnerability management, and secure distribution. These are all challenges that teams should turn to automation to address.

      • Digital Supply Chain
      • Risk & Resilience

      John-David Klausner, GM International at Loop, looks at how retailers can use the returns process to differentiate themselves from the competition.

      The start of the year was promising for UK retail with February seeing the second month of increased retail sales volumes, according to the Office for National Statistics, with volumes up by 1.0%. Following that, there have been a number of substantial challenges: the impact of US tariff changes, rising UK business costs such as increased National Insurance contributions and minimum wage, and higher UK business rates, which are all falling this April, putting the retail sector under immense financial pressure.

      With the retail landscape in a constant state of flux, it’s more important than ever for brands to remain committed to growing their customer base and keeping loyal shoppers happy, to maintain a healthy bottom line. For that, brands need to ensure that at every point of the customer journey they are giving their customers the most personalised experience possible, increasing the average order value and driving additional sales.

      ​​When it comes to the shopping end to end experience, returns are inevitable, however they can also be a way that businesses can set themselves apart by delivering an exceptional and intuitive experience for customers. 

      Personalisation is one of the most powerful tools in driving retention and maximising customer lifetime value. Consumers expect a seamless, transparent journey from the moment they make a purchase to when that item arrives at their doorstep. For e-commerce brands, offering a premium order, returns and tracking experience can be a way to improve customer loyalty.

      Personalisation: The Bridge Between Acquisition and Retention

      The key to long-term success in e-commerce isn’t just about attracting customers, it’s about keeping them. Every shopper’s journey is unique, and delivering tailored content based on their preferences, browsing history, and past purchases can significantly boost the likelihood of a repeat purchase.

      One of the most effective ways to implement personalisation is on the order tracking page. By showcasing product recommendations based on the shopper’s previous interactions, you not only enhance the customer’s experience but also open the door to cross-selling and upselling opportunities. Whether they’re a first-time buyer or a loyal customer, providing personalised suggestions can increase the average order value and drive additional sales.

      The Power of Proactive, Predictive Tracking

      A huge 96% of shoppers track their orders at least once, and they expect that process to be as smooth and reliable as possible. For brands, this presents both a challenge and an opportunity. To stay ahead, retailers must invest in technology that doesn’t just offer real-time tracking, but also integrates predictive analytics that give shoppers accurate delivery estimates.

      Predictive tracking is a game-changer because it allows businesses to offer proactive updates, keeping customers informed every step of the way. By integrating these tools with existing technologies, like Klaviyo for email and text updates, brands can provide customers with a cohesive, branded experience. These updates can help to reduce customer anxiety, mitigate support inquiries, and, most importantly, improve the overall shopping experience. After all, happy customers are loyal customers.

      Tracking Returns: An Overlooked Opportunity

      But tracking doesn’t stop at the initial delivery. Returns, while often seen as an afterthought, represent a critical touchpoint in the customer journey. Many brands fail to recognise the potential of providing tracking for returned items. 

      Offering tracking on returns not only enhances customer satisfaction but also reduces the burden on customer support teams. By keeping customers informed on the status of their returns, you build trust, which can lead to higher retention rates and greater satisfaction overall. Furthermore, by turning returns into exchanges or repeat purchases, retailers can increase revenue retention. 

      Returns are often seen as a loss, but with the right tools and mindset, they can become an opportunity for growth. Offering seamless exchanges or discounts on future purchases can keep customers coming back, ensuring that your brand remains at the forefront of their minds.

      The Bottom Line: Invest in Experience, Reap the Rewards

      Reverse logistics data by Loop suggests that 70% of consumers are willing to pay for returns if they provide a convenient and premium experience. E-commerce brands that prioritise an exceptional order and tracking experience will have a distinct competitive edge which is essential in these challenging times. By integrating predictive tracking, offering personalised experiences, and turning returns into revenue retention opportunities, businesses can drive customer loyalty and keep shoppers engaged long after the initial purchase. 

      With so many unknowns on the horizon, one thing is certain: those who invest in operational resilience and customer satisfaction will be the ones who can continue to thrive.

      • Collaboration & Optimization

      The newly-launched Kinaxis Tariff Response promises to help companies simulate tariff exposure, run strategic scenarios, and make data-informed decisions quickly using AI.

      The (new) new normal 

      The norms that defined global trade in the postwar era have been functionally abolished. What took 80 years to take shape has been dismantled in less than 80 days as the Trump administration continues to levy tariffs against foreign imports, accelerating a protectionist trend that threatens to disrupt supply chains in the US and beyond. 

      Pierre-Olivier Gourinchas, Economic Counsellor and Director of Research at theInternational Monetary Foundation (IMF) wrote this week that the “epistemic uncertainty and policy unpredictability” resulting from the new tariff-defined landscape was “a major driver” of the an increasingly bleak economic outlook. “If sustained, this abrupt increase in tariffs and attendant uncertainty will significantly slow global growth,” he added. 

      Throughout the global supply chain, organisations are looking for ways to tackle these challenges, and solutions providers are already stepping up with new offerings.  

      “Global supply chains aren’t operating by the old rules anymore,” Fabienne Cetre, EVP EMEA at Kinaxis said on Wednesday. “Tariffs are hitting faster, with broader consequences, and our data shows just how disruptive they’ve become. When trade policies shift overnight, companies need more than spreadsheets.” 

      Kinaxis Tariff Response 

      Kinaxis, the leader in real-time supply chain orchestration, has launched a new offering on the company’s AI Maestro platform. The solution, Kinaxis Tariff Response, uses artificial intelligence (AI) to help companies simulate tariff exposure, run strategic scenarios, and make data-informed decisions quickly. 

      Kinaxis explains that, as ongoing tariff pressures and trade uncertainty continue to reshape global supply chains, Kinaxis Tariff Response is helping meet the rising demand for scenario planning. The service gives planners access to tariff modelling without the cost or complexity of building it internally – providing a faster and more accessible way for companies to shift from reactive firefighting to proactive orchestration. 

      Many Kinaxis customers already reportedly use Maestro’s scenario planning to stay ahead of disruptions in an increasingly unpredictable supply chain landscape. During the last 12 months, usage spiked significantly around key tariff discussions. Kinaxis reported a 124% scenario usage spike after the June 2024 presidential debate that first mentioned tariffs, alongside a 112% increase following the January 2025 White House tariff memo. 

      As AI tools get more sophisticated, companies are increasingly turning to simulation to cultivate the visibility they need to evaluate risks and respond faster to disruption. 

      AI powered visibility

      Built on Kinaxis’ AI-powered Maestro platform, customers can spin up the new tariff response platform in as few as 21 days, giving planners access to tariff modeling without the cost or complexity of building it internally. 

      While Kinaxis’ Maestro platform has had an AI-powered “what-if scenario planning” feature for a while, the new Kinaxis Tariff Response builds on that foundation with a focused solution for trade disruption. The tool combines tariff-specific inputs, sourcing logic, pricing levers, and demand modeling so companies can assess margin risk, test strategies, and evaluate trade-offs in seconds, not days or weeks. 

       “With Kinaxis Tariff Response, they get visibility into cost, demand, and sourcing implications in real time, giving them the confidence to act with speed and precision,” Cetre added.  

      • AI in Supply Chain
      • Digital Supply Chain

      Joanna Ludlam, Partner at Jenner & Block, looks at some of the legal implications of the 2023 Procurement Act for the supply chain landscape and debarment process.

      Passed in 2023 by the last Conservative government, the Procurement Act – which came into force in February – is part of a series of legal and regulatory overhauls aimed at establishing an independent, streamlined, and more accountable framework in public procurement. 

      According to the UK government’s own accounts, public service procurement contracts are worth hundreds of billions annually – reaching £407 billion in 2023/24. Given the lucrative nature of procurement, both the Labour government and its predecessor have committed to a more transparent, flexible, and risk-conscious approach to how public money is spent. This shift has profound implications for those companies in public sector supply chains.

      At the heart of this new legislation lies a powerful and potentially game-changing tool: the debarment regime. For suppliers, both existing and prospective who are looking to win or retain public contracts, it signals a clear message: integrity and compliance are no longer optional. 

      The new procurement landscape – who can be excluded, and why

      Brexit brought with it the end of the Public Contracts Regulations 2015, a regime inherited from EU directives. While these rules aimed to ensure fairness and competition across member states, they were rigid, complex, and ill-suited to the UK’s specific needs.

      The new act, and its debarment regime specifically, gives ministers the authority to investigate suppliers and determine whether they meet the right standards for ethical conduct, reliability, and risk management. 

      The government can bar suppliers based on serious concerns about professional conduct, performance history, or even potential threats to national security, which is where the supply chain industry faces a particularly high risk, as we saw in the case of the Carillion Collapse in 2018.

      Carillion – a construction and facilities management company – collapsed after failing to deliver on numerous government contracts. The company’s poor performance and mismanagement of its supply chain led to substantial delays in critical infrastructure projects. Its downfall caused a ripple effect across its suppliers, and many went bankrupt. 

      The failures of Carillion highlight the need for supplier accountability, and under the new regime, even companies that have performed poorly on previous contracts, failed to meet ethical standards in their labour practices, or breached environmental or tax obligations could all find themselves under scrutiny. 

      And now, ministers have the power to initiate these investigations. Once the investigation has concluded, the decision to debar a supplier (while not taken lightly) must be based on credible evidence and take into account any remedial steps made. 

      If the ivestigators deem the concerns to be both substantial and ongoing, the government can place the company on the debarment list for a period of several years. While being debarred does not prohibit a company from operating in the private sector, it effectively bars them from bidding for or delivering public contracts. 

      The risk associated with supplier failure 

      For many suppliers, particularly those who specialise in public infrastructure, healthcare, or defense, this can be commercially devastating.

      But this isn’t just theoretical. 

      In 2020, the NHS faced significant disruptions during the pandemic due to its reliance on a small number of suppliers for key medical equipment. Some suppliers failed to meet quality standards, causing delays and shortages. This lack of oversight in supply chain management led to costly inefficiencies and, in some cases, dangerous delays in the delivery of essential goods

      It serves as a stark reminder of why reform, though potentially unpopular, was necessary.

      There is, however, a path to challenge or reverse a debarment decision. Suppliers can seek judicial review if they believe the process was flawed or unfair, and they may also be able to submit evidence that they’ve taken meaningful corrective actions – a process known as self-cleaning. For businesses in the supply chain, this means it’s vital to demonstrate how they have improved internal processes, addressed previous failures, and become more compliant with government expectations.

      The long term outlook for government suppliers

      For businesses hoping to secure public contracts, the message is clear: compliance, accountability, and transparency are now essential parts of doing business. 

      It is no longer enough to simply deliver a service – suppliers must be able to demonstrate that they are responsible corporate citizens, capable of managing ethical risks and delivering consistently high standards across their operations.

      This means companies will need to invest in stronger internal compliance systems, and keep clear documentation to show how they manage issues such as tax compliance, labour practices, and environmental responsibilities. 

      Businesses will also need to carefully vet their supply chains and sub-contractors and ensure that they also meet the highest standards – particularly as any failures further down the chain can have serious consequences for the entire supply network.

      It also means fostering a culture that takes whistleblowing seriously. It means developing an environment where people feel that they can escalate issues and see them dealt with early. Also, suppliers need to feel as though they can quickly show that they are learning from past mistakes. Supply chain transparency and risk management will become more critical than ever in ensuring continued eligibility for public contracts.

      This new regime may feel daunting, particularly for smaller businesses or those with less experience in dealing with government procurement processes. But there’s an opportunity here too. 

      Risk comes with new opportunities

      By raising the bar, the government is also leveling the playing field. Those who can meet these higher standards – and prove themselves trustworthy and capable – may find it easier to win contracts in a more risk-conscious market.

      So too the emphasis on social value, sustainability, and innovation – it gives well-run businesses a chance to stand out, especially those who can align their operations with broader government priorities like green procurement and ethical sourcing.

      The introduction of the debarment regime marks a significant shift in how the UK government interacts with the supplier community. It reflects a growing public and political expectation that companies benefiting from public money must meet the highest standards of integrity and responsibility. The impact of this is magnified within the supply chain industry, where the interconnectedness of suppliers means that the actions of one company can have far-reaching consequences for the rest of the chain.

      For businesses, this means the rules of engagement have changed. The risks of non-compliance – whether through poor performance, ethical failings, or simply a lack of transparency – are greater than ever. But so too are the rewards for those who get it right. Businesses that can demonstrate risk management, sustainability, and ethical leadership are well-positioned to thrive in this new era of procurement.

      The coming years will test how this regime is implemented and enforced, and whether it delivers on its promise of a fairer, safer, and more efficient procurement system. For now, companies would be wise to treat the Procurement Act as more than just a new set of rules – it is a statement of intent. One that places values, not just value for money, at the centre of public spending.

      • Collaboration & Optimization

      Phillip Gulley, Co-Founder and Chief Strategy Officer of Cofactr, looks at four ways for US manufacturers to create resilience in the face of tariffs without shutting themselves off from global trade networks.

      Newly imposed tariffs on U.S. imports, and the threat of many others, are leaving companies across the country unclear as to what’s next and U.S. consumers uncertain about how they’ll be affected. While consumers will inevitably face higher prices and product shortages, manufacturers are up against more nuanced challenges. Like many businesses, they now must bear the burden of tariff costs while overhauling the supply chains that they’ve spent decades streamlining—while ensuring compliance every step of the way. Manufacturers operating in highly regulated industries, like aerospace, defense, and medical technology, must navigate even stricter compliance requirements and a supplier base limited by a lower number of skilled manufacturing vendors and new economic realities. 

      As a result, many U.S. manufacturers are looking to onshore operations to address the impacts of these recently imposed tariffs—and prepare for those to come. But making that transition to build new infrastructure, train skilled manufacturers, and shift to more resilient onshoring solutions is neither quick nor realistic across many sectors.

      Manufacturers can’t rely on onshoring alone, especially in the short-term.

      Onshoring, or relocating production operations back to domestic soil, is an effective strategy in theory. It decreases lead times, increases control and visibility into the supply chain, and circumvents tariffs on international imports.

      Unfortunately, this doesn’t happen overnight, and the economic realities of the domestic labor market don’t allow for a rip-and-replace model. It is much more involved than simply moving manufacturing to the U.S.

      Supply chain operations have deep and complex interconnections across borders. The U.S. relies on other countries not only for materials but also for their infrastructure and labor to create those materials. Bringing this stateside would require months for simple operations and up to decades for more complex manufacturing processes, given the need to develop and scale new infrastructure and upskill workers. Even if this were immediately possible, there are raw material considerations. 

      While the U.S. has significant resources, some materials required to manufacture products are not available domestically.

      When onshoring isn’t an option

      There are also certain suppliers, such as those that build mature node electronic components, that simply can’t be replaced in the short term. If we abruptly limit or cut off access to foreign markets for these kinds of materials and components, the remaining supply chain quickly bottlenecks, causing shortages in critical industries. This would mean critical PCBA and related subassemblies used in communication, transportation, defense, and many other industries could not be manufactured. 

      So, when the US imposes tariffs on countries where these specialised suppliers are located, manufacturers are left with no choice but to pay them and absorb higher costs themselves or pass them along to their customers. 

      Manufacturers should, and likely need to, consider onshoring at least some of their production to be more cost-effective, support domestic manufacturing and economic growth, and drive more efficient processes. However, it isn’t realistic for this to happen quickly enough to avoid the impacts and rippling effects tariffs will have on their supply chains.

      The good news is that manufacturers can strengthen their supply chain resilience in ways other than onshoring. Here are four ways they can proactively mitigate risks and build a more adaptable supply chain in the short term:

      1. Build A Diversified Supplier Network

      Many manufacturers have spent decades getting their supply chains to a point where they heavily rely on a small circle of suppliers they regularly work with to minimise touchpoints, keep costs low, and drive efficiencies. The appeal of handing back office supply challenges to tiered vendors was a logical and valuable choice. Unfortunately, with today’s uncertainties, they can no longer afford a hands-off approach. 

      Manufacturers are now expanding or shifting their supplier networks to mitigate delays and shortages, attempting to ensure production continues at unit economics that still fit existing business models. But manufacturers must go beyond increasing the number of suppliers to mitigate risk—to leverage better optionality they need to diversify geographically and consider where subcomponents are sourced to eliminate single points of failure. 

      While manufacturers should explore this in the near term, they can’t compromise on due diligence: establishing relationships with new suppliers requires thorough research into vendor ratings, PPAP, and industry reputation. For critical assemblies or components, a site visit to fully understand a supplier’s capabilities and quality control processes may be necessary before engaging with them.

      For manufacturers in highly regulated industries, who are typically constrained to a list of pre-vetted suppliers, they can diversify by activating suppliers in their approved vendor list who may not currently be engaged, ideally while negotiating transparency across vendors into where they’re sourcing subcomponents from and their ability to ramp up or down quickly in response to demand shifts. 

      2. Invest in Technology to Track Thousands of Moving Components in Real-Time

      A manufacturer’s supply chain is only as strong as the visibility they have into it. Without a real-time look into their tiered supply chain, it’s difficult for manufacturers to anticipate risks, respond quickly to disruptions, and make informed decisions to drive efficient operations.

      It’s easier said than done for companies to achieve this kind of transparency. Every time a ccompany procures or moves a component—from factory to warehouse to assembly line—it must document the latest stage in the journey. This includes details like its country of origin, compliance certifications, and any material transformation made along the way. With thousands of parts moving at any given time, the sheer volume of data makes tracking nearly impossible without the proper systems in place. Even a single component or part’s traceability is challenging to track. Did that screw come from a lot of materials from McMaster or Granger? Was this resistor from a lot that originated in Taiwan or China?

      These questions can be difficult to answer, and when an OEM digs into the details with their manufacturing partners, the answers can sometimes be murky and can affect the economics and compliance of a final assembly. This makes the risks during manufacturing more obscure, possibly compromising compliance, and makes traceability nearly impossible for efficient maintenance and repair if errors arise. 

      “With a rise in tariffs on U.S. imports, having documentation readily available is even more critical” — Phillip Gulley, Co-Founder and Chief Strategy Officer, Cofactr

      For example, for duty drawbacks—or a refund on duties paid that are later exported or destroyed—manufacturers must have precise documentation. Just one missing piece of documentation can result in rejected claims and lost refunds.

      The problem is that many manufacturers still rely on invoices and records tracked through physical paperwork, across multiple digital platforms, and in spreadsheets, none of which are scalable or efficient. The only way to ensure manufacturers have every piece of documentation on their thousands of moving parts—exactly when they need it—is to bring every part of their supply chain into a unified and centralised platform. 

      We’re at a turning point where implementing technology into the supply chain is no longer a nice-to-have. From AI to IoT to blockchain solutions, manufacturers need to lean into technology to automate processes, capture and analyse data in real-time, and consolidate all moving pieces to have an end-to-end view of their supply chain. It’s the only way they’ll be able to keep their operations intact in such an uncertain and rapidly changing environment. 

      3. Understand Where Each Individual Part Comes From to Properly Assess Costs

      Manufacturers’ visibility into their supply chain needs to go beyond knowing who direct suppliers are and where they’re located. To get the full picture on their exposure to tariffs, manufacturers need visibility into their tier-two and tier-three suppliers—the sources of components and subcomponents. Otherwise, they risk underestimating the true cost or risk exposure of their products.

      For example, a manufacturer might assume tariffs don’t apply to a specific part because their direct supplier is located domestically. However, if that supplier imports subcomponents from a now-tariffed country, costs for that supplier will rise. The supplier will then pass those costs down the chain. If the manufacturer doesn’t have visibility into these deeper supplier relationships, they could face unexpected price increases.

      Keeping track of every component, subcomponent, and their country of origin—in addition to how various tariffs apply as they continue to change—is nearly impossible to do manually. Manufacturers can leverage technology to streamline and analyse part movements, assess tariff impacts, and calculate landed unit costs. Automating these processes also helps make more informed decisions on sourcing and planning to mitigate unit cost increases and delays in manufacturing. Plus, real-time tracking across distributors can help manufacturers continuously monitor changes in suppliers’ ownership, location, and compliance statuses—all of which can change to significantly impact products. 

      With tiered supply chains, assessing risk without compromising IP becomes even more challenging. But clearly defining risks, communicating them effectively across vendors, and strategically using technology to distill thousands–if not millions—of parts into actionable insights leads to smarter, more effective decision-making. Utilising technology to protect IP while surfacing risk across upstream vendors can keep prime manufacturers alerted to the risk profile of their tiered vendors. 

      4. Build Out Worst Case Scenarios on a Virtual Model of the Supply Chain

      Arguably the most effective way for manufacturers to build a resilient supply chain is to prepare for disruptions before they happen. With the right protocols and systems in place to address disruptions the moment they occur, manufacturers will be able to mitigate, or even prevent, severe operational and financial impacts. 

      The first step is to identify any vulnerabilities in their supply chain operations. Manufacturers can do this by building a digital supply chain twin, or a virtual model of the entire supply network. A digital supply chain twin lets manufacturers simulate different disruption scenarios—such as tariffs, sanctions, and logistical bottlenecks—and see exactly how these disruptions would affect their supply, either ahead of an event or in real-time. By testing different scenarios ahead of time, they can identify weak points and create contingency plans to minimise risks before they turn into crises. 

      This goes beyond financial risk. A digital twin also helps manufacturers assess their vulnerabilities across multiple factors, including geographic (whether at a broad level like a specific region or at a granular level, such as a single supplier or commodity), cybersecurity, or reputationally. 

      As global supply chains face increasing pressures from tariffs, manufacturers need to proactively address the uncertainties ahead. By diversifying their supplier base, investing in technology to improve supply chain visibility, and building a digital supply chain twin, manufacturers can build more resilient operations that let them stay agile and prepared in the short and long-term future.

      • Risk & Resilience

      We sit down with Sue Williams, Managing Director at Hexagon Consultants to talk disruption, digital twins, and the future of supply chains.

      From the unfolding crisis of US tariffs to the worsening effects of the climate crisis, the supply chain landscape feels like an increasingly unfriendly place. For organisations that rely on global supply chain networks, the pain points and potential for disruption just keep growing. Many supply chain leaders are hopeful that technology may hold the answer to creating the necessary resilience and visibility to weather an uncertain decade. 

      While technologies like artificial intelligence (AI) and machine learning are showing promise in creating visibility throughout supply chains, Sue Williams,  Managing Director at Hexagon Consultants, believes that digital twins will also have a critical role to play in the fight to keep global supply chains from coming apart at the seams. 

      We caught up with her to talk disruption, digital twins, and the future of supply chains. 

      1. It feels like the past month has seen the levels of uncertainty in global supply chains continuing to rise. How should supply chain leaders be feeling about the state of the world right now? 

      Supply chains are critical to business performance, and with increased global market volatility, it’s essential for supply chain leaders to promote robust and agile practices that bolster the business with solutions to withstand challenges.

      While it’s likely that many supply chain leaders are currently nervous and risk-averse, challenges also present opportunities to improve efficiencies. Current supply chain issues and opportunities for growth include:

      • Lack of visibility: Businesses need a clear, holistic view of their supply chain to assess risks and prepare strategies for potential disruptions.
      • Demand volatility: Shifts in consumer demand, driven by trends or global events, make it difficult to forecast and balance inventory.
      • Technology adoption: Integrating technologies like AI, IoT, and blockchain into legacy systems can be challenging due to high costs, lack of expertise, and data limitations.
      2. What kinds of effects is this uncertain climate having on organisations’ visibility into their supply chains? 

      In the current economic climate, it’s increasingly crucial for businesses to have a deep understanding of their supply chain. With a lack of visibility and knowledge, it makes it significantly more difficult for businesses to prepare, plan and mitigate supply chain risks. In our experience, failure to do this could impact a businesses profits due to failure to meet customer demand, incurring penalties or cost inefficiencies.

      To have clearer visibility of the supply chain- organisations need to ensure that they are mapping their supply chain network and consistently providing updates and communicating with suppliers to avoid any disruptions. This knowledge will also enable them to conduct thorough risk assessments and be prepared with strategies to avoid the most probable scenarios before they become major problems. Increased visibility in this market will bolster the capabilities of business, reduce the likelihood of disruptions, costly mistakes and prepare to alleviate potential issues. 

      3. How necessary are attributes like resilience and agility to organisations looking to be successful in 2025? 

      As we become more reliant on tech solutions and data centres, the ability to diminish risk and implement robust strategies to ensure uninterrupted services becomes more and more important. 

      Many organisations have not completed comprehensive supply chain mapping and risk assessment exercises, meaning they haven’t developed alternative options to lessen risks and problems. Tech solutions host vast opportunities to reduce business risks, from improved supply and demand forecasting to preventing component shortages to improving supply chain agility and minimising the impact of geopolitical disruptions.

      In an environment where new technological breakthroughs are frequent, maintaining an agile supply chain is crucial to avoiding disruptions, staying competitive, and ensuring that infrastructure can meet the demands of next-generation workloads. Companies that adopt robust practices and build resilience will be better equipped to navigate market fluctuations, environmental disruptions, tariff changes, technological innovations, and outages, ensuring sustained success. In a rapidly changing business environment, business agility is equally crucial. Agility enables businesses to respond swiftly to new opportunities and challenges, ensuring they stay ahead of the curve. Flexible and agile supply chains will be key to success.

      4. What kind of role could digital twins play in not only helping organisations inject resilience into their supply chains, but also create new value? 

      The effective implementation of data presents flexibility improvement opportunities within supply chains, minimising inventory risk and optimising capabilities. In particular, digital twins offer vast potential in supporting supply chain resilience. By creating a virtual replica of the entire supply chain, businesses can monitor every component in real time—from suppliers to final delivery. 

      This digital model enables companies to simulate various scenarios, such as disruptions, and assess their potential impact on the supply chain. By implementing digital twin technologies, businesses can enhance risk management, identify potential issues before they arise, and develop proactive strategies. The ability to adapt—whether by adjusting inventory levels, switching suppliers, or rerouting shipments—enables companies to minimise disruptions and maintain resilience, staying ahead of challenges with agility and foresight.

      Digital twins also add value by improving operational efficiency through real-time optimisation. They help identify inefficiencies and address bottlenecks in supply chains, leading to more streamlined processes, reduced costs, faster delivery times, and ultimately, better customer satisfaction and profitability.

      5. How important is having a strong data foundation to implement digital twin technology successfully? 

      A well-structured data foundation is essential for enabling seamless integration across various technology systems, such as the Internet of Things (IoT), which helps prevent data silos. By ensuring high quality data, organisations can make faster and more informed decisions, leading to precise, real time insights.

      This robust data foundation provides the flexibility needed for a digital twin to adapt as the business grows and as data complexity increases. Reliable data plays a crucial role in enhancing AI models within the digital twin, resulting in improved predictive maintenance, process optimisation, and risk mitigation. When data is consistent and structured, it reduces processing time and minimises the risk of errors during digital twin simulations.

      Additionally, a strong data foundation empowers cross team collaboration—such as engineering, operations, and supply chain, to effectively access and utilise digital twin insights. Maintaining data integrity is vital for meeting industry standards and compliance requirements while also reducing cybersecurity risks.

      Ultimately, high quality, well-managed data helps prevent costly errors, rework, and inefficiencies in digital twin applications. A structured data approach allows organisations to manage updates, model adjustments, and process changes more efficiently, supporting overall operational success.

      6. Where do you see the supply chain’s utilisation of digital twin technology going over the next 12-18 months?

      The investment in and implementation of digital twin solutions are expected to increase dramatically over the next 12-18 months, as businesses recognise the growing importance of digital solutions. In today’s increasingly challenging market, companies must embrace tech solutions to succeed and navigate business challenges. Public sector organisations such as rail should be utilising digital twin technology  to improve efficiencies and ultimately pass on cost reductions to its customers. 

      I anticipate that investment in digital twin solutions will grow steadily as industries worldwide acknowledge the potential of knowledge transfer. For industries and sectors that lack the experience, staff, time, or financial resources to test and adapt the right tech solutions for their supply chains, knowledge transfer will offer significant value. By embracing a model with demonstrable results, organisations can expand their capacity, increase their bandwidth for new opportunities, as well as drive continued growth in today’s competitive business landscapes. 

      Similarly, as businesses face continued pressures to improve energy efficiency and meet Net Zero 2050 targets, it is expected that digital twin solutions will be implemented allowing organisations to design for sustainability, construction and operation through to the end of its life, specifically considering energy optimisation and use of renewable sources.

      • Digital Supply Chain

      Jon White, CCO of InXpress, explores the demographic shifts affecting retail supply chains and how to meet new challenges posed by Gen Z.

      Consumer behaviour is rapidly evolving, with Gen Z and millennials leading the charge in reshaping shopping trends. From prioritising sustainability and ethical shopping to demanding speed and convenience, these generations are setting new standards for brands. At the same time, social media and influencer marketing have become powerful forces in shaping their purchasing decisions.

      Sustainability and ethical shopping

      Sustainability and business ethics have become a hot topic for shoppers in recent years. Gen Z is especially driving a shift in consumer behavior. The younger generation is prioritising brands and products that embody values of environmental responsibility, social justice, and ethical labor practices.

      Gen Z is showing increasing interest in value-driven shopping, preferring brands that are transparent about sustainability efforts and ethical sourcing. It has been found that Gen Z is open to paying extra for eco-friendly, fair-trade, and responsibly made products.

      According to a survey conducted by InXpress in 2025, 33% of Gen Z claim that they consider sustainability very important when making purchasing decisions, while only 14% of millennials rank sustainability this quite so highly. Meanwhile, a third of survey responders across both generations said it’s important to them that brands support social causes and give back to charity.

      As a response, many companies now adopt eco-friendly packaging, carbon neutrality, and ethical supply chains to meet consumer expectations. While fashion brands focus on slow fashion, recycling programs, and sustainable materials.

      Convenience and efficiency 

      Next-day delivery is no longer a luxury, it is a necessity. Millennials express strong loyalty to convenience and efficiency and prioritise fast, reliable delivery and seamless checkout experiences.

      Thanks to companies like Amazon Prime, there has been a rise in the instant gratification culture. Both millennials and Gen Z are accustomed to instant access to services, content, and products. According to InXpress’s recent survey, price is the most important shipping factor for both Gen Z and millennials. This is closely followed by speed of delivery.

      Many companies have invested in retail innovation over the past few years as a response and are offering fast, free, and hassle-free delivery & returns to gain a competitive edge.

      Influence(r) of social media 

      Inspiration for purchases comes from social media for both Gen Z and millennials, with 33% of Gen Z and 29% of millennials claiming that platforms like TikTok influence their shopping habits. 

      Both Gen Z and Millennial shoppers trust influencers more than traditional advertisements, as influencers, unlike scripted commercials, share personal experiences with products. Followers also tend to see influencers as friends, not celebrities, making their opinions more trusted. Many influencers show the good and the bad, making their recommendations feel more genuine. Partnering with authentic, niche influencers with a loyal follower base helps businesses build brand credibility and trust amongst consumers. Moreover, it has been found that unfiltered, real-time reviews for e.g., on TikTok, and Instagram, work better than scripted ads when it comes to capturing Gen Z and millennial attention. 

      Gen Z also uses social media to hold corporations accountable for greenwashing and unethical behavior. They want to make sure that brands are transparent and honest regarding their ethical practices and brand values and put money where their mouth is. 

      The bottom line

      The shopping landscape is undergoing a profound transformation. Sustainability, convenience, and social media influence are shaping the way Gen Z and Millennials interact with brands. Companies that embrace ethical practices, prioritize efficiency, and leverage influencer marketing will be the ones to succeed in this rapidly evolving market.

      • Sourcing & Procurement

      Rob Shaw, GM EMEA at Fluent Commerce, breaks down some simple, cost-effective strategies for supply chain resilience on a budget.

      With key supply chain strategies, global retailers can boost sales, minimise wasted stock, and stay competitive in an increasingly cost-constrained supply chain landscape. 

      In a supply chain landscape that seems to get more budget-conscious with each passing day (or presidential tweet), retailers are looking to optimise their global supply chains and maintain profitability, which requires smart inventory strategies. 

      From prioritising stock replenishment in line with demand to maximise profit, to highlighting key supply points for customer demand locations to cut delivery costs, there are many ways that retailers can stay competitive and boost their margins in the coming months.

      Inventory is king

      Balancing stock is essential, particularly when it comes to seasonal items. An excess of slow-moving products might lead to markdowns and reduced sales, for example. Therefore, to optimise sales and turns, it is key to have the right stock in the right place at the right time across every fulfilment location.

      Launching with less stock in stores

      Launching a new product is always a bit of a tightrope walk. How much stock should be in-store from day one? For many retailers, that figure is around 70 per cent, however, over the course of a season, new items will sell varying amounts, depending on the location. Demand forecasts play an important role, of course, but they are rarely 100 per cent precise.

      There are always influences beyond our control and foresight, from weather events to political activity to fashion trends. The question therefore is why put so much new stock in-store straight away, when it might only take up to 20 per cent to fill the shelves. With efficient replenishment operations and procedures in place, you can afford to be more cautious. 

      Evaluate how real-time demand performs compared to your demand forecast and allocate replenishment accordingly. This means an uptick in full price sales early in the season and thus reduced markdown sales later on, as well as less need to withdraw unsold goods.

      Replenishing based on source of demand, not supply

      One of the great advantages of the Internet age is that digital orders can be sourced from anywhere so, if you have slow-moving stock in one place, you can use it to fulfil digital orders from anywhere. There is a challenge, however, in that fulfilling digital orders can appear to boost stock turns at a specific place, when the reality might be different and have significant cost ramifications.

      The closer the shipping point to the customer, the lower the associate delivery costs and the better the customer experience. Simply put, just because an item can be dispatched from a particular location, does not necessarily mean you should replenish stock to that site. Instead, consider demand and replenish stock based on the source of demand (where your customers are), not only where you ship from. And when considering demand, look beyond actual sales to unrealised demand.

      Factoring unrealised digital demand into demand forecasts

      What does unrealised demand mean in the context of digital sales? Consider the customer journey: each time someone visits your website, they might check on a specific item’s availability in terms of size, colour and other variables. That’s a demand signal, particularly, if the potential customer is checking local in-store availability. And, if that product is not available, it translates into a lost sale, but how can we measure the number of lost sales and optimise our replenishment protocols accordingly?

      You can factor in unrealised demand using a modern enterprise inventory availability hub. These solutions help gather information, such as when customers check stock availability. This means you can see clearly the ratio of checks to orders and use that information to boost demand forecast precision far beyond what you can see with pure sales data.

      Keeping costs low for retailers and consumers

      In 2025, adopting budget-conscious global supply chain strategies is crucial for retailers aiming to stay competitive, increase profitability, and navigate market uncertainties. Prioritising inventory optimisation by balancing stock levels, launching with minimal initial stock, and replenishing based on actual and unrealised demand ensures smoother operations and higher sales margins.

      At the same time, using advanced technologies like enterprise inventory availability hubs enables retailers to capture valuable data, refine demand forecasts, and minimise wasted stock, while strategic replenishment, based on customer demand locations, reduces delivery costs and improves the customer experience. By integrating these strategies, retailers can not only address cost pressures but also position themselves to adapt swiftly to unforeseen challenges. Ultimately, these practices pave the way for sustainable growth, stronger consumer trust, and resilience in the ever-evolving global retail landscape.

      • Collaboration & Optimization
      • Risk & Resilience

      With sweeping 10% tariffs on all imports, and higher rates on many parts of the world, the Trump administration’s “Liberation Day” tariffs promise to profoundly disrupt and reshape global supply chains.

      This week, President Donald Trump instituted sweeping tariffs, including a 10% tariff on all US imports. President Trump has said the move will revitalise US manufacturing and reset America’s trade agenda.

      Dubbing the announcement “Liberation Day,” Trump has proposed, in addition to the 10% flat rate on all imports, an array of steeper rates for some of the US’ major trade partners. The European Union faces higher rates of 20%, China 34% (on top of the 20% rate imposed earlier this year), Japan 24%, and Vietnam 46%. Also, the US has immediately implemented a 25% tariff on all foreign-made cars and auto parts. 

      The world responds

      European Commission President Ursula von der Leyen called Trump’s decision a “major blow to the world economy,” adding that “The consequences will be dire for millions of people around the globe … hurting, in particular, the most vulnerable citizens.”

      The tariffs, introduced on Wednesday, will be the highest placed in effect by the US for more than 100 years. Ireland’s public expenditure minister Jack Chambers observed that “the last time the scope or extent that this was tried globally in trading terms, was in the early around 1930 which led to the Great Depression.”

       On Thursday, stocks around the world saw their worst one-day sell off since 2020, wiping approximately $2.5trn off the global economy. As world leaders respond to the unfolding situation, organisations in the UK and abroad are bracing for the potential impact of a worldwide trade war that promises to disrupt supply chains and reshape the balance of global trade to a degree not seen since the end of the Cold War. 

      The UK, while hit with the lowest possible base rate of 10%, still faces significant cost pressures to its auto-industry. 

      A whole new supply chain landscape

      Across the supply chain and procurement space, experts are sounding the alarm in response to Trump’s new tariffs.

      Ian Thompson, VP for Northern Europe at Ivalua — a spend management company working with some of the largest firms in the UK and across Europe (including Volkswagen, BAE Systems and Bulgari) to strengthen their resilience against supply chain disruption and enable stronger supplier relationships, warned SupplyChain Strategy that Trump’s tariffs “could deal a serious blow to UK industry, especially automakers.” 

      He points out that the UK exports one in five cars to the US, meaning these measures threaten to push up prices for consumers on both sides of the Atlantic as businesses pass on rising costs to their customers. 

      “The age of stable, predictable global trade is over” — Ian Thompson, VP Northern Europe, Ivalua

      “But resilience isn’t just about where businesses buy; it’s about how quickly they can see and respond to change. Companies need deep, real-time visibility into spend and supplier networks,” he added. “That’s what enables businesses to be agile, rerouting orders, renegotiating contracts, and reallocating costs before disruption becomes a crisis. Tariffs are just one more sign that the age of stable, predictable global trade is over. Future success will hinge on businesses continuing to invest in smarter, more flexible supply chain operations”

      Gambling with American economic hegemony

      Economists have been quick to express a mixture of bemusement and frustration with the new tariffs. “This goes against every basic economic theory in the last hundred years,” Dan Ives, the global head of technology research at Wedbush Securities, observed in a recent interview. Ives pointed out in his discussion with the ‘Intelligencer’ that “uncertainty almost guarantees negative GDP growth for Q2 and raises the odds of a recession to likely over 50%” 

      Speaking to reporters aboard Air Force One earlier this week, President Trump said that the new tariff rollout is “going very well.” The President observed that he is open to “phenomenal” offers from countries to negotiate down the new rates.

      Wielding US tariffs like a stick against the rest of the global economy could result in the negotiation of favourable trade deals with countries that depend on US imports. However, Bedassa Tadesse, Professor of Economics at the University of Minnesota Duluth, notes in a recent article for the Conversation that “the fanfare surrounding the announcement masks a much larger gamble.” 

      A resurgent US manufacturing sector and favourable trade agreements are the obvious unknowns here, but Tadesse argues that “what’s really at stake is trust – America’s long-standing reputation as a stable and predictable destination for global investment. And once that trust is lost, it’s incredibly hard to win back.” 

      • Risk & Resilience

      RELEX’s second annual State of the Supply Chain report reveals widening gap between AI ambitions and execution as inflation drives retailers to private label expansion.

      Companies are aggressively investing in AI across supply chains to counter inflation and trade volatility, but a growing execution gap threatens to derail these efforts, according to the second annual State of Supply Chain 2025: Balancing Inflation, Investment & Innovation report from RELEX Solutions.  

      While 60% of surveyed companies are prioritising AI and automation investments, nearly half (44%) can’t find the specialised talent needed to implement these technologies. Companies also struggle with budget constraints that limit their ability to scale AI initiatives (43%) as well as poor data quality (39%). 

      Taking the pulse of the supply chain

      The comprehensive study surveyed 500+ retail, CPG manufacturing, and wholesale professionals across seven countries, revealing how economic headwinds are simultaneously driving technology investment and forcing strategic pivots: 

      • Inflation is reshaping retail strategies – 31% of retailers are optimising operations and 31% are adjusting pricing to stay competitive 
      • Private label expansion has become mainstream – 59% of retailers are growing own-brand portfolios as consumers seek value 
      • Food and beverage manufacturers face margin pressure – 70% have increased discounting aggressively, while 40% have introduced value-tier products 

      These findings expand on the early released findings of the report showing 60% of companies fundamentally restructuring their supply chains, with 52% citing demand volatility as their primary challenge and 47% concerned about tariff uncertainty and trade disruptions. 

      “Today’s supply chain leaders face a dual challenge – they must innovate through technology while adapting to economic pressures,” said Dr. Madhav Durbha, Group Vice President of Manufacturing Industry Strategy at RELEX Solutions. “The gap between AI’s potential and its practical implementation represents both the greatest risk and opportunity in supply chain transformation today.” 

      The report also identifies Generative AI (59%), Predictive AI (43%), and Cloud-native solutions (34%) as the top technology investment priorities, with most companies allocating between 5-20% of their technology budgets to AI-driven solutions despite market volatility. “As businesses navigate economic volatility and evolving consumer behaviours, the report underscores the importance of flexible supply chain strategies that combine technology investment with operational agility,” said Durbha. “Organisations that can bridge the gap between AI’s potential and practical implementation will gain a competitive edge, while those that lag behind may struggle to keep pace.”

      • Risk & Resilience

      Christina Slaughter, SVP of Supply Chain Management at tms, looks at the unfolding wave of tariffs disrupting supply chains around the world, and at how organisations can survive Trump’s term two whiplash.

      As President Trump’s unpredictable tariff announcements continue to emerge from the White House, American businesses are grappling with how to adjust their import strategies for greatest effectiveness. 

      These are volatile times for importers and personally I’ve never been so whiplashed in my 30 years of managing supply chains. Any plan we make today could be easily upended by the next shock announcement.

      While tariffs are likely to target China, questions remain about the impact on Mexico, Canada, Europe and the rest of the world. Against this backdrop, American companies are looking to diversify their supply chains and are re-evaluating long-standing – and often successful – relationships with manufacturers in China. 

      Regardless of how the tariff regime plays out, businesses should address key questions when diversifying their supply chains and sourcing goods from untested suppliers. 

      Through thorough desk research, questionnaires to prospective suppliers, tours of factories and leveraging local knowledge that includes the know-how of employees and partners, businesses can build up a detailed picture of potential new suppliers before signing on the dotted line.

      Don’t choose suppliers purely on cost

      Avoid choosing suppliers purely on cost as there will always be a reason why the cost is low.

      Other key considerations are:

      1. Logistics is key.

      A factory may be located some distance away from the nearest transport hub and lack links to a seaport or rail connection, for example, meaning that your shipments could become slow and unpredictable. 

      Identifying the timeline for product delivery is vital and a factory should be hours, rather than days, away from a transport node. It is also vital that businesses have their own logistics team rather than using external experts to ensure that mistakes like this are not made.  

      2. Assess infrastructure

      Are there reliable transport links not only for shipping product but also for receiving raw materials and enabling staff to commute? 

      Evaluate if available utilities can support essential equipment. A food business that might require refrigeration units – are these available and is there energy infrastructure to power them? 

      Gain a clear understanding of the supplier’s capabilities before you start working with them, to avoid any unexpected shocks. When sourcing supplies from abroad, the unexpected can happen. 

      Assessing infrastructure is especially important for new-build facilities where amenities such as power supplies, internet and mobile coverage, transport links and local services may not be fully operational.

      3. Check labor availability

      To be able to support customer orders consistently within the committed lead times, suppliers must have access to sufficiently skilled staff. 

      Entry level jobs are relatively easy to fill but the challenge comes in finding skilled managers who know how to install and operate machinery and technology, manage quality control and quality assurance and check regulatory standards. Mid-level managers also need to be able to manage people within the industry they are supporting. 

      Many countries are still building this expertise and establishing their capacity to handle new supply orders, so external support may be needed to help with training.

      Ensure that labor conditions align to your company’s values, with decent wages and safe, fair practices on issues such as overtime and the age of employees, working conditions and fire safety. It’s crucial to audit the information supplied by factories to ensure you are getting what you pay for but at the same time, that costs are being kept under tight control. 

      4. Leverage existing supplier relationships

      One approach is to ask existing suppliers to supervise new investments and set up alternative supply arrangements. This maintains a business relationship with those suppliers and helps smooth the transition to a new provider. 

      The current supplier could oversee a lift and shift of the technology and skills to the new factory. This maintains consistency and keeps elements of the existing supply system in place, minimising disruption.  

      5. Align your sustainability goals. 

      A supplier’s environmental and sustainability policies should align with your corporate goals. This may increase costs but is vital for certain companies and it can be expensive for new suppliers to put these policies in place. 

      6. Consider local environmental conditions. 

      Assess local conditions such as earthquakes, tsunamis and volcanoes as well as extreme weather conditions such as typhoons and flooding. There can also be seasonal climate variations that make supply more difficult depending on the weather. 

      7. Government and regulation.  

      Take the temperature of the current political and geo-political climate. 

      Look at issues such as corruption, ease of doing business and the legislative system. Is there political instability that could lead to disruption? Large companies can leverage their own trade and security staff to find out the relevant information.

      Above all, however, work to find a win-win solution so responsibility for resolving the situation doesn’t rest solely on the shoulders of the manufacturer or supplier. This, along with considered evaluation, careful research and due diligence are key to successfully navigating today’s complex geo-political environment. 

      • Risk & Resilience
      • Sourcing & Procurement

      Paul Maguire, Global Client Director – Retail and Consumer Goods at Endava, explores the benefits of circular supply chains beyond regulatory box-ticking.

      2024 was the warmest calendar year on record, with global temperatures soaring 1.55°C above pre-industrial levels. The urgency of climate action is clearer than ever. New regulatory frameworks are reinforcing this urgency. For example, the EU’s Corporate Sustainability Reporting Directive (CSRD) frameworks are already demanding greater transparency around environmental impact.

      Urgency to act

      This pressure to act is particularly intense within retail, an industry responsible for a large share of global waste and carbon emissions. Traditionally, businesses operate under a ‘linear model’, following a simple but waste-heavy cycle: take, make, dispose. But every stage of this process presents an opportunity to embed sustainability. A circular supply chain – one that keeps products and materials in use for as long as possible – offers a more responsible and resilient alternative. By repairing, refurbishing, recycling or reselling, businesses can dramatically reduce waste and minimise climate impact.

      Despite growing awareness, circularity is far from the norm. In the global economy, currently more than 90% of materials are wasted, lost or unavailable for reuse. But change is coming. By 2026, 60% of enterprises will be positioned to drive profitable growth through circular supply chain practices. The benefits are clear: lower costs, new revenue streams, improved brand reputation and minimised environmental consequence.

      The transition to circularity isn’t just an environmental necessity, it’s a business opportunity. The question is no longer why, but how quickly businesses can make the shift.  

      Building circular supply chains

      A truly circular supply chain starts with product design. When designed to last longer, or be easily repaired or recycled, the entire supply chain benefits. Businesses should use recyclable or biodegradable materials, creating modular designs for easy disassembly or reducing material variation to simplify recycling. 

      Some companies are already using Product Lifecycle Management (PLM) tools to track materials and make sure products are designed with circularity in mind. Simultaneously, emerging technologies, such as AI-driven simulations and digital twins, are helping businesses test different end-of-life scenarios, optimising product design choices for sustainability.

      Beyond design, smarter inventory and production management are key to reducing waste. Overproduction has long been a challenge for retailers, with an estimated 594,000 tonnes of unworn textiles destroyed in Europe every year. 

      While demand forecasting has always been possible, traditional methods were limited by time, data availability, and manual input constraints. AI-powered forecasting is revolutionising this process, not just by making it faster, but by dramatically improving accuracy and scale. By analysing past sales data, customer behaviour and seasonal trends in real time, retailers can make more precise production decisions. This allows them to avoid costly overstocking while also meeting consumer needs more effectively.

      The benefits of circularity extend beyond manufacturing and inventory to product management following a sale. A major challenge in retail is the sheer volume of returns, with a fifth of non-food purchases being sent back. Though viewed as a necessary part of business, they create significant waste and emissions. Brands can address this by implementing AI-driven return policies that discourage excessive returns by personalising costs based on customer behaviour. Encouraging customers to return products in-store rather than through delivery services can also reduce emissions, while providing an opportunity to re-engage them with new stock.

      Next steps

      For many retailers, there is a huge untapped opportunity in circular supply chains, especially in refurbishment and re-commerce. Research suggests that the sector could be missing out on as much as £850 million each year by not making the most of refurbishment programmes. High-end fashion labels, electronics brands, and even furniture retailers have launched repair and refurbishment initiatives that extend the life of their products and open up fresh revenue streams. 

      Both Patagonia and IKEA have successfully rolled out repair services, while brands like Nike and H&M are leaning into take-back schemes and rewarding customers with store credit when they return used items. It is a win-win for businesses and consumers alike.

      The urgency for circular supply chains is growing. Sustainability is about more than compliance or staying competitive; it’s also about corporate responsibility and leading the charge for a more sustainable future. Companies that fail to embrace circularity risk falling behind as regulations tighten, consumer preferences shift, and costs rise. 

      Younger consumers, in particular, are actively seeking brands that offer circular experiences, making this more than just an environmental or efficiency issue: it’s a consumer expectation. In contrast, those that act now will not only gain a competitive edge but also set the standard for ethical and responsible business practices. 

      Failing to adapt means missing out on a generation of conscious consumers. By leveraging AI, IoT and data-driven insights, retailers can transform their operations, cut waste, and drive meaningful environmental impact.

      • Collaboration & Optimization
      • Sustainability

      Andy Coussins, Executive Vice President at Epicor, explores the impact of AI on the process of supply chain management.

      Essential industries like manufacturing, distribution, and building supplies have long relied on technology to navigate supply chain disruptions, rising costs, and labour shortages. 

      In recent years, cloud computing and Internet of Things (IoT) have become vital tools for streamlining operations and building resilience in the face of supply chain uncertainty.

      Now, with the development and advancement of the possibilities of AI, we’re seeing an even bigger impact of technology on supply chains. Traditional AI has proven its value by automating processes, analysing data and providing useful insights — helping businesses streamline operations and reduce inefficiencies. 

      And with the rise of agentic AI, businesses can go a step further — and move beyond reactive crisis management towards AI driven predictive intelligence. The focus is no longer just on adapting to supply chain issues when they arise, but on the ability to anticipate and prevent disruptions before they occur. 

      The rise of predictive intelligence

      Predictive intelligence relies on advanced AI capabilities, such as machine learning (ML) and agentic AI, to analyse vast amounts of data in real time. These technologies go beyond traditional AI systems by enabling more adaptive and autonomous decision making. 

      One of the most significant advantages of predictive intelligence is its ability to identify potential disruptions before they happen. By looking at historical data, market trends and external factors, AI can pick up on risks ahead of time like supplier delays, inventory shortages or demand fluctuations. This allows businesses to take preemptive action — whether that means changing production schedules, finding new suppliers, or reallocating their resources to prevent bottlenecks.

      The role of agentic AI in supply chain optimisation

      Unlike traditional AI, agentic AI can act autonomously within defined parameters, executing complex tasks without requiring constant human input. 

      One example of this in action is the automation of supplier communications and decision making, where AI can handle tasks such as sending requests for quotes (RFQs), parsing responses to compare pricing and delivery times, and helping to select the best option — all without manual intervention. This not only streamlines procurement but also minimises delays – optimising the supply chain. 

      Agentic AI is particularly effective in specialised domains like manufacturing and logistics, where efficiency and precision are key. By operating within defined boundaries — guided by ethical standards, policy constraints, and human oversight, it means that businesses can optimise operations without sacrificing control. 

      A practical approach to AI adoption

      For businesses considering agentic AI, taking a strategic and measured approach is essential. This starts with looking at existing data structures to make sure they align with the capabilities of an AI system. Then, working with trusted digital transformation experts, such as enterprise resource planning (ERP) specialists, can help streamline AI powered integrations while dealing with concerns around cybersecurity and adaptability. 

      Working with such suppliers means software solutions deliver context based intelligence through an ecosystem of industry focused platforms, cloud technologies, and people centric AI capabilities – cognitive ERP. Gone are the days of transactional ERP and ahead lies a world of automated and increasingly cognitive business solutions to build a truly connected, efficient and resilient enterprise. 

      Research shows that nearly two thirds (63%) of high growth companies have embedded AI into their ERP and supply chain management systems, while 58% of organisations have already integrated generative AI into their digital supply chain operations. Don’t get left behind.

      The future of AI in supply chains

      As businesses continue to embrace AI, the focus will shift from reactive resilience to predictive intelligence — not just withstanding disruptions, but anticipating and preventing them.

      Using agentic AI and predictive analytics, companies can transform their supply chains into agile, proactive ecosystems that drive long term growth and innovation.

      The path toward predictive intelligence requires collaboration, investment, and a commitment to continuous improvement. But for those willing to take the leap, the rewards are game changing — a supply chain that is not just resilient, but intelligent, cognitive, agile, and future proof. 

      • AI in Supply Chain

      Neil Pein, CEO at BNP Paribas Leasing Solutions explains why Europe’s farmers have been dealt a tricky hand, battling economic pressures, population growth, climate change, and rising sustainability demands. He argues that embracing Product-as-a-Service (PaaS) models can democratise access to cutting-edge technology with financial flexibility, paving the way for a resilient and circular future for farming.

      ‘Empty shelf syndrome’ has become all too familiar for shoppers across Europe. Shortages are an almost everyday occurrence in food supply – from olive oil, to honey, and more recently, cauliflower and broccoli. But this empty shelf space is more than just a supply chain hiccup: this is a symptom of deeper-rooted problems in farming.

      The farming community is no stranger to hardship – braving unpredictable weather, tight finances, rising production costs, and the demands of the land. Incomes are dropping, and many are being forced to close shop altogether. The European Union (EU) has seen a huge 37% drop in farms since 2005, with 5.3 million farms disappearing over just 15 years.

      At the same time, farmers are facing growing heat to invest in more sustainable farming practices, while many are struggling to make ends meet.

      Tightening regulations, new policy changes, and green subsidies are changing ways of working on farms. Many are racing to play their part in building a more sustainable future – and the stakes are far greater than just keeping shelves full.

      A PaaS-ing trend?

      Farmers are now looking in other directions to manage business risks and costs, while having to tighten their belts. Product-as-a-Service (PaaS) business models are stepping in as a solution to respond to the challenges of modern farming. 

      PaaS models allow customers to pay for the services and outcomes a product can provide, rather than paying for the ownership of the asset itself. For farms, this opens the door to modern, sustainable, and expensive assets which may otherwise be out of reach – such as ground-based sensors, drones, autonomous tractors, or GPS technology. These costs are spread over the contract’s duration, providing financial flexibility, predictable expenses, and the freedom to reinvest in growth.

      PaaS is a win-win for manufacturers, too. Offering PaaS contracts can unlock predictable revenue streams for manufacturers by offering services that span the entire lifecycle of farm machinery. It’s a well-known fact that machinery, like combine harvesters and tractors, comes with a hefty price tag. With long asset lifespans, moving away from one-time sales helps manufacturers to diversify their revenue opportunities and build long-term relationships with farmers.

      The future of farming is circular

      Traditionally, the high cost of equipment has made it tough for farmers to modernise and invest in new, sustainable tools, with steep upfront costs being a major barrier. PaaS solutions are emerging as a way to democratise access to the tools they need to adapt and succeed. 

      The EU’s ‘Farm to Fork’ (F2F) strategy, introduced under the European Green Deal, has added urgency to updating outdated farm machinery and lean into circular economy principles. The F2F strategy aims to shift the current EU food system towards a sustainable model, with ambitious goals to halve the use of pesticides and fertilisers, reduce food loss and waste, and promote more sustainable production and consumption habits.

      Under these goals, pay-per-use contracts for advanced equipment like seeders and sprayers can add real value for farmers. By keeping upfront costs low, PaaS enables farmers to use precision farming methods that comply with the F2F strategy, help manage rising fertiliser costs, as well as protect water, soil, and air quality.

      What’s more, PaaS agreements support sustainability aims by letting manufacturers reclaim valuable materials at the end of a machine’s life. They can also offer options like maintenance and spare parts. This not only supports the circular economy, but also provides a buffer against raw materials price fluctuations and supply chain disruptions.

      Giving farmers tools at their fingertips

      Farmers are familiar with the risk and disruption facing the sector. Across Europe, farmers have been taking to the streets to protest issues like EU subsidy delays and bureaucracy, while in the UK, thousands marched against upcoming inheritance tax changes on agricultural assets over £1mn starting April 2026.

      Pinching pennies, compounded by the growing impacts of climate change – like natural disasters and unpredictable weather patterns – are pushing the adoption of digital tools to the forefront, promising to lower operating costs and improve precision and accuracy. 

      PaaS models leverage digital asset management, giving farmers the data insights to monitor equipment usage and performance like never before. This can span soil moisture levels, temperature fluctuations, and livestock behaviour – offering data at their fingertips to better manage crops, minimise waste, and weather the challenges ahead.

      The future of farming is rooted in a combination of financial flexibility and sustainable practices. With access to cutting-edge tools without the burden of high upfront costs, farmers can meet more stringent sustainability regulations, meet the food security needs of a growing population, and reduce operating costs – ensuring stocked shelves become the norm, rather than the exception.

      • Risk & Resilience
      • Sourcing & Procurement
      • Sustainability

      At Manifest Vegas 2025, we chat with leaders to uncover how the conference has become one of the leading industry events globally.

      Rishma Khimji, Chief Technology Officer, Harry Reid International Airport

      Manifest Vegas is a great place to meet different types of technologies, whether that is in supply chain, logistics and indoor or outdoor usage of technology. Being in the airport space, we need to make sure that we take part in these events and work out where it is going to affect our business. We have a baggage handling system at the airport and you see that a lot in manufacturing. What are they using to make that system that much better, robust and secure?

      “We want to ensure that we are using the right technology so when we are processing a passenger’s baggage, we are getting it to their plane. We are giving the customer the data of when it got on the plane and they feel safe and secure that their baggage went through the system in a way that allowed it to get to the plane on time. 

      “There is a lot of translation of services between the airports and other types of manufacturing and logistics that are here at Manifest Vegas. We are here to make sure that we are all being more collaborative and figuring out ways to leverage some of the same technologies but for different uses.”

      Karoline Dygas, Global Supply Chain Executive, Nordstrom

      It’s actually my first time attending and I was surprised about how big Manifest Vegas really is. The event has exploded in the past few years and it’s easy to see why. It’s a good aggregation of shippers of innovative new startups and some of my supplier partners are here so it’s a really great opportunity to network and learn from each other to be ready for whatever problem is around the corner. Perhaps there’s already someone here that can help you solve it.”

      Todd Greener, Chief Supply Chain Officer, Tupperware

      “My peer group is here in a big way so that’s always important to network with them and other companies. A lot of us are dealing with the same things so that’s really important. Just from a provider standpoint, existing providers, startups, the mix of tech and operational and investment partners, it’s a really easy way to check all the boxes on what leaders like myself are looking to get out of one of these events.”

      Shauna Gamble, Chief Procurement Officer, Bombardier

      “I love the diversity of the commodities. I come from aerospace, but I used to come from high tech. You get to hear the view of your peers across such a broad platform and number of commodities or product solutions, be they hardware or software, and you understand their challenges. Supply chain leaders generally have the same problems.

      “Maybe the level or the complexity of the problem is different, but to come to an event like this and hear the creativity of driving solutions and trying to be proactive both through the use of tools and applications such as AI or digitalisation, but also through their people and their learnings, it’s very important to take the time to hear others. You can’t have all the answers yourself.”

      Judy Webb-Hapgood, former Chief Supply Chain Officer, University of Miami

      “Last year I was one of only two healthcare customers in all of Manifest. It was great to have the opportunity to speak and then also to be given that chance again this year.

      “I introduced the people at Manifest to some of my peers within the healthcare space because I feel like the industry is behind when it comes to best practice of supply chain and Manifest brings together a lot of the greatest innovators and leaders in manufacturing, logistics and distribution. I like to encourage people to learn from other industries. Don’t get pigeonholed in simply healthcare. Don’t get pigeonholed in academia. Look at Amazon, they’re very innovative. Can we do that on our side too? Manifest gives that opportunity for those that may not know about DHL or XPO and all these other manufacturers great practices that I can take back to my organisation and implement.”

      Pam Simon, Conference Chair and EVP of Programming, Manifest

      “Watching the growth of the show and how it is scaling every year has been amazing. From the last time I checked, over 120,000 connections have been made at the show. That’s a lot of new business, investments and partners or potential customers. I feel like anyone who is here is going to walk away with something that they can take back to their business financially and otherwise. It’s been really exciting to see.”

      • Collaboration & Optimization
      • Host Perspectives

      From tariffs and trade wars to greater emphasis on speed and cost-containment, we take a look at why the industry’s biggest logistics companies and solutions providers are restructuring and regionalising to focus on resilience in their supply chains.

      At Manifest Vegas this year, we caught up with some of the biggest names in the logistics space, hoping to find out not just how they plan to mitigate the challenges of an increasingly fraught geopolitical and economic climate, but also how they plan to ensure the supply chain will continue to deliver value for the business as a whole. 

      It probably shouldn’t come as a surprise that resilience was the word we heard repeated by virtually everyone in the sector, from freight haulers to third-party solutions providers. Everyone’s trying to figure out how to weather a less predictable world; it’s no longer a matter of if, but when and where disruption will hit the supply chain, so figuring out how to mitigate its effects is key. 

      “Geopolitical tensions, fluctuating regulations, and economic uncertainties are poised to create complex pain points along the supply chain in 2025,” warns Gene Welsh, CTO at logistical services provider MODE GLOBAL.  For Welsh, the year ahead threatens “trade wars, tariffs, and shifting alliances” — all of which have the potential to disrupt supply chains, something he notes will both increase costs and cause delays. 

      Tariffs, uncertainty and the unpredictable US

      “One of the biggest uncertainties shaping supply chains in 2025 is trade policy instability, particularly in North America,” said Tony Zasimovich, Global Retail Vertical Lead at DP World

      From Trump Tariffs to the activities of Elon Musk’s Department of Governmental Efficiency (DOGE) making sweeping cuts to the federal government, the regulatory landscape facing organisations based in or doing business with the US is looking increasingly complicated. 

      The Trump administration’s protectionist policies are part of an emerging picture which, According to Zasimovich, raise “concerns about new tariffs, shifting rules of origin, and increased compliance costs, creating a more complex regulatory landscape for cross-border trade.” He adds: “At the same time, the implementation of higher US tariffs on China, Canada, and Mexico is forcing businesses to reassess their sourcing and transportation strategies. While some are diversifying through friendshoring and multi-sourcing, these shifts can introduce longer transit times, increased costs, and new regulatory hurdles.” 

      In response to these challenges, Mark Kunar, CFO and Chief Strategy Officer at DHL agrees that “resiliency will be at the forefront for organisations in 2025,” noting that, logistics networks, “whilst previously constructed for efficiency and just-in-time processes,” will need to be restructured to provide “enhanced resiliency and regulatory compliance” in order to stay afloat. “Geopolitical tensions, regulatory changes, and economic pressures create uncertainty for both our customers and their consumers and can lead to increased costs, compliance risks, and supply chain disruptions. Trade and tariff disputes will impact the cross-border flow of goods, creating a strain on sourcing strategies and the timeliness of bringing goods to market.” 

      Regionalisation as a path to resilience 

      While none of this necessarily represents a new attitude — people were already talking like this a few months into the COVID-19 pandemic — the discussion at this year’s Manifest Vegas event felt different. Rather than patch and tweak and make older supply chain models sturdier, it’s starting to feel as though the foundational structures that make up global trade networks are beginning to shift. The rulebook is being rewritten.  

      If you talk to Zasimovich, he’ll tell you that 2025 is going to be “a year of strategic supply chain realignment, driven by shifting trade policies, economic uncertainty, and the growing role of regionalised logistics.” 

      Driven by the mass-levying of tariffs against China, Mexico, and Canada, the spiralling trade war threatens to eclipse the first one waged by the Trump administration during 2016. In response, nearshoring has become, “one of the biggest transformations underway” in the logistics space, especially in North America. Zasimovish points out that, with the US’ share of imports from China dropping significantly—from 21.6% in 2017 to 15% in 2025—organisations are looking to shift their supplier ecosystems closer to home. Of course, profoundly restructuring the way that goods and materials move around the world isn’t a straightforward process. 

      “2025 will be a year of strategic supply chain realignment, driven by shifting trade policies, economic uncertainty, and the growing role of regionalised logistics” Tony Zasimovich, Global Retail Vertical Lead, DP World

      For Zasimovich, 2025 therefore presents “a major growth opportunity in nearshoring,” with nations like Mexico, Poland, and Vietnam capitalising on their relative neutrality (as much as anyone can be neutral in a Trump-dominated trade landscape) to cement their roles as regional manufacturing and logistics hubs. He adds that these shifts aren’t “just about proximity” but rather the process of “building faster, more resilient supply chains that minimise risks from geopolitical tensions and trade disputes. By investing in freight networks and contract logistics services, DP World is helping businesses adapt to evolving trade dynamics and capitalise on nearshoring momentum.” 

      He adds that the shift we’re seeing is rooted in more than just organisations’ reactions to tariffs and political instability. At the same time, businesses are restructuring their supply chains for “faster lead times, reduced transportation costs, and supply chain resilience.” Bringing operations closer to key markets is a natural and obvious part of that process.. However, he adds that the transition isn’t straightforward. “Nearshoring introduces new regulatory, infrastructure, and labor cost challenges, which means companies will need to invest in supplier partnerships, digital integration, and regional warehousing to fully capitalise on this trend,” Zasimovich adds. 

      Nurturing resilience in the supply chain of the future 

      Reflecting on the increasing emphasis supply chain and logistics companies are placing on resilience, Andy Moses, senior vice president of solutions and sales strategy at Penske Logistics notes that “among the answers is having clean data, system integrations and consistent process management — all of which enables supply chain managers to respond faster to needed changes. Finally, having logistics provider relationships that are mutually beneficial in all business cycle positions, with shippers having access to capacity and resources when they most need it.” 

      Kunar agrees that “technology and automation will also be foundational to designing agile and flexible logistics that can withstand the complexity of dynamic geopolitical environments.”  However, at the same time, “customers will always want value.” Despite the increasingly complex nature of global logistics, Kunar reflects that “customers are asking: ‘How can a logistics partner drive value in transportation, warehousing, packaging, and inventory across their supply chain?’”

      Leaning on the ecosystem 

      According to Moses, partnerships and collaboration in the ecosystem are going to be at the heart of driving resilience and value as “shippers continue to seek reliable partners to take over the management and execution of complex logistics functions.”  

      For example, in the retail sector — an industry with an especially complex, fast-moving supply chain and narrow margins —ReturnPro example — finding new ways to mitigate cost/losses with partnerships in the supply chain, like ReturnPro, which is using AI and machine learning to mitigate lost revenue in the retail sector. 

      “At every critical point – return, touch, and resale – AI determines the most profitable path for each item” Sender Shamiss, Co-Founder and CEO, ReturnPro  

      A recent report from NRF estimates the total cost of retail returns at around $890 billion in 2024. Experts expect that number to climb even higher this year.  To help recover their net margins, retailers are looking to their supply chain partners. Companies like ReturnPro leverage AI to analyse large amounts of data in real-time, streamlining return authorisations and predicting the most efficient reverse logistics routes, as well as picking up trends in the reasons for consumers returning items.

      “At every critical point – return, touch, and resale – AI determines the most profitable path for each item, calculating total costs and outlining the optimal steps to maximize recovery and extend product life,” says ReturnPro Co-Founder and CEO,  Sender Shamiss. The company also uses machine learning algorithms to drive its predictive analysis, which help manage returns and maximise resale value. “By analysing historical data, product conditions, and market trends, these algorithms forecast return rates, identify the best recovery options – such as restocking, refurbishment, or resale – and predict an item’s resale value with precision,” explains Shamiss. “This allows retailers to deploy dynamic pricing strategies and efficient return-to-vendor processes.” 

      DHL is also exploring the supply chain after the point of sale as an area for logistics companies to create value, observing that there’s “tremendous potential in reverse logistics”. He highlights DHL’s recent acquisition of Inmar Supply Chain, which he argues “will allow us to better streamline the returns process and address circularity within our sectors.” 

      A more resilient, digitally enabled supply chain 

      ReturnPro wasn’t the only organisation at Manifest Vegas highlighting the potential for smart, AI and ML-powered solutions to the supply chain sector’s problems. Welsh from MODE Global added that he expects artificial intelligence, machine learning, and the Internet of Things (IoT), “to further integrate into logistics operations, enhancing automation, real-time tracking, and predictive analytics,” as 2025 continues. “These innovations will drive efficiencies and enable organisations to meet the increasing demands for faster, more reliable, and sustainable delivery options.” 
      There’s little way to tell exactly what the year ahead will bring in terms of pain points and challenges. However, logistics and supply chain companies are unanimously preparing to leverage technology and their partner ecosystems to drive resilience and create new value at all points of the supply chain — even places that previously escaped notice.  

      • Risk & Resilience

      Karoline Dygas, VP of Strategic Sourcing and Procurement at Nordstrom, on the importance of a considerate approach to technology transformation amid an explosion of interest in new digital tools in supply chain.

      Digital transformation is central to most organisations’ strategies today.

      On the back of the challenges supply chain and procurement have faced over the past few years, the importance of adopting advanced technologies and new ways of working to scale efficiency is fundamental to achieving success in the modern day world. Manual, paper-based tasks don’t work any longer, AI and automation have quickly become the norm over the past decade. An extension of AI’s arm is generative AI (GenAI), which creates text based on prompts, is creating quite the buzz within the industry and beyond. But Karoline Dygas, VP of Strategic Sourcing and Procurement at Nordstrom, insists there is still work to be done before the full benefits can be realised. 

      Karoline Dygas, VP of Strategic Sourcing and Procurement, Nordstrom

      “We are on the very baby steps of our journey with GenAI,” Dygas tells us. “I believe there are a lot of use cases for how it can be used well, but no one has quite cracked how to make it useful at this moment in time. With GenAI, it does require users to input a lot of meaningful data into the tool to teach what it needs to be doing. As we’ve seen, there could be a lot of bias or fake information generated by it. Ultimately, it still requires people to navigate through the noise of what it is bringing. While I am excited about its potential, it’s going to take us a little bit of time to get to the outcomes that people are hoping we could see.”

      Managing the supply chain

      As part of Dygas’ role, she leads strategic sourcing and procurement for all non-merchandise categories of spend at the luxury fashion retailer Nordstrom. Dygas is responsible for a holistic transformation of the entire service delivery model and centralisation of sourcing and procurement for over $3.5 billion in annual spend for all goods and services that positively impacts the customer experience and company financial performance. Falling into the supply chain industry is a common joke among leaders within the space – and Dygas is no different. She tells us she didn’t grow up dreaming about a career within the supply chain, but fast forward 15 years and Dygas has had no intention of leaving since.

      “I fell into the supply chain by complete chance,” she reveals. “Growing up and through my education, I had no idea what supply chain, sourcing and procurement was. But here I am after about 15 years in the supply chain industry. What I really love about the supply chain and what keeps me in this space is the constant change and a little bit of chaos every single day. There’s new obstacles, opportunities and global changes that impact the daily work of any supply chain professional and it’s really engaging and exciting to be a part of that journey.”

      “I’ve learned a lot of patience and the importance of not overreacting to things that happen” – Karoline Dygas, VP of Strategic Sourcing and Procurement, Nordstrom

      Within those 15 years that Dygas has been involved in the supply chain, the industry has undergone significant evolution. Changes to how consumers and markets are operating are shifting how organisations do business. Leaders need to move quickly to keep up, however, not at the expense of getting too carried away, according to Dygas.

      “I’ve learned a lot of patience and the importance of not overreacting to things that happen,” she reveals. “Some people hear one thing and they completely overcorrect and then it goes back the other way. I’ve learned to absorb as much data as I can and make informed decisions based on the available information. That information can change and be slightly different, but the most important thing is to be calm and reach out to the network.

      “The supply chain has the most amazing network of organisations and peers and we have the ability to help each other through those game-changing or life-shattering things that might happen. That has been the best utilisation of networks of abilities to come together and overcome those obstacles that we are all facing in the supply chain. I’ve been talking to a lot of people here at Manifest Vegas and we are all facing the same problem. If we can come together and solve those problems, then we can help each other out through anything.”

      Technology transformation

      Data is one of the most important pieces of the puzzle to get correct in supply chain. Good data allows for better decision making and forecasting to provide leaders with a more accurate overview over their supply chain operations. Accurate forecasts can eradicate incidents of stockouts or overstocking and also identify areas for cost reduction and allow for greater efficiency.

      “If data is inputted by a human, there’s a very large chance that there could be something wrong with it,” explains Dygas. “As companies dive into this space, the most important thing is good data integrity practices and a process for how to ensure that the data that you’re inputting is as accurate as it can be, because there is so much ability to enter incorrect inputs. As people say, whatever you put in is what you’re going to get out. The cleaner and more accurate it is, the better results you will have on the analytics that you’re trying to put that data through.”

      “Humans like consistency and they don’t like change. You have to make that change really simple, and it often starts with the why?” – Karoline Dygas, VP of Strategic Sourcing and Procurement, Nordstrom

      As far as Dygas is concerned, leveraging technology for technology’s sake is not a silver bullet – it will not work. She stresses that if technology is not being used strategically, then it will not be successful long-term.

      “First and foremost, what is the business problem that you are trying to solve with that technology? Then you have to combine that with the people and the process component as well as the overall change management of implementing that tool,” Dygas tells us. “You can onboard a new tool, but if you don’t have the people component and the process in place of how that tool is to be used, it is going to fail. Humans like consistency and they don’t like change. You have to make that change really simple, and it often starts with the why? Why is this important? Why do we need to change that process and how will it impact me?”

      Future facing

      With an eye on the next few years, Dygas believes that the industry is better prepared to meet any potential challenges given the extent of advanced technology tools at leaders’ disposal today.

      “I believe we are going to continue to be faced with challenges that we might not have faced before, and it’s going to require us to continue to align our networks to be able to overcome those,” she tells us. “Supply chains have been fighting obstacles this entire time. What’s different is there are a lot of crises and headwinds that are all adding up at the same time. It’s not just one or two events; it’s 100 different things happening at the same time that impact global supply chains. We are going to continue to be resilient, innovative and strategic in how we overcome those issues. But we now have the tools and the technology to help us do it in a much more educated fashion than we have had in the past.

      “Without the data and the technologies, it was more of a case of figuring it out however we could, but now we have the analytics to make smarter decisions and be more prepared for what’s coming.”

      Find out more about Nordstrom here.

      • Digital Supply Chain

      Shauna Gamble, Chief Procurement Officer at Bombardier, on the importance of powering long-lasting, sustainable transformation within aerospace and beyond.

      Bombardier is a global leader in aviation, focused on designing, manufacturing, and servicing the world’s most exceptional business jets. 

      Bombardier operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico for its Challenger and Global aircraft. Renowned for its cutting-edge innovation, cabin design, performance, and reliability, Bombardier has a worldwide fleet of more than 5,100 aircraft in service.

      Sustainability focus

      Bombardier is anchored by a commitment to sustainable development and seeks to create long-lasting, powerful change. Bombardier is a signatory to the United Nations’ global Compact and its ESG plan is aligned with the United Nations 2030 Sustainable Development Goals. Sustainability is a key focus area for the organisation. 

      In 2023, Bombardier’s total waste was 23% lower and its hazardous waste was 24% lower compared to baseline year 2019. These results stem from improvements in the company’s stock management in manufacturing sites. In 2019, Supply Chain Bombardier implemented a web-based logistics and intelligent supply chain execution software that facilitates communication between different ERP platforms, ensuring reliable inventory data and actionable insights help mitigate operational and external risk and inventory orchestration capabilities enhance operational efficiency, which contributes to reducing resource consumption and waste in supply chains.

      As the Chief Procurement Officer and Senior Vice President in Supply Chain at Bombardier, Shauna Gamble has made it her mission to transform procurement aviation into a best-in-class organisation, leading over 950 top talented employees and collaborating with 5,900 suppliers located in about 30 countries globally. She tells us her organisation is on track to reach its goal of planting 25,000 trees by the end of 2025. 

      “It’s about being thoughtful about introducing sustainability for the right reasons” – Shauna Gamble, Chief Procurement Officer, Bombardier

      “It’s also about answering some key questions,” Gamble tells us. “Where do we buy our products from? Where do we buy our services or our chemicals from? How can we reduce the air miles in all of our parts, so that the footprint that we are driving reduces? Today at Manifest Vegas, I had an opportunity to share a little bit of the story of our next-generation aircraft that we are working on. It’s 50% less fuel consumption now and is in the development stages, but it’s very exciting. Those are the tools and those are the differences I believe aerospace can make.”

      However, a sustainable approach costs money and sometimes the greenest option isn’t necessarily the cheapest. It is something that Gamble is well aware that suppliers may have problems with but she stresses that being ‘thoughtful’ about sustainability is the key.

      “Introducing significant cost increases is very hard to digest by our customer base,” she explains. “It’s about being thoughtful about being sustainable for the right reasons. Perhaps it is also worthwhile to take smaller steps instead of very large steps so the industry can absorb those costs as we go. We leverage companies like Kuehne + Nagel to consolidate our freight and they act on our behalf to reduce the amount of pickups and transportation. We have instituted an expedite application in our company, so it’s an app that has significantly reduced the amount of expedited freight that we do. It is thoughtful actions, but it will take time in my opinion.”

      Collaboration

      However, in order to make long-lasting change happen, collaboration with key stakeholders is fundamental to reaching sustainable objectives. Gamble reveals that there are a significant number of conversations taking place with major partners about a range of issues, including down to the type of packaging used.

      “We work with some of the largest companies in the world, particularly in aerospace and many of them in the United States,” says Gamble. “And the conversation is the right conversation. They are engaged, understand the requirements, and have the same beliefs themselves. It’s not a foreign dialogue we’re having with them which is a good thing.”

      Evolution

      But Bombardier’s journey has not been linear. The aerospace industry was one of the hardest hit in 2020 as a result of the COVID-19 pandemic, and the resulting years since have also not been kind to the space with the likes of wars, inflation and wildfires to name a few, causing their own issues.

      “It’s been an extraordinary five years and certainly no one could have seen the pandemic coming,” Gamble tells us. “Being able to go and gather data to find out what’s going on in the industry allowed us to be better prepared than our competition and enabled us to deliver aircraft to plan for the last three years in a row. That courage to dig and find out what’s happening next is important because, like it or not, there are new headwinds coming for the aerospace industry and for supply chain leaders. That proactiveness for what could influence our bottom line and our customer’s experience is paramount for us to be successful.”

      One of the biggest buzzwords on supply chain leaders’ lips today is advanced technologies such as generative AI and how to implement it into operations successfully. However, Gamble insists that while the future of the supply chain will be digital-led, the way that companies will measure success depends on how it is interpreted.

      “We work with some of the largest companies in the world, particularly in aerospace and many of them in the United States” – Shauna Gamble, Chief Procurement Officer, Bombardier

      “GenAI is fundamental to the success of supply chains of the future – there’s no doubt in my mind,” explains Gamble. “Do I think we have matured it as fast as I thought maybe could happen? I’m not sure. Some industries are very strict on standards and compliance, such as in the aerospace industry. Introducing a lot of change without understanding the impact on our aircraft and safety, which is paramount to us, means it may take our industry a little bit longer. However, there is no doubt in my mind that providing staff with the best tools that we have today gives them insight and can help them make a better, more educated decision. It’s not always challenges, it’s opportunities. I think we have a long way to go, but the past couple of years have shown how much it’s truly stepped up.”

      Managing the data

      The true key ingredient to Bombardier’s success lies within the data. Successful supply chains need visibility in order to manage today’s complex business landscape. The more comprehensive the data, the better an organisation’s decision-making is. The way in which a company approaches that data and supply chain visibility can provide insights into the entire supply chain process. Data analytics can provide insights about where products are from manufacture to delivery, monitor stock levels and manage supplier performance. 

      For Gamble, she believes a simplified approach to overcoming data quality challenges often works best in the first instance.

      “Sometimes, you’re going to have to step back and clean what you have,” she says. “I know that seems like a daunting, very basic activity, but that’s what we are doing at Bombardier. In fact, we are currently building the entire Yellow Pages of every aerospace supplier. Where are they? What do they do? Could I have a second source or a third source? Then it’s about taking data that we are getting through some of the cloud-based applications that we have to help us build risk or de-risk plans. Do we see certain trends in certain industries? What is the size of a company and where are they located? What geopolitical issues are happening within that region? Data is key for our success.

      “Is it always 100% clean because we’re coming off of infrastructures that might be a bit dated? No. Is it going to need a lot of heavy lifting for a little while to get that data clean? Yes. But I am a huge fan of the value of data. The more you know, the better decisions you can make.”

      Find out more about Bombardier here.

      • Collaboration & Optimization
      • Sourcing & Procurement
      • Together in Events

      Judy Webb-Hapgood, former Chief Supply Chain Officer at the University of Miami and the University of Miami Health System, on the scale of supply chain transformation on the back of a disruptive few years for the industry.

      “I used to jokingly say that the supply chain used to be in a building’s basement, and in the healthcare space, it was right next to the morgue.” Judy Webb-Hapgood, former Chief Supply Chain Officer at the University of Miami and University of Miami Health System, doesn’t mince her words. “COVID-19 happened and suddenly everyone knew what the supply chain was,” she tells us. “I believe that has made this space a much stronger environment and career field.”

      Supply chain transformation

      Over the past few years, those operating within the supply chain industry have had a front-row seat to unprecedented transformation. In truth, the COVID-19 pandemic was a key enabler for supply chain transformation. In 2020, supply chains were significantly impacted amid national lockdowns, which stopped the flow of raw materials and finished goods while also affecting manufacturing too. Organizations without backup plan were in serious trouble. However, out of disruption came opportunity and supply chain leaders were well placed to respond. 

      Judy Webb-Hapgood, former Chief Supply Chain Officer, University of Miami 

      Now, no longer is the supply chain cast aside. In fact, the industry is widely regarded as an essential part of business strategy. But the seismic change the sector has seen over the past few years has also meant the requirements of a Chief Supply Chain Officer has had to shift too.

      “A more well-rounded leader is needed to lead supply chain today” – Judy Webb-Hapgood, former Chief Supply Chain Officer, University of Miami

      “We are now not only experts in logistics, distribution and manufacturing, but we have to understand so much more,” admits Webb-Hapgood. “This could be the geopolitical environment, or financial implications, whether it’s tariffs or inflation, and then you also must try to do some predictability and analytics. A more well-rounded leader is needed to lead supply chain today. You used to be pigeonholed whether you were an expert in transportation or in distribution, etc, but now you really need to know all of that for the entire lifecycle of supply chain. That’s exciting because it gives supply chain leaders an opportunity to broaden our knowledge base and our impact on the entire world.”

      Today, supply chain leaders are in C-suite alongside CEOs and board members discussing the company’s strategy. While this set up is a far cry from a decade ago, Webb-Hapgood explains that this opportunity is something that she has taken in their stride. “It allows us to solve those problems and provide options for the organization as they move forward,” she explains. “It’s a super exciting time to be in supply chain because we have a seat at the table for the first time and are directly impacting an organisation’s profit. We’re looking at their strategy and what the 5 to 10 year plans will be look like and how supply chain for contribute to that plan. Before supply chain was an afterthought and now we’re not, we are an important part of that team going forward.”

      Embracing digital

      Digital transformation isn’t new. Companies have been searching for ways to adopt AI into operations to boost efficiency and achieve cost savings for the past few years. However, what is changing is how these innovations are being adopted into workflows and processes. Webb-Hapgood reveals there is still a real fear within the workforce that AI will take jobs away instead of simply making day-to-day life easier.

      “People are still a little scared about how new technologies will affect them,” she tells us. “When I look at what AI and automation are doing, it’s eliminating the mundane non-rewarding jobs and freeing up people to be more critical thinkers and to be able to innovate and push the envelope. A lot of my staff are so busy doing all these mundane, repetitive tasks and they are not using their creativity to drive innovation. I believe that for us to be more efficient, we’re going to need to embrace new technologies. The environment’s changing so rapidly that we are going to have to be a little more agile and resilient.”

      However, technology is not without its limitations. Humans are still required and are an important part of the equation to ensure the end result is actually enhanced. Webb-Hapgood believes that as AI matures, humans must follow suit and develop in partnership with technology.  “This is the part where smart, skillful people are still needed to be behind every part of automation and AI,” she says. “It’s not 100% accurate, but neither are humans because we make mistakes too. As technology gets better, so will people’s critical thinking skills. It’s something I’m very excited about.”

      Sustainable future

      With an eye on reducing carbon emissions and achieving net zero, there is a significant amount of noise about the importance of operating a sustainable supply chain, accelerated in part due to legislation and changing customer expectations. However, when it comes to the academic and healthcare space, Webb-Hapgood believes there is still work to be done.

      “Everyone’s talked about sustainability for the longest time but in the healthcare and academic space, I think we’re a little behind on sustainability,” admits Webb-Hapgood. “I love coming to events like Manifest Vegas because in the transportation and distribution world, they are really driving it. It’s important to look at how you can repurpose waste and why you should go green. I love seeing how these leaders and companies are coming up with ideas on resource management!”

      “People are still a little scared about how new technologies will affect them” – Judy Webb-Hapgood, former Chief Supply Chain Officer, University of Miami   

      It is fair to say that supply chain’s recent past is not linear. Issues such as the aforementioned pandemic, wars, wildfires, tariffs, and more have all left their marks. According to Webb-Hapgood, having gone through some of the geopolitical challenges that it has over the past decade, supply chain leaders have been forced to develop a robust backbone to tackle a variety of hurdles.

      “There have been so many unforeseen issues to overcome for the supply chain,” she states. “I think that’s actually made us a lot more resilient and versatile to approach future problems. You should notice how quickly the supply chain has been able to pivot – it is something that we weren’t able to do before. I jokingly said before COVID-19, managing the supply chain was like trying to turn the Titanic – it would take us forever to adjust. But because of all these things, we’ve had to adjust and become more resilient. All the lessons learned from past issues are going to allow us to make changes a lot quicker to be able to still meet the requirements, mission, and achieve a resilient supply chain at the same time.”

      Find out more about University of Miami here.

      • Digital Supply Chain
      • Risk & Resilience
      • Together in Events

      Rishma M. Khimji, Chief Information Technology Officer at Harry Reid International Airport, explores how new digital tools are poised to transform the guest experience within the airport.

      There are airports and then there is Harry Reid International Airport.

      Serving as the gateway to Las Vegas, the airport is in a unique position as the entry point for millions of excited passengers seeking to explore the hubbub of one of the United States’ greatest tourist spots.

      In 2024, the airport shattered its annual passenger record, serving 58.4 million passengers, making for the busiest year in its history. With 33 airlines offering nonstop service to nearly 160 destinations worldwide, Harry Reid International Airport connects travellers to one of the most captivating destinations in the world.

      The airport is named after the late US senator from Nevada, Harry Reid. It has four runways and two terminals with five concourses connected via a people mover system. Owned and operated by Clark County, Nevada, it continues to play a pivotal role in the region’s tourism and economy.

      The door to Las Vegas

      Rishma M. Khimji is the Chief Information Technology Officer at Harry Reid International Airport. Having been in the role for almost three years, she believes operating as the door to Las Vegas is special.

      “We are a destination airport, so when people arrive in Vegas, they are here for Vegas,” explains Khimji. “They don’t just come here and immediately catch another flight to somewhere else. Plus, we now have one of the greatest sports arenas in the world. We’re home to the WNBA, NHL, Formula One, and the Raiders in the NFL, and soon, we’ll have Major League Baseball and the NBA as well. These incredible professional sports teams and events will continue to draw massive interest.

      “Beyond that, we have world-class resorts and casinos, offering everything from top-tier gaming to an incredible dining and fashion scene. Whatever you’re looking for, you’ll find it here in Vegas, making it an unbeatable destination. Business travellers often turn into leisure travellers because once they’re here, they’ll want to stay a little longer to experience all the destination has to offer.”

      “We want to make sure that what you get from our airport is the service you deserve which is VIP  treatment”  – Rishma M. Khimji, Chief Information Technology Officer, Harry Reid International Airport

      What makes Harry Reid International Airport special is that passengers fly right into the heart of the destination with views of the sprawling Vegas skyline. Visitors don’t have to travel far to get to the resort corridor like at many other major airports, they arrive into the action immediately. “You can see the Las Vegas Strip from the runway, and so that makes all that glitz and glitter of the lights just that much more attractive, and you feel like you’re in Vegas when you land at the airport,” explains Khimji. “That really helps us build that case that we are your first look of Vegas and we are your last look at Vegas. We want to make sure that what you get from our airport is the service you deserve, which is VIP treatment.”

      Embracing new technologies

      The influence that advanced technologies such as generative AI (GenAI) is having on organisations has accelerated exponentially in recent years. Harry Reid International Airport is considering introducing new digital tools to make navigating the airport as efficient as possible for its customers.

      “As we look to the future, we anticipate the passenger processing to be more seamless and mobile-friendly. As an example, we want to make sure that when you get to your gate, you’re able to pop up the map on your phone and it directs you to where you need to go in a streamlined and maneuverable manner,” reveals Khimji. “Maybe it guides you through voice prompts or tactile feedback, like vibrations to signal when to turn or go straight. Our goal is to make navigation as seamless as possible for our guests. We don’t want them feeling lost or frustrated—we want them to enjoy their time here in Vegas from the moment they arrive.

      “Another key focus is private LTE, which involves exploring new wireless spectrum to enhance our communication capabilities. It’s about leveraging emerging technologies to create a more connected, secure, and accessible network. We’re also looking at how we can improve data transfer between the airport, airlines, and our partners, using that data to make more informed decisions. This helps us optimise airport operations, drive business efficiency, and ultimately improve our return on investment.”

      It’s not just about the technology

      However, leveraging new technologies is not a silver bullet. For example, generative AI is not a magic wand that will solve all business problems – it requires strategic thought and careful consideration. Khimji believes there are two key challenges that need to be recognised. “One is perception and the other is education,” reveals Khimji. “On the education side, one of our key initiatives at the airport is breaking down what AI truly is. AI is a broad umbrella that includes generative AI, machine learning, and automation, and we want to ensure everyone has a clear understanding of these technologies. By educating our teams, we’re creating a level playing field—so when they explore available tools and services, they know exactly what to ask for and can get the right solutions to meet their needs.

      “On the implementation side, we’re setting up the systems needed to support the vast amounts of data that generative AI relies on. How do we make the most of the AI-driven products available? As a Microsoft-based operation, we’re actively experimenting with Copilot to see how it can add value for our users. What services can we integrate through Copilot? How can we ensure our infrastructure is ready to support these tools at the right time?

      “Beyond that, we’re re-evaluating our workflows—identifying opportunities for automation, digitisation, and transformation to improve efficiency. If we can streamline processes for our employees, that efficiency will naturally extend to the guest experience. By leveraging these tools effectively, we can enhance both operations and the traveler’s journey through the airport.”

      2025 focus

      Moving forward, Khimji believes that 2025 is the year of humans developing a core understanding of the true capabilities of what AI can do. “Our teams will become even smarter about the tools that are available as they start using generative AI and other AI tools more and more,” she reveals. “People will start understanding what the limitations are because of the data that’s available and learn how to make the data quality better. Over time, as our data quality increases, we’ll learn to have better trust in the systems, and then we’ll see another acceleration in the usage of AI. We’re in a spot right now where we’re trying to figure out, ‘Is this going to work for me and the things I need to get done? Do I trust the information that’s coming from the generative AI tools?”

      However, Khimji is clear that developing trust in new technologies takes time and does not happen overnight. As far as she is concerned, organisations should be given time to decide what should be trusted and what shouldn’t. “In the next year or two, we are going to see another ramp-up of new products, services and ways of automating life,” she tells us. “I only hope that as we explore these tools, we start finding ways of using the tools to make our life easier so that in five years, a robot can wash my dishes while I spend more time on arts and crafts. I don’t want generative AI creating my art – I want to do that, humans should do that. It’s about finding ways to save time on routine tasks so we can spend more of it doing the things we truly love.”

      Find out more about Harry Reid International Airport here.

      • Collaboration & Optimization
      • Sourcing & Procurement

      Sreedhar Patnala, general manager at Systech, looks at the impact of AI and Machine Learning on the future of the pharmaceutical supply chain.

      The pharmaceutical sector has seen significant growth in recent years—a trend that shows no signs of slowing down. The industry is already comparable in size to the gross domestic product (GDP) of countries like Spain, Mexico, and Australia, with revenue predicted to increase by 6.12 percent annually between 2023 and 2030. This expansion brings both challenges and innovative solutions to meet industry needs.

      2025 

      As 2025 continues, the pharmaceutical industry will likely face a familiar challenge in the form of supply chain disruptions. Pharmaceutical leaders recently highlighted significant supply chain issues as one of their biggest concerns, citing increased pressures from raw material and labour shortages, geopolitical instability and extreme weather events. 

      These supply chain challenges are an ever-growing threat to the industry as they not only cause shortages of medicines but can lead to an increase in counterfeiting and diversion. As such, it is more important than ever for pharmaceutical organisations to build resilient supply chains while also ensuring they are compliant with the ever-evolving regulatory landscape. 

      Beyond regulatory requirements, there is a gap between consumer and patient demand for greater transparency—including product origin, materials, environmental impact, and recommended usage—and the data currently provided by pharmaceutical brands and supply chain stakeholders. By fully leveraging serialisation, aggregation, track-and-trace, and authentication solutions, many of which are already in place for the EU Falsified Medicines Directive (FMD) and the US Drug Supply Chain Security Act (DSCSA) compliance, pharmaceutical manufacturers can unlock valuable data to enhance supply chain effectiveness.

      Partnering with an expert with deep industry knowledge can help pharmaceutical companies harness this data to improve supply chain transparency, streamline inventory management, strengthen connections with customers and patients, and protect brand reputation. Such experts can also help integrate the latest AI-driven innovations and machine learning capabilities, further enhancing predictive analytics, automation, and real-time decision-making across the supply chain.

      Rise of counterfeit goods through pharmaceutical e-commerce

      Counterfeiting and diversion continue to present a major challenge within the pharmaceutical industry, a problem exacerbated by the rise of online marketplaces. The growth of e-commerce in recent years has increased accessibility and convenience for consumers, providing an easy way to obtain medicine that otherwise would have been difficult to source from local vendors. However, the loosely regulated nature of online markets poses a threat to the legitimacy and safety of pharmaceutical goods.

      The number of illicit online pharmacies has significantly increased in recent years, with many of these masking as trustworthy, easily accessible options for customers. For instance, a recent Royal Pharmaceutical Society investigation found that fraudulent internet pharmacies target vulnerable patients who are experiencing medication shortages, including hormone replacement therapy (HRT), ADHD medication, and obesity medications. Prescription medicine sales on these unregistered websites are unlawful and put patients’ health at risk. 

      The uncertainty and danger instilled in online markets confirms the importance for pharmaceutical organisations to implement solutions that can help them combat the rising number of counterfeit and diverted products entering the pharmaceutical supply chain.

      Regulatory environment: a key driver for supply chain innovation

      Regulatory compliance remains a major driver of pharmaceutical supply chain innovation, including the established EU FMD and the US DSCSA. These regulations have been introduced to safeguard patients and improve the safety of the pharmaceutical supply chain and manufacturing process. Nevertheless, even with the implementation of these regulations, counterfeiting and drug diversion continue to plague the industry.

      Adhering to regulations strengthens supply chain visibility for pharmaceutical and moves them closer to achieving true traceability. Enhancing the transparency of production and shipping procedures can also improve operational efficiency. In a time when the development of a strong pharmaceutical supply chain depends on traceability, authenticity and transparency, digital track-and-trace technologies are becoming the norm.

      Leveraging technology to address supply chain issues

      New technological developments are transforming multiple sectors. This includes the pharmaceutical industry, where technology is leading the way in helping improve supply chain resiliency in the face of disruptions. 

      For example, the growing usage of artificial intelligence (AI) is set to have a major impact on the pharmaceutical supply chain. One notable development is AI-powered authentication technology, which uses machine vision and machine learning to create a digital blueprint of packaging artwork features—enabling precise product identification through pattern recognition. Additionally, AI will enhance real time monitoring and secure pharma supply chains by detecting irregularities and possible risks as they occur. 

      Moreover, smart packaging technologies, such as Radio Frequency Identification (RFID) and Near Field Communication (NFC), are increasingly being adopted by pharmaceutical companies, for speciality drugs. Although this innovation has been present in the pharmaceutical industry since the early 2000s, it has become more affordable and accessible in recent years. These technologies, which can scan large quantities of products, boosting efficiency in warehouses and distribution centres, have become more affordable and accessible in recent years. RFID technologies, along with RFID readers, can scan large quantities of products, boosting operational efficiency in warehouses and distribution centres.

      Beyond efficiency, smart packaging technologies provide access to invaluable insights that can inform future decision making. Once a company has implemented the latest technologies and solutions, it can start exchanging data and capturing end-to-end data about a product’s journey. For example, access to information like inventory levels, item status, and location can help pharmaceutical manufacturers optimise production and meet customer demand efficiently. Smart packaging technologies also enhance interconnectivity and collaboration across the value chain. By providing in depth visibility and actionable insights, these solutions align production and supply chain requirements, streamline internal processes, and boost efficiencies, ensuring a steady product flow and addressing drug shortages.

      An uncertain future 

      The pharmaceutical industry continues to face multifaceted supply chain challenges which compromise brand integrity, threaten patient safety and reduce revenue. To address this, businesses must go beyond regulatory compliance by leveraging advanced traceability and authentication technologies to unlock the power of their data. 

      This approach will not only be crucial in enhancing digital connectivity and strengthening brand protection—it will also support pharmaceutical organisations in creating a more resilient supply chain to safeguard patient health.

      • AI in Supply Chain

      Dan Bridges, International Technical Director at Cyware, explores the evolving regulatory landscape around cybersecurity in supply chains.

      In our modern hyper-connected digital economy, it is not unusual for supply chains to extend ever further, becoming increasingly complex. Each supplier ecosystem can consist of organisations of any size, from sole traders on the high street to global enterprises, each of whom will have a different level of cybersecurity.

      That means there might be insufficient protection, blind spots and an inability to respond effectively. It only takes one vulnerability within this chain to expose all entities within to danger because bad actors can daisy-chain quickly from the initial breach to other connected corporate networks, wreaking havoc along the way.

      However, despite this clear risk, businesses in the UK are shockingly complacent about their supply chain security. Worryingly, the government’s 2023 Security Breaches Survey indicates that only just over a quarter of medium-sized companies monitor the cybersecurity risks posed by direct suppliers, with this rising to just over half when looking at large companies. Perhaps more alarming, it is even rarer for businesses to review the potential dangers from their extended supply chains – fourth parties and beyond – exposing many UK organisations to great risk.

      Introducing the Digital Operational Resilience Act (DORA)

      The EU is taking a bold stance on these supply chain risks, especially when it comes to finance and critical infrastructure. DORA outlines how financial institutions must take responsibility for operational resilience, defending against cybercriminals and enabling service continuity. It highlights the requirement to manage security risks related to third party suppliers, asking companies to assess, monitor and review their partners’ security protocols.

      DORA makes the penalties for non-compliance clear: if a financial institution suffers a breach due to not following best practice, considerable fines will apply. In some cases, these will not apply to just the business, but senior executives could also be on the hook for repercussions, including criminal charges.

      Shaping supply chain strategies

      DORA acts as a resource to assist businesses to shape their supply chain strategies and influence related security policies. It is not the only regulation in this environment: the Network and Information Systems Directive 2 (NIS2) centres on critical infrastructure resilience, hoping to make the cybersecurity processes of essential service operators more robust. We can also look to the long-established GDPR, which sets the standard for the privacy and integrity of personal data as well as the rights of data subjects. Beyond the regulatory scope of the EU, there are independent entities linked to specific industries, such as the Payment Card Industry Data Security Standard (PCI DSS 4.0), which establishes security protocols for managing card payment details to keep personal data safe while preventing fraud.

      Together, these security regulations aim to promote cybersecurity best practices across sectors and countries. They advocate collective responsibility, which is key to enhancing the security of complex supply chains where companies might operate as both customer and supplier. By supporting a collective approach to individual defence, all entities will benefit from faster threat detection, allowing improved incident response and mitigation. Sharing resources and processes is particularly useful for smaller organisations who might have fewer IT resources and smaller budgets.

      Establishing collective defence

      There are a number of prerequisites to consider before beginning your collective defence journey. It needs clearly defined policies within a legal framework to ensure sensitive data and the interests of each entity are protected. From the outset, trust between these entities is critical to securing agreement and eventual success.

      Next, it is time to assess current defence systems and identify any gaps. Solutions must work with the existing IT infrastructure and security tools, although it is also important to update and standardise security protocols and applications, while leveraging APIs to seamlessly connect all participants.

      Sharing skills and responsibilities will promote long-term, sustainable partnerships across and between each entity. For example, security teams can add specialist knowledge around SOAR (Security Orchestration, Automation, and Response) and associated automated tools. These streamline security operations, minimise alert fatigue and speed up threat mitigation. Moreover, collaboration of this type fosters learning within a community of executives with the same goals who can share the burden and support each other in the face of new threats.

      To keep up to date with the ever-changing threat landscape, the collective strategy must comprise regular reviews and testing: adaptability is key to defence optimisation.

      Protecting the vulnerable

      Business resilience and continuity depends on supply chain security and compliance. Using guidance from regulations, such as DORA and NIS2, will standardise supply chain strategies, providing a foundation for a collective approach. This guarantees a more resilient partner ecosystem for everyone.

      The final step is for companies to create their own information sharing networks using off-the-shelf solutions. This will keep their own operations secure while extending the protection to extended supply partners. Such engagement will supercharge threat intelligence sharing, enabling real-time cross-sector collaboration. Even the smallest sole trader could avail themselves of the early warning of looming danger to protect themselves – and others. At the end of the day, even the biggest enterprise’s defences are only as strong as its most vulnerable supplier.

      • Digital Supply Chain
      • Risk & Resilience

      We speak to Graham Cade, Head of Operations at Attara, about commodities’ role in the supply chain and hedging as a solution to uncertainty.

      Commodities trading is a foundational part of the modern supply chain. Companies around the world buy and sell raw materials that they then transport, manufacture, process, distribute as products, and so on. 

      The supply and demand for various commodities changes constantly. Therefore predicting things like availability and price is challenging. It makes sense. A thousand factors can affect the price of grain, metals, lumber, and, critically, fuel. This is a serous pain point for many organisations, given how susceptible commodities are to macro and microeconomic influences. Therefore, mitigating commodities volatility is a key goal of supply chain organisations. Exactly how they mitigate this uncertainty us a complex process. 

      We spoke to Graham Cade, Head of Operations at Attara about commodities trading, the supply chain, and how businesses can mitigate the risks posed by uncertainty. 

      1. How do commodities impact the supply chain?

      “Most companies will trade in commodities at some point along the supply chain in order to create or distribute a functioning product. These are raw materials, meaning the supply and demand is in constant flux, and so too are the markets they’re traded in. 

      “Impacted by the smallest of changes in macroeconomic and geopolitical dynamics, the commodities market is extremely volatile, making predicting the price of fuel, grains, or metals impossible for companies of all sizes planning their finances.

      “Supply chain management is an intricate web: sustainability and responsible sourcing, managing risk and proofing data are just some of the many factors that will impact a business, but careful management of a supply chain is obsolete if companies are exposing themselves to the risk of changing commodity prices throughout.”

      2. What are the external factors businesses need to be aware of?

      “It seems obvious to say that we’re living in uncertain times, but really the last few years have been considerably more unpredictable. Geopolitical tensions have remained heightened, some economies are recovering from the pandemic faster than others and concern increases as climates become more extreme. 

      “Just last month, European gas prices reached a two year high due to a cold snap. Farmers protested new taxes in London. And the price of gold has been elevated for weeks now. 

      “For smaller businesses trying to keep their bottom line water tight, dealing with fluctuating outgoings is  near impossible when it comes to planning ahead.” 

      3. What is commodity hedging and why is it the solution? Who can access it?

      “Commodity hedging is something that has been traditionally reserved for the bigger players in the market; conglomerates and multinationals using big banks with full service offerings. UK SMEs haven’t benefitted from these tools because they just weren’t aware of them, even though there are 5.5 million SMEs in the UK underpinning large sections of the economy. 

      “However, emerging technology has allowed us to provide simple tools for companies of all sizes. Through hedging, we can leverage our access to multiple markets to ensure that we effectively manage risk exposure by using derivatives across a broad spectrum of industries. By offsetting the changing prices of raw materials, companies are able to plan ahead, giving them the winning hand in a game of the unknown. It’s impossible to always know what’s around the corner, but with the latest technology, businesses have a protective shield against whatever is. 

      “To put this into perspective, a haulage firm’s spend on fuel is likely to be its third largest outgoing behind wages and real estate. Leaving this number to chance doesn’t sound like a responsible business decision. However, many businesses are forced to because they don’t know there’s another option. The ability to lock the price of fuel in for a year or so allows a company such as this to make confident and informed decisions. In the same vein, what if the local family bakery could predict what they would be paying for their ingredients for the next six months?

      “Although profits will vary between businesses of different sizes, risk is relative. It’s an injustice to see external factors that hedging can mitigate erode businesses’ margins.”

      4. What are your projections for the markets this year?

      “It’s safe to say volatility will continue to characterise the markets. UK SMEs are already treading a risky path following the Autumn Budget Announcement, which increased business tax burdens and the cited numbers for UK economic growth are dwindling. 

      “Tensions are high following the US announcement of a 25% import tax on all steel and aluminium entering the US, ending previous exemptions for allies including Canada and the EU; it remains to be seen how this will impact the UK directly, however the wider markets will certainly feel the ramifications in full force and are likely to be more changeable than ever. 

      “This is all underpinned by a wider race to net zero. With the future of EVs in hot debate, what will the demand for certain metals look like? The latest change in policy is likely to upset the delicate balance of supply and demand, so what’s the best solution in the move away from fossil fuels?”

      • Collaboration & Optimization

      Philip Kershaw, Director of eBus at EO Charging, looks at the evolution of electric vehicles in relation to urban mobility and supply chains.

      The goal of achieving net zero is an increasingly important central government target. While historically viewed as more of a niche strategy, the transition to electric vehicles and electrification of commercial fleets and public transport networks has become a key blueprint for the future of urban mobility. 

      At a local level, councils are increasingly prioritising sustainable, scalable solutions for urban transit, with 2025 marking the deadline for comprehensive urban electrification plans. The year ahead promises to be transformative for the UK’s electrification efforts, paving the way for a fully electric future.   

      Innovations in the electric vehicle (EV) market, including sophisticated energy management systems, increasingly advanced charging infrastructure, and scalable solutions are driving this strategic shift. 

      Regulation driving electric vehicle adoption 

      Clearly, government legislation will continue to be a key driver of progress. We can expect EV infrastructure to expand in 2025, with a strong focus on the public transport sector. Funding initiatives including the Zero Emission Bus Regional Areas (ZEBRA) and Scottish Zero Emission Bus Challenge Fund (ScotZEB) schemes will accelerate electrification, helping public transport operators navigate the initial investment in fleet transition. 

      Local transport authorities and mayoral regions are expected to support a shift towards the enhancement of public transport and focus on providing communities with better transportation links. This in turn will accelerate the transition to high-capacity, scalable electrification of bus fleets. 

      Infrastructure shortcomings

      However, while the public charging landscape has improved dramatically over the past few years, it remains fragmented. Inconsistent levels of customer service and issues with quality and reliability will eventually become unsustainable as EV adoption accelerates if not addressed. 

      This is where improvements in uptime are vital to instil more confidence amongst EV owners. We are seeing this starting to take place thanks to recent innovations in charging technology, which are resulting in EVs reaching 80% charge capacity in under 30 minutes. 

      It is not just EV operators facing challenges, however. Charge point operators (CPOs) are also under pressure – and it’s only the CPOs implementing robust and scalable strategies with a focus on customer experience that will thrive.  

      This is where the concept of ‘charge assurance’ is vital – an approach specifically geared towards guaranteeing the reliability and efficiency of charging infrastructure by minimising disruptions and ensuring a dependable charging experience. 

      However, it is also the case that commercial fleet owners are now realising the long-term impacts of making the switch to EVs from both a financial and environmental perspective. This will see the growth of EVs in terms of delivery vehicles and other urban service fleets contributing to city life. The towns and cities leading this movement will focus on rolling out high-capacity charging hubs and smart grid systems to deliver a fully electric urban environment.  

      Going fully electric 

      For commercial fleets, more and more operators now recognise that scaling to fully electric operations is essential to ensure regulatory compliance, cost efficiency, and to future-proof their fleets. This shift is resulting in the development of more robust charging infrastructure and software solutions better tailored to large-scale fleet management. 

      Outside of the UK, there are also significant factors that will continue to impact the EV industry here and overseas. Chinese EV manufacturers, for example, are reshaping the global market with rapid advancements in battery technologies. From a supply chain perspective, China also has a competitive edge, enabling efficient scaling and cost reductions in EV production. 

      The key takeaway from China’s success that the UK should take note of is the positive impact that collaboration between government and the private sector has had in tackling the challenges of electrification.  

      Rather than imposing restrictions, we need to see the introduction of policies that make fleet electrification more attractive, as well as the prioritisation of investment in charging infrastructure to make access to reliable, high-powered charging stations the norm. 

      Ultimately, while 2025 will see widespread change, the most significant gains will be in the commercial and public EV sectors. Advancements in EV infrastructure and increasing central and local government support, will see fleet operators become better equipped to implement their electrification plans and drive the rise of fully electric cities.  

      With fleets making up a large proportion of transport emissions, this shift will have a significantly positive impact on the UK’s overall net zero goals throughout the remainder of 2025 and beyond. 

      • Collaboration & Optimization
      • Sustainability

      Steve McGregor, executive chairman at DMA Group, explores how, by changing scale, embracing the digital transformation, and automating tasks, service delivery can be transformed.

      In an ever-changing economy, supply chain management is essential for Facilities Management companies (FMs). The 2024 TrueCommerce UK Supply Chain Trends Report highlighted pressing concerns, like talent shortages, cost control, and new business. Limited budgets, insufficient staff training, and over-reliance on digital platforms exacerbate challenges within the FM industry. Compounding these pressures are global disruptions—from the lingering impacts of COVID-19 and Brexit to geopolitical conflicts—which exacerbate longstanding inefficiencies in supply chains. Smaller suppliers often struggle to meet the dynamic demands of larger organisations, lacking the infrastructure to adapt effectively. However, with a shift in perspective and approach, FMs can build resilient and efficient supply chains to weather these challenges.

      Shifting scale

      The traditional preference for partnering with large suppliers may not always yield the best results. Smaller, agile suppliers often provide more flexible and responsive services. Rather than focusing solely on size, FM companies should prioritise alignment with businesses that share common goals and values.

      Clear communication and regular collaboration are essential. Establishing combined objectives ensures that all parties are working towards the same outcomes. Scheduled feedback meetings, coupled with the use of automated performance dashboards, can help track key performance indicators (KPIs) and maintain accountability. A communicative approach fosters stronger relationships, reduces misunderstandings, and promotes consistent service delivery.

      Managing multiple suppliers

      Coordinating multiple suppliers can be a headache, bringing different organisational cultures, variability in service levels, costs, and approaches to compliance and sustainability into the mix. Without standardisation, projects risk inefficiencies, errors, and compliance gaps, all of which can negatively impact reputations and bottom lines. Implementing standard operating procedures (SOPs) and leveraging automated technologies can address these issues effectively.

      Integrated digital platforms streamline workflows and ensure transparency across the supply chain. For example, standardised protocols can minimise discrepancies in material costs or regulatory compliance. Moreover, the adoption of collaborative tools allows FM teams to monitor performance in real-time, creating a culture of shared accountability and continuous improvement.

      Embracing digital transformation

      Despite the rapid digitisation of other industries, FM has often been hesitant to let go of traditional paper-based systems and spreadsheets. However, digital workflow management platforms can revolutionise supply chain operations. These tools enhance not only the supply chain, but other elements of building operations as well.

      It is crucial, however, to assess existing supply chain challenges before investing in new technologies. A tailored, user-friendly platform built on open workflows can deliver significant returns. DMA Group’s Service management platform, called BiO®, exemplifies how automation can enhance supply chain visibility, track supplier performance, and expedite tasks such as certification and payments. By eliminating manual processes, FM organisations can reduce delays, improve transparency, and build trust with their partners.

      Automation and analytics

      End-to-end automation offers transformative benefits for the FM industry. By engaging the entire supply chain, automated platforms provide actionable insights and analytics, enabling organisations to identify inefficiencies and make data-driven decisions. The ability to generate detailed reports not only highlights areas for improvement but also recognises exemplary performance.

      For instance, automated workflows in platforms like BiO® enable real-time tracking of work allocation and supplier performance. By centralising information, FM companies can standardise practices and foster leaner operations. This transparency strengthens supplier relationships and contributes to healthier profit margins.

      Building Resilient Supply Chains

      To thrive in today’s FM, organisations must adopt a forward-thinking approach to supply chain management. By prioritising collaboration and leveraging technology, FM companies can create robust and adaptable supply chains. Such strategies not only mitigate risks but also drive long-term success, ensuring that every link in the chain contributes to seamless service delivery.

      In the ever-changing world of facilities management, resilience and innovation are key. With the right strategies in place, supply chains can drive efficiency, sustainability, and customer satisfaction in equal measure.

      • Digital Supply Chain
      • Risk & Resilience

      Chris Clowes, executive director at global supply chain and logistics consultancy, SCALA, looks at the trends and challenges facing retail supply chains, and explores how organisations can adapt.

      Retail is undergoing a seismic shift. Consumer expectations are higher than ever and the need for flexibility is now a business imperative. What was once considered impossible or a rare perk – such as next-day delivery – is now the norm. Technological advancements continue to push the boundaries of efficiency, with innovations like drone deliveries becoming increasingly viable prospects. To remain competitive in this dynamic environment, supply chain and logistics operations have had to evolve at an unprecedented pace.

      Adding to these challenges are continued global headwinds. Economic instability, ongoing conflicts, Brexit-related regulatory complexities, climate change, and the enduring effects of the pandemic are all making for a more volatile supply chain landscape. Businesses must now navigate an era defined by disruption, requiring resilience and agility at every stage of the retail operation.

      At the same time, there have never been more opportunities to enhance productivity. Advances in automation, robotics, and data-driven decision-making offer significant potential for streamlining logistics, improving accuracy, and boosting efficiency. Investing in these innovations is no longer optional—it is essential for survival. This doesn’t necessarily have to mean widespread overhauls which come at significant cost. Instead, smaller, strategic upgrades and additions can elevate operations and help teams improve on important KPIs.

      Having said this, supply chain transformation must be approached with caution. The looming threat of new global tariffs and trade barriers may push businesses to overhaul their logistics strategies. However, hasty decisions can lead to costly errors. Before embarking on significant changes, companies must thoroughly assess key factors. These include operational capabilities, scalability, flexibility, cost structures, and sustainability practices. Automation will play an increasingly critical role, but its implementation requires careful planning to mitigate risks and ensure long-term success.

      The risks of poor supply chain planning

      Luxury streetwear retailer End Clothing recently reported a stark financial downturn. The company posted an annual pre-tax loss of £43 million. This is a dramatic shift from the £9 million profit recorded the previous year. The primary cause? Disruptions stemming from the implementation of a new automated fulfilment system. What was intended to improve efficiency instead led to significant logistical challenges for the business. These included shipping delays and stock write-offs – all of which ultimately undermined the business’ bottom line.

      Similarly, ASOS encountered substantial setbacks after deciding to mothball a large US warehouse, resulting in a £190 million impairment charge. The decision to consolidate fulfilment operations back to the UK and a smaller US site highlights the risks of large-scale transformations without incremental execution. This move from across the pond was likely driven by slower-than-expected regional growth and heightened competition from fast-fashion giants such as Shein and Temu.

      ASOS does anticipate long-term benefits from consolidating stock back in the UK. These range from reduced duplicate inventory, and lower space requirements, to improved inbound logistics. However, the immediate costs of moving too quickly are significant. Additionally, while streamlining operations might optimise internal efficiencies, last-mile delivery remains a major expense, potentially offsetting expected savings.

      While it’s undeniable that the future of the retail industry will be driven by data-driven strategic planning, careful evaluation is essential before making any major changes to supply chain operations.

      Strategies to mitigate supply chain risks

      To prevent the pitfalls experienced by End Clothing and ASOS, retailers should take a phased approach to supply chain transformation. At SCALA, we advise businesses to adopt an incremental method. This involves implementing large-scale operational shifts gradually, allowing time for continuous testing, troubleshooting, and change management before full deployment. Phased rollouts reduce the risk of widespread disruption, giving retailers time to evaluate the best course of action for their business.

      When implementing automation or restructuring fulfilment operations, businesses should prioritise adaptable solutions that can evolve with changing consumer demand and economic conditions. Before committing to major warehouse investments, businesses must accurately assess regional growth trends and competitive pressures. In doing so, they can avoid overexpansion or misalignment with demand.

      Businesses should evaluate any logistical transformation in terms of both cost savings and environmental impact, as well as effect on customer experience. A lack of environmental responsibility, delays, stock shortages, or unreliable fulfilment are all factors which can damage brand loyalty and long-term profitability.

      To support this process, especially when undertaking large-scale transformations, retailers should consider engaging a third-party expert or consultant from the outset. These organisations can help navigate the strategy, implementation, and early operational phases. Leveraging their expertise and experience, businesses can conduct comprehensive feasibility studies. These include centre-of-gravity analyses, assessments of transport route efficiency, and evaluations of the environmental impact of proposed changes. By identifying the optimal logistics structure tailored to the specific market conditions of the business, retailers can significantly reduce the risk of costly missteps and enjoy long-term operational success.

      The road ahead for retail logistics

      The future of retail logistics will be shaped by intelligent automation, strategic adaptability, and data-driven decision-making. While the risks of transformation are significant, so too are the opportunities. 

      Retailers that approach supply chain evolution with careful planning, iterative implementation, and a clear focus on customer satisfaction will be best positioned for success. By learning from past missteps and embracing a more strategic, flexible approach, businesses can build resilient, future-ready operations that meet the ever-changing demands of modern retail.

      • Risk & Resilience

      From March 18 – 20 in Rotterdam, LogiChem EU 2025 promises to be the largest gathering of chemical manufacturers and their supply chain teams.

      Since 2002, LogiChem has been the unmissable industry event for the chemical manufacturing supply chain. The event hosts 400+ industry professionals, 250+ chemical manufacturers, and 60+ C-Level decision-makers from the world’s biggest chemical manufacturers each year at its European gathering in Rotterdam. 

      This year’s event will take place between the 18th and 20th of March, and feature 70+ visionary speakers from chemical manufacturers, dynamic interactive formats, and unparalleled networking opportunities.

      As geopolitical, economic, and environmental disruptions become an increasingly common feature of global supply chain operations, the chemical manufacturing sector is looking for new ways to overcome new challenges and opportunities, including the acceleration of digital transformation and a growing emphasis on sustainability. 

      This year’s LogiChem EU will bring industry leaders together to explore the themes of: 

      • Industry Momentum and Optimisation
      • Sustainability and Advancing Digitalisation
      • Customer Centricity and Future Leadership

      Industry leading expertise

      Each year, LogiChem plays host to some of the biggest names in the chemical manufacturing sector, with keynote addresses from leaders including:

      • Nestor de Mattos, Chief Supply Chain Officer at Dow
      • Jesus Corcoles, Vice President Supply Chain Planning & Logistics, Europe at Ecolab
      • Anna-Leona Breidbach, Head of Centre of Excellence, Supply Chain and Logistics, EMLA at Covestro
      • Ralf Hilpert, Vice President Performance and Projects for SCM Smart Materials at Evonik
      • Pablo Nosti Fernandez, Global Procurement Director, Strategy, Enablement and Service Centre at DuPont
      • Rebecca Blackwell, Global Head of Supply Chain at Innospec
      • Petra Wood, Project Director Supply Chain, Circular Economy at Eastman
      • Louise Mardling, Supply Chain Director at Syensqo
      • Anabela Pinto, Head of Supply Chain at Bondalti

      And many more…

      Click here to download the event agenda and register your attendance.

      • Collaboration & Optimization

      Andrew Lintell, General Manager, EMEA at Claroty, explores the rising cyber risk facing modern supply chains.

      Today’s vast and interconnected global supply chain is perilously vulnerable to cyber threats. In fact, the World Economic Forum (WEF)’s recent Global Cybersecurity Outlook 2025 found that 54% of large organisations cite supply chain security as the biggest barrier to achieving cyber resilience.

      Disruptive cyberattacks such as ransomware can have significant and widespread issues on both upstream and downstream supply chains through mounting production and distribution delays. 

      Manufacturing and other heavy industry sectors are particularly vulnerable due to their reliance on cyber-physical systems governed by Operational Technology (OT). The convergence of OT and traditional IT has blurred the once-clear boundary between digital infrastructure and physical operations, introducing new cybersecurity risks organisations can no longer ignore.

      Cyber threat groups increasingly exploit complex supply chains to hit their targets. Therefore, securing the interconnected systems that power them is a business-critical priority, not just a technical concern.

      The rising risks of IT/OT convergence in supply chains 

      Supply chains have become increasingly digitised and interconnected, with IT and OT networks now deeply integrated across manufacturing, logistics, and distribution. This shift obviously improves efficiency. However, it also exposes critical infrastructure to cyber threats previously only threatened IT systems.

      Historically, OT control systems such as supervisory control and data acquisition (SCADA) and programmable logic controllers (PLCs) have existed as a separate environment to traditional IT networks. As such, many of these systems were never designed with cybersecurity in mind and were built for purely physical threats. 

      Now, a raft of digitisation efforts including cloud-based inventory management, remote monitoring, and smart automation have connected OT to IT systems. This has spurred the side effect of expanding the attack surface and creating new opportunities for cybercriminals to disrupt assets that were previously safely air gapped. Instead, they can breach IT networks and pivot into OT systems, disrupting production, logistics, and the delivery of essential goods.

      This supply chain vulnerability is a growing concern. The 2021 SolarWinds attack and the Colonial Pipeline ransomware breach are two of the most high-profile examples of how cyber incidents can cripple entire industries by targeting suppliers or critical infrastructure. 

      More recently, the 2024 global IT outage, triggered by a faulty software update in CrowdStrike, disrupted airlines, banks, and government services worldwide, underscoring the interdependent nature of modern supply chains.

      Mitigating these risks means prioritising supply chain security as a core part of the cyber strategy. Without real-time visibility, proactive risk management, and clear accountability, supply chain disruptions will remain an escalating threat.

      Why visibility is the foundation of effective supply chain security 

      One of the biggest challenges in securing supply chains is the lack of visibility across interconnected systems and suppliers. Many organisations have limited insight into their suppliers’ security postures, let alone the vendors and subcontractors further down the chain. This creates blind spots, where cyber risks can go undetected until a breach occurs. Threat actors will frequently target smaller and less well-defended companies in the supply chain. These companies then serve as entry points to their larger customers or partners. 

      The WEF report found that 41% of security leaders believe improving third-party visibility is their top priority. Enforcing security compliance among suppliers was also cited as a critical challenge. 

      Yet many businesses still struggle with fragmented security monitoring and inconsistent enforcement of security policies across their supplier networks. Without comprehensive oversight, threat actors can exploit weak links in chains. These include vulnerable software updates, compromised remote access credentials, or unpatched OT systems.

      To reduce risk, businesses must implement a layered approach to visibility. This mustinclude comprehensive asset discovery with the mapping of all IT and OT assets within the supply chain. The goal is to understand their interdependencies and highlight weaknesses and potential attack paths. 

      Cyber-physical assets present an additional challenge here. Typically, OT systems are usually not compatible with standard cybersecurity tools for vulnerability scanning and threat detection. As such, IT teams need specialist tools to gain complete visibility into OT environments. 

      Overcoming budgetary constraints and boardroom misconceptions 

      Despite the growing risks, many organisations still fail to allocate adequate resources to OT and supply chain security. This is often due to a lack of awareness at the board level, where leaders often view cybersecurity as a necessary expense rather than a business enabler.

      It’s also important to address the perception of security teams as blockers. Security can’t afford to be ‘the Department of No’ or the ‘Department Who Cried Wolf’. In supply chain operations where efficiency and speed are paramount, some stakeholders can see cybersecurity as an obstacle to productivity rather than a safeguard against disruption.

      Shifting this perception means reframing from being a purely defensive measure. Board members respond to business impact, not just technical risks. Therefore, the focus should be on security’s value in protecting operational uptime, preventing financial losses, and maintaining customer trust.

      For example, the WEF reports that organisations investing in proactive security measures experience significantly lower operational downtime – a direct business benefit to sell to the board. 

      Aligning cybersecurity with business objectives will demonstrate how it protects revenue. Emphasising compliance benefits can also be effective, highlighting how investment in security streamlines regulatory adherence and reduces legal risks. These benefits can be backed up with examples of the cost of inaction, such as supply chain breaches leading to multimillion-pound disruptions.

      A strong strategy will hit the sweet spot between security and efficiency. For example, bridging the gap between IT, OT, and supply chain teams, helps integrate security into operational workflows rather than becoming a barrier. There should be a focus on implementing security measures that enhance productivity, such as automated threat detection and pre-approved security controls for suppliers.

      Making supply chain security a leading business priority 

      The convergence of IT and OT has made supply chain security a critical business issue, not just a technical challenge. Cybercriminals are exploiting weak links in supplier networks, and most large organisations already identify supply chain security as their biggest cyber resilience challenge.

      Without visibility, proactive investment, and board-level support, businesses will remain vulnerable to costly disruptions, regulatory penalties, and reputational damage. Security leaders must reposition cybersecurity as a business enabler to ensure it is integrated into strategic decision-making.

      Enterprises must act now to secure their supply chains before a cyberattack forces their hand.

      • Digital Supply Chain
      • Risk & Resilience

      We speak to Jonathan Horn, CEO and Co-founder at Treefera, about using AI, satellites, drones, and data analytics to create transparency in the murky world of carbon credits.

      One of the biggest issues facing the global carbon credits industry is a lack of transparency in supply chains with regard to Scope 3 emissions. Tracking the real carbon impact of an organisation’s supply chain is a challenging and murky process. As regulations in regions like the EU (the world’s biggest market for carbon credits) become stricter, organisations are turning to Artificial Intelligence (AI) as a way to improve the credibility of their carbon credits. 

      The carbon markets are a dirty place 

      Amid unrelenting reports of a worsening climate crisis, a pro-fossil fuel administration in the White House, and the increasing quietude of tech giants on the subject of their sustainability targets, it’s hard to feel positively about the fact the global carbon trading market is worth about close to a trillion dollars per year.  

      In cold, hard figures, the total value of traded global markets for carbon dioxide (CO2) permits reached an all time high of $948.75 billion in 2023. Selling sustainability gains for profit to companies looking to absolve themselves for irreparable environmental harm is big, big business. So were indulgences in the 13th century.  

      The case for carbon credits is that they provide a stepping stone for companies to balance their emissions chequebooks. A large manufacturer, for example, might invest billions in reducing its carbon footprint, but at the end of the day, it requires metal dug from the earth and power from the grid to operate. Discussions with carbon market advocates often revolve around using them to bridge the last few percent of an organisation’s emissions — the irremovable impact — after an operation has been decarbonised as much as possible.  

      However, critics of carbon credits argue that carbon markets are a way for large polluters to buy permission to pollute. What’s worse is that many credits fail to achieve the offsets or reductions that they promise. Studies show that most offsets available on the market don’t reliably reduce emissions, and instead function as a way for the worst polluters to launder their reputations, while robbing the race for net zero of much needed urgency. 

      Could AI be part of the solution? 

      Ironic as it might seem that a technology on track to consume as much energy as the whole of Japan by the end of the decade could be a key part of the answer to a sustainability problem, some industry figures believe it could be just that. 

      Jonathan Horn, CEO and Co-founder, Treefera — a data platform that aims to help businesses decarbonise their supply chains — argues that AI is “fundamentally reshaping the way supply chain organisations approach carbon credits.”

      Supposedly, the technology is changing the ways that transparency and reliability are ensured. “Previously, the process of verifying offsets was slow and prone to error, relying on outdated systems. By applying advanced models, AI can synthesise vast datasets to measure, verify, and monitor offsets with unparalleled accuracy and precision,” he says. If it works, it could be an essential step in taking carbon credits from where they are — murky, unverifiable, and often a lot less gren than they look — to where they need to be. “Carbon credits that are credible and backed by robust, transparent data help businesses meet regulatory requirements, build trust with stakeholders, and support decarbonisation goals,” Horn argues, citing the idea that “trust is critical for scaling sustainability initiatives and maintaining reputational integrity.”  

      A-eye in the sky — How does integrating satellite, drone, and ground data enhance supply chain sustainability strategies? 

      Of course, the trouble with AI is that, no matter how advanced the model you’re using it, if you’re data’s bad, your results won’t be worth the trees you burned to run your city-block-sized data centre. 

      Horn proposes a “synthesis of satellite, drone, and ground-level data” fed into AI. By leveraging multiple high-level image and data gathering methods, AI could provide supply chains with “a multi-layered view of risks. This, Horn continues, is vital for supply chain leaders managing risks like flooding, deforestation, or biodiversity loss. 

      “These diverse and comprehensive data inputs offer the ability to monitor changes at the first mile validating findings and providing precision where needed,” he says. Also, he notes that as regulations such as the EUDR require stricter environmental reporting, these tools enable companies to deliver more verifiable data than before, allowing them to remain compliant in a stricter regulatory environment. 

      AI takes centre stage in the climate crisis

      In many ways, AI is a totem for the many (often contradictory) ways we are tackling (and refusing to tackle) the climate crisis. AI can be a powerful tool for gaining transparency into supply chains, potentially reforming a broken carbon credit system and helping to hold the world’s biggest polluters accountable. It is also one of the biggest sources of emissions growth in the world. Does the good that it has the potential to do outweigh the benefits of, say, just turning those servers off? If we’re going to talk about offsetting emissions, how about balancing out the emissions of a large industrial nation by just turning off all servers powering a technology that Microsoft’s CEO admitted is generating basically no economic value

      However, optimists like Horn argue that “the next 5 to 10 years will see AI take centre stage in transforming the approach taken to addressing climate-related risks.” The technology’s ability to analyse and reconcile vast datasets could help accelerate methane avoidance projects, conduct real-time risk assessments, and predict extreme weather events like floods, droughts, or wildfires before they take place, helping businesses protect their operations from disruption. This, he notes, “will be especially critical as extreme weather events become more frequent.” 

      Whether the impact of AI on the carbon credits market is positive and transformative, or just another way for a dirty sector to look clean, remains to be seen.

      • AI in Supply Chain
      • Sustainability

      Aileen Ryan, President and CEO at RAIN Alliance, looks at the role of emerging technologies in supporting the push to decarbonise supply chains.

      Globalised and interoperable supply chains have opened up business opportunities like never before. From car parts to clothes, an increasing number of businesses are now operating on a global scale, opening up access to cheaper materials, regional labour specialisations, and perhaps most importantly of all, a much wider customer base. This globalisation has, however, also led to more complex supply chains and technology deployments to help businesses overcome these challenges and ensure optimised operations.

      Adding to the complexity are the increasing expectations that businesses must be accountable for their environmental impact. 54% of consumers have stated that they’d be willing to pay a premium for sustainable products and over the past five years, products making claims related to Environmental, Social, and Governance (ESG) objectives accounted for 56% of all growth in consumer spending. 

      This sustainability focus is also now extending into regulatory requirements, such as the European Union’s incoming Digital Product Passport (DPP) – part of the European Green Deal and Circular Economy Action Plan, ramping up pressure further.

      So, how can businesses ensure greener, more transparent supply chains to meet customer demand and comply with environmental legislation? Existing data and technology deployments may hold the answer.

      Enhancing supply chains

      Businesses across all sectors have undergone a seismic digital transformation in the last decade, deploying new technologies to increase visibility into their supply chains and enhance operational efficiency using the generated data insights. 

      RAIN: a standards-based UHF RFID technology is one such technology. Many industries already use RAIN to enable deeper visibility and traceability through its data-driven insights. In 2023, 50% of the 45 billion RAIN tags shipped went to the retail sector. Applications for the technology include inventory management, supply chain management, and loss prevention – enabling businesses to minimise waste and maximise profits. Organisations are also using the technology in their supply chains to enable smarter, more efficient manufacturing production processes, predictive maintenance, and location of critical assets, and to streamline logistics operations through enhanced supply chain visibility.

      Added capabilities without huge cost

      With sustainability increasingly a strategic and regulatory priority for supply chains, businesses are understandably nervous about the cost and resources it will take to ensure they are able to meet the necessary traceability and transparency requirements of the DPP.

      The impending regulation will require companies to provide detailed product information, including the product’s origin, its composition, and the manufacturing process. Tracking a product throughout its entire lifecycle will be crucial to ensuring transparency across the supply chain as it validates that raw materials are responsibly sourced. Without a transparent and easily accessible method to trace all constituent parts that make up their product this can be a difficult task for supply chain professionals. 

      This is where existing technology deployments like RAIN can play a key role, as the data which is already available from tagged products in many supply chain operations and is used to optimise inventory management, logistics, and asset tracking can be harnessed for traceability and sustainability reporting purposes. The added benefit here is that no new technology is required, meaning businesses don’t have to incur huge costs or drained resources as they adapt to enable more sustainable, traceable supply chain operations.

      Enabling smarter choices

      A data led approach to supply chain management enables businesses to make more informed choices that optimise resource allocation and reduce product wastage. This efficiency has a direct impact on sustainable business practices. Enhanced visibility into inventory management helps prevent overordering, and reduces the time taken to take stock. These benefits can be critical for industries such as food or pharmaceuticals, where getting the product to market before a sell by date is critical. Less idle time and less overordering means less waste, which in turn results in a more sustainable and more profitable supply chain.

      Enhanced and verifiable traceability also brings with it the additional benefit of consumer trust. With more individuals making purchasing decisions based on a brand’s sustainability policies, the ability to trace a product from source provides trust that the brand is adhering to the sustainable values it claims.

      And it’s not just the products themselves that can be tracked. Using RAIN in logistics and fleet management gives real time visibility into the location and condition of each tagged item throughout the supply chain. This allows organisations to identify and rectify any bottlenecks in the supply chain quickly. At the same time, RAIN sensors can also provide information on potential risks to the stock such as temperature changes, humidity levels, or how much the product is vibrating while in transit. Furthermore, a RAIN tag can provide information even when a vehicle is moving, helping enhance delivery centre throughput. This enhanced data gives unparalleled control over logistics management, helping reduce waste and achieve sustainability objectives.

      Using DPP to give new life

      The data already captured through existing technology – such as RAIN tags – also offers businesses an opportunity to better manage products at the end of their lifecycle. The information stored on a tag can include all the necessary details to optimise sorting and recycling, inform decisions about refurbishment or reuse, and sustainably manage the product’s end-of-life. And soon, this focus on circularity won’t be optional. 

      DPP regulations will require that all necessary information on the composition and recyclability of a product is readily available throughout its entire lifecycle. With distance and mass-reading capabilities, RAIN technologies give companies the tools to meet these DPP requirements with efficient, accurate, and cost-effective sorting processes. 

      An interoperable future for sustainability

      From the largest heavy industry manufacturers to the local farm shop, being able to streamline the manufacturing process, improve timelines for deliveries and efficiently manage inventory are fundamental to retaining profitability. The need for greater supply chain sustainability at the same time adds to the challenge. However, by harnessing existing technology in the right way, organisations can ensure they resolve both of these issues simultaneously and without added costs.

      Using interoperable data carriers such as RAIN allow business to unlock operational efficiencies and enable access to key information on a product’s composition, its journey along the supply chain and its eventual recyclability. 

      DPP requirements call for agile, market-driven systems that are accessible and affordable to all. The more stakeholders within a supply chain that take part, the better optimised a system can be; this is the key to true circularity. A transparent supply chain gives businesses a way to verify sustainable sourcing and practices in a way that doesn’t just meet legislated mandates, but also builds consumer trust, helping businesses stand out in a market that’s increasingly focused on sustainability.

      • Digital Supply Chain
      • Sustainability

      Holly Clarke, Product Manager Inventory AI at Peak, looks at using digital tools to better predict demand in the construction supply chain.

      The UK construction industry took a hit last year. In September, PwC predicted there would be an overall real spend contraction in the sector of -2.1% for 2024. But it’s not all bad news – it also estimated the sector would “return to a growth rate of 2.9% in 2025, overcoming headwinds linked to sustained high interest rates and investor caution”. So, we could see a significant increase in demand as the year goes on. But swings in predictions and several potential cuts to interest rates this year epitomise a market that remains uncertain and unpredictable. 

      Either way, the need to swiftly adjust prices and inventory levels to optimise performance and hit goals like On-Time In-Full (OTIF) is crucial for business success. For building materials suppliers in particular, optimising quotes to get good margins and ensuring inventory is in the right place at the right time can make all the difference in overcoming supply chain challenges and variable demand. 

      Getting inventory to the right place at the right time 

      Unlike running out of food in a restaurant, where customers can order other items off the menu, not having crucial materials for a construction project can bring development to a standstill. But because of this, organisations can end up holding too much stock in some locations to mitigate this risk, or holding too little at other locations without the ability to move it swiftly to where it needs to be. 

      Consequently, such an inefficient inventory management system can create added risks: too much stock generates waste from unused materials and higher storage/operational costs, too little leads to supply chain delays and missed sales opportunities, and both aspects impact profitability.  

      So, the question arises: how can you ensure you always have the right materials at the right sites? The key factor? Real-time visibility of inventory levels across your network. This enables you to order, balance and forecast stock levels throughout your network to ensure optimal stock levels at each location with high OTIF performance. And that’s made possible using AI. 

      A(I) dynamic approach 

      The supply chain disruptions in recent years have made ordering the right levels of products and materials increasingly challenging. What’s more, high inflation and low economic growth have also contributed to a market with fluctuating demand, making it harder to predict how much stock to hold for potential construction projects. 

      But the latest AI inventory optimisation platforms use AI to offer dynamic inventory capabilities. Through these platforms, manufacturers  can accurately forecast demand, with AI analysing data like inventory, sales, service and availability – alongside the costs of holding too much stock – to build ideal inventory levels at each location. This includes harnessing stock replenishment capabilities, with AI analysing data across the network to match quantities of stock with demand and free up working capital tied up in slow-moving stock. 

      In a construction context, for example, AI-generated insights might show that one manufacturing site has sufficient materials to meet customer orders, but that another site only three miles away is low on stock. So, instead of the low-stocked site producing or buying more stock, transferring a certain quantity between the sites or making the delivery from the better-stocked location could be a cost-efficient and effective alternative.

      Of course, from bad weather disrupting deliveries and sales to new materials needed for an influx of orders, there are so many variables that can impact inventory levels. That’s why AI is so beneficial in analysing a vast range of factors across a vast array of systems and providing supply chain managers with the information needed to make accurate, data-driven decisions. 

      Securing the best quote 

      The costs of materials and services, alongside demand, can fluctuate throughout the year, so material quote prices should do the same. 

      But pricing lists can remain stagnant for months, with teams reliant on spreadsheets. What’s more, potential clients want quotes delivered quickly, tailored to their needs. Again, trying to work out the right quote can be a complex and time-consuming activity. Not only that, but with quotas to hit or pressure to secure business, companies might over-discount, or price the service too high. All of this risks losing business to competitors. 

      The optimal price, however, will win new business without leaving money on the table. AI can automatically provide companies with recommendations for optimal price recommendations,  including list pricing and quotes. By digesting data from across the company and balancing complex manufacturing demand with business KPIs, technology can preserve margins while also driving revenue.

      This dynamic pricing, coupled with the financial and performance gains made from keeping optimal stock levels, allows these companies to offer far more competitive, tailored and flexible quotes. 

      Empowering manufacturing teams to stock smarter and build better

      As we begin 2025, for now, predictions of growth in the sector from last year stand in contrast to an economic landscape still struggling to recover. Hopefully this takes a turn for the better and, along with it, demand for construction. But such uncertainty simply points to the need for tools to optimise inventory levels and quotes to best protect business and profits.

      Using AI, building materials suppliers can maximise their margins while avoiding stockouts, cost overruns and lost deals. It provides a dynamic strategy for both inventory and pricing – and that’s vital in such a volatile landscape. 

      By maintaining optimal stock levels and providing the optimal pricing in every instance,manufacturers are primed to consistently meet sales targets and service level agreements with their customers. By using AI to stock smarter, they can build better.

      • AI in Supply Chain
      • Collaboration & Optimization

      Joe Depeau, Senior Engineer at Neo4j, explores how new data-driven digital tools and technologies are increasing supply chain resilience.

      In recent years supply chains have become increasingly interconnected, creating both challenges and opportunities for change. While digitalisation has made our supply chains ‘smarter’, it’s also rendered the industry vulnerable to new kinds of disruption, both in the physical and digital realms. 

      Cybersecurity is just one example. The ransomware attack on supply chain management specialist Blue Yonder provided clear evidence of the disruption such incidents can cause. An attack on the company’s managed services environment disrupted a number of grocery and retail stores in the UK. This left retailers struggling to pay staff and manage their schedules on time.

      Such incidents show just how important scenario planning can be to avert these crises. If plans to mitigate potential impacts aren’t mapped out, these events have the potential to completely halt production, impacting revenue. Data is absolutely pivotal to the efficiency and efficacy of today’s supply chains. However, incidents like the one above show supply chain data currently isn’t being safeguarded or optimised effectively to circumvent real-world disruption.

      That being said, many businesses are beginning to explore new technologies and techniques to improve resilience across their supply chains.

      Supply chain data is being restricted

      It’s no secret that the supply chain is a high-stakes, inherently complex industry. It’s made up of producers, warehouses, transport, distribution ports, and stores worldwide. If one blockage or breakdown takes place anywhere it can topple the entire system. Therefore, visibility is key to preventing knock-on effects.

      However, extracting valuable insights from supply chain data in raw form can be difficult. Traditional data models struggle to analyse complex data due to their file-like structure. Because they predominantly consist of a rigid format of tables, rows, and columns they struggle to capture the intricate connections between different sets of data.

      The invisible string in the supply chain made visible

      Unlike these legacy models, graph databases are uniquely structured using ‘nodes’ and ‘edges’. ‘Nodes’ are used to represent a person, a product, a place, or an existing entity in a graph. ‘Edges’ represent the relationship between two nodes – i.e. how they are connected to one another. These properties are invaluable if you want to visualise a supply chain as the network in a digital form.

      If a supply chain organisation wanted to optimise transportation, for example, they could create a node to represent each wholesaler and connected retailer. They then use an edge to show their relative distances and run the appropriate query, or request, in the model. The resulting output should highlight for the analyst what, in practice, should be the ‘best’ – fastest and cheapest – supplier from which goods can be transported ready for purchasing.

      Understanding the relationship between two different entities ahead of time can be immensely useful in the event of unexpected disruption. Take the crisis in the Red Sea for instance. There, shipping companies are enduring rocketing shipping costs and product delivery delays as a result of rebel attacks. Using graph technology in this way could allow those managing supply chains to pinpoint efficient alternative routes or solutions to get goods to suppliers, increasing resilience and minimising disruption.

      It’s those edges linking each entity that make graph database technology a powerful tool for revealing insights – particularly in supply chains, which are graph-like networked structures, made up of a myriad of connections, after all. It’s a stark contrast with older, more rigid data models, where these relationships are much harder to uncover due to the way the data is structured.

      Digital twins for combating cyber risks

      Supply chain resilience isn’t purely about the physical realm, though. Incidents such as the cyber attack on Blue Yonder can have a huge impact on digital operations. Many organisations are now exploring digital twin technology as a tool to combat attacks. The applications of which spac from before the attack begins through to post-incident analysis.

      They’re doing so by creating virtual replicas of supply chains in what are called ‘knowledge graphs’. These are used to test different scenarios and generate multiple outcomes of cybersecurity risks. In essence, this means access to a connected, virtual model of their supply chain. Using this model, companies can gain a holistic, granular picture of a network. They can know intimately which systems connect to one another. Not only that but they can see users and the groups they belong to, as well as their permissions. And so on. The digital twin then becomes more accurate over time as details of recurring or interconnected events are captured, allowing cybersecurity and supply chain analysts to take faster and more effective action in the present, and inform how they respond in the future.

      When those connections are made visible to cybersecurity analysts, it’s easier to identify where the greatest vulnerabilities impacting critical resources lie, and potential attack paths to those resources. Plus, they can also predict which attacks are the most likely to succeed by attaching the probabilities to each of those pathways. This then allows them them to bolster security accordingly.

      That knowledge is immensely valuable because it clearly signposts when organisations need to map out other viable routes, transit times, and cost implications. The combination of cybersecurity modelling and supply chain optimisation becomes an impactful formula for organisations to stay ahead of curve balls in the real world and re-prioritise resources in quicker succession.

      How the evolution of graph data bases is mitigating against cyber threats

      The complex web that is the global supply chain is constantly under threat. However, organisations can become more resilient by tapping into the power of graph databases.

      It’s the relationships in supply chain data that reveal the most efficient ways of rebounding from unforeseen incidents. Incidents that would otherwise be detrimental to business. In both the real and the digital world that deeper understanding of complex networks, and their level of resilience, is what can truly set organisations apart.

      • Digital Supply Chain
      • Risk & Resilience

      Anthony Michael, Senior Practice Director at Searce, looks at the role of AI in helping supply chain organisations elevate their location intelligence.

      The global supply chain industry is at an inflection point. Rising demands, sustainability pressures, and evolving consumer expectations are pushing companies to rethink operations. Modern technologies like AI and location intelligence are no longer optional – they’re essential. To navigate this complexity, companies are actively exploring modern technologies like AI and location intelligence – not as optional tools, but as essential drivers of efficiency, resilience, and cost savings. And we’re already seeing the real impact. Benefits range from enhancing demand forecasting and optimising delivery routes to enabling real-time decision-making. With AI, supply chains are beginning to unlock their full technological potential

      Forward-thinking enterprises are leading the charge, proving that the right innovations can drive measurable outcomes. Admittedly, some use cases may initially seem generic. However, their real value becomes clear when they deliver tangible improvements in key KPIs. These improvements include, for example, profitability and improved customer lifetime value (LTV). 

      Location Intelligence as a catalyst for efficiency

      Simply put, location intelligence uses geospatial data – such as routes, distances, and landmarks – to generate actionable insights for transportation, logistics, and inventory management. For supply chains, location intelligence plays a pivotal role in improving operational efficiency, enabling smarter decision-making across site selection, delivery optimisation, and fleet tracking. 

      Consider the case of one of Southeast Asia’s largest utility companies. In conversation with its CTO, they shared a unique challenge. The organisation struggled with ensuring that all utility drivers operating across multiple routes finished their shifts at the same time. This wasn’t just a matter of convenience – it was critical for avoiding union disputes and maintaining operational harmony. Location intelligence proved to be key. By analysing routes, stop times, and driver schedules, the company synchronised shift end times across its workforce. This not only prevented potential conflicts but boosted overall efficiency, showcasing how geospatial insights can solve complex challenges.

      A similar transformation took place with a logistics provider in EMEA. Faced with rising toll costs and inefficiencies in cargo delivery, loading, and unloading times, they turned to location intelligence to optimise operations. By analysing optimal routes and streamlining workflows, they successfully reduced toll expenses from 4% to 1%. Also, they managed to cut overall unloading times by 40%. 

      Elevating customer experience through real-time insights

      For supply chain businesses, transparency and communication are critical. Customers expect real-time updates on their orders, and companies that provide accurate tracking can improve satisfaction while reducing service costs by minimising inquiries and complaints.

      Beyond basic tracking, real-time insights powered by AI and location intelligence are transforming supply chain management. Predictive analytics enable businesses to anticipate order surges, optimise inventory, and provide more accurate delivery timelines. Advanced delivery prediction takes this further, allowing companies to forecast delays and proactively re-route shipments to minimise disruptions.

      AI’s pervasive influence on supply chains

      We’re living in a transformative era where no article on any industry is complete without the mention of AI and the impact it’s started to have on key industry KPIs. AI is revolutionising how the supply chain industry operates, transforming every aspect from route optimisation and demand forecasting to risk management and predictive maintenance. By harnessing advanced algorithms and real-time data analysis, AI empowers businesses to anticipate disruptions, enhance safety, and improve efficiency across the supply chain. 

      One of the most impactful applications is predictive analytics. By analysing historical data and external factors like weather patterns, traffic conditions, and geopolitical risks, AI can forecast supply chain bottlenecks before they occur. This allows businesses to proactively adjust routes, optimise inventory levels, and avoid costly delays.

      The GenAI factor

      Generative AI, a subset of the larger AI universe, is also helping businesses by streamlining customer service through AI-powered chatbots, significantly reducing complaint resolution times. Additionally, Gen AI models are being trained on company-specific documents – legal, operational, and financial – to make sure disputes are managed efficiently. 

      But AI’s influence extends beyond text-based solutions. Video and audio analytics are being applied across a wide range of use cases. For example, AI-powered cameras installed on trucks can capture real-time road conditions, enabling drivers to adjust routes and rest periods for safer, more efficient journeys. Meanwhile, Optical Character Recognition (OCR) technology, once limited in its scope, has advanced significantly, now achieving greater accuracy in address recognition and faster delivery times. This not only speeds up order fulfilment but also cuts operational costs. In fact, we’ve seen up to 100x cost savings in courier companies by reimagining workflows and optimising document extraction models.

      That said, AI’s influence extends beyond operational improvements. As businesses face mounting pressure to adopt environmentally responsible practices, AI is emerging as a critical enabler of sustainability, helping companies reduce emissions, optimise energy use, and build more resilient supply chains.  

      Building a sustainable future

      As the earth experiences record-high temperatures, with global warming predicted to pass 2.9°C this century, the need for sustainable supply chain practices has never been more urgent. Supply chains account for a significant portion of global greenhouse gas emissions, particularly Scope 3 emissions – those generated across the value chain, from production to transportation. These emissions are both dangerous and complex to measure, as more than 70% of them stem from supply chain activities and often extend beyond a company’s direct operations. 

      AI plays a crucial role in addressing these challenges. By optimising transportation routes, improving energy efficiency, and enhancing supplier audits, AI helps companies reduce their carbon footprint without compromising operational performance. Real-time data analytics enable smarter decisions, such as consolidating shipments and choosing lower-emission routes.

      AI-powered carbon tracking provides clear insights into supply chain emissions. This helps businesses set realistic sustainability targets and meet evolving ESG requirements. With frameworks like the EU’s Corporate Sustainability Reporting Directive (CSRD) driving accountability, adopting AI-driven solutions is key to staying compliant and competitive. 

      Navigating ethical and practical challenges

      AI holds significant promise for improving supply chains’ operational efficiency. However, the technology also poses ethical challenges. 

      Concerns around data privacy, algorithmic bias, and job displacement are among the most pressing. Without clear frameworks, AI-driven decision-making can undermine trust and expose companies to reputational and regulatory risks. 

      Addressing these challenges starts with establishing a strong governance. Businesses need clear AI frameworks that ensure ethical standards, data security, and regulatory compliance. This involves an inclusive approach through cross-functional collaboration across departments and stakeholders. Bringing together employees, partners and customers, ensuring AI systems are transparent, fair and accountable needs to be a holistic effort.

      Equally important is ensuring workforce readiness. As AI reshapes supply chain operations, businesses must invest in upskilling employees to work alongside intelligent systems. Ideally, this will turn potential disruption into an opportunity for innovation.

      By embedding ethical practices into AI adoption, companies can not only unlock supply chain efficiencies but also build resilience and trust across their ecosystems.

      • AI in Supply Chain
      • Collaboration & Optimization

      Siddhesh Parab, Solution Architect (Manufacturing and Supply Chain) at Percipere, looks at the need to modernise legacy technology in the supply chain.

      Mid-market supply chain companies around the world lack the resources required to thrive and adapt in today’s fast-paced digital world. Despite this, 97% of supply chain professionals recognise the urgent need to modernise their IT infrastructure. They acknowledge that the current systems are inadequate for meeting the needs of modern supply chains. Many companies still rely on legacy technology, some of which is over 20 years old. As a result, integration issues are profoundly prominent for both suppliers and customers. This needs to change.

      We live in an era where disruptions like port strikes or labour shortages are becoming increasingly pervasive. Reliance on manual systems is no longer sufficient for supply chain management and business continuity. 

      Consequently, transformative solutions including enterprise resource planning (ERP) modernisation, shopfloor automation, and warehouse automation solutions have been in greater demand.

      Embracing these advancements has become a necessity for mid-market companies that wish to remain resilient and competitive amid evolving challenges within the industry.

      The creation of disparate systems

      Without the bespoke advancements that modern technology brings, current legacy methods are creating disparate systems brought on by tools reliant on manual processes. These challenges include the following:

      Operational inefficiencies

      Legacy ERP and customer relationship management (CRM) tools require manually inputting, storing and extracting data in systems like Excel spreads, increasing the risk of human error. Additionally, this dependency demands significant time and effort to maintain and keep track of such data.

      Maintenance costs

      Legacy systems are expensive to maintain, making them cost burdens to mid-market companies. Additionally, due to a lack of resources available, legacy systems are often difficult to repair. 

      Security risks

      In order for supply chains to run smoothly, regular software updates are integral. With this in mind, mid-market companies that use legacy systems are much more vulnerable to cyber attacks, data breaches and other security threats because the systems are unable to support new updates. 

      Scalability issues 

      With the growth of complex, modern digital operations, legacy systems often struggle to adapt to new technologies, meaning mid-market companies are more likely to fall behind competitors due to incompatibility and inflexibility issues which lead to missed opportunities.

      Limited visibility

      Real-time visibility is a key driver in ensuring smooth operations within logistics and warehouse management. Unlike modern technology, legacy technology is unable to provide visibility on operations, meaning issues like delays and inventor discrepancies are likely to occur. 

      Building resilient supply chains

      Mid-market supply chain companies that still run core processes on siloed, legacy systems lack the clear, structured foundation that is essential for effective digitisation. 

      Ultimately, building smart, resilient supply chains requires a shift to intelligent workflows, powered by artificial intelligence (AI) and machine learning (ML). These solutions have the potential to predict demand and supply needs while also being able to automate workflow efficiency.

      Modern advanced solutions: seamless collaboration 

      The first step in moving from a fragmented, transactional set of systems to proven, modern advanced solutions is through the seamless integration of automation technologies directly into core systems like ERP. 

      These tools revolutionise operations by improving collaboration across the supply chain, ensuring a unified way of working, and alleviating any supply chain issues by strategically upgrading or replacing legacy systems. Other benefits include the following:

      • Enhanced handling: Intelligent solutions empower warehouse management teams to efficiently handle all inbound logistics. This includes the inward of materials from external suppliers, internal transfers or customer returns and the handling of units.
      • Scalable cloud infrastructure: Cloud platforms are preferred for ambitious mid-market organisations because they are a highly scalable and modular approach that supports growth. Instead of engaging in complex capability expansion projects, cloud-based solutions allow businesses to adjust capacity based on their needs.
      • Optimised production: A manufacturing execution system (MES) supports efficient, more transparent production management, enabling swift resolution of quality and productivity issues quickly while reducing warranty and liability risk.

      AI: driving operational efficiency 

      Additionally, the implementation of AI-driven technologies such as automated bots and operational assisting mechanisms can transform supply chain management. Adopting such technology comes with a number of benefits. These range from reduced errors, improved scalability and enhanced operational speed due to a reduction in manual intervention. These tools can help streamline workflows and reduce manual intervention. And doing so helps mid-market companies improve productivity without the requirement of huge upfront costs. Overall, this makes the transition from legacy systems to modern technology and intelligent workflows not only impactful but also cost-effective. 

      With this approach, mid-market companies can modernise their systems, ensuring AI capabilities are bundled directly into core ERP and CRM packages, allowing them to face evolving challenges head-on.

      • Collaboration & Optimization
      • Risk & Resilience

      The new crop of tools is allowing Flexport to expand supply chain visibility and management capabilities for its customer base.

      Supply chain technology firm Flexport has announced  the launch of more than 20 tech and AI-powered products designed to transform global logistics. The tools aim to help logistics and supply chain organisations increase visibility into their operations, and are based on Flexport’s own reserves of proprietary logistics data. 

      This new wave of AI-powered supply chain products and tools has made Flexport “the largest provider of AI tools for global supply chains,” according to Flexport CEO Ryan Petersen. “While many startups are emerging to provide AI tools for logistics, they lack the data required to train the AI models and struggle to sign up customers to use their technology. Our scale as one of the largest logistics providers in the world gives us huge advantages in both creating the technology and getting it into the hands of businesses operating in the real world.”

      Highlights from the release 

      The flagship product released this week is Flexport Intelligence, which allows businesses to ask questions in natural language and receive immediate insights about their supply chain performance. Flexport customers can use this AI-powered tool to build reports and create dashboards with no technical skills required, making it extremely easy for operations managers to take control of their global supply chains.

      Another major announcement within the release is Flexport Control Tower. This product helps businesses use Flexport’s supply chain technology even for shipments where they’ve contracted another carrier or forwarder to move the freight.

      Flexport “will build the smartest supply chains in the world”

      The company argues that it is “uniquely positioned” to harness AI’s full potential, combining proprietary data, enterprise-scale operations, and AI-ready tech platforms to make new innovations easily accessible to customers.

      “Flexport has been leveraging AI for years, but with the explosion of large language models and new open-source tech, we’re able to innovate faster than ever before,” said Petersen. “AI is incorporated throughout the new products and features you’ll see today. Our vision is to make global commerce as simple and reliable as flipping a light switch, and today’s technology release is the clearest sign that we’re well on our way to bringing that to life.”

      Flexport Intelligence consolidates fragmented data into easily accessible, actionable insights. The tool allows businesses to ask complex logistics questions in simple terms and receive instant answers and interactive reports. The business is also enhancing Flexport Fulfillment’s AI Demand Planning and Inventory Placement solution. Using advanced AI models, Flexport can process a multitude of client and industry data points to optimize inventory distribution across the Flexport network, ensuring we allocate the right levels of inventory as close to consumer demand as possible. The company is also expanding its use of AI Voice Agents, deploying them to work with carriers to improve quality and efficiency in its behind-the-scenes operations.

      “Flexport’s technology isn’t just about automation—it’s about augmentation,” said Sanne Manders, President of Flexport. “Our tools free up human ingenuity to tackle challenges AI alone can’t solve, delivering the highest quality service at the best value.”

      • AI in Supply Chain

      Sharath Muddaiah, Head of Portfolio Strategy for IoT Solutions at Giesecke+Devrient (G+D), explores the potential for smart labels to deliver constant visibility in the supply chain.

      Advances in technology are having a fundamental impact on the way we work and live our lives. AI is a prime example, its effects are reshaping industries, improving jobs (by eliminating mundane tasks) and arguably profoundly changing our attitudes to everyday tasks, making us more impatient and demanding instant answers and actions. Similarly, the emergence of IoT and more recently smart labels promises to have an important impact on the way we ship and move products and items across the supply chain and for everyday operations. 

      Up to until recently, once a sender despatches an item they ‘lose sight’ of its location, receiving only irregular status updates by transport and logistics intermediaries on the item’s whereabouts. But smart labels, which effectively transform any package into an IoT device, offer advanced security and seamless continual trackability, satisfying the growing need from organisations across sectors for constant visibility of their prized goods or products in transit. 

      Rising demand for smart labels

      The global smart label market is growing rapidly. Data from Precedence Research projects the market will expand at a CAGR or 16.4% from $14.10bn in 2024 to $64.42bn by 2034. There are numerous factors behind the surge in demand for smart label technology.

      What’s driving the rise in smart labels?

      Firstly, geopolitical tensions, severe weather and supply chain blockages over the last 24 months have adversely impacted global supply chains, leaving them struggling to cope with unprecedented levels of complexity and disruption. Faced with new levels of unpredictability, organisations are looking to technologies that provide real-time visibility of the location of goods, enabling them to be more resilient and informed on the status of shipments. 

      Secondly, consumer shopping habits and behaviour have evolved significantly in recent years and this is an important contributing factor to the demand for tracking technology. Online commerce continues to show strong growth. Figures from Statista highlight the fact that global retail e-commerce sales reached an estimated 5.8 trillion U.S. dollars in 2023. The figures predict that it will grow by 39% over the coming years, reaching over eight trillion dollars by 2027. And as ecommerce grows, so too does the risk of parcel fraud and non-delivery fraud (where a buyer claims they didn’t receive an item they ordered, and then receives a refund without providing proof of delivery).

      A recent survey carried out by Cifas found one in five people had or knew someone how had committed non-delivery fraud over the last twelve months. Smart labels, not only relay an accurate account of a parcel’s journey but also provide a ‘secret delivery note’; given the subtlety of the smart label design, most people would fail to recognise that the label contains a hidden tracker, since it appears to be a simple barcode or information sticker. As a result, potential fraudsters remain unaware that their actions are being monitored in real time, offering an additional layer of security.

      No news is not good news

      More positively, consumers are becoming accustomed to having greater transparency over their orders – both in terms of being assured that their parcel will arrive on time and in having full knowledge of who is providing them with the product. When it comes to parcel tracking, no news is anything but good news. Research by ParcelMonitor found that 90% of consumers check their parcel status at least once with many checking up to four times per order. Smart labels provide a continual update on the status of goods to the benefit of not only end user consumers but also every stakeholder involved in the supply chain.

      What makes Smart Labels even more appealing is that they require no additional infrastructure or maintenance. The person applying the label activates it by peeling it off and attaching it to the parcel, and the label comes ready connected without the need to set up SIM connectivity.

      Who stole all the pies?

      The applications of smart labels stretch across vertical sectors and includes car fleet management, retail, parcel and postage and freight and logistics. One example use case is the tracking of perishable items in the supply chain including food and beverage. Remarkably, a recent analysis by BSI, a global leader in supply chain intelligence, found that food and beverage products account for over 20% of all (supply chain) thefts. The recent theft of a van carrying 2500 pies from a Michelin-star chef highlighted the huge cost of food theft. While law enforcement recovered the van, the pies, worth £25,000, perished. The restuarant could have avoided such a costly disruption by sending the pies using a smart label. 

      Going beyond food theft prevention

      Smart labels however offer much more than merely a means of theft prevention. They are pivotal in enhancing food safety and improving logistics. With consumers demanding a greater level of transparency regarding the ingredients and sourcing of produce, these labels deliver accurate information and real-time alerts at every step of the supply chain – from collection from farms to processing and packaging, transport and ultimately to the end user’s kitchen.

      The food supply chain is particularly complex since it involves so many players and intermediaries beyond merely the producer and retailer. Culpability for a substandard service could lie anywhere in this chain. However, organisations can only identify where responsibility falls by using a smart label to monitor what happens when and where. Together with tracking location, smart labels also monitor temperature. This is essential to giving importers visibility into the transport conditions of their goods. If the logistics company delivers goods late or unfit for consumption, a smart label provides vital evidence to support a dispute. 

      For exporters and food manufacturers, smart labels also offer insights on the number of goods in transit or on shopfloors providing clarity on the ecosystem and the availability of their products, enabling them to take steps to improve efficiencies in their logistics.

      Modernising automotive manufacturing 

      Smart labels also have the potential to revolutionise the automotive industry, which has grappled with significant challenges in recent years. During the pandemic, the global semiconductor shortage had a staggering impact on vehicle production, with 7.7 million fewer vehicles produced than planned and leading to an estimated an estimate of a $210 billion dollars lost in projected revenue.

      While the industry continues to recover, supply chain vulnerabilities, particularly concerning semiconductor availability, remain a critical issue. A typical vehicle contains 15,000 to 25,000 components, all of which must navigate a complex supply chain involving numerous suppliers and manufacturers. This intricate network is highly-susceptible to errors and disruptions, as even a single missing part at the wrong time can cause significant production delays. Alarmingly, up to 50% of unscheduled manufacturing downtime is attributed to a lack of spare parts or stock-outs. Any blind spot in the supply chain can create a cascading effect, resulting in inventory shortages and costly delays.

      A new way to think about data

      Smart labels offer an effective solution for ensuring continuous visibility across the supply chain. Critically, smart labels are revolutionising the way data is accessed and shared among the ecosystem; to date, data-driven organisations tend to keep information in silos within various departments and processes, limiting access and hindering collaboration among teams.

      For example, logistics companies in the past might have relied on entirely separate datasets depending on their geographic locations, such as a U.S. branch operating independently from its European counterpart. The adoption of smart labels is radically changing this approach by enabling data to be collected, shared, and accessed through interconnected systems. This integration eliminates isolated information pools and fosters seamless communication.

      As a result, businesses can identify delivery issues with a level of precision that has not been possible until now, enabling them to improve accountability and make well-informed decisions to boost efficiency. This is especially critical in industries like automotive manufacturing, where the on-time delivery of specific components is vital for success. 

      The road ahead

      Like with all new technologies, there are still some considerations and challenges in smart labels that need to be addressed in order to unleash large-scale adoption. 

      Sustainability will be a major focus as smart labels become more widespread and their use cases expand. As demand for these technologies increases, ensuring reusability of smart labels will become a key consideration. Additionally, leveraging smart labels to generate valuable insights- such as tracking CO2 emissions from different transportation methods -could help businesses make more sustainable decisions and reduce their environmental impact.

      Similarly, optimising battery life will be essential for the scalability of the technology. Emerging innovations, such as 5GLPW8 and other low-power solutions, will play a critical role in addressing this challenge. Additionally, Wi-Fi has proven to be a reliable connectivity solution and will remain a cornerstone for ensuring consistent and efficient data transmission in the future.

      2025

      Organisations across sectors are already acknowledging the need for continual tracking of items and goods.

      Next year we envisage a notable surge in the adoption of smart labels as organisations across industries recognise that achieving real-time insights does not require extensive additional infrastructure. On the contrary, we believe that the instant access to critical data that smart labels provide will not only lead to increased usage of the labels but also a fundamental evolution in the way diverse industries operate.

      • Collaboration & Optimization
      • Digital Supply Chain

      Chris Green, co-founder and CEO of Xapien, explores the challenges facing the supply chain sector and the need for end-to-end visibility.

      This year is going to see compliance teams redefine what it means to truly know their third parties. The Corporate Sustainability Due Diligence Directive, in particular, has brought a sharper focus on the question: how well do you really know your third parties? 

      For many companies, the answer is increasingly “not well enough.” In 2024, KPMG revealed that almost half (43%) of organisations have limited to no visibility into their tier-one suppliers, despite 87% of respondents seeing visibility as ‘critically important’.

      Compliance processes and technologies built in the 1990s are no longer adequate or sufficient to protect against today’s risk landscape. Maintaining an effective third-party due diligence programme now requires the ability to quickly analyse vast amounts of unstructured data about third parties. Without this capability, compliance teams can’t take a truly risk-based approach, leaving companies exposed to supply chain risks. 

      It isn’t about whether AI should play a role in your system, that debate is behind us. The question is how quickly you can adopt the technology to stay ahead of evolving third-party risks. In addition to the continued pervasiveness of bribery and corruption, today’s risks are driven by a much more complicated regulatory environment, spanning globalised supply chains, prescriptive human right laws, and nuanced ESG factors. 

      2025: The year to get your ducks in a row 

      Global supply chains are more complex than ever, often spanning multiple countries and involving countless entities. For compliance teams already working under tight deadlines, this complexity creates significant challenges. The Corporate Sustainability Due Diligence Directive (CSDDD), a major EU regulation, is raising the bar for third-party due diligence. It requires companies operating in or selling to EU markets to conduct risk-based due diligence across their entire supply chain, including upstream and downstream partners.

      Meeting these rising expectations isn’t just about screening third parties. Maintaining an effective compliance programme now demands the ability to quickly analyse vast amounts of unstructured data to uncover nuanced risks like human rights violations, forced labour, and environmental harm. Current tools often fall short, offering only binary results: a third party is flagged or it isn’t. This oversimplification leaves companies exposed to hidden risks and undermines their ability to take a truly risk-based approach.

      Compliance teams frequently rely on web searches with specific search strings to find real-time risk information, but this process is limited. Search suppression often buries critical information, and manual methods rarely go beyond the first few pages of results. This adds strain to already overstretched teams and makes it difficult to comply with increasingly prescriptive regulations.

      The case for AI-powered due diligence

      Suppliers often work with their own third parties, creating complex networks that span across the globe. It’s no longer enough to simply know your tier 1 suppliers. A lack of visibility into the layered tiers of your supply chain can have serious implications for organisations in every industry, particularly when it comes to meeting regulatory requirements. Now, organisations must go much deeper into their supply chains than what’s possible through a manual process, which puts immense pressure on resources.

      AI technology is changing the procedures behind this. Unlike manual processes, AI gathers vast amounts of information, analyses it for risk, and presents findings in a clear, actionable format that resembles a human-written report. This enables compliance teams to conduct due diligence on more entities, faster and earlier in the business relationship, preventing risky entities from entering the supply chain in the first place.

      Advanced tools powered by Natural Language Processing (NLP) and Large Language Models (LLMs) go beyond static databases to identify nuanced risks, such as bribery, corruption, and ESG violations. In minutes, these tools can generate detailed reports that highlight AML risks, risky associations, and regulatory red flags that manual checks might miss.

      By applying a truly risk-based approach, compliance teams can allocate their resources more effectively. For example, they can quickly advise procurement teams not to proceed with high-risk vendors after an initial interaction, saving time and resources. Analysts can then focus their efforts on mitigating risks for flagged entities, rather than wasting time on low-risk ones.

      Where companies go from here

      Implementing changes to meet the requirements of new regulations like the CSDDD is no small task. However, the benefits are significant. AI enables organisations to streamline their compliance processes while gaining deeper insights into their supply chains.

      Compliance teams have an opportunity to change what it means to truly know their third parties. By embracing AI, they can better meet regulatory requirements and build a more resilient, transparent, and ethical supply chain. The question is no longer whether AI should play a role, but how quickly companies can adopt it to stay ahead of evolving risks.

      • Risk & Resilience

      Just a few months into 2025, and we’re already shaping up for a historic year politically and economically. Kevin Franklin, Chief Product Officer at LRQA, takes a a closer look at what the first few months of 2025 can show us about supply chain sustainability going forward.

      2025 has kicked off with businesses and their supply chains facing a seismic shift – with several political and regulatory changes on the horizon, the impact of artificial intelligence (AI) and emerging risks in key sourcing and production markets. 

      But while these changes impact policy and legislation, consumers continue to demand that brands support positive working conditions and environmental practices.

      All of these changes are being driven by 8 key trends:

      #1: A growing gap between ambitions and performance

      Ambitious targets set by businesses and governments in recent years have led to an increased focus on supply chains that has driven scrutiny, regulatory enforcement, and evolving expectations from stakeholders. But media investigations highlighting ongoing malpractice have exposed a growing gap between ambition and performance. 

      Many businesses face challenges aligning their ESG goals with actionable strategies due to supplier visibility. Compounding this issue is the complexity of varying international ESG regulations, which is causing confusion and delays in compliance efforts. 

      Uncertainty, coupled with economic and political pressures, has led some companies to scale back on sustainability targets, reflecting the tension between profitability and long-term resilience. The Harvard Business Review aptly notes, “Execution—not intention—is the core issue,” as businesses struggle to embed sustainability into core operations amidst market incentives for short-term gains.

      Added to this, supply chain data has become a double-edged sword. While companies now gather more data than ever, many lack the tools or skills to translate insights into impactful action which often leads to decision paralysis. 

      Closing the gap will require robust strategies to support proactive risk management, stronger supplier relationships, and improved data analysis. 

      #2: Labour risks in unassuming markets


      2024 clearly demonstrated that supply chain labour risks can be found anywhere, even in markets considered low risk. Issues like forced labour, child labour, and inadequate wages persist in all territories. “Safe” regions no longer exist.

      LRQA’s 2024 Supply Chain Risk Outlook report, based on data from over 25,000 audits worldwide, revealed that over 50% of assessed regions face high or extreme risk of ESG violations. Countries like Australia, South Africa, and the United States moved to higher-risk categories. 

      These changing risk profiles teach us that traditional, annual audits are lacking in today’s ever-evolving environment. They only offer a snapshot in time of compliance and miss complex issues like unfair wages or inadequate grievance mechanisms. 

      Effective data collection and analysis tools, combined with grievance mechanisms and worker hotlines, can help to achieve a state of continuous assurance and uncover hidden supply chain risks in real time, allowing brands time to address them before they escalate.

      With global scrutiny intensifying, acknowledging and tackling these risks head-on is crucial to businesses that are building more resilient and ethical supply chains.

      #3: US policy shifts create new supply chain challenges


      Shifting political landscapes and policies are rapidly reshaping the risk landscape for supply chains. In the US, the second Trump administration has already begun bringing in tighter immigration policies, anti-ESG rhetoric, and proposed tariffs on China, Canada and Mexico introducing new complexities for businesses. 

      Manufacturers are already looking for new suppliers in response to these challenges. While some may reshore, others will need to shift sourcing to emerging markets, heightening risks such as labour violations and supply chain transparency challenges.

      Changing labour policies also present domestic risks, particularly for foreign migrant workers. As the US looks to enforce strict immigration policies, the knock-on impact could be increased informal employment and exploitation. To mitigate this, businesses must prioritise fair recruitment, grievance mechanisms and supplier collaboration.

      Despite the change of political mood, supply chain sustainability remains a priority for many companies and governments globally. In the EU, the Corporate Sustainability Reporting Directive (CSRD) is driving investor demand for ethical sourcing and global regulations. In the US, State level laws like California’s Climate Corporate Data Accountability Act mandates emission disclosures even while federal policies shift. 

      #4: The trickle-down effect of regulation for suppliers


      We saw, towards the end of 2024, that supply chain due diligence regulations have begun expanding beyond traditional issues, like forced labour and emissions, to include biodiversity and deforestation. 

      Regulations like the European Union Deforestation Regulation (EUDR) require businesses to assess their supply chains’ impact on ecosystems, local wildlife, and forest preservation. This shift is pushing sustainability professionals to consider topics such as biodiversity and deforestation for a more integrated approach to sustainability. 

      However, limited data on biodiversity and deforestation makes comprehensive risk analysis challenging. The 2023 Nature Benchmark report revealed that many companies still fail to grasp how business operations intertwine with environmental and human rights concerns, putting them at risk of causing or contributing to adverse impacts.

      These new regulations are not only impacting large global businesses – they’re trickling down to SMEs as larger brands embed due diligence requirements in their supply chains. This means that while not directly required to comply with regulations such as the Corporate Sustainability Due Diligence Directive (CSDDD), SMEs are increasingly needing to adapt to meet higher standards of transparency and risk management. 

      By improving their ESG practices, SMEs can gain a competitive edge and attract larger companies looking to mitigate supply chain risk. 

      #5: A plethora of data, but quality is king

      Data quality has become a critical focus in responsible sourcing and supply chain due diligence. Supply chains are complex and global, which makes accurate, high-quality data essential for transparency and accountability. 

      Without reliable data, companies face challenges in monitoring risks, addressing human rights violations, and ensuring ethical practices. Only by using high-quality data can businesses make informed decisions to drive operational efficiency and sustainable business practices.

      Robust risk indicators are key. These are vital for tracking performance, identifying areas for improvement, and benchmarking against industry standards. 

      #6: Supplier relations must evolve from leverage to collaboration

      Many relationships between brands, retailers, and suppliers have become transactional, driven by the need for cost efficiency, speed, and flexibility in competitive markets. Brands now often prioritise price and delivery speed over long-term partnerships. 

      This shift has significant implications for supply chain dynamics. Suppliers face reduced bargaining power and constant pressure to cut costs and meet tight deadlines, which can strain operations and potentially compromise quality and sustainability. For brands, this could mean increased risks around reliability, ethical sourcing, and compliance with environmental and social standards. 

      While transactional approaches may deliver short-term benefits, they undermine the stability, trust, and resilience essential for long-term success. 

      On the other hand, strong partnerships enable better communication, risk management, and alignment across the supply chain. Supplier collaboration is key: collaborative efforts lead to shared goals and processes, which result in optimised transportation, inventory management, and faster response to market changes.

      #7: Food safety and product integrity emphasises sustainability

      Companies face growing pressure to ensure their food products are safe, ethically produced, and environmentally responsible. Consumers are increasingly aware of food origins, while laws like the EUDR demand transparency and ethical practices.

      Adopting sustainable sourcing practices is essential for addressing these challenges. 

      By prioritising food safety, fair labour conditions, and environmental stewardship, businesses can maintain product integrity, foster consumer trust, and promote long-term supply chain sustainability. This holistic approach helps mitigate risks and builds trust and loyalty among consumers while fostering long-term sustainability in the supply chain.

      Climate change is further complicating food supply chains, forcing companies to adapt sourcing strategies and explore alternative materials and locations as conditions shift. 

      Technology and innovation will play a transformative role in overcoming these challenges. Though traditionally slow to adopt digital solutions, the sector is increasingly recognising its necessity.

      With a focus on water management, packaging innovation and regenerative farming, alongside meeting evolving legislative requirements, 2025 will be a pivotal year for embedding sustainability into the core of the food sector’s operations.

      #8: Investor demand for transparent reporting

      Data shows businesses prioritising sustainability targets are more attractive to investors. 

      According to a Deloitte study, 83% of surveyed investors incorporate sustainability information into their fundamental analyses, indicating a strong preference for companies that prioritise sustainability, while KPMG reports 77% of financial investors report that ESG considerations influence their deal strategy, with many willing to pay a premium for assets with high maturity. This trend is driving companies to enhance supply chain sustainability due diligence, identifying risks and opportunities to meet regulatory requirements and increase value.

      Legislative changes, such as the CSDDD and the EUDR, are moving faster the adoption of moe strict practices. Investors are increasingly demanding transparency and accountability from companies, pushing them to provide regular updates on how they address risks across their supply chains. This heightened scrutiny ensures that businesses not only comply with regulatory standards but also meet the evolving expectations of socially conscious investors.

      In 2025, increasing investor interest in sustainability strategies in 2025 will drive businesses to prioritise their supply chain due diligence more than ever before but it will still require alignment and knowledge on requirements, standardisation, data quality and what sustainability best practice truly looks like.

      A year for action

      2025 may bring with it significant change that could fragment global supply chains and prompt companies to navigate new regulatory environments and logistical hurdles. But companies can prepare to effectively overcome these challenges – we have more knowledge, more data, more access to solutions than ever before. 

      Responsible businesses must shift towards enhancing data quality, fostering deeper supplier collaboration, and prioritising human rights protection and environmental issues. This will enable supply chain leaders to reimagine their roles as more senior and strategic, and at the centre of ethics, integrity and sustainability efforts. 

      • Collaboration & Optimization
      • Risk & Resilience
      • Sustainability

      Durgadutt Nedungadi, Sr. Vice President of International Business at Netradyne, looks at the impact of AI on logistics in the supply chain.

      Logistics, the most critical pillar in the Supply Chain, grapples with many challenges. From driver shortages to increasing road accidents, logistics operators are increasingly turning to AI-powered fleet management systems to enhance safety, improve visibility, and build more resilient, agile fleet operations.

      In today’s complex global supply chain ecosystem, ensuring fleet safety and visibility is crucial to maintaining seamless operations. While fleet operations are a critical link in the supply chain, traditional technologies often fail to deliver real-time asset visibility and management, making it difficult to mitigate potential risks effectively. 

      However, organisations are increasingly recognising the benefits of artificial intelligence (AI) technology in improving driver safety, operational visibility, and the overall efficiency and sustainability of supply chains. Research that we conducted last year—based on responses from the top Supply Chain leaders in the UK and EU—revealed that while only 33% of supply chain professionals currently use AI for fleet safety monitoring, 81% plan to implement AI solutions within the year. 

      Organisations can improve accuracy, efficiency, and profitability in their supply chains by using AI-driven fleet safety systems with computer vision, predictive insights, and better operational control.

      Speed and accuracy — the top priorities for goods delivery

      Our survey revealed that 57% of supply chain professionals consider accuracy and timeliness the top priorities for goods delivery. This reflects broader consumer trends as today’s shoppers increasingly demand near-instant delivery and greater convenience when receiving their purchases. A recent Retail Week report, ‘Shopper Unlocked: Inside the Minds of 1,000 Consumers‘, highlights that delivery experiences now outweigh loyalty perks or alternative payment options in importance for shoppers. Real-time order tracking has also emerged as a key factor in customer satisfaction, underscoring the growing demand for transparency throughout the delivery process. Businesses that fail to meet these expectations risk losing customers to competitors and potentially damaging their brand’s reputation. 

      Poor fleet visibility and driver shortages are two significant challenges hindering delivery precision in logistics and transportation. Accidents are another critical issue, causing product damage during transit, harming brand reputation, affecting driver well-being and availability, and driving up operational costs. 

      Enhancing delivery precision with AI-driven insights

      While data is at the core of effective fleet management and safety, many existing systems rely on older technologies like telematics and GPS. These technologies are often limited in their functionality and cannot provide the level of granularity that modern AI solutions based on vision can. Integrating such advanced tools into goods delivery processes can significantly enhance delivery precision and predictability by improving fleet visibility and driver engagement. 

      Modern AI tools serve as powerful data mining assets for fleet managers, analysing large volumes of data from a wide range of sources to deliver actionable insights. For example, motion sensors such as accelerometers and gyroscopes, which track the speed and orientation of vehicles, can provide valuable insights into driving manoeuvres. When combined with data from computer vision systems, these insights offer fleet operators an accurate and holistic view of their operations, helping them to make proactive adjustments to routes or schedules and helping maintain fleet safety while ensuring the timely delivery of goods. By improving operational efficiency, businesses can provide real-time customer updates, ensure precise delivery timelines, and offer greater transparency—ultimately meeting consumers’ growing demand for reliability and visibility in the delivery process. 

      Smarter fleet safety management

      AI’s real time data analysis capabilities also play a crucial role in fleet safety. Research shows that human error accounts for over 70% of road accidents, with driver fatigue, excessive speed, and inattention cited as the most common contributing factors. AI systems work to minimise these errors by actively identifying and addressing safety risks. For instance, AI-powered video-telematics and analysis can detect dangerous driving habits such as speeding, distracted driving, and tailgating. By providing real-time alerts—which automatically factor in environmental and contextual data—to drivers and fleet managers alike, these systems offer accurate risk assessments, enabling corrective actions before an incident occurs.  

      The advanced edge computing-based mapping and analysis technology integrated within modern AI solutions provides valuable insights, helping fleet operators make informed decisions about driver behaviour patterns. Not only that, but these insights also enable operators to draw unbiased conclusions in the event of an accident. According to a joint report by NETS, NHTSA and OSHA, road accidents cost employers nearly $60 billion annually. Leveraging advanced driver safety systems is critical to cutting down costs in the long run while enhancing fleet safety.

      Furthermore, modern AI-powered fleet management solutions can also create comprehensive driver performance profiles using advanced driver-scoring systems to evaluate behaviour in detail. These insights allow fleet operators to positively reinforce good drivers and reward safe driving practices through incentive programs. Gamifying the driving experience in this way helps to enhance overall fleet performance and establishes a proactive safety culture within organisations. These insights also offer critical data to support driver exoneration in road accidents, ultimately helping reduce driver churn, a significant issue within this sector.

      The benefits of these advanced technologies extend beyond the fleet itself. Improved safety and visibility directly impact the broader supply chain, driving greater efficiency, cutting operational costs, and reducing disruptions. 

      AI-powered data driving safer and more efficient fleet operations

      As transportation remains one of the most challenging aspects of supply chain management, ensuring fleet safety and visibility is more critical than ever. 

      AI-powered solutions are revolutionising fleet management by delivering real-time insights that enhance efficiency, improve safety, and enable proactive decision-making. By leveraging AI-driven data analysis, logistics providers can overcome operational challenges and gain a competitive edge in an increasingly demanding industry. 

      As businesses prioritise speed, accuracy, and transparency in goods delivery, AI will play a pivotal role in shaping the future of fleet management and supply chain resilience.

      • AI in Supply Chain

      Lyall Cresswell, Founder & CEO of TEG, explores the hurdle presented by manual processes in the freight payment process.

      As global supply chains grow increasingly complex, the pressure to build supply chain resilience and efficiency has never been greater. One area with the potential to enhance both – and one that’s ripe for transformation – is freight payment solutions. 

      Many of today’s systems still rely heavily on manual processes, slowing down an industry that can’t afford to wait. In fact, for major transport and logistics providers, managing payments can be just as complex as moving the freight itself

      This presents a serious challenge for companies trying to scale in an increasingly competitive market.

      The critical role of speed and transparency

      Manual payment processes are more than an administrative headache; they’re a fundamental barrier to business growth. Today’s logistics providers lose countless hours manually processing documents, lining up payments, and responding to carrier enquiries, creating inefficiencies that ripple across the entire supply chain. 

      Modern network-based payment solutions can combine agile payments with real-time visibility, and can even automate the auditing process, which can transform operations. 

      Our data shows that by automating settlement solutions, providers have reduced back-office tasks by up to 90%, freeing up valuable resources.

      Facilitating collaboration to unlock efficiency

      The traditional approach to freight payments has inadvertently created friction within the industry. Even large logistics providers find themselves working with a limited pool of trusted carriers, while carriers themselves remain cautious about new partnerships due to typically lengthy payment terms. 

      Modern payment solutions break down these barriers by removing friction. When carriers know they’ll be paid within hours rather than months, they’re more willing to join new networks. This expanded carrier network gives logistics providers greater flexibility to meet customer needs and maintain service levels, even during peak periods or disruptions.

      Building cross-border trust 

      For logistics providers operating globally, payment transparency is paramount. Building trust across different currencies and regulatory frameworks has always been challenging. Digital payment solutions change this dynamic entirely. When payments are automated and fully traceable, both parties can spend less time on dispute resolution and more on strategic collaboration. 

      A digital audit trail means instant visibility into the status of payments, with the ability to catch any potential discrepancies before they become issues. TEG’s new freight audit tool will do this automatically; it can spot discrepancies instantly to reduce invoicing errors. This has the power to transform financial interactions from a potential source of tension to a platform for stronger partnerships.

      Additionally, innovations like our sister company Trustd, the market’s first digital ID and credentials verification app, provides another layer of security. Trustd verifies all business and operating information ensuring businesses are legitimate and their banking details are correct and accurate, removing the need for manual checks.

      Driving innovation for competitive advantage 

      Payment technology is becoming more than just a way to pay suppliers – it’s now helping companies grow and adapt. 

      Take TEG’s integrated settlement solution, SmartPay, as a prime example. It can process thousands of payments in seconds on one platform, and also offers non-recourse finance options providing the kind of ease, security and financial agility needed in today’s fast-moving and massively fragmented market. As an example, a premier time-critical freight business active on the TEG platform, Speedy Freight, transformed their payment processes dramatically using our technology.

      Members of the Accounts Payable team would spend days every month working through and paying up to 4,000 suppliers, and they were able to radically cut down this processing time. 

      By streamlining payments, service providers can work with an expanded network of carriers across wider geographies and also improve their own service offerings. The ability to do so is becoming increasingly crucial as supply chains grow more complex.

      The future of freight transport

      The transformation of freight payments extends far beyond technology. It’s about building a more responsive, transparent, and interconnected global supply chain. 

      As customer expectations evolve, the ability to move quickly and collaboratively will become even more critical. The future of transport and logistics belongs to those who can turn financial processes from a bottleneck into a competitive advantage.

      • Collaboration & Optimization
      • Digital Supply Chain

      Caroline Grey, Chief Revenue Officer and Co-Founder at Treefera, thinks the future of sustainability lies in data analytics, AI, and the blockchain.

      2024 shattered temperature records, cementing its place as the hottest year in history. It’s a sobering marker of the escalating climate crisis and its cascading effects on commodity supply chains. The repercussions for businesses are stark. Danone saw 40% of its almond crop wiped out, Michelin grappled with rubber shortages, and Starbucks faced skyrocketing costs. The coffee giant paid twice as much for coffee beans sourced from regions battered by extreme weather. These disruptions expose the vulnerabilities embedded within global supply chains, where sourcing and production are increasingly shaped by the changing environment. Nowhere is this impact felt more acutely than in the first mile—the origin of commodities and carbon. It’s here that climate shifts, resource availability, and regulatory pressures converge. Without clear visibility into this crucial stage, businesses face mounting risks that threaten both profitability and long-term resilience.

      Transforming supply chains to withstand climate risks is no small task. Many regions lack the infrastructure necessary to adapt, leaving significant gaps in data capture ability and commodity tracking capacity. Historically, businesses have struggled with incomplete or outdated insights into land use, sourcing, and environmental impact, making it difficult to anticipate disruptions or take corrective action. Compounding this challenge, the cost of monitoring complex supply networks has been prohibitively high, making it difficult for companies to invest in the tools necessary to bridge the gap between growth and decarbonisation. Without a shift in approach, these obstacles will only intensify, further destabilising supply chains in the years to come.

      Regulation Is Driving New Expectations for Supply Chain Traceability

      Alongside growing climate pressures, commodity supply chains are also navigating a rapidly evolving regulatory landscape. In the European Union, policies such as the European Deforestation Regulation (EUDR) and the Corporate Sustainability Reporting Directive (CSRD) are setting new standards for supply chain due diligence. These new pieces of legislation require businesses to demonstrate transparency and compliance in how they source materials. These frameworks demand a level of traceability that many organisations are unprepared for, particularly in nature-based commodity supply chains where sourcing occurs across fragmented, multi-tiered networks.

      Elsewhere, shifting political landscapes present new uncertainties. While the EU is strengthening environmental oversight, recent moves by the United States to roll back climate commitments and signals from Argentina suggesting a potential withdrawal from international agreements reflect a growing divergence in global policy. This fragmentation creates further complexity for businesses operating across multiple jurisdictions, where compliance requirements may be inconsistent or subject to change. Faced with increasing scrutiny, companies must find ways to improve supply chain accountability, not just to meet current regulations but to stay ahead of future shifts and ensure resilience.

      Advanced Monitoring and Data Analysis Are Changing the Game

      Visibility into the first mile has historically been a major challenge for businesses. This stage—where commodities are grown, extracted, or processed—accounts for the majority of environmental impact within supply chains, yet remains one of the most difficult to monitor. The absence of reliable data has led to a reliance on self-reported information, manual audits, and legacy tracking systems, leaving businesses exposed to inaccuracies and compliance risks. The challenge is not just collecting data but ensuring it is verifiable, timely, and actionable.

      Recent advances in satellite monitoring, AI-driven analysis, and automated verification have started to close these gaps. High-resolution satellite imagery, combined with AI, is providing businesses with a clearer view of sourcing regions in near real time, eliminating the need for costly and time-consuming manual assessments. This enables businesses to track land use changes, detect deforestation, and monitor supply chain risks at scale, with far greater accuracy than ever before. By integrating AI-powered analytics with first-mile data, businesses can identify risks before they escalate, proactively mitigating supply disruptions and strengthening long-term resilience.

      Blockchain and AI: A Winning Formula for Supply Chain Integrity

      Individual technologies have made significant strides in improving supply chain visibility. However, the real transformation occurs when organisations use these tools in combination with one another. AI and blockchain, in particular, have proven to be a powerful combination. As a pair, they enable businesses to both uncover risks and establish a verifiable record of supply chain actions. AI allows companies to process vast amounts of environmental and operational data, generating insights to inform smarter decision-making. Blockchain, on the other hand, immutably records every transaction, claim, and compliance step. This creates a transparent audit trail that eliminates ambiguity.

      This approach has already demonstrated success in supply chains looking to improve the accuracy of carbon tracking and compliance reporting. For instance, Royal Family Farming, a Washington State based regenerative agriculture operation, leverages blockchain-backed traceability and AI-powered analysis to streamline verification processes for methane reduction projects. The result was a significant acceleration in project validation, cutting timelines from more than two years to just a few weeks. By integrating these technologies, businesses can move beyond outdated reporting methods and establish a level of traceability that meets both regulatory and market expectations.

      Regulatory Shifts Present an Opportunity for Businesses to Get Ahead

      Government oversight is playing an increasingly central role in shaping how businesses manage their supply chains. More than ever, non-compliance poses a reputational, financial, and operational. The delayed implementation of the EUDR and CSRD has created uncertainty, but it also allows businesses to prepare. Rather than viewing these delays as a temporary reprieve, forward-thinking companies are using this time to get ahead. They’re building more robust compliance frameworks, assessing their exposure to risk, and implementing the tools necessary to ensure traceability from the first mile onward.

      The additional time allows organisations to strengthen supplier relationships, integrate new data streams, and evaluate the role of emerging technologies in reducing compliance burdens. AI-powered verification, blockchain-backed transparency, and automated monitoring solutions are helping businesses shift from reactive compliance to proactive risk management ensuring they are ready to meet regulatory requirements when enforcement begins and drive overall supply chain resilience.

      Technology Is the Key to Future-Proofing Supply Chains

      The climate crisis is not slowing down, and the pressures facing supply chains will only intensify. The companies that will thrive in this new landscape are those that move beyond legacy approaches. Successful organisations will, instead, embrace technology-driven traceability and risk mitigation. The ability to understand and act on first-mile data is no longer just an operational advantage. It is becoming a fundamental requirement for businesses to remain competitive.

      Technology is enabling businesses to improve the efficiency of supply chain operations. Not only that, but it is also helping manage risk, ensure compliance, enhance resilience, and thus unlock new market opportunities. By leveraging AI, blockchain, and advanced data analytics, companies can transition toward supply chains that are more than transparent. Beyond visibility, they actively contribute to decarbonisation efforts. Regulatory requirements will only become more stringent and climate risks will only grow more severe. Therefore, adopting a data-driven approach will be the key to ensuring long-term stability in an increasingly unpredictable world.

      • Sustainability

      Donald Trump announced new tariffs on metal imports from the European Union (EU) this week, as well as threatening further…

      Donald Trump announced new tariffs on metal imports from the European Union (EU) this week, as well as threatening further tariffs on the UK. The decision followed his (now delayed) imposition of 25% tariffs on goods from Mexico and Canada, as well as a 10% levy on Chinese imports. While specifics (times, dates, amounts, etc.) are hard to nail down, the overall effect is nonetheless becoming increasingly apparent: President Trump is restructuring global supply chains by fiat. 

      In response, procurement, logistics, and supply chain organisations are looking to shift their processes closer to home, as the flurry of tariffs from the Trump administration forces the world’s biggest economy into its most protectionist stance since the First World War. As borders become increasingly expensive and risky things to move goods across, organisations are reportedly scrambling for a way to adapt.

      The de-globalisation race

      This week, Crown Worldwide Group, one of the world’s largest privately-owned logistics companies, announced that it is refocusing its emphasis for growth on services and divisions that are “inherently local.” 

      The business highlighted President Trump’s efforts to slow globalisation further, noting that “Events in the USA over the past several months have reinforced the prevalence of an anti-globalism sentiment.” Flaring tensions between the US and China, Canada, Mexico (its biggest trade partners) and, more recently, the UK and European Union, are reportedly giving Crown, and organisations like it, pause — provoking them to rethink how they do business. Crown’s Group CEO Jennifer Harvey commented: “Our view is that this won’t last forever — but in a business that is both global and cyclical, the last 60 years have taught us to hedge by investing in different business lines.”

      Donald Trump has said that he wants to cultivate an American manufacturing renaissance through the introduction of wide-ranging tariffs and tax breaks. Critics of his policies claim that the higher resulting costs from tariffs will result in higher prices for American consumers, not to mention chaos for American supply chains

      It’s not just Trump (but he isn’t helping) 

      Trump may be supercharging the deglobalisation trend affecting supply chains, but he didn’t start it. The trend has started to take shape in the post-COVID world, as organisations look closer to home in order to promote resilience and avoid increasingly common disruptions. 

      Crown established its business 60-years-ago in the midst of the mass globalisation of supply chains, as well as the containerisation of freight, and affordable air travel, which Harvey notes created new horizons that now seem increasingly out of reach. “Today, the world is quite different. Fewer people are moving internationally, with technology that facilitates remote work reducing the need for corporate assignments, and geopolitics making moving overseas more challenging and expensive – a trend that’s likely to continue following recent political events in the USA,” Harvey says.

      This combination of technological tools affecting the way we work and an environment increasingly defined by global conflict, compounding the lingering economic impacts of the pandemic, (both coupled with simmering anti-migration sentiment) and the rise of far right governments in places other than the US, is also driving the deglobalisation trend. 

      “Transitioning supply chains isn’t simple,” observed Eric Linxwiler, Senior Vice President, at TradeBeyond in a recent article. He added out that, in order to respond to tariffs, businesses face the challenge of “establishing new supplier relationships, ensuring quality control, and navigating new regulatory environments requires time, investment, and operational expertise.”

      • Risk & Resilience
      • Sourcing & Procurement

      Jonathan Colehower, Global Supply Chain Strategy Practice Leader at UST, looks at the trends that are poised to redefine supply chains in 2025.

      Supply chains have undergone profound transformations in recent years. These changes have been driven by disruptions ranging from the global pandemic that brought economies to a standstill to ongoing trade tensions and climate-related challenges. This persistent state of uncertainty suggests that disruption is far from over. Right now, it appears that the supply chain landscape will only grow more complex and politically charged. 

      To navigate this evolving environment, supply chain leaders must prioritise resilience, sustainability and innovation. Embracing technology, forging strategic partnerships and enhancing omnichannel experiences are key strategies that will empower companies and leaders to thrive amid uncertainty. Below we take a look at these three elements and the value they bring. 

      AI’s Transformative Role 

      Firstly, artificial intelligence is emerging as the ultimate shock absorber for supply chains. The technology is automating operations, generating real-time insights and seamlessly connecting systems. However, even before the pandemic, supply chain managers struggled with increasing complexities and rising customer expectations. 

      In e-Commerce, for example, acceptable delivery times shrunk from 7-10 days to 24 hours or less. Today customers demand real-time visibility and traceability. Therefore, AI’s ability to track every supply chain touchpoint from manufacturer to consumer has become an essential solution. 

      Beyond real-time tracking, AI enables predictive insights that help businesses proactively address disruptions and enhance resilience. However, for AI to deliver maximum impact, companies must align generative AI deployment with business objectives and workflows. 

      According to UST’s AI in the Enterprise survey of 600 senior IT decision makers the overwhelming majority ( 92%) said that their company’s AI implementation aligns with their strategic goals, demonstrating that leaders recognise the importance of this. 

      The key lies in identifying areas where AI adds the most value and re-thinking end-to-end processes accordingly. Done right, AI can revitalise business operations and elevate the industry as a whole.

      The Power of Strategic Partnerships 

      Next, globally strategic partnerships are becoming a cornerstone of modern supply chains. With globalisation intensifying interdependence – companies are finding that traditional business models no longer suffice. 

      The growing complexity and vulnerability of supply chains has made collaboration essential for reducing costs, increasingly agility and meeting customer demands. By leveraging each other’s strengths, companies can co-develop solutions, enhance operational efficiency and drive long-term growth.  

      At UST, we partnered with a global retailer to support the launch of a seamless “shop from home” digital store, ultimately helping the client achieve customer conversion rates of 4.5%. However, successful partnerships require a thoughtful approach – businesses must carefully assess the level of collaboration they require and adopt a forward-looking strategy to ensure sustained success. 

      The Rise of Omnichannel Customer Experiences 

      Lastly, the shift towards omnichannel customer experiences has become a defining trend in global supply chains. 

      The pandemic accelerated consumer demands for seamless, personalised interactions across multiple touchpoints including e-Commerce platforms, mobile apps and physical stores. As such, businesses can no longer rely on siloed multichannel options – instead they must integrate data and systems to provide a consistent and tailored experience at every stage of the customer journey. 

      Additionally, as customers continue to operate more frequently on digital channels, the demand for varied order fulfillment options from home delivery to shop in-store has increased. As such, omnichannel strategies and the ability for supply chains to communicate behind the scenes has become of utmost importance. 

      The future of supply chains lies at the intersection of technology, collaboration and customer-centricity. AI-driven intelligence, strategic partnerships and omnichannel integration will define the next era of supply chain management, helping businesses build resilience and adaptability in an increasingly complex world. Companies that proactively embrace these trends will not only mitigate risks but also unlock new growth opportunities, ensuring they stay ahead of disruption and continue to meet evolving customer expectations.

      • AI in Supply Chain
      • Digital Supply Chain
      • Sourcing & Procurement

      Chris Jackson, Chief Product and Technology Officer at Six Degrees, believes it’s not a case of if a cyber incident will affect your supply chain, but when. And, of course, how you respond.

      Managing increasingly complex and evolving cyber security risks across digital supply chains comes with the territory these days. No organisation is immune, and incidents like last year’s CrowdStrike outage show just how far the shockwaves from a mistake can reach. 

      Despite due diligence, a bug still slipped through into a software update – a very high profile reminder that procedures can break down even when endeavouring to adhere to best practices. This adds further weight to the seeming inevitability of a security lapse impacting your organisation, regardless of where it originated from. 

      In reality, it’s no longer a case of if a cyber incident will affect your supply chain, but how you will respond when it does.

      A never-ending supply chain

      Notwithstanding that supply chains are typically long and convoluted, to understand the full extent of their potential attack surface organisations must map all tiers, including indirect suppliers, agencies, contractors, and freelancers.

      This means not only considering who your own organisation buys directly from, but also who your suppliers interact with and purchase from. While this may seem interminable, it enables you to conduct a more authoritative risk assessment, as well as determine degrees of mitigation.

      Proportionality needs to be applied according to the type of supplier and the level of access they have to the corporate infrastructure. It’s a case of identifying the risk and assessing the scope of the potential damage that could result. This will avoid spending too much time on mitigating insignificant or low risks. But, generally speaking, it’s worth noting that too little effort is expended initially on understanding the true scale of the supplier ecosystem.

      It’s therefore important to go beyond typical boundaries, investigating what data is given to suppliers and what it can teach an attacker about your business that could enable them to launch a more targeted and effective attack on you specifically. Look at common vulnerabilities in their systems that you may have disregarded. This includes weaknesses in third-party software or infrastructure that could compromise data or operations, inadequate risk mitigation measures across their own third parties, and outdated or vulnerable technology systems.  

      With this visibility, calibrate risk profiles accordingly and don’t hesitate to take remedial action. This might involve updating contracts with more robust security requirements or even changing suppliers.

      Offensive cyber security

      It may sound obvious, but organisations shouldn’t wait for a security breach to happen internally or to start somewhere along the line before improving prevention and remediation plans. Proactively test the resilience of systems to assess how an incident could cascade through your ecosystem. 

      Penetration testing on its own is not enough. Be on the offensive with red teaming (attack simulation) programs and bring in external specialists with fresh eyes to help identify weaknesses internal initiatives may have overlooked. Bear in mind that a multi-faceted approach to security will give better coverage – it should never be one dimensional.

      And even with comprehensive security and attack simulation plans in place, it’s vital to test incident response and business continuity procedures.

      How thorough is your testing?

      Thorough testing your business continuity plans is vital to ensure you can rely on them to kick into action when an incident occurs. 

      Ask yourself fundamental questions. For example: is there a clean copy of the critical data I need to resume business operations? Is it appropriate to keep a full copy of the data, or should I redact certain information? How do my mitigation plans change, depending on what data is compromised? Different companies will necessarily come to different conclusions, but don’t wait for a security failure to see if the mitigations work. Test, and test again to uncover faults and deficiencies to ensure your organisation will be in a stronger position in the midst of a real event.

      It isn’t possible to forecast exactly the way the dominos will fall during a security incident, but ensuring a comprehensive approach to business continuity testing is the best preparation. Anything resembling a tick box exercise is not sufficient and could give senior management a false sense of confidence.

      Needless to say, managing supply chain risk is not a one-time effort – it’s an ongoing process that requires continuous vigilance, lateral thinking, and remedial action.

      All-round resilience 

      To build more resilient supply chains organisations must go beyond traditional risk assessments and adopt offensive cyber security strategies

      By seeking out weaknesses and simulating attacks, organisations can bring to the surface risks often overlooked by conventional methods. Offensive cyber security enables a deeper understanding of supply chain vulnerabilities, particularly those posed by third-party vendors. 

      This strategic shift not only improves defences but also scrutinises the efficacy of disaster recovery plans, essential for reliable business continuity.

      • Digital Supply Chain
      • Risk & Resilience

      Dr. Amit Kohli, Associate Professor at University Canada West, looks at the evolving role of RFID technology in the cold chain.

      This year, global supply chains will continue to expand along with the demand for perishable goods. As this occurs, the importance of maintaining products’ integrity and quality will only become more critical. Cold chain logistics are essential to the movement of these perishable products. A cold chain covers the transportation of temperature-sensitive products like food, pharmaceuticals, and agricultural items. In 2025, operating a cold chain incurs considerable challenges in adhering to regulatory standards, minimising waste, and ensuring transparency. 

      The advent of Radio Frequency Identification (RFID) technology has proven to be a game-changer in cold chain management. The technology provides real-time monitoring, accurate tracking, and improved operational efficiency.

      The Role of RFID in Cold Chain Logistics

      RFID technology utilises radio waves to transfer of data between a tag attached to a product and a reader. This facilitates effective tracking and oversight of items throughout the supply chain. In contrast to conventional barcode systems, RFID does not necessitate a direct line of sight. Without the need for a laser to scan a code, RFID is much better suited to automated and continuous data collection. When utilised in cold chain logistics, RFID offers essential insights regarding product location, temperature variations, humidity levels, and handling conditions. 

      By integrating RFID with Internet of Things (IoT) sensors, supply chain managers can gather and analyse real-time data. In doing so, they ensure that perishable items remain within designated temperature parameters. 

      For example, RFID sensors installed in refrigerated containers or storage areas can promptly notify stakeholders if temperatures surpass safe limits, thereby preventing spoilage and ensuring adherence to food safety and pharmaceutical regulations.

      Enhancing Transparency and Compliance

      Regulatory authorities worldwide, including the U.S. Food and Drug Administration (FDA) and the European Medicines Agency (EMA), implement stringent regulations governing the storage and transportation of temperature-sensitive products. The implementation of RFID technology assists companies in complying with these regulations by offering a reliable record of temperature monitoring and shipping information. This degree of transparency is essential in sectors where the quality of products has a direct effect on consumer health and safety. 

      For instance, the pharmaceutical sector extensively utilises RFID to monitor vaccine deliveries, ensuring that they consistently remain within the specified temperature parameters during transit. In the food industry, RFID-enabled cold chain systems can confirm that dairy, meat, and seafood items were transported under ideal conditions, thereby minimising health hazards and bolstering consumer confidence.

      Reducing Waste and Improving Sustainability

      Food waste represents a significant challenge within global supply chains. Organisations lose billions of dollars each year due to inadequate storage and handling practices. The implementation of RFID technology can greatly alleviate this problem by facilitating timely interventions. For instance, if the temperature fluctuates in a shipment of frozen products, RFID alerts can trigger immediate corrective measures. This helps prevent spoilage and minimise financial losses.

      Additionally, the incorporation of RFID within cold chain logistics enhances sustainability efforts by improving inventory management and curtailing overstocking or waste. Organisations can leverage RFID data to optimise logistics, enhance route efficiency, and reduce carbon emissions, thereby fostering environmentally sustainable practices in supply chain management.

      Case Studies: RFID in Action

      Food Industry  

      Walmart, a leading global retailer, has adopted RFID technology within its cold chain logistics to improve food safety and reduce losses. By incorporating RFID tags into perishable items, Walmart facilitates real-time monitoring and quick identification of compromised shipments. This initiative has led to a decrease in food spoilage, cost reductions, and enhanced consumer trust in product quality.  

      Pharmaceutical Sector  

      The distribution of COVID-19 vaccines highlighted the effectiveness of RFID in ensuring compliance with regulations and preserving potency. Pfizer and Moderna utilised RFID-enabled tracking systems to oversee vaccine shipments. This allows them to guarantee that temperature-sensitive vials were stored and transported under optimal conditions. The capability to gather real-time data and respond promptly was crucial to the success of the global vaccination campaign.

      The Future of RFID in Cold Chain Management

      As the pace of digital transformation quickens, RFID could play an increasingly vital role in cold chain logistics. Innovations in RFID technology, such as the introduction of ultra-high-frequency (UHF) tags and cloud-based analytics, will significantly improve data precision and predictive capabilities. The integration of AI-driven analytics with RFID systems can anticipate potential disruptions, streamline routes, and enhance the resilience of the supply chain. 

      Moreover, the combination of blockchain technology with RFID opens up new avenues for secure tracking and verification. The blockchain’s decentralised ledger can store data produced by RFID. This establishes a transparent and immutable record of a product’s path from the manufacturer to the final consumer. This advancement is especially pertinent in the fight against food fraud and counterfeit pharmaceuticals.

      Conclusion

      RFID technology is transforming cold chain logistics by enabling real-time tracking, enhancing compliance, minimising waste, and increasing transparency. As industries focus on efficiency and sustainability, the use of RFID-based solutions is expected to grow. By implementing RFID in cold chain operations, companies can protect product quality, foster consumer trust, and contribute to a more robust and responsible global supply chain. 

      The outlook for RFID in cold chain management is bright. The technology promises to advance the way that organisations monitor, manage, and move perishable goods globally. Organisations that embrace RFID innovations will be strategically positioned to address the challenges of contemporary supply chains while maintaining quality, safety, and efficiency throughout all phases.

      • Collaboration & Optimization
      • Digital Supply Chain

      Julian Geiger, Vice President AI Product and Transformation at the Nemetschek Group, explores the role of AI in transforming the construction industry’s supply chain.

      The construction industry is one of the sectors with the lowest level of digitisation to date. Given the scale of the sector, its considerable contribution to the global economy and its impact on the environment, it’s somewhat surprising that this should be the case. 

      Few within the industry would doubt that an increase in digitisation would have many positive effects. The efficiency and sustainability of the construction supply chain in particular would benefit from this, according to the assessment of industry experts. A practical solution for this is offered by modern, software-based construction planning systems that rely on artificial intelligence (AI).

      AI powered solutions to today’s challenges

      No industry can currently ignore the issue of sustainability. The construction sector in particular has a lot of catching up to do here and must react accordingly. It’s a lesser-known fact that the construction industry is responsible for around 38% of global CO₂ emissions. Given its carbon footprint, arguably it has a duty to decarbonise to a more palatable level. 

      Therefore, innovative and promising concepts that contribute to achieving climate protection goals are urgently needed.

      An indispensable prerequisite for achieving this goal, is the consistent digitisation and automation of processes. The main goal here is to relieve the burden on supply chains and thereby also reduce CO₂ emissions. However, the construction industry in this country does not yet have the reputation of being a digitalisation pioneer. The processes are still very rigid. This is especially true when it comes to planning the requirements of building materials and designing logistics chains. 

      Most processes are still based on paper documents, which hinders consistent processes. Waybills and delivery documents are often still signed by hand and can easily get lost. The relevant data must be entered manually into IT systems, which presents many sources of error. 

      In addition, little attention is paid to the environmental friendliness and CO2 footprint of materials when selecting them. There is also usually no comprehensive overview of which building materials are needed in what quantities, where and when. This leads to complicated and often unnecessary transport routes for trucks and other vehicles. 

      Material requirements planning: the key to efficiency and sustainability 

      In order to increase the efficiency of workflows here, maximum transparency is required along the entire supply chain. Those responsible must carefully determine how to adjust the ordering of materials to actual requirements. 

      This is the only way to effectively counteract excessive waste of valuable resources. According to GIRI somewhere between 10% and 25% of project costs are lost through errors. That’s a double-digit percentage of building materials ordered unnecessarily or used incorrectly. This leads to inefficiencies in construction, drives up costs and is an obstacle on the way to greater sustainability. However, optimised demand planning alone is not enough – attention should also be paid to where the material comes from. It is important to keep in mind that building materials such as concrete are produced in different regions and countries according to different standards. This has a significant impact on quality and therefore also influences the CO2 footprint. 

      Therefore, it makes sense to purchase materials from regional suppliers. This shortens transport routes, which in turn conserves resources and minimises pollutant emissions. 

      AI-based construction planning for maximum process efficiency

      In order to adequately address all of those challenges, well-thought-out project planning tools are required that are optimised with regard to the processes in the construction industry.

      The solutions work particularly effectively when they are equipped with AI. For example, the technology can independently recognise certain conflicts in the procurement workflows. This is the case, for example, when ordering building materials that do not match the type or quantity of the building in question. Here, AI ​​can raise the alarm and initiate an optimisation of the processes. The result? Significantly less material waste and unnecessary transport, which noticeably relieves the burden on the supply chain.

      Another advantage of AI-based planning systems is that they can handle large amounts of data extremely well, analyse them comprehensively and draw the right conclusions from them. By way of example, large construction companies work on numerous different projects in parallel and cooperate with a large number of suppliers who are spread across the entire country. The AI-supported evaluation of relevant data makes it possible to quickly see which delivery partners are suitable for a specific construction project. 

      This brings more efficiency to the supply chain. However, it is important to always keep an eye on the entire ecological balance. This includes the production of the materials, the type of transport and the delivery distance. It is possible that environmentally-friendly concrete with a longer journey proves to be more sustainable when compared to a conventionally produced building material from the neighbouring town. 

      Such an overall view requires a large amount of valid data, which can be evaluated quickly and thoroughly using an AI solution, thus paving the way for sustainable and economically sensible decisions. 

      Construction companies and suppliers benefit from demand forecasts

      In addition, AI-supported planning tools based on big data analyses can be used to precisely predict future demand for building materials. Depending on the project workload, those responsible in the construction companies can realistically estimate how much concrete, gravel or wood will be needed in the coming weeks. 

      This improves the coordination of logistics processes, optimises the use of budgets and makes a significant contribution to cost savings. On the other hand, the manufacturers of building materials also benefit; they can use demand forecasts to closely monitor the market and align their production capacities accordingly. 

      The current share of renewable energies in the power grid can also have an influence on this. If, for instance, a lot of solar and wind energy is currently being fed into the grid, the production rate can be adjusted and increased accordingly. If there is less surplus energy, manufacturers can reduce production again. 

      Ultimately, this increased flexibility has a positive effect on sustainability and climate protection. 

      AI tools determine the future of the construction industry 

      The analysis of large amounts of data and the targeted use of AI-based planning tools will significantly drive the digitalisation of the construction industry in the future – that much is certain. In this way, a variety of positive effects can be achieved, such as an efficient and sustainable supply chain.

      • AI in Supply Chain

      Lorenzo Grillo, Managing Director and Sami Dhifi, Director at Alvarez & Marsal, examine the road ahead for cybersecurity teams protecting the supply chain.

      Companies around the world are emerging from a difficult year for supply chains. As 2025 continues, they must equip themselves with up-to-date knowledge on challenges, trends and innovations to formulate the best strategies to handle increased vulnerabilities. 

      This is particularly true of supply-chain cybersecurity, which focuses on securing the entire chain of suppliers and service providers that support an organisation’s operations. 

      From geopolitical tensions to ransomware and artificial intelligence (AI)-driven threats, several factors are likely to affect supply chains this year. The concept of managing supply chain cybersecurity is not new. However, the increasingly rapid shift towards digitalisation and interconnected systems has created new vulnerabilities. Increasingly, criminal organisations and state-sponsored actors are moving to exploit these weaknesses. Their targets range from corporations to critical infrastructure, for reasons ranging from financial gain to political objectives. Regardless of the motivation, the results are often regional and global supply chain disruptions. 

      The impact of a cybersecurity failure affecting a vendor, partner, or service provider can be disastrous for a company, an entire sector, or even a nation.

      Financial Impact and Cascading Effects

      NIST’s Cybersecurity Supply Chain Risk Management (C-SCRM) defines supply chain cybersecurity risk as “the potential for harm or compromise that may arise from suppliers, their supply chains, their products, or their services.” Securing a company’s supply chain from a cybersecurity perspective is addressed by international standards and regulatory frameworks such as ISO 27001, NIST CSF, and NIS 2.

      In the past few years, cyberattacks have severely impacted supply chains across various industries, a trend that we expect will continue in 2025. Ransomware attacks have compromised supply chain automation solutions, affecting inventory management, order processing and logistics systems. Significant hacking events have frozen critical resource distribution, prompting regulatory action to enhance cybersecurity measures for critical infrastructure. 

      It is not only businesses that are affected by such incidents. Cyberattacks in the logistics industry have disrupted and affected global trade routes, increasing transportation costs and creating supply chain bottlenecks. In cases of severe impact, the disruption of supply chains and business operations can even affect economic stability, highlighting the potential for hackers to exert significant influence on the real economy.

      What to Expect in 2025

      As we enter 2025, several geopolitical and technological trends are poised to shape the cybersecurity landscape. Here are some of our key predictions:

      Geopolitical tensions and digital sovereignty. 

      Governments will increasingly prioritise control over their digital borders. Cyber conflicts will continue to escalate, with major supply chain actors in sectors such as energy, transportation, and technology remaining prime targets.

      Continued focus on ransomware and extortion

      Both state-sponsored and independent hackers will likely target private sector entities for financial gain. Vendors and contractors will remain vulnerable entry points, enabling attackers to exploit trusted relationships to compromise downstream organisations.

      Increased attacks on Operational Technology (OT)

      Cyberattacks on machinery and robotics in industries relying on OT could severely disrupt production and service delivery, directly impacting supply chain resilience.

      AI-Driven Threats

      The commoditisation of AI may lead to malicious use of the technology by some attackers. At the same time, the process of companies adopting new technologies may create unintended consequences. In some cases, these consequences might end up exacerbating supply chain vulnerabilities.

      Addressing Supply-Chain Cybersecurity Resilience Challenges

      Securing supply chains from cyber threats is inherently complex due to the nature of supply chains themselves. Cyber disruptions in planning, sourcing, manufacturing or delivery can have immediate financial and contractual repercussions. Compounding this complexity is the interconnectedness of supply chains, with companies depending on both internal and external suppliers and customers. A disruption at any point in this network can cascade across multiple tiers of suppliers and customers.

      When it comes to securing supply chains, the challenge lies in managing not only IT systems—including on-premise and cloud environments—but also applications, databases, networks and OT. Despite these complexities, adhering to foundational cybersecurity practices can significantly enhance supply chain resilience:

      Know your processes and assets

      Maintain an accurate inventory of all critical systems, processes and dependencies.

      Understand third-party dependencies

      Identify and assess the cybersecurity posture of key third-party providers and their subcontractors.

      Apply cyber hygiene controls

      Implement vulnerability management, enforce access control policies, adopt secure development practices and establish backup and disaster recovery plans.

      Prepare for the worst

      Develop and regularly test robust incident response plans.

      These measures may be manageable for smaller organisations with limited assets and partners. However, large corporations with thousands of assets and numerous critical third parties require a risk-based approach. This strategy helps prioritise investments in security controls that mitigate business risks within the organisation’s risk tolerance.

      By combining foundational practices with a risk-based approach, organisations can better navigate the challenges in supply-chain cybersecurity and build resilience against future threats.

      • Digital Supply Chain
      • Risk & Resilience

      Rob Shaw, GM EMEA at Fluent Commerce, looks at the challenges facing spare parts distributors in the current supply chain.

      As people look to make the most of their existing resources, they are opting to repair or refurbish products rather than buy new. Euromonitor’s International Voice of the Consumer: Sustainability Survey found that 24% of global consumers buy secondhand products to lead a more sustainable life, while 41% choose to repair broken items instead of buying new ones. This applies across a broad range of sectors—everything from washing machines to automotive parts to garden machinery. 

      However, the distribution supply chain for these spare parts faces several key challenges.

      1. Accessing reliable, historical fulfilment data

      One of the primary issues is the difficulty in accessing reliable historical data. Many businesses in this spare parts distribution space have grown through acquisitions, which has led to multiple back-end systems and duplicated data across various locations. As a result, they struggle to create a single source of truth for their historical order data. This is particularly important as legislation across Europe mandates the retention of several years’ worth of order data for things like refunds.

      2. Complex procurement channels

      Additionally, businesses must navigate an increasingly complex landscape of procurement channels. Whether it’s third-party logistics providers, just-in-time delivery networks, or direct to the manufacturer, the need to aggregate data from these diverse sources is crucial. However, legacy systems are still holding back many many businesses. These systems prevent them from having consistent and up-to-date inventory data when it comes time to make a purchase. This lack of visibility makes it difficult to know where an order is or if it can be fulfilled, especially when working with multiple fulfilment options.

      3. Costly intervention

      The inability to provide accurate order and inventory data results in significant manual intervention. For example, customers may need to call in to ask where their order is, or orders may need to be cancelled due to unfulfilled promises. These situations incur costs—around $3 to $4 per call to a contact centre. 

      From a customer experience standpoint, this becomes a major issue: if a customer needs a product urgently but cannot get clear visibility on delivery, they’re likely to cancel the order and look elsewhere. Improving both inventory and order visibility to guarantee reliable fulfilment and avoid losing customers.

      Additionally, there are other cost factors at play, such as the high cost of failed deliveries, especially when it comes to overseas fulfilment and address verification. For example, the cost of a failed delivery can be as much as £17 per order, further impacting profitability.  For many, these additional expenses eat into margins and complicate the fulfilment process, making it more difficult to scale operations efficiently.

      Letting go of legacy tech

      Legacy tech can’t keep up with the rapid growth faced by the automotive spare parts industry. Spare part manufacturers, dealers, original equipment manufacturers (OEMs), and distributors, require advanced technology that provides accurate, scalable inventory visibility. With an Order Management System (OMS), customers can access near real-time inventory data across all locations, offering a reliable source for stock information that is consistently up to date. 

      Streamlining access to order data in this way can improve customer experience and satisfaction by providing customers with accurate delivery promises based on live sourcing decisions – even before they place their orders. With automated processes, end users can also manage complex orders with workflows for large orders and recurring costs, reducing operational costs. Providing support for non-standard SKUs means customers can manage technical bundles, bill of materials (BOMs) and non-physical inventory such as services, which improves overall visibility and management. 

      With the right technology, customers can also optimise fulfillment with advanced sourcing logic that helps ship from the best location every time and can incorporate network priority. This helps reduce shipping costs and drives improvements in on-time, in-full (OTIF) performance. With safety stock buffers in place to protect stock at specific locations or for specific customers, customers can also reduce overselling and decrease rates of cancelled orders, which is key for profitability. 

      By letting go of process-based solutions, companies across the spare parts distributors supply chain can automate their operations and boost the bottom line.  

      • Collaboration & Optimization
      • Sourcing & Procurement

      John Forslund, Senior Director of Product Marketing at Scandit, explores how next generation barcode technology is transforming postal logistics.

      The global postal industry has had a difficult time in recent years, with challenges only increasing in 2024. The industry simultaneously has faced declining letter volumes and increased operating costs worldwide. This has led some countries to take measures, such as Germany revising postal laws to lower delivery frequency standards in a bid to ease burdens. However, in today’s on-demand society, steps like these risk undermining service quality and customer trust in vital infrastructure. 

      Strict compliance regulations and heavy financial penalties from regulatory authorities have made the situation more challenging. For example, Ofcom recently fined Royal Mail £10.5m for failing to meet delivery targets for first and second class mail — for a second year in a row. The postal operator is required to deliver 93% of first class mail within a day, a target that the company missed by nearly 20% in the year ending March 2024. Many postal services are struggling to strike a careful balance between consistently meeting these service-level agreements (SLAs) whilst also keeping costs under control.

      The current state of fluorescent barcode scanning — is it good enough?

      Barcodes have been an integral part of postal operations for a long time, but few stop to consider the key role fluorescent barcodes play in making sure letters and parcels get where they need to go.

      Fluorescent ink is used to print barcodes that contain information like destination zip codes or delivery routes, allowing for easy detection and scanning by specialised sorting machines. This technology significantly speeds up the sorting and routing processes and has been part and parcel of postal automation for many years now. 

      However, these machines are mainly used for initial processing at major sorting centres, and not throughout the entire delivery chain — the dwindling parcel volume along the delivery route simply doesn’t warrant the investment in expensive UV scanners. Thus, postal workers cannot benefit from automated routing at subsequent touchpoints and instead have to manually sort the mail. Additionally, even at sorting centres, the process can sometimes require manual intervention in scenarios when smudged or incomplete ink leads to incorrect routing. 

      All this manual work makes the process prone to sorting errors and potentially causes delivery delays due to misplaced letters, eventually resulting in unhappy customers, frustrated employees,  compliance issues and significant fines. 

      Now possible: Fluorescent barcode scanning on smart devices

      One solution to the current status quo is fluorescent barcode scanning on the go. 

      As mentioned, historically only specialised machines in sorting centres could scan fluorescent barcodes, which limited their benefits to fixed locations. However, new developments in smart data capture software can enable any camera-based handheld device (e.g., smartphones or handheld computers) to perform the same function. This innovation represents a major leap forward by offering postal workers a new level of flexibility and efficiency without any hardware investment. For instance, it allows them to access automated routing information in real time, make corrections if needed, create an audit trail, and gather operational insights — anytime, anywhere. 

      It also unlocks other key benefits for postal services. By enabling additional scanning points throughout the distribution network, post services obtain real-time visibility into the movement of letters. This tracking capability helps organisations prove they are meeting delivery deadlines, thus creating an audit trail and lowering the possibility of penalties. 

      Case study: CTT

      Take, for example, Portugal’s oldest mail provider CTT Correios de Portugal. After integrating fluorescent barcode scanning capabilities into its workers’ mobile app, all of its 5,000 postal workers were able to capture and track fluorescent orange barcodes using their phones, leading to more than 40,000 scanned letters every hour and a read rate of more than 98%. 

      CTT therefore also gained access to a goldmine of actionable operational insights. When provided with comprehensive data regarding mail volumes and delivery patterns, postal services can identify high-volume areas, peak times, or workflow bottlenecks and work towards improving workforce and infrastructure planning, helping them meet strict SLAs and avoid hefty fines, in addition to enhancing customer satisfaction. CTT is now so confident in its new-found efficiency that it increased its audit sample size from 500 monthly items to 80,000.

      This scanning technology could also send recipient notifications very soon, updating customers when postal services dispatch, sort, or deliver a letter. Such features would enhance transparency and build trust with customers.

      A competitive edge for the future

      Given the critical need for postal services to reconsider their operations, the timing of this technology is crucial. By integrating this mobile data capture capability, they may address long-standing inefficiencies and more effectively adapt to changing customer demands and regulatory requirements. 

      This technology is transformative for the industry since it makes use of existing infrastructure to streamline delivery routes, improve compliance, and ensure customer satisfaction. By integrating smart data capture innovations like fluorescent barcode scanning on smart devices, the postal industry can tap into new efficiencies whilst avoiding significant hardware costs, unlocking increased profitability and ultimately securing a sustainable future for itself.

      • Digital Supply Chain

      Madhav Durbha, Group Vice President, CPG & Manufacturing, at RELEX Solutions, looks at the potential impact of US tariffs on UK supply chains.

      The UK has not yet been hit by tariffs following the latest US election, but the possibility still looms large over the world’s supply chains. In an already uncertain environment for global trade, the extraordinary use of tariffs as threats to push Colombia to back down on deportation measures last week has taught us that we should expect the unexpected under a Trump presidency. The imposition of tariffs on Canada and Trudeau’s announcement of retaliatory measures raises the possibility of new tariffs and escalation into a global trade war. This introduces considerations that could influence sourcing strategies, operations, and margins across industries. Therefore, it is vital for businesses to take proactive steps to prepare and reduce their exposure to risk. 

      Drawing from past tariff cycles, businesses can see how strategic planning and resilient supply chains are essential to managing uncertainty. Let’s examine how tariffs may affect industries differently, explore the benefits of scenario planning, and outline how automation and regionalisation can help businesses prepare for the unknown effectively. 

      Industry Impacts: Uneven Effects Across Sectors  

      Not all industries are equally exposed to tariff-related disruptions. Certain sectors face unique challenges due to their dependencies and constraints. Fresh produce has geographic constraints that further complicate tariff responses. For example, crops like avocados and mangoes require specific climates and growing conditions and need to be available to certain customer specifications and attributes, making alternate sourcing harder. 

      In consumer electronics, production costs and timelines for products like smartphones and laptops could be disrupted considering the concentration of the global supply chain for consumer electronics in East Asia. 

      And for luxury fashion and accessories, materials are often difficult to source elsewhere without compromising quality. Tariffs could force brands using products like Italian leather to absorb the higher costs or pass them to consumers, which can potentially reduce demand.  

      These industry-specific sensitivities highlight the importance of assessing vulnerabilities and planning to minimise disruptions. 

      The proposed US tariffs would directly affect the landed costs of imported goods, creating ripple effects across supply chains. Companies often have to make difficult choices when margins tighten. Many are forces to choose whether to absorb the added costs, pass them on to customers, or operate more efficiently. Higher costs may drive up inflation, limiting consumer spending – a significant challenge for discretionary industries like consumer electronics and luxury goods. If prices continue to climb, it could slow economic growth, making it critical for businesses to account for these risks in their planning. 

      Scenario Planning: Preparing for the Unknown 

      Scenario planning is a critical tool for businesses navigating tariff uncertainty. Running scenarios for a range of potential outcomes allows companies to prepare for various possibilities. These can range from modest tariff increases to extreme scenarios like 60% duties. These exercises help businesses evaluate cost implications, prioritise supplier diversification, and develop contingency plans. By simulating potential outcomes in advance, companies can make informed decisions without wasting time reacting to unforeseen developments. 

      The Role of Automation and Technology  

      Automation and advanced technologies are essential for building resilience in the face of tariff uncertainty. For example, a food manufacturer transitioning from a traditional facility to an onshore automated production line can improve productivity, optimise resource use, and reduce waste while creating opportunities for employees to develop new skills. By enhancing operational efficiency and scalability, automation allows businesses to adapt quickly to unpredictable geopolitical events. It complements workforce efforts by taking over repetitive tasks, allowing employees to focus on more complex, value-added activities. 

      Furthermore, planning systems using AI can provide real-time insights to help businesses. The technology can be used to optimise inventory, identify alternative sourcing options, and respond quickly to disruptions. By integrating AI-driven tools, companies can uncover opportunities to mitigate cost pressures and streamline decision-making processes. 

      Regionalisation and Sustainability  

      The shift toward regionalised supply chains offers significant advantages, both operationally and environmentally. Sourcing closer to end markets helps reduce lead times, improve supply chain predictability, and lower transportation distances. 

      For industries like apparel, regional hubs closer to key markets can reduce shipping costs and improve flexibility, helping businesses mitigate tariff risks. These strategies not only improve operational efficiency but also support sustainability efforts by reducing carbon emissions and waste. Regionalisation also provides greater flexibility in navigating geopolitical shifts. By diversifying sourcing across multiple regions, businesses can better manage risk and avoid overreliance on any single country. 

      Practical Steps for Businesses  

      To prepare for potential tariff disruptions, businesses should first assess their vulnerabilities by analysing supply chain dependencies to identify areas most exposed to tariffs, especially in sectors heavily reliant on imports. Investing in technology, by leveraging automation and AI can boost efficiency, optimise inventory, and allow businesses to make smarter data-driven decisions. Advanced technologies can help businesses adjust to tariff-driven cost pressures by identifying alternative suppliers or reducing inefficiencies. Scenario planning can also help companies explore the effects of various tariff levels and develop contingency strategies that minimise disruption.  

      In addition, businesses should build a more resilient supplier network by incorporating regional hubs and reducing reliance on single-country sourcing and prioritise sustainability in supply chain strategies to help reduce waste, cut emissions, and strengthen long-term resilience against future disruptions. 

      Tariffs have rarely been in such a volatile position. Uncertainty of this magnitude calls for a proactive and strategic approach. By identifying vulnerabilities, adopting advanced technologies, and exploring regional sourcing options, businesses can create supply chains that are both resilient to disruptions and positioned for long-term success. By investing in resilient supply chains and leveraging technology, businesses can turn tariff challenges into opportunities for growth and innovation. 

      • Risk & Resilience
      • Sourcing & Procurement

      Hooi Tan, President of Global Operations and Supply Chain at Flex, shares how the manufacturing sector can build a more resilient supply chain.

      In the past few years, companies have weathered a seemingly constant array of challenges. Organisations have faced everything from a global pandemic to component shortages, geopolitical turmoil and an ongoing battle to attract talent. 

      To effectively respond to disruption, decision-makers need to learn to manage the various company dials in their control.

      In addressing this, decision-makers first need to fully understand how their their companies work. Then, they can focus on how to manipulate different dials in the supply chain and manufacturing ecosystems. Once they do this, they can optimise their product lifecycle and respond effectively to disruptions.

      These dials — and the degree to which they are turned up and down — will vary from company to company. However, organisations must take decisive steps to adopt advanced technologies, streamline processes, and secure a dependable, well-trained workforce. 

      Embracing Industry 4.0 technologies and solutions 

      In 2022, MIT Machine Intelligence for Manufacturing and Operations (MIMO) and McKinsey partnered to survey 100 high-performing companies across sectors. Their goal was to learn how they deploy machine intelligence (MI) and data analytics for manufacturing and operations. 

      The study found that ‘overall, those who extracted the biggest gains from digital technologies had strong governance, deployment, partnerships, MI-trained employees, and data availability. They also spent up to 60% more on machine learning than their competitors.’

      Deploying advanced manufacturing technologies enables resiliency and competitiveness in an increasingly digital world. However, to gain the greatest advantage from these Industry 4.0 improvements, companies must fully commit to the process. This involves investing in areas like ongoing workforce training and development.

      Companies must weigh the initial cost of implementing advanced manufacturing technologies with the potential benefits. These can include optimised production lines, less waste, and higher visibility into the product lifecycle. Therefore, the best forward strategy looks different for each company. Manufacturers of complex, higher cost, and longer lifecycle products — such as automotive and medical devices — may choose to invest in highly specialised automation solutions to optimise their product lines.

      In contrast, a manufacturer who produces a high mix of consumer lifestyle products may find that it is more cost-effective to implement ‘vanilla automation’. This refers to automation processes that can be used in many different projects to carry out common steps. These steps include simple tasks like fastening screws, applying labels, and packaging products.

      Streamlining and optimising processes

      Fully realising the promise of Industry 4.0 goes beyond the acquisition of advanced technologies. Organisations need a firm grasp on process management, incluing the application of Six Sigma and lean manufacturing principles during implementation. Without them, companies may still be left with idle machines, underutilised software platforms, or poor-quality products. 

      For example, a manufacturer may automate a manual inspection process while not clearly defining pass/fail criteria. This can lead to too many rejects and a higher cost per unit. Either that, or low-quality products that damage the brand reputation.

      Digital technologies predicting and responding to supply chain disruptions  

      When deployed intelligently, Industry 4.0 technologies can also provide unprecedented insight into the entire product lifecycle.  Digital technologies — including AI, analytics, blockchain, and IOT — can be used to design and operate the kind of revamped ‘Just in Time’ network we’ve described. Analytics, for example, can help members of the supply chain identify common parts across product lines and design optimal buffers. Digital twins — digital models of the supply chain — can alert downstream plants about any upstream disruptions faster so they can avail themselves of the buffers more quickly.

      Investing in the right technologies and solutions can provide manufacturers with better insights for planning and data-driven action in both their production lines and supply chains. In fact, the factories of the future and the manufacturing sector as a whole have potential to utilise data architecture to connect every part of the product lifecycle — from planning to production to warehousing to delivery and aftermarket. 

      This will empower those on the ground to make real-time decisions that help to absorb setbacks while identifying growth opportunities and ways to be more competitive.

      Hiring, retention, and securing capacity in manufacturing

      In the global search for talent, the manufacturing industry’s long-term success depends on its talent pool. 

      This means ensuring that the industry continues to hire and retain purpose-driven innovators, problem-solvers, and makers who can help mould the next era of manufacturing. In day-to-day production, securing capacity must also be considered so that staff can increase to full production after a disruption. For example, in the face of component shortages, manufacturers sometimes make the mistake of reducing workforce because they currently have fewer or less optimised factory lines running.

      Often, the smarter option is to retain workers until full production returns. People are important in the manufacturing process, especially today when many countries are faced with staffing challenges. Workers can be deployed to support different factory lines or support other areas of the production ecosystem temporarily when needed.

      This allows manufacturers to be more agile while remaining in control when components are restocked or demand increases. Keeping workers employed even during downtime can work as a strategic resiliency play, one that considers the high cost and time commitment of rehiring and training new employees.

      Resiliency looks different for everyone  

      Ultimately, the building blocks of resiliency will look slightly different for every company. Nevertheless, the’s a common thread. Fudamentally, you need to understand the data and variables behind your own business operations while embracing innovation and change.

      • Risk & Resilience

      Slavena Hristova, Director of Product Marketing at ABBYY, examines the role of artificial intelligence in meeting supply chain challenges.

      Kick-started by the global pandemic, the transportation and logistics industry has seen a boom in digital transformation over the past five years. While we’ve started to see companies embrace general technology, however, a recent study from HERE Technologies and AWS found that just 19% of logistics companies are using AI for advanced use cases, such as demand forecasting.

      In 2025 logistics companies should ensure they don’t fall behind their customers in other industries in putting to use advanced automation, powered by AI. AI-driven automation can streamline multiple complex processes for logistics organisations. These include inventory management and warehouse automation, which has the potential to transform functions across the supply chain. These efficiency gains will help businesses counter tight margins while staying agile. Perhaps most importantly, they will help logistics companies deliver better service in an increasingly demanding market. 

      Embracing new, advanced technologies will increasingly be key to success for logistics companies. So, what steps do they need to take to see the benefits?

      Modernise infrastructure

      Logistics companies must make substantial investments in modernising infrastructure, operations, and workforce skills. A Neos Network’s study revealed that 63% of UK logistics companies report a shortage of digital skills. Therefore, a successful AI implementation will, however, require not only technology upgrades. Companies will also need a strategic focus on upskilling personnel to manage and optimise these new systems.

      Integrated cloud-based platforms will be essential, enabling companies to unify their logistics needs into a single, centralised dashboard. 

      Intelligent document processing is a logical first step towards implementing AI-powered technology. The pocess can deliver immediate value in this document-heavy industry, creating quick business wins with minimal investment. Businesses in the logistics sector handle large volumes of documents such as invoices, shipping documents, and customs forms. AI-powered intelligent document processing can extract data from these documents accurately, reducing manual effort and errors. AI like this can reduce costs, increase transparency and accuracy, and allow for faster, data-driven decision-making. 

      Focus on becoming greener

      Green logistics will become a key focus as companies strive to align with sustainability goals. Motivated by regulatory pressures and consumer demand, logistics companies will further integrate eco-friendly practices across their operations. This will become increasingly important as these sustainability regulations become less flexible over time.

      The HERE Technologies and AWS study also revealed that over 60% of logistics companies lack defined sustainability goals. The study highlighted this as an opportunity for organisations to leverage technology to streamline fuel usage and routes. Not only did this address environmental concerns, but it also reduced spending on fuel.

      By integrating eco-friendly digital practices into their supply chain and operations, businesses can reduce their carbon footprint, lower energy consumption, and minimise waste. One example is using AI-powered technology to speed up customs clearance through Intelligent Document Processing (IDP). IDP enables fast-moving consumer goods (FMCG) manufacturers to accelerate their trucks through border customs, cutting clearance times by over 90%. Portumna Pastry Ltd, a pastry supplier based in Ireland, leveraged AI-powered IDP to reduce their customs clearance time at the EU/UK border from one hour to only five minutes.

      Purpose-built AI can significantly optimise energy usage, streamline logistics operations, and minimise emissions. By enhancing operational efficiency, it not only predicts maintenance needs but also reduces delays across the supply chain, ensuring smoother and more sustainable processes.

      Mistakes in freight forwarding documents can stop a shipment in its tracks at the border, grinding operations to a halt and causing delays for customers while fuel and demurrage costs rack up. To keep logistics smooth and efficient, AI-powered intelligent document processing can extract exactly the right information from huge volumes of documentation, delivering the right information to the right systems at the right time.

      Embrace real-time monitoring of the supply chain

      Finally, logistics businesses can rely on real-time monitoring to improve transparency across the supply chain. Using IoT and data analytics in monitoring can provide end-to-end visibility, ensuring a more customer-centric and resilient supply chain.

      Access to real-time AI-powered insights gives businesses the ability to proactively address challenges like delays, shortages, or changes in demand, minimising the impact of these challenges on customers. Embracing AI-powered digital tools will enable businesses to adapt more quickly and reduce costs, even as the market remains volatile.

      The opportunity is immense: by adopting AI-powered, digital solutions, logistics businesses can significantly increase operational efficiency, streamline processes, and ensure better decision-making. Into 2025, leveraging these technologies will not only drive efficiency but also position logistics companies at the forefront of innovation, enabling a more sustainable and responsive supply chain for the future.

      • AI in Supply Chain

      Dr Waseem Alhasan, Lecturer at the Faculty of Computer Science & Informatics at the Berlin School of Business and Innovation, explores how AI, blockchain, and IoT can deliver on more than the sum of their parts when building the supply chains of the future.

      Regulatory scrutiny, changing consumer demands, and growing climate concerns are just a few of the complex and ever-changing constraints that modern global supply chains must navigate. This requires a radical change in the planning, management, and operation of supply chains. Thanks to the combination of three powerful digital technologies—the Internet of Things (IoT), Artificial Intelligence (AI), and Blockchain—a revolutionary solution to achieve these important goals is now within reach. All parts of the supply chain can benefit from the synergistic potential of this “digital trinity”. Deployed effectively, these technologies deliver increased visibility, efficiency, and resilience across the entire supply chain ecosystem.

      Decarbonisation through digital synergy

      The imperative of decarbonising supply chains requires precise measurement, transparent monitoring, and efficient reduction of global greenhouse gas emissions. The digital trinity is essential for each of these facets.

      In-depth monitoring of IoT data

      IoT devices across the supply chain (e.g., sensors on trucks, transport vehicles, in warehouses, and on construction sites) collect real-time data on energy, motion, temperature, and other key processes. Using this data, the locations of emissions and defects can be fully and comprehensively visualised.

      Blockchain technology for traceability and transparency

      Thanks to blockchain technology, emissions data can be recorded and verified consistently and transparently along the traceability chain. This enables accurate carbon breakdowns, facilitates traceability of carbon samples, and builds trust among stakeholders. Blockchain technology can continue sustainable sourcing practices and minimise environmental damage by recording the provenance and lifecycle of products.

      Artificial Intelligence for data optimisation and predictive data analysis

      AI algorithms analyse the volumes of usable data generated by IoT devices, store it in the blockchain, and identify potential to reduce emissions. AI-powered tools can be further developed to optimise key transport routes and predict storage capacity requirements, production speeds, and process specialisations. In addition, predictive analytics makes it possible to anticipate potential disruptions that may lead to increased emissions. On this basis, proactive mitigation strategies can be developed.

      Improve resilience through real-time visibility and adaptation

      Resilient supply chains can withstand shocks and recover quickly, minimising the negative impact on customers and businesses. The digital trinity enhances supply chain visibility, real-time adaptation, and proactive risk management capabilities.

      IoT for real-time monitoring and tracking

      IoT sensors make it possible to track the location and condition of goods in real time as they move through the supply chain. This makes it possible to proactively monitor potential disruptions such as transport delays, temperature spikes in sensitive goods, or unexpected changes in demand.

      Blockchain for secure data sharing and collaboration

      Blockchain enables secure and transparent data sharing between supply chain partners, promoting improved collaboration and coordination. This is particularly essential in times of disruption because it enables rapid information exchange and coordinated responses. Insurance claims or emergency plans can be automated using smart contracts on the blockchain, further increasing resilience.

      AI for predictive risk management and dynamic optimisation

      By analysing historical data, real-time information from IoT devices, and external factors (such as weather patterns or geopolitical events), AI algorithms can predict potential disruptions. This allows companies to modify their processes in advance. For example, the supply chain managers can reroute deliveries, adjust inventory levels, or switch to alternate suppliers. In addition, AI-supported dynamic optimisation tools are able to adapt to changing conditions in real time. This ensures that supply chain processes remain efficient and effective even in the event of disruptions.

      Advanced Cold Chain Management:

      The integration of IoT, blockchain, and AI represents a paradigm shift in cold chain management. By using these technologies, stakeholders can achieve a level of transparency, control, and efficiency not previously achieved. IoT devices enable real-time temperature monitoring, allowing proactive measures to be taken to reduce spoilage and ensure product integrity. Blockchain technology provides an immutable record of product history, ensuring authenticity and enabling quick recalls when necessary. In addition, AI algorithms optimise cooling processes, predict equipment failures, and improve demand forecasting. This can lead to significant cost savings and better resource utilisation.

      Despite ongoing difficulties such as data integration and standardisation, the transformative potential of this “digital trinity” is undeniable. To succeed in the increasingly complex and challenging global market, companies must adopt these advanced technologies—it is not just an option. By investing in and implementing these solutions, companies can ensure the safe and efficient delivery of temperature-sensitive goods, ultimately benefiting consumer protection and increasing profits.

      Conclusion

      The union of AI, blockchain, and IoT will revolutionise supply chain management. By leveraging the synergistic potential of these technologies, companies can create more sustainable, resilient, and efficient supply chains. 

      This digital trinity not only addresses the pressing challenges of decarbonisation and resilience but also creates new opportunities for creativity, collaboration, and value creation across the supply chain ecosystem. 

      The continued development and proliferation of these technologies make their adoption increasingly important for companies that want to survive in a complex and rapidly changing global environment.

      Jon White, CCO of global shipping solutions provider InXpress, looks at the trends set to define the year ahead for the logistics sector.

      As we step into 2025, the logistics industry is undergoing significant transformations. These changes are being driven by technological advancements, sustainability imperatives, the e-commerce boom, and a heightened emphasis on customer service. 

      These trends are reshaping supply chains and setting new standards for operational excellence. It is vital for the logistics and courier industries to keep up with these innovations to remain competitive. 

      Technological Integration and Automation

      From AI to automation and robotics the vast integration of advanced technologies is revolutionising logistics operations. AI enables predictive analytics for demand forecasting, route optimisation, and risk management. By analysing historical and real-time data, logistics companies can anticipate disruptions, reduce delays, and make informed decisions.

      Moreover, courier platforms such as webship+ from InXpress offer real-time tracking of  shipments. This means that users have real-time visibility and their shipping consultants can easily spot and resolve any delays. This transparency ensures goods are delivered safely and on time, enhancing supply chain visibility.

      Lastly, automated warehouses, autonomous mobile robots (AMRs), and self-driving vehicles are streamlining storage, handling, and delivery processes. For instance, Walmart’s partnership with Symbotic aims to automate 400 pickup and delivery centres using AI-enabled robotics, enhancing efficiency and reducing operational costs.

      Sustainability and Green Logistics

      Environmental considerations are becoming central to logistics strategies. Consumers are largely the ones driving this trend through increasing sustainability consciousness. As a result, courier and logistics businesses need to meet this changing customer demand. 

      Companies are investing in electric heavy goods vehicles to reduce carbon emissions. Amazon’s order of over 150 electric HGVs for its UK fleet exemplifies this commitment to sustainability. Logistics providers are also adopting green initiatives such as optimised packaging and energy-efficient warehouses to minimise environmental impact. Sustainability is not only a regulatory requirement but also a competitive differentiator.

      E-Commerce and Last-Mile Delivery Innovations

      The e-commerce surge is prompting innovations in delivery methods, with delivery options like next-day delivery becoming a norm rather than a nice to have. Companies are also establishing micro-warehouses and local distribution hubs to facilitate same-day or even hourly deliveries, meeting consumer expectations for speed.

      Moreover, the use of drones and autonomous vehicles for last-mile delivery is becoming more prevalent. Regions across the UK are positioning themselves as hubs for drone delivery services, enhancing delivery efficiency and reducing reliance on traditional couriers.

      Enhanced Customer Service and Personalised Experiences

      Customer-centric approaches will redefine logistics services in 2025. Offering flexible delivery times, real-time tracking, and the ability to modify delivery preferences are becoming standard practices to enhance customer satisfaction. Furthermore, brands are increasingly adopting D2C (direct-to-consumer) strategies, allowing for greater control over the customer experience and fostering stronger relationships with consumers. 

      The bottom line

      The logistics landscape in 2025 is characterised by a harmonious blend of technology and sustainability, driven by the demands of e-commerce and the imperative of superior customer service. Companies that embrace these trends are poised to lead in an increasingly complex and competitive environment.

      • Digital Supply Chain
      • Sustainability

      Bernadette Bulacan, Chief Evangelist at Icertis, explores how AI and smarter contracting can help supply chains withstand financial risks and weather disruptions.

      European supply chains faced significant disruptions last year. These included ongoing freight transport delays at key border crossings due to new Brexit regulations and global ripple effects from incidents like the Suez Canal blockage. These disruptions cost businesses an average of $82 million each, denting annual revenues by up to 10%. 

      The 2025 landscape may grow even more complex with U.S. President-elect Trump’s proposed tariffs poised to reshape import and export dynamics while potentially increasing costs. 

      For procurement professionals and business decision-makers, this points to an urgent need for greater agility in supplier relationships alongside more resilient and responsive supply chain strategies. From shifting revenue models to restructuring vendor networks, contracts are the cornerstone of commerce. More and more, they are the key to accelerating financial outcomes. Yet inefficiencies in contract management and outdated contracting practices are draining millions in potential revenue. 

      From Risk to Opportunity

      Managing a large portfolio of supplier contracts is an intricate and time-consuming challenge. Each one has their own unique terms, conditions, and performance obligations. Recent Icertis research reveals that 90% of CEOs and 80% of CFOs acknowledge poor contract negotiation practices. These subpar practices result in leaving untapped value ‘on the table’ for their businesses. These missed opportunities are particularly glaring for procurement teams responsible for managing spend before contract execution. Additionally, unchecked supplier costs, inflation adjustments, and overlooked auto-renewals are also leading to significant revenue leakage across the post-signature lifespan of a contract.

      For instance, 70% of CFOs identified cost increases due to inflation as a leading source of financial loss. However, more than 40% of businesses are not leveraging inflationary pricing protections in contracts. These contract oversights not only create unnecessary expenses but also expose organisations to greater risks. This is particularly true as supply chain disruptions grow more frequent and severe. Taking action requires reimagining contracts as dynamic tools and data resources, with AI providing the necessary solution to effectively make this shift.

      Applying AI in Contracts 

      AI in contracting eliminates the dependence on antiquated ways of working or cumbersome manual processes, equipping businesses with a clear, real-time understanding of their supplier agreements. This visibility enables enterprises to pinpoint potential revenue drivers, identify missed renegotiation opportunities, and uncover costly hidden risks, positioning leaders to respond quickly and make better informed decisions. 

      AI-driven solutions for intelligent contracting simplify supply chain complexity by analysing agreements at scale. With actionable insights into what’s outlined in every supplier contract, and how suppliers are performing, business leaders are positioned to: 

      1. Navigate disruptions with agility. 

      By harnessing AI to identify supply chain vulnerabilities in existing contracts, businesses can effectively mitigate potential revenue losses and implement precautionary measures, such as price adjustment clauses and liquidated damages clauses within agreements. Additionally, companies can diversify their supplier base by entering into new contracts to establish contingency plans in preparation for potential disruptions before they occur.

      2. Transform financial weak spots into strategic advantages. 

      Poor contract management costs companies as much as 9% of their bottom line, and the stakes are only multiplying. By automating the monitoring of key contract terms and the parties’ obligations, such as inflation adjustments and discounts, organisations can reduce financial losses and ensure commitments are fulfilled. 

      3. Futureproof supply chains. 

      The future of procurement lies in the convergence of technology and strategic planning. As economic pressures grow and geopolitical risks become more rampant, businesses that adopt AI-driven contract management platforms will be more agile and resilient, positioning themselves for long-term success.

      Intelligent Contracting in Action 

      In today’s volatile environment, the ability to quickly identify problems and opportunities is crucial. Unpredictable events like floods or political unrest create bottlenecks, raise prices, and reduce stock availability, impacting a business’s ability to meet customer needs. 

      Consider the Panama Canal crisis. A climate-crisis-fueled drought resulted in a queue of 154 commercial ships with average wait times of 21 days. These delays impacted supply chains across almost every industry, hindering shipments, limiting production, and driving up costs. Businesses with AI-powered contracting were positioned to quickly identify impacted suppliers and adjust logistical strategies to ensure business continuity. 

      Another notable example is the adaptation of the force majeure clause, which gained critical relevance during the COVID pandemic. AI enhances the application of force majeure clauses in contracts by enabling businesses to automatically ensure they are included in every agreement and easily and quickly triggered, should a crisis or catastrophe occur.  

      The Bottom Line

      As we look to 2025 and beyond, procurement leaders have an opportunity to leverage contracts as a source of strength and operational value. Contracts are the foundation of business relationships, and effective management across the enterprise is imperative to safeguard financial health, reduce risks, and create more resilient supply chains in any economic climate. By adopting the right AI tools and forward-thinking approaches, organisations can avoid the financial strain that often accompanies unexpected disruptions. AI-powered contracting is an indispensable part of modern supply chain management, equipping businesses with the agility to not only address immediate challenges but also build greater resilience for future uncertainties. 

      • Digital Supply Chain

      Organisations are racing to inject AI into their supply chains, but often fail to reckon with the carbon cost of the technology.

      Artificial intelligence (AI) was the buzzy technology of 2024, and it looks set to define 2025 as well. The technology promises to unlock new efficiencies and increase visibility for organisations. In particular, many organisations believe that AI could be a powerful tool for taking control of their environmental impact and making critical strides towards their sustainability ambitions. 

      “Throughout 2025, the supply chain sector will only continue to innovate further through the use of advanced artificial intelligence,” HaulageHub Co-Founder Scott Robertson told SupplyChain Strategy. According to Robertson, the climate crisis means that “visibility and sustainability within the supply chain have never been more important.” Therefore, it’s imperative that supply chain organisations embrace AI, which he believes will “be pivotal in improving the industry’s carbon footprint.”  

      Robertson isn’t alone in his support for AI as an effective weapon in the fight against climate change (or in the pursuit of visibility, efficiency, and profit). Across the supply chain sector, organisations are racing to inject AI into their operations — from more traditional analytical tools to a new wave of more independent “agentic AI” that can function with even greater autonomy. 

      Investment in AI (generative or otherwise) throughout global supply chains is set to grow from around $600 million in 2020 to well over $51 billion by 2030. 

      Driving sustainability in the supply chain with AI 

      In many ways, the argument that AI is poised to have a positive impact on supply chains is a persuasive one. For example, let’s look at short-haul, last mile delivery networks — one of the most fraught areas of the supply chain when it comes to emissions. 

      Robertson notes that, as of now, empty runs — in which an unladen vehicle travels to or from a delivery — account for over 30% of all HGV miles in the UK. This contributes over 5 million tonnes of needless CO2 emissions annually. Through leveraging AI systems, he believes, supply chain organisations could reduce this figure significantly. 

      “The technology enables hauliers to track and measure emissions in real time, thereby allowing them to make informed and data-driven decisions to improve their sustainability efforts across the supply chain, while also reducing costs,” he explains. 

      With the transport industry poised for even further transformation this year, Robertson argues that “AI and machine learning are facilitating even more innovations such as autonomous trucks, advanced telematics, and the integration of electric and hydrogen-powered vehicles.”  

      He continues: “The supply chain sector will need to embrace these developments with open arms to ensure companies are at the forefront of a digital, more efficient, and more sustainable future. The business case for sustainable logistics is clear and the sector will only benefit from implementing AI in their processes to achieve this in 2025.”

      AI for sustainability? There’s a catch, obviously

      Because of course there is. Specifically, there’s a problem with the idea that AI (especially generative AI) could be a cure-all for supply chain sustainability woes. First of all, even if AI can deliver critical efficiencies and visibility that Robertson suggests, efficiency and visibility aren’t the whole battle. 

      Logistics organisations need to examine alternative fuels, more circular economic practices, and a collaborative and holistic approach to tackling the climate crisis. AI is only able to fight half of that battle. Not only that, but AI may also be doing more harm than good.

      Since the launch of Chat-GPT and other GenAI tools, demand for data centres has skyrocketed. An industry that fought for over a decade to reign in its electricity and water usage is abandoning its climate commitments as the demands of an AI age become apparent. 

      “What is different about generative AI is the power density it requires,” explains Noman Bashir, lead author of an MIT impact paper released earlier this month. “Fundamentally, it is just computing, but a generative AI training cluster might consume seven or eight times more energy than a typical computing workload.” 

      As a result, generative AI could consume as much energy as Japan by next year. Chat-GPT alone uses power equivalent to around 180,000 US households every day, and a single conversation with Chat-GPT uses about one regular plastic bottle of drinking water. According to OpenAI, the platform (which is just one of several AI models on the market) processes about a billion queries per day. 

      How can a technology that is actively contributing to the climate crisis be an instrumental part in solving it? Can the efficiencies AI creates offset the damage it does? Or will AI emissions be the next big sin shuffled under the rug of “untraceable” scope 3 emissions?

      • AI in Supply Chain
      • Sustainability

      Justin Kuruvilla, Chief Cyber Security Strategist at Risk Ledger, looks at the trends and challenges facing supply chain security teams.

      Unlike New Year’s resolutions, which are often based around the start of the year (just look at the queues at the gym!), malicious cyber actors don’t suddenly change their tactics, techniques, or procedures on January 1st. However, it is useful to understand the current direction of the threat landscape. Doing so can help anticipate how cyber threats may evolve over the coming year

      AI to map out supply chain targets

      It feels as though it has become somewhat cliché to discuss AI’s potential impact on cyber security. Nevertheless, it doesn’t make it any less true. AI has lowered the barrier to entry to cybercrime. New tools allow less skilled malicious actors to develop more convincing phishing, business email compromise (BEC), and other social engineering attacks.

      Advanced malicious actors will likely explore additional ways to enhance their effectiveness using AI. It is likely that they will leverage AI’s ability to process and extract valuable information from large data sets. They will perform reconnaissance, map out and analyse supply chains, pinpoint weak links ripe for exploitation. Alternately, they could generate social engineering attacks tailored to specific vendor relationships. Using AI to identify particularly attractive targets within a supply chain may allow malicious actors to leverage the threat of a systemic disruption across a sector in their ransom demands. Or use the connectivity of a commonly shared supplier to gain a foothold into the networks of that supplier’s clients.

      Increasing Regulatory Focus Down the Supply Chain

      Regulations like NIS2 and DORA are expected to have a dramatic effect on the landscape this year. As they come into effect, regulators will increase scrutiny on compliance measures within the supply chain. 

      Organisations will need to gain visibility into concentration risks. Crucially, these risks may exist beyond their direct third-party suppliers (including 4th, 5th, and nth parties). They must also have mechanisms in place to assess the security of their entire supply chain network. This will create a domino effect, improving the operational resilience of entire sectors deemed critical national infrastructure. 

      In addition to strengthening operational resilience, organisations must be prepared to demonstrate their due diligence. Doing so is vital when understanding and mitigating these risks. This is especially important, given the financial, regulatory, and reputational risks that could arise from any degree of negligence.

      Expect heightened pressure to demonstrate supply chain security maturity. This is not just for compliance purposes, however. Maturity will be increasingly crucial to win and retain business from clients who themselves need to assess the security of their suppliers and vendors. 

      Additionally, investors are likely to scrutinise these factors to ensure that potential risks do not undermine the valuation of a potential acquisition or impact their exit strategy from an asset.

       Nation states will continue to leverage cyber operations

      Governments are increasingly willing to disclose cyber activities linked to nation-state actors targeting critical national infrastructure. 

      Recent announcements have revealed attacks on sectors such as telecommunications, finance, and both local and national governments. The overarching goal of these attacks is to disrupt critical systems in pursuit of broader strategic objectives. This is particularly true in today’s turbulent geopolitical climate. The public disclosures underscores the extent to which governments have been monitoring these threats. It signals that the situation has escalated to a critical point, necessitating such transparency.

      Additionally, nation-states are investing in the development of zero-day exploits. While developing zero-days is resource-intensive, these exploits offer attackers highly effective tools for targeting and compromising victims. 

      As previously discussed in the context of compliance, regulators will likely continue to expand the scope of sector-specific security requirements. 

      This will include greater emphasis on securing supply chains to mitigate the risk of sector-wide impacts from nation-state actors leveraging pre-positioned vulnerabilities, whether for political retaliation or as part of a broader strategic campaign.

      Ransomware continues to remain a major threat

      Unfortunately, ransomware attacks continue to be a persistent threat. Over the years, organisations have adapted to better defend against and recover from these attacks. However, the sophistication and severity of extortion demands have escalated in kind. This evolving “cat-and-mouse” dynamic sees ransomware actors continuously adapting their tactics in response to improved security measures. 

      What began with traditional extortion has now evolved into more complex iterations. These include double, triple, and even quadruple extortions where a victim’s clients are contacted to pressure the victim into payment. Alternately, additional threats to disrupt public-facing websites with Distributed Denial of Service attacks can add further pressure. 

      Organisations must have a comprehensive understanding of their critical business functions, the external suppliers whose services enable those functions, and the potential impact on operations if a supplier within your supply chain falls victim to a multi-extortion ransomware attack. It’s essential to understand the potential impact that could arise if a supplier in your supply chain experiences service disruption due to a ransomware attack. 

      Increased client/supplier collaboration, but more scrutiny

      As organisations face mounting operational and regulatory pressure to demonstrate operational resilience, collaboration and engagement with suppliers have become critical. This cooperation extends beyond traditional supplier relationships, with a growing focus on assessing concentration risks at the 4th, 5th, and nth-party levels. Understanding these risks is key to identifying potential vulnerabilities in the extended supply chain, where the impact of a breach could ripple across multiple organisations, even entire sectors.

      However, while collaboration is essential, it must be complemented by a strong security framework. Organisations are increasingly implementing a zero-trust approach where no user, device, or connection—regardless of its location—should be trusted by default. 

      This approach is expected to extend not only within organisations’ internal networks but also in their interactions with external suppliers. This approach is vital to reducing the potential impact of any successful breach by limiting the “blast radius” and preventing lateral movement within the supply chain.

      We’ve already seen information-sharing initiatives embraced by threat intelligence teams. The next step is for Third-Party Risk Management teams to collaborate more closely with threat intelligence groups. Together, they can work to adopt best practices related to supply chain security. A collective defense approach—where information, insights, and mitigation strategies are shared—will be essential to staying ahead of the rapidly evolving threat landscape.

      Organisations must now prioritise supply chain security as a central focus, not only to comply with regulatory requirements but to safeguard the operational resilience of their entire ecosystem. By strengthening both collaboration and security, businesses can better mitigate the risks posed by today’s increasingly interconnected and complex supply chains.

      Quantum computing

      While we are still some time away from quantum computing becoming widely available and operational, it nonetheless poses a significant potential risk to the supply chain. Organisations will need to thoroughly assess to what extent their own – or a vendor’s – encryption methods protecting communication and sensitive data could be vulnerable to future quantum attacks. This is the “harvest now, decrypt later” approach. Essentially, hackers steal data now under the assumption that they will be able to decrypt it in the future using a quantum computer. 

      This should be integrated into client and supplier assurance processes. Doing so will ensure organisations begin considering the risks posed by quantum computing and developing plans to mitigate those risks.

      Regulators are likely to update their frameworks in the near future. These changes will likely result in requirements for organisations to secure systems against quantum threats. Doing so will help ensure businesses are prepared for a quantum-resilient future.

      • Risk & Resilience

      Siddharth Rajagopal, Chief Architect EMEA at Informatica, takes a look at the role of data analytics in supply chains in 2025.

      It’s that time of the year when business leaders turn an eye to the future. What’s in store for the months ahead? What’s going to shape the challenges and opportunities the organisation will face? Where should we invest and where should we play it safe?

      Data is going to be a key driver of change in 2025. The quality and agility of businesses’ data strategy will make the difference as they navigate the ups and downs of the market. Manufacturers and logistics operators are facing sustained pressure, juggling the need to comply with evolving supply chain regulation, handle the impact of climate change, remain adaptable in the face of economic challenges, and work to meet their corporate social responsibility requirements. 

      To achieve this formidable combination of tasks while also driving commercial growth, companies need to prioritise good data processes. They need a complete, end-to-end view of their supply chain, not only to ensure they can appease regulators, but also to enable business success, giving them the insight they need to adapt to change at each level. 

      As tough as it can be to secure growth in a volatile market, the real challenge will be felt by companies that don’t develop systems that ensure their data is relevant, responsible, and robust. Organisations that fall back on incomplete or scattered data that delivers inaccurate results will soon feel the pinch of poor decision-making.

      So here are three key data trends for supply chain professionals to keep on top of: data quality, data visibility, and AI for data management.

      Data quality has to come first 

      When it comes to data strategy, quality underpins everything. If data is incomplete, out of date, or unusable, it might as well not exist at all. Organisations need to detect and migigate data quality issues early, before they proliferate across systems and processes. Observability tools and enterprise data quality tools play a crucial part here.

      As companies seek to improve their data quality, there are some critical factors to consider. The first is to identify and, if possible, remediate data quality issues at sourc. Addressing these errors and inconsistencies where they originate prevents them cascading into the rest of your supply chain processes and applications. 

      Another key area to work on is data observability. This essentially means ensuring that everyone who needs to know about possible data quality issues is kept informed in real time. Businesses should aim for proactive monitoring, with notifications rapidly going to the right stakeholders if patterns of poor data quality appear. Additionally, as data ecosystems and infrastructures become increasingly complex, robust data integration and interoperability is crucial. Integrating systems effectively ensures that data flows efficiently and accurately, allowing businesses to unlock the full potential of their data, while avoiding hold-ups caused by siloed or incompatible systems. 

      Visibility growing clearer

      Once data quality is assured, organisations need to put that data to use. For supply chain success, it’s crucial to have real-time insight into key information streams like supplier movements, product availability, and shipping routes. That means making the right data available to the right people, in the right format, at the right time.

      As a result, supply chain visibility systems need to include end-to-end monitoring and enable data-driven decision making. This means integrating both internal and external data in a trusted and timely manner. The best way to do this is to take a cloud-native data management approach, ensuring all your data is accessible and secure at all times. 

      Consider a product recall: a manufacturer must quickly trace affected items across a complex supply chain. 

      With high-quality, visible data, businesses can pinpoint the exact locations and quantities of defective products and rapidly communicate with retailers and consumers. And let’s not forget the importance of data visibility for ESG reporting. Without visibility into ESG-related data across an organisation and its supply chain, it becomes challenging to get an integrated picture of ESG performance. By implementing metadata management and data lineage, and maintaining a unified 360-degree view of all products and suppliers, businesses can make informed decisions based on trusted data.

      How AI and analytics are changing the industry

      Good data processes don’t just form the foundation for good decision-making and supply chain management: they also drive the development of next-gen AI applications that can transform how companies operate. 

      For example, AI can extract actionable insights from supply chain data much faster and to a far greater level of depth than was previously possible. It can identify trends and predict outcomes that would have been tough to spot in the past. 

      This capability will be a necessity for identifying alternative suppliers, creating more effective partnerships and getting the right products to the right places fast. However, the success of AI depends on orchestrating AI models with the right data at the right time, supported by real-time visibility and trusted data integration. 

      AI can also help automate data management processes, connecting the dots between technical and businesses’ meta data. Beyond ensuring data quality at scale, these technologies can help automatically classify data in line with sensitive and organisational policies. Metadata-driven AI models can help automate and improve the data management experience. Plus, as natural language models à la Chat GPT are merged into these systems, operators will be able to use intuitive prompts to discover and understand supply chain data visibility, and generate data management artifacts to support scaling of these insights. 

      In short, AI can connect the manufacturing chain to the supply chain, from start to finish.

      • Digital Supply Chain

      Aaron Lee, founder of Alchem Trading, takes a closer look at closing the gap between a product’s perceived sustainability and the environmental impact of the supply chain that created it.

      The chemical industry is under growing pressure to ensure that its supply chains are truly aligned with sustainability goals. Aaron Lee, a chemist and supply chain specialist at Alchem Trading, stresses the need for real change in the sector. With a strong commitment to transparency and responsible sourcing, Lee advocates for sustainable practices that go beyond mere claims, ensuring long-term environmental stewardship.

      The Risk of ‘Greenwashing’ Your Supply Chain

      In today’s business world, it’s no longer enough for companies to rely on surface-level ‘green’ initiatives that look good on paper but don’t make a meaningful impact. These ‘greenwashing’ tactics – where businesses make claims about sustainability without taking genuine action – are becoming less and less sustainable. As regulations evolve, companies will need to provide real, verifiable evidence of their ‘net zero’ progress, and this will inevitably affect the entire supply chain.

      While the road to net zero is long and requires ongoing effort, businesses must begin by taking real, measurable steps toward sustainability rather than relying on short-term initiatives. It’s not about ticking boxes or signing up for a course – it’s about committing to a strategy that embraces transparency, accountability, and genuine progress.

      The Importance of a Holistic Approach

      A truly sustainable supply chain goes beyond isolated green initiatives, requiring a comprehensive, transparent approach. For example, a supplier I’ve worked with for over a decade in the biofuel sector produces wood pellets from Black Wattle trees (Acacia Mearnsii) for renewable energy, along with eco-friendly water treatment solutions and tannins for the leather industry.

      While the supplier highlights its efforts to capture significant amounts of CO2, it is essential to consider the full environmental impact. Drax Power Station, the UK’s largest renewable energy provider, uses these biofuels to generate ‘greener’ energy. However, the true sustainability of this process remains uncertain.

      Without conducting a thorough Life Cycle Assessment (LCA), it’s challenging to determine whether the entire production process is truly sustainable or if certain stages are inadvertently causing environmental harm.

      For instance, transporting large quantities of biofuel globally results in substantial emissions. Additionally, intensive farming practices for fast-growing trees can contribute to environmental degradation.

      The chemical industry as a whole faces significant transparency challenges, from sourcing raw materials to waste management, underscoring the need for a more holistic, evidence-based approach to sustainability.

      Without conducting a thorough Life Cycle Assessment (LCA), it’s difficult to know whether their entire process is truly sustainable or if certain stages are causing hidden harm.

      Shipping large quantities of biofuel around the world, for instance, generates significant emissions. Similarly, the fast-growing trees are often farmed intensively, which can have a negative impact on the environment.

      In the chemical industry at large, transparency remains an ongoing challenge, from sourcing raw materials to managing waste and everything in between.

      The Challenges of Lithium and Palm Oil

      We also see similar issues in industries dependent on materials like lithium and palm oil. The demand for lithium, crucial for batteries, is growing rapidly, but the resource itself is finite, posing a long-term challenge. As for palm oil, despite certification schemes like the Roundtable on Sustainable Palm Oil (RSPO), the environmental damage caused by large-scale plantations—often linked to deforestation—remains a major concern.

      These examples highlight why the chemical industry cannot afford to rely on superficial sustainability measures. Achieving real, lasting change will require a more robust, evidence-based approach to supply chain management. It’s about being transparent, taking responsibility, and addressing past mistakes while moving towards a more sustainable future.

      Practical Steps Toward Sustainable Supply Chains

      To build a genuinely sustainable supply chain, businesses must focus on a few critical steps:

      Avoid Greenwashing: Be open and honest about what’s really being done. Avoid making superficial claims, and ensure your actions match your words.

      Focus on Key Areas: Start with areas that have the biggest impact, such as:

      • Reducing carbon footprint
      • Managing water usage
      • Improving packaging recyclability
      • Minimising waste
      • Supporting biodiversity
      • Ensuring fair trade practices

      Education and Goal Setting: Make sure your team understands the basics of sustainability and set clear, measurable goals that drive progress.

      Work with the Right Suppliers: Partner with suppliers who share your commitment to sustainability and responsible practices.

      Implement Transparent Mechanisms: Conduct regular supply chain audits and ensure relevant certifications are in place to guarantee accountability.

      Communicate Your Efforts: Keep stakeholders informed – be clear about what you’re doing, how you’re doing it, and what you’ve accomplished so far.

      The Need for Life Cycle Thinking

      To drive meaningful sustainability, businesses must consider the life cycle of every product and raw material they use. Life cycle thinking allows companies to spot inefficiencies and hidden environmental costs that might not be obvious at first. By embracing this mindset, businesses can make smarter decisions that have a genuinely positive impact on the planet.

      It’s also essential to develop standardised approaches for measuring and reporting sustainability. Clear and transparent reporting helps businesses track their progress and ensures they’re on the right path.

      The chemical industry must make transparency and life cycle thinking central to its sustainability strategy in order to meet evolving regulations and fulfil its environmental responsibilities. By setting clear goals, partnering with the right suppliers, and committing to real, measurable actions, businesses can create supply chains that contribute to a greener future.

      This not only benefits the environment, but it also helps companies build a resilient foundation for future growth – one that’s in line with both ethical and commercial objectives.

      • Sustainability

      Marko Kiers, Chief Commercial Officer at ReBound, discusses some of the key trends that will impact returns management in 2025.

      With return rates reaching record highs, the need for retailers to handle sent-back items efficiently, sustainably, and securely is growing. Consumers have become more budget-conscious and discerning in the wake of rising cost pressures. This is one of the driving factors for soaring returns rates, as tighter budgets mean customers are more likely to return items that don’t meet their expectations or needs. A focus on consumer experience and providing hassle-free returns and quick refunds has also contributed to the upward trend.

      With returns rates expected to continue to grow in 2025, retailers need to process returns quickly, which requires collaboration and visibility across the entire supply chain. There are a number of important considerations that will factor into this over the next twelve months.

      An increased focus on sustainability across the supply chain

      As the rates of returns increase, so does the potential environmental impact. This includes the transport emissions of getting an item from a customer back to a warehouse. It also covers the potential product wastage from a discarded item that isn’t resold, repaired, or recycled.

      In 2025, we can expect more retailers to adopt eco-friendly carriers and optimise return routes to reduce emissions. The use of localised returns hubs, rather than sending an item all the way back to its original location, will reduce unnecessary journeys.

      Improving sustainability across the retail supply chain is challenging due to the complex nature of a global network, with each carrier and retailer facing a variation of local challenges and circumstances. Still, balancing the need for efficient end-to-end returns management with environmental goals will require an ecosystem-wide approach.

      Real-time returns data will play a key role in enabling this. By providing brands with visibility into end-to-end returns network, enabling them to streamline their operations and improve efficiency, it can also improve sustainability. This is achieved through consolidated shipments, efficient logistics, and enabling retailers to make an informed decision on which carriers to partner with based on their eco-friendly credentials.

      Tackling the growing threat of returns fraud

      As retailers seek to improve customer experience by making the returns process easier, and with the anonymous feel of ecommerce shopping, there has been an unfortunate increase in people attempting to game the system, hoping to receive refunds. At ReBound, we have seen examples of this including filled water bottles or old books sent back in place of brand-new shoes.

      The troubling trend of returns fraud is one that brands will be keen to overcome in 2025. To combat it, retailers need to combine digital insights with thorough physical checks. Localised returns hubs are a strong option here. They enable logistics teams to process items quickly without the delay of waiting for the return to reach central warehouses. Staff can check items quickly against custmer data. It also improves the experience for customers. Businesses can issue refunds faster after the items have been checked. 

      Evolving returns policies

      A retailer’s returns policy is a major factor in purchasing decisions; two-thirds of shoppers check returns policies before making a purchase. However, as the rate of returns increases, we are seeing more retailers experimenting with and adapting returns policies to try and mitigate the rise.

      One example of this is the shortening of returns windows, giving customers less time to decide whether to keep an item and send it back. This may decrease returns somewhat, but possibly because it is discouraging purchases in the first place.

      Most people expect a returns window of at least 30 days, in which case consumers take an average of 12 days to make that return. However, doubling the window to 60 days only increases the average return time to 16 days – barely impacting the logistical impact, but significantly boosting customer experience.

      Some retailers are also moving away from offering free returns to try and offset rising transportation costs and environmental impact, which can frustrate customers who have come to expect free returns. In this instance, offering an easy-to-navigate returns process, which requires a smooth end-to-end process across the supply chain, is crucial here to mitigate any potential disappointment. Another alternative for the seller would be to deduct the returns costs from the refund, as it is perceived by the consumers as an obstacle.

       “Returnless” returns, where customers receive a refund without sending items back at all, are gaining interest amongst some retailers and reflect the pressure they are under to exceed customer expectations while keeping costs low. 

      Although there are cases where this approach makes sense, such as for low-value or damaged items, it risks setting an unsustainable precedent if consumers come to expect a returnless option. 

      The financial and operational costs for retailers can quickly escalate, so brands need to carefully weigh short-term savings on returns shipping against the long-term financial and environmental costs as we work towards more circular supply chains. Brands should not forget that the items the consumers get to keep might go straight to the bin without even proper recycling.

      2025 and beyond

      In 2025, effective returns management will require a robust and integrated approach across the entire supply chain. Combining real-time data across the returns ecosystem with localised physical hubs will enable retailers and their suppliers to process returns efficiently and sustainably. 

      Retailers can balance consumer expectations with operational demands through a mixture of careful planning and innovation. As the complexity of global supply chains grows, the successful brands will be those that prioritise integration across the supply chain, looking for circular solutions to the challenges of rising return rates.

      • Sourcing & Procurement

      Jess O’Dwyer, Pocketalk General Manager Europe, explains how the growing UK logistics sector, driven by increased consumer spending, can overcome language barriers to recruit and retain the workers it needs to cope with demand.

      The UK economy is set to expand in 2025 with consumer spending being the main driver of growth, as households’ real incomes will increase slightly as inflation falls. This growth in consumer spending will help to fuel the expansion of the logistics sector and increase the demand for workers. 

      In light of the skills shortages that continue to impact the logistics and supply chain sector, retaining workers is crucial. To meet the staffing demand, the industry has come to rely on foreign talent. Research by Prologis UK indicates that in 2023 more than one in ten (12%) of logistics, warehousing, and supply chain workers in the UK were non-native English speakers.

      This brings language barriers and communication challenges which are set to grow. This is because logistics companies are likely to increase the amount of workers they recruit who speak English as an additional language (EAL) due to the UK’s increasingly diverse population. Thus it is essential to make the sector more accessible for EAL workers. 

      The sector must invest in overcoming communication barriers to boost talent engagement and retention to tap into a wider array of workers and reduce the costs of recruiting and training. Here are some lessons UK logistics and supply chain companies can learn to build and retain a more inclusive workforce in 2025 and cope with increased demand.

      Language inclusion is crucial

      High turnover rates are costly and disruptive, so retaining staff is crucial. Creating a supportive environment that minimises language barriers can lead to higher job satisfaction, increased loyalty, and reduced staff turnover. Thus creating environments with language inclusion is crucial for operational excellence and employee well-being. 

      Language barriers can lead to misunderstandings, lower productivity and increased health and safety risks. Also, when workers struggle to communicate effectively and engage with their colleagues it affects their confidence and job satisfaction. In an industry where precision and efficiency are essential, any miscommunication can have ripple effects throughout the supply chain that lead to costly mistakes and delays. 

      Using tech to overcome language barriers 

      Technology has a critical role in enabling effective conversations in the workplace.

      Tools like Pocketalk, a versatile language translation device, can facilitate real-time communication between employees who speak different languages. By providing instant, accurate, secure translation, such tools enable workers to understand instructions, report issues, collaborate more effectively, and most importantly understand safety protocols, which improves both safety and productivity.

      Develop language training programmes

      Although technology offers immediate solutions, long-term strategies should involve investing in language training programs. Providing English language classes can greatly support non-native speakers. Also, providing basic language courses for native English speakers to learn key phrases in their colleagues’ languages can foster mutual respect and understanding.

      These programmes improve communication and show a company’s commitment to supporting its employees’ growth. All of which can help to retain EAL workers.

      Building multilingual workplaces

      Building a multilingual work environment goes beyond implementing translation tools and offering language classes. It involves fostering a true culture of language inclusion. This can be accomplished through bilingual signage and documentation, employing multilingual support staff, and implementing inclusive communication policies that promote the use of multiple languages, ensuring equitable access to company information for everyone.

      Developing a culture of language inclusion also opens up career opportunities for everyone, regardless of their language background. Again, this is essential for attracting and retaining EAL workers. 

      Evidence of the benefits of language inclusion 

      US retail powerhouse Kroger’s warehouses faced significant language barriers with up to to eight languages spoken simultaneously within a single facility.

      With language barriers causing health and safety concerns and prohibiting workplace integration, the management team distributed digital translation devices to sites across the organisation. These devices were used to enhance safety measures and facilitate day-to-day operations within the warehouses and refrigerated rooms.

      This improved workplace communication and helped employees integrate better into their communities, enhancing their overall quality of life and job satisfaction.

      Supporting a wider pool of talent than ever 

      Ultimately, as we move towards an increasingly globalised and diverse world, the ability to overcome language barriers and communicate effectively will become even more important. UK logistics companies can improve their operations by investing in language inclusion to create more equitable and supportive workplaces that help to recruit and retain people from a wider pool of talent than ever.

      • Collaboration & Optimization

      Saul Resnick, UK & Ireland CEO for DHL Supply Chain, looks at the challenges and opportunities presented by the year ahead.

      As we head into 2025, with the lessons of the past year under our belts and ongoing uncertainty about the scale of economic growth, resilience will become the dominant theme of supply chain planning and operating.

      Resilience is no longer about bouncing back from adversity, but anticipating challenges and responding proactively. In a world where efficiency and reliability are expected, resilience translates into an organisation’s ability to ensure seamless operations regardless of external pressures.  

      Planning and making investments  

      The lessons from the past few years with the pandemic, geopolitical tensions and extreme weather events demonstrate the importance of planning ahead. In the new year, we will see businesses continue to look at omnishoring opportunities to avoid reliance on single markets or trade lanes. 3PLs with greater scale and agility will be leant on to reassure the C-suite that their supply chain isn’t vulnerable to volatility. By investing in the right capital projects that align with long-term strategic goals, business leaders can feel confident in their ability to navigate a complex landscape. 

      Businesses will also likely maintain sufficient or even increase inventory volumes to better manage risks and uncertainties. Additional stock allows businesses to buffer against unpredictable disruptions and mitigate challenges. 

      Using technology for decision-making 

      Over the year ahead, access to technology and infrastructure will remain critical to resilience. AI, machine learning, predictive analytics, and IoT will become more valuable in helping businesses identify risks early and act decisively. For example, at DHL, our control towers provide end-to-end visibility across supply chains, allowing us to monitor potential disruption and take preemptive action.

      Leveraging innovation, through data-driven insights and robotics, will also be essential for effectively managing costs and inventory while ensuring operational efficiency.

      Keeping sustainability at the core 

      Sustainability in business is not just an ethical requirement, but a cornerstone of business resilience. Businesses, regulatory bodies, and consumers are demanding more sustainable practices, so organisations that fail to out sustainability at the top of their priorities risk losing market share and reputational trust. 

      The ramping up of Scope 3 emissions reporting will keep minds focused on transitioning to alternative fuels. In addition, there is likely to be more appetite for innovation in the circular economy. The logistics sector will play a key role in this, whether that’s in terms of waste management, returns handling, or refurbishment. 

      With global supply chains facing increasing challenges, from climate change to resource shortages to changing consumer behaviour, it has never been more important for businesses to integrate sustainability into operations. This helps to ensure adaptability while reducing waste and costs, which is key during volatile economic conditions.  

      The future will undoubtedly bring new challenges; however businesses can combat this by prioritising resilience in all aspects of their supply chain operations, enabling them to navigate uncertainty with confidence and be able to innovate, adapt and grow.

      • Collaboration & Optimization
      • Risk & Resilience
      • Sourcing & Procurement

      We speak to Andrew Black, Director at specialist procurement and supply chain consultancy Efficio, about his predictions for the year ahead.

      2025 promises to continue many of the evolving trends that have defined global supply chain activities since the pandemic. Increased frequency and severity of disruption takes many forms. From geopolitical conflict, the climate crisis, skills shortage, to economic pressure, and the impact of new technologies, multiple factors have driven a surge in nearshoring and other efforts to increase supply chain resilience. 

      While the recent past offers clues as to the shape of the future, it’s difficult to predict with certainty. We spoke to supply chain expert Andrew Black, Director at specialist procurement and supply chain consultancy Efficio, about his predictions for 2025 and beyond. 

      Ongoing geopolitical instability

      The Russian invasion of Ukraine continues to create significant uncertainty which impacts energy markets, security, and international trade. Potential cyberattacks, including on critical infrastructure like undersea internet cables, and regional destabilization (e.g., Houthi rebels targeting Red Sea shipping) are also likely to further strain supply chains and raise costs.

      Last year, the closure of specific trade routes, such as the Suez Canal, resulted in rerouted shipping, longer transit times, and higher freight rates. This has made global trade less predictable and more expensive, highlighting Europe’s reliance on secure and efficient supply chains.

      In response to these disruptions, Europe is expected to increasingly focus on onshoring and nearshoring efforts, particularly in strategic industries like electric vehicle battery production. This shift aims to reduce dependency on distant markets, notably China, and mitigate supply chain risks.” 

      Trade with China and a decline in international travel:

      Europe will continue to balance trade with China while protecting strategic industries, yet geopolitical tensions and travel disruptions (e.g., airlines avoiding flights over Russia) will make this increasingly challenging.

      The decline in business travel post-COVID, as seen in major European airlines cutting flights to China, is also signalling broader changes in global supply chains. This shift away from business travel could see reduced demand for long-distance logistics and a further pivot toward regional trade.”

      Supply chain resilience through visibility and strategic contracts

      Building supply chain resilience in the face of these challenges will require enhanced visibility and transparency. Companies will increasingly invest to support these goals. Example include strategic supplier relationship management (SRM) and better communication with suppliers. Also, the use of technology like web scrapers to gain insights into global supply chains and potential bottlenecks.

      Companies will also look to incorporate clauses into contracts that allow for better monitoring of their suppliers and even their suppliers’ suppliers. These measures will improve transparency and ensure that companies can react quickly to challenges in the supply chain, such as product allocation and delivery delays.”

      A shift away from one-size-fits-all supply chains

      European businesses are moving away from the traditional supply chain model. This often focused on outsourcing manufacturing to low-cost countries, particularly in Asia. Instead, businesses are recognising the need for more tailored supply chain strategies. These new models are designed based on the specific characteristics of different products in their portfolios.” 

      A focus on product-specific supply chain design

      Companies are increasingly designing supply chains that vary according to the nature of the product. Low-margin, high-value products may continue to be sourced from low-cost countries, while high-value, strategic products could be onshored or nearshored. This shift aims to enhance supply chain resilience and reduce geopolitical risks.

      There is also a growing emphasis on product design teams working closely with supply chain professionals to design products that are not just cost-effective but also resilient. The goal is to source components from stable, reliable regions, reducing reliance on complex, global supply chains.”

      • Risk & Resilience
      • Sourcing & Procurement

      Josh Pitman, Managing Director of Priory Direct, on supply chain transparency to support businesses on their sustainability journeys.

      Net zero, carbon emissions and sustainability are well used daily terms across the business landscape and in the media. This is a positive thing, and long may the conversation – and action – around reducing our impact on the environment continue and build for individuals, businesses, the government and other official bodies. 

      Businesses large and small are taking steps to run more sustainable operations, whether forced due to regulations or voluntary, but in either case, the stumbling block in such activities is often the supply chain. Not only does the greatest environmental footprint usually lie within this space, but when there is a lack of data and transparency it can present a major hurdle. When businesses aren’t clear on the origins of their footprint, it becomes much harder to manage and reduce.

      The business sector status quo

      The UK’s business sector – which accounted for 18.7% of greenhouse gas emissions, or 61.9 million tonnes of carbon dioxide, in 2022 – must play a major and sustained part in the race to reach net zero by 2050. It follows, then, that supply chain businesses need to play a prominent part in driving this.

      Requirements around emissions are far from uniform. For example, some larger organisations in the UK need to disclose Scope 1 and Scope 2 emissions, in line with the government’s Streamlined Energy and Carbon Reporting (SECR) framework. Depending on the sector, others may be impacted by extended producer responsibility (EPR) if they handle packaging, and companies with EU operations may face governance challenges through the Corporate Sustainability Reporting Directive. A growing number of organisations are also disclosing emissions data voluntarily through frameworks such as the Science Based Targets initiative (SBTi).

      With the tide heading irrevocably in the direction of greater reporting requirements, larger businesses are reviewing their supply chains in order to report on Scope 3 emissions, where the largest part of this footprint is likely to be. As legislation broadens, smaller enterprises will follow.

      Therefore, for businesses within these supply chains, there is an urgent need to throw a spotlight on their own operation and be clear about its environmental impact. Usually, a lack of transparency doesn’t stem from an unwillingness to share data but is instead due to uncertainty around where to start. However, by not taking a proactive approach to sharing and reducing their footprint, these suppliers risk losing out on business to a growing number of competitors that do.

      Where to start on the journey

      The initial focus for any organisation seeking to reduce their impact on the environment is to look inwards to measure and reduce Scope 1 and 2 emissions. This includes emissions made directly by the firm, for example through its fleet of vehicles, using the boiler, or the energy it purchases for heating its offices or powering its machinery. 

      Once measured, businesses can assess where the greatest emissions are produced and make appropriate adjustments. Changing supplier, improving recycling processes, finding energy-saving solutions – such as more efficient appliances and light bulbs – or implementing energy reduction policies in the workplace can all reduce operational emissions.

      Scope 3 emissions are next, but these are far more challenging to monitor because the business is not directly responsible for them, and can occur up and down their own supply chain. Even suppliers need to choose to work with organisations that prioritise sustainability and transparency.

      Supporting preservation

      For proactive businesses that have done all they can to address Scope 3 emissions but are perhaps aiming for net neutrality, offsetting is a good approach to take.

      In this sphere, businesses often opt for tree-planting schemes to offset the carbon the business is emitting with new trees that will remove this carbon from the atmosphere. Trees can absorb around 21kg of carbon dioxide every year, meaning that one acre in a forest can absorb double the amount of CO2 produced by an average car in a year. However, this level of carbon absorption can only reliably happen once the tree is mature, around ten years after it is planted.

      Another option is forest preservation in favour of planting trees, to protect the forests that are already at work absorbing carbon dioxide and the delicate ecosystems within them.

      In addition to absorbing carbon, these trees retain it throughout their lives. This is why deforestation is the cause of approximately 10% of global carbon emissions. The process released stored carbon back into the atmosphere. Moreover, deforestation often occurs to clear land for uses that further contribute to global carbon emissions.

      Preservation also protects these habitats that have formed over millions of years to create finely balanced ecosystems that are irreplaceable, alongside the species that inhabit them. There are many reputable schemes that businesses can consider supporting or partnering with to protect our rainforests, such as Rainforest Trust and Amazon Conservation.  

      Sustainability is good for business

      The Environment Journal reports that 69% of CEOs view sustainability as a growth opportunity, whilst Business Reporter shares that one third of UK business leaders report that sustainability action is already having an impact on their companies’ revenue, profitability and growth.

      The business incentive goes beyond the urgency of climate action, and there are a growing number of resources available to support businesses in their journey, including the UK Business Climate Hub for SMEs, or certifications such as becoming a B Corp. 

      • Collaboration & Optimization
      • Sustainability

      Hao Zheng, founder and CEO or RoboK, looks at the process of managing safety in logistics operations.

      In the safety-conscious world we live in today, it can be hard to remember a time when the security and well-being of employees wasn’t a priority. Lest we take it for granted, it’s good to remind ourselves from time to time that health and safety as a workplace concept is relatively new. The laws and guidance we have now sit at the heart of all workplaces and, as a result, in many areas of the world, health and safety continues to improve year on year, with injury and fatality numbers gradually decreasing.

      But, with so much at stake, organisations can still do more to ensure even better outcomes. This doesn just mean decreasing accidents. When we proactively create a better safety culture, we feel the ripples in all aspects of the business. The end resuls are real and lasting value.

      But how do we achieve this? Obviously, doing so is a multi-layered process and there are no magic bullets. However, in most cases, where there is a healthy safety culture within an organisation you will find this one ingredient – a truly engaged and empowered workforce on the shopfloor.

      Why does this matter?

      Workplaces that involve employees in making decisions about health and safety are, more often than not, safer and healthier. This makes perfect sense when you consider that employees on the shopfloor are the best people to understand the risks in their own workplace and are also hugely influential when it comes to health and safety.

      According to the Health and Safety Executive (HSE) in the UK, accident rates are lower where employees genuinely feel they have a say in health and safety matters (14%). This is significantly lower than workplaces that don’t involve employees in health and safety (26%). The HSE also notes that stronger employee involvement means better control of common workplace risks such as slips and trips. It’s very effective in 76% of cases where employees felt the business always consulted them, but only very effective in 40% of cases if they thought they were rarely, or never consulted.

      By fostering a spirit of cooperation, an organisation can develop a positive health and safety culture. By doing so, the organisation can ensure they are managing risks sensibly and bringing about improvements in overall quality, efficiency and productivity.

      Ensuring health and safety does not operate in a vacuum

      It is so important that Health and Safety does not operate in a vacuum – if ever a workplace function needed to step outside a silo, this is it! The role of Health and Safety is, quite sensibly, to conduct risk assessment, recommend mitigations for potential hazards and carry out necessary investigations. But they don’t work in the roles that actually undertake potentially hazardous activities and, crucially, with so many operations in the logistics space happening around the clock, they cannot be with the team all the time.

      Health and Safety therefore often relies on the manual reporting of near misses from operations to identify potential hazards. This has inherent challenges. The only way to really ensure employees adhere to all risk management procedures in a timely way, is for Health and Safety culture to be a seamless part of the work taking place on the shopfloor. 

      It is not a nice-to-have – it is critical.

      The shopfloor team knows what their job requires. They know their colleagues and the physical space in which they work. They bring a practical perspective and their primary goal is to meet their objectives as efficiently as possible while keeping themselves and their colleagues safe.

      With the pressures associated with meeting KPIs, it can be tempting to seek out shortcuts in procedures which can increase levels of risk. Therefore, empowering people on the ground to feel comfortable about voicing any concerns they may have, or make practical suggestions around how best to safely get the job done is key.

      How do we make this happen?

      The organisation will need to make the team on the ground feel respected and listened to. In my experience, you can best achieve this by getting out of a warm office and into the heart of the business. It’s essential that all team members feel confident that talking about wrongdoings won’t result in repercussions or them being seen as difficult.

      The team on the shopfloor needs to have the right technology tools to enable them to report issues and suggest improvements. They also need to be motivated by feeling that their efforts have led to positive changes and are appreciated by the organisation. Communication is essential here – without effective communication, all efforts can fail.

      People who feel valued and involved in decision-making are an essential ingredient in a high-performing workplace. Empowering your workforce, getting them involved in making decisions and ensuring they have the right skills to do so, demonstrates that the Health and Safety function is doing more than ticking boxes – that they take the health, safety and well-being of all team members seriously.

      • Risk & Resilience

      Olivier Chapman, founder and CEO of OCI Limited, looks at the year ahead for supply chain managers and explores why striking the right balance between sustainability and innovation will be key.

      It promises to be a big year for supply chain management. There are many challenges and innovations set to play their part as we head into 2025.

      Innovation and sustainability need to go hand-in-hand

      Artificial intelligence (AI) undoubtedly will have a role in helping to enhance predictive analytics, inventory management, and decision-making. Automation, including robotics and autonomous vehicles, also have a role to play. These technologies will continue to support the optimisation of warehouse operations and last-mile delivery. In both cases, organisations are hoping that automation will increase speed and reduce human error.

      Companies will become under even more pressure to adopt sustainable practices and will need to work towards reducing carbon footprints, waste, and promoting the re-use of materials. Circular supply chains are also gaining traction, where resources are kept in use for as long as possible.

      New technologies move further into the mainstream

      We’re likely to see more use of digital twins – virtual replicas of physical supply chain systems – which will allow businesses to simulate, predict, and optimise their supply chains in real-time. This technology helps in improving decision-making by modeling various scenarios.

      Distributed ledger technology (DCT), meanwhile, is helping increase transparency and security in supply chains, particularly for industries like food and pharmaceuticals, where traceability and authenticity are critical. It ensures that every step in the supply chain is recorded, preventing fraud and improving accountability.

      2024’s focus shift continues

      In the aftermath of disruptions like the COVID-19 pandemic, businesses now – and in 2025 – will focus more on building resilient and agile supply chains. This includes diversifying suppliers, building stronger relationships with key partners, and adopting risk management technologies to better handle unforeseen challenges.

      With the rise of e-commerce, we anticipate supply chains to evolve to handle faster deliveries and more complex logistics. Omnichannel strategies are now necessary to meet customer expectations for seamless shopping experiences across online and offline channels.

      While global supply chains continue to offer cost advantages, there’s a trend towards regionalisation, where at OCI, for example, we’re already seeing companies sourcing closer to home or to regional hubs to mitigate risks and reduce lead times, especially in light of trade tensions and transportation bottlenecks.

      Knowing your supplier’s supplier, or KYSS as we call it internally, is an approach to create a detailed understanding of the supply chain for companies, not only the identity of the suppliers that make up the eco-system but a detailed understanding of their financial strength, status within their local community and linked to human rights.”

      Skills shortages and the last mile

      The ongoing digital transformation in supply chains is creating a shift in required skill sets. Companies will increasingly seek employees with expertise in AI, data analytics, robotics, and other advanced technologies, and there’s a growing need for talent that can manage complex, globalised systems.

      Innovations in last-mile delivery, such as drones, autonomous vehicles, and crowdsourced delivery platforms, are reshaping the way organisations deliver goods to consumers, improving speed and reducing costs.

      Real-time data and advanced analytics are becoming critical for decision-making. Companies are leveraging data from IoT sensors, GPS, and other sources to track shipments, manage inventory, and forecast demand more accurately and this will only increase in 2025.

      There will always be challenges to overcome when it comes to supply chain. From natural disasters to geopolitical tensions in Ukraine, the Middle East and more, supply chains continue to face disruptions. At OCI, we’re always exploring more agile, flexible systems to react quickly to such challenges.

      Currently, the global supply chain industry seems to be struggling with labour shortages, particularly in logistics, warehousing, and transportation so there will be an increasing need to ensure that the workforce adapts to digital tools and new technologies.

      Inflation and rising transportation and raw material costs are, of course, always concerns. Organisations must find ways to mitigate cost increases while maintaining service levels and profitability.

      As supply chains become more digital, protecting sensitive data from cyber threats is a critical challenge. Blockchain and enhanced cybersecurity measures must be deployed to safeguard information.

      The pressure for sustainability reform isn’t going anywhere

      As governments and consumers push for more sustainable practices, companies will face increasing pressure to comply with environmental regulations and to be transparent about their environmental impact.

      These trends and challenges point to an increasingly complex and technology-driven landscape for supply chains in 2025. Overall, this means that balancing innovation with resilience, sustainability, and efficiency will be key for success.

      • Digital Supply Chain
      • Sustainability

      Sharath Muddaiah, Director of Strategic Solutions, 5G, Private Networks & IoT, at Giesecke+Devrient (G+D), shares his 5 supply chain predictions for 2025.

      The year ahead promises to be a strange, challenging time for supply chains around the world. From impending Trump tariffs and the climate crisis to the ongoing question of AI’s role in the global economy, C-suites are increasingly looking to their supply chains as a source of resilience, security, and value. 

      We spoke to Sharath Muddaiah, Director of Strategic Solutions, 5G, Private Networks & IoT, at global SecurityTech company Giesecke+Devrient (G+D), about what he expects to see shaping the supply chain sector next year. 

      1. Smart labels 

      2025 will see a marked uptake in the use of smart labels to monitor the transportation of goods. Sectors making increased use of the technology will include retail, shipping, insurance, and food and beverage. 

      Reduction in the cost of smart labels, combined with improvements to the technology within such labels, will drive this trend. Additionally, the continued battle for retailers in the rise of ‘non-delivery fraud’ will see demand for smart labels increase in the consumer sector for high-value goods. 

      The label’s versatility extends to its ability to track shipments of any size or type, emphasising its adaptability across the supply chain. Simply peel off the sticker from the back, stick it on your asset, and you’re set!  

      2. Securing the supply chain 

      2024 saw numerous incidents (in countries facing geopolitical tensions) of technological devices being tampered with. These breaches were brought about by security holes in the supply chain.  

      In October, the EU introducted the NIS2 regulation. The legistlation is intended to ensure security measures are adhered to throughout the IT supply chain. Essentially, IT providers will implement IoT technology that monitors and protects IT components while they are being shipped. Doing so will ensure they are compliant with this new regulation. Not only that, but it will also help them protect themselves and their customers.  

      3. Energy efficiency will be a key priority 

      Sustainability will continue to be an important priority for IT providers and customers alike. 

      When it comes to IoT and location tracking, providing energy-efficient technology is paramount, considering the small batteries such devices have on board. For this reason, clever management of cell triangulation alongside GPS technology will provide significant advantages.   

      4. 5G LPWA technologies gaining momentum  

      The main advantage that 5G LPWA technologies have over other types of networks, such as Wi-Fi, is its low power consumption. 

      This makes it ideal for use in smart applications. For example: smart labels, where battery life is an important factor for device design and operation. 

      5. Digital twin for supply chain 

      In 2025, the use of digital twin technology will become a standard practice within supply chain management. 

      This is thanks to the proliferation of IoT sensors and application of AI to digital twins, which will enable the dynamic tracking of simulated changes in real-world conditions, providing a powerful tool for predictive analytics and risk management on demand. 

      • Digital Supply Chain
      • Risk & Resilience
      • Sustainability

      Stuart Platts, Head of Support at Symatrix, explores the essential elements of mastering supply chain management in the modern world.

      APQC’s latest research on supply chain priorities and trends has shown 2024 to be another challenging year for supply chain professionals. This has been reflected in events such as the ongoing Red Sea crisis, the Baltimore bridge crash and Hurricane Beryl causing disruption for businesses. 

      The need for a resilient and adaptive strategy to successfully manage these unpredictable events and demand is crucial. For example, more organisations are looking to enhance their supply chain management (SCM) capabilities to better manage the flow of goods, information and financial resources from suppliers to consumers to react to different scenarios at short notice. When done right, effective SCM can drive operational efficiency and simultaneously boost customer satisfaction. (A ‘win win’ situation!)

      But organisations are also battling supply chain worker shortages and high staff turnover, particularly across frontline operational employees and planning, logistics and management employees. Long hours, unfavourable working conditions and restrictive career paths are all adding to the problem. So, with many an obstacle facing supply chain professionals, how can they effectively combine people and technology to ensure SCM is meeting its best potential?

      Core challenges in SCM

      Among the most pressing concerns in SCM today are demand fluctuations and the need for real-time visibility across the supply chain. It can be incredibly difficult to predict the level of demand facing specific products due to external factors. For instance, significant increases in the cost of energy during the 2022 crisis led to the demand for air fryers to rocket by 3000% in the UK, and this is just one of many such examples..

      Economic shifts, changing consumer preferences and disruptions in global trade can also impact demand. Companies have to work with suppliers to ramp up supply without overextending resources or holding excess inventory and decrease supply if demand suddenly dips. A comprehensive and unified approach to SCM can enhance visibility, from procurement to delivery, and allow businesses to proactively identify and resolve potential issues before they impact operations.

      Unifying SCM and HR 

      Technology empowers supply chain management executives to integrate both SCM and HR processes on a single cloud platform. By unifying these functions, organisations gain a holistic view of their operations and workforce. 

      With SCM and human capital management (HCM) working together as one unit, more informed decision-making can be actioned with the support of real-time data and predictive analytics. Even when unpredictable global events arise, forecast modelling and simulations can help organisations understand the potential positive and negative impacts on the wider supply chain, including the availability of the workforce. 

      To an outsider, positive outcomes in these scenarios may seem like good fortune, but in fact, they are invariably the result of careful planning, strategic foresight and leveraging the right tools and data. 

      Organisations can also identify which locations in certain countries are most in need of enhanced staff engagement strategies, or how absences are impacting late product deliveries. It can even inform them of warehouses that are experiencing the highest staff turnover rates and help devise solutions on how to address it. With talent needs and bottlenecks identified, businesses are handed back control and can deploy people, where required, to avoid disruption. With this real-time information, they can also provide an improved employee experience which can help to curb high turnover and repeated absences. 

      The evolution of supply chain technology

      It’s essential for Chief Supply Chain Officers (CSCOs), operations managers and HR leaders to align on organisational objectives, and a combined SCM and HCM platform allows them to do so. Workforce modelling and predictive algorithms can help to improve workforce capacity planning. In a scenario where a CSCO wants to build a new warehouse in a certain country, HR data can provide visibility of the talent requirements and availability in the local region to ensure that no budget for the build is wasted from a chronic local shortage. 

      Emerging technologies are further helping supply chain and HR leaders to gain a competitive advantage. For example, advancements in data pattern reporting are revealing the causes of high turnover rates and other problems in the workforce. 

      Augmented analytics can add external data to analyses such as benchmarking or compensation comparisons, or unlock new sources of workers. Advancements in predictive analytics have allowed businesses to compare future sales orders to staffing levels and uncover any urgent capacity needs. These solutions are coming together to reduce supply chain disruptions. Voice interfaces are even providing improved accessibility and speed so users can get answers quicker.

      Moving forward, AI will build further on these capabilities by creating the potential for self-learning analytics that will, when integrated with supply chain management, and HR solutions, provide more focused information, much more rapidly than before. This will ultimately drive continuous improvement and efficiency in SCM.

      Refining SCM for future growth

      In an era where unpredictability has become the norm, mastering SCM is more critical than ever. The challenges of 2024, from natural disasters to workforce shortages, highlight the need for strategies that are both resistant and adaptive to rapid changes. 

      Effective SCM, when integrated with HCM functions, can significantly enhance operational efficiency and customer satisfaction.

      The next step is to unify supply chain operations and HR on a single platform. Organisations can achieve a comprehensive view of their operations and workforce, enabling better decision-making and workforce planning. 

      This holistic approach allows businesses to anticipate and mitigate risks, optimise their resources and remain agile in the face of disruptions.

      • Collaboration & Optimization
      • People & Culture

      Michel Spruijt, President at Brain Corp International, looks at the role of robots in automating the cleaning process in modern supply chains and logistics.

      Supply chains today operate in an environment of constant disruption, with challenges ranging from labor shortages to rising costs and increasing demands for sustainability.  According to research gathered by Reuters in 2024, 61% of supply chain businesses experienced disruptions in 2023 that exceeded financial expectations, underscoring the urgency for innovation. These pressures are prompting logistics leaders to explore advanced technologies that can enhance efficiency, resilience, and long-term stability.

      One technology gaining traction is autonomous robotics, including solutions for routine tasks like facility cleaning. The adoption of these robots has been particularly pronounced in logistics hubs and warehouses, where operational consistency and hygiene standards are critical. At Brain Corp, we’ve witnessed first-hand the scale of adoption with internal data showing over 400% growth in the use of automated robots for cleaning in European logistics facilities from Q3 2022 to Q3 2024. The trend seemingly reflects a growing recognition that automating repetitive processes can deliver both immediate and lasting benefits.

      Rethinking Efficiency in Supply Chains

      The rise of autonomous cleaning robots offers a window into how supply chains are reimagining efficiency. Robots can address critical operational challenges, such as:

      Labor Constraints: With persistent workforce shortages, autonomous robots provide a scalable way to maintain facility standards without increasing labor costs.

      Cost Management: By automating repetitive tasks, businesses can reallocate resources to higher-value activities, reducing overall operating expenses.

      Operational Consistency: Robots deliver predictable, high-quality performance, ensuring standards are met even in high-demand environments.

      Actionable Insights: Equipped with sensors and IoT connectivity, robots generate data that helps facilities optimise schedules, resource allocation, and even energy use.

      This growing reliance on robotics is part of a larger industry shift towards automation, where AI and IoT are becoming increasingly integral to supply chain modernisation.

      The Technology Driving Change

      The rapid development of Artificial Intelligence (AI) and Internet of Things (IoT) technologies has made it possible for autonomous robots to consistently evolve and improve. They now navigate complex environments, adapt in real time, and integrate with warehouse management systems.

      For example, AI-enabled navigation allows robots to map facilities dynamically, while avoiding obstacles and ensuring safety alongside human workers. Meanwhile, IoT systems enable real-time monitoring, giving supply chain managers greater control and insights into their operations. These capabilities not only improve performance but also help facilities transition to smarter, more connected ecosystems.

      The evolution of autonomous robots is set to continue at pace. Several emerging trends are likely to shape their role in supply chains:

      AI Advancements: Future robots will leverage increasingly sophisticated algorithms for smarter navigation, adaptive decision-making, and enhanced situational awareness.

      System Integration. Deeper integration with smart facility systems will enable robots to work seamlessly with other automated processes, such as inventory tracking and predictive maintenance.

      Versatility. Robots are expected to expand beyond single functions. They will combine tasks like cleaning, inventory management and data collection to maximise utility.

      Enhanced Collaboration. As robotics evolve, they will better complement human teams, focusing on collaborative tasks and enhancing productivity rather than replacing workers.

      A Transformational Moment

      The adoption of autonomous cleaning robots signals a broader transformation in how supply chains operate. By embracing automation, businesses will be able to address immediate challenges. Not only that, but they will also be able to prepare for a future where resilience and adaptability are paramount.

      The integration of these technologies is not just about solving today’s problems—but about building a supply chain infrastructure that can thrive in an era of constant change. As automation continues to evolve, supply chain leaders have a unique opportunity to harness its potential for long-term success.

      • Collaboration & Optimization

      Allison Ford-Langstaff, Managing Partner and Patrick Li, Consultant at 4C Associates, explores the potential of 3D printing to transform the supply chain.

      Have you ever seen the mesmerising movements of a Fused Deposition Modelling (FDM) machine in action, tracing intricate patterns layer-by-layer? Or experienced your design materialising from a resin bath with the magic of UV light? 

      Additive manufacturing (used synonymously with 3D printing in this article) is not a new concept. 

      However, we are yet to see the mass adoption of 3D printing in supply chains and operations. This is largely due to its slow production speed, limited material choices, and the need for post-processing. However, developments in 3D printing offer an opportunity for organisations to adopt the technology across supply chains and operations. The technology could even have a place manufacturing end products in various industries such as aerospace, construction and fashion.  

      How can 3D printing transform your supply chain?

      1. You can manufacture on-demand

      The increasing affordability of 3D printers have made 3D printing on-demand or make-to-order products more economically viable, especially for highly customisable products. Custom implants and dental moulds are some good examples. We have also been involved in the manufacturing of ‘miniature’ figurines for tabletop boardgame designers and enthusiasts. 

      2. Your supply chain will be resilient to disruptions

      3D printing enables local production, allowing production to be de-centralised. Each site can produce what is needed in house, reducing the dependency on parts produced by other locations and making it less vulnerable to supply chain disruptions. Businesses and communities can benefit from a de-centralised production, in some cases by the community itself. During the initial PPE shortage due to Covid-19, we helped to produce and donate hundreds of face shields assembled with polyurethane sheets to local charities and frontline workers in London. 

      3. You can reduce dependency on distant suppliers

      Similarly, businesses can become less dependent on foreign suppliers as additive manufacturing improves the capability of businesses bringing productions locally. 

      A good example would be car repair shops 3D-printing parts required. Inventory management is challenging due to the large number of car parts, for which the demand is relatively low. Repair shops often order lower-volume parts from suppliers only as demand arises. 

      By creating local production capability of 3D printed car-parts, it can reduce the order lead-time, especially from distant suppliers. This, in turn, would reduce the need of stock buffers. The average auto repair franchise makes $1.2 million per year, with COGS covering roughly 30% of their revenue. Assume that the franchise decentralises its network into 5 local regions which yields 20% COGS reduction from inbound logistics and margin, this will give $14,400 cost savings per printer annually. Implementing a network of metal 3D printers costing $80,000 each can achieve an ROI of 26%, assuming an average machine lifespan of 7 years. 

      4. You can drive costs out of your business

      Additive manufacturing yields very little material waste compared to traditional subtractive manufacturing as it constructs layer-by-layer. This is especially apparent when valuable materials are used, such as titanium alloys and carbon fibre composites in the aerospace industry. 

      It also has a high material efficiency when creating lightweight additively. These same designs would be significantly more costly to achieve with subtractive manufacturing methods. Furthermore, by enabling localised production, 3D printing can shorten supply chains and reduce transportation and logistics costs.

      5. You can fix, replicate and create

      When paired with 3D scanning and Computer Aided Design (CAD), additive manufacturing can create close replicas of existing objects. 

      Reverse engineering is especially useful in speeding up the time-to-market. The process is ideal for replicating and improving existing parts in the product development stage. Not only that, but it can also extend the usefulness of end-of-life products no longer supported by the manufacturer. 

      Apart from prototyping, we have also scanned, modified and printed parts for brackets and hand tools for repairing. This process proved to be functional, inexpensive and quick.

      novameat plant based pulled beef burger and fries

      There are, however, industry challenges

      There are ongoing debates on whether additive manufacturing is a sustainable and environmentally friendly practice. While it comes with the benefits of eliminating overproduction and lowering carbon emissions due to long-distance transportation, there are also environmental concerns on its harmful emissions. 

      Some additive manufacturing technologies involve the use of photopolymer resins which emits volatile organic compounds (VOCs) during the curing process, as well as potential soil and water pollution if the resin is disposed improperly. Direct skin contact with resins causes irritation, and inhalation of fumes can lead to respiratory issues.

      Reverse engineering has also resulted in key issues on patent violation as patented inventions can be replicated without permission, which in turn lead to counterfeit products and trademark infringement. This problem has been worsened by the rise of digital manufacturing; the enforcement of IP rights is particularly difficult as design files can be easily shared online. 

      3D printing offers a transformative potential for supply chains by enabling on-demand manufacturing, enhancing resilience, reducing dependency on distant suppliers, driving down costs, and facilitating repairs, replication and creation of parts. These benefits streamline operations, as well as making 3D printing a valuable asset for innovation: 3D printed shoes could be tailored to the form of a customer’s feet [source], cruelty-free meat products could be 3D printed to replicate the texture and structure of actual meat products [source]. 

      The versatility and economic benefits of 3D printing are clear, positioning it as a key technology for the future of manufacturing and supply chain management. While it is important to be mindful of environmental and intellectual property concerns, there are many ways 3D printing can transform your supply chain.

      • Digital Supply Chain

      Shannon Kirk Nakamoto, Global Director of Legal Industry Solutions at Icertis, explores how to inject resilience into the supply chain with intelligent contracting.

      Procurement leaders are navigating an increasingly volatile world where supply chain disruptions have become a constant threat. From geopolitical conflicts like the war in Ukraine and labour strikes on the US East Coast to extreme weather events driven by climate change, global trade is under immense pressure. These challenges cause delays, increased transportation costs, and inflationary impacts that threaten organisational performance. Consequently, the key question is no longer whether disruptions will happen, but how prepared procurement professionals are to handle them. At the heart of these challenges are contracts. Once static documents, contracts have now become critical tools for mitigating risk and ensuring supply chain resilience. They are one of the most powerful resources at the procurement team’s fingertips.

      Yet, antiquated practices in contract management often undermine this potential, exposing businesses to unnecessary vulnerabilities. To remain competitive, procurement leaders must adopt a modernised, technology-driven approach to contracting. This approach must align commercial agreements with the complexities of today’s supply chains.

      The Cost of Disruption

      Supply chain disruptions impact industries differently, but their financial toll is widespread. For instance, UK exporters face slower, more expensive transportation, while US businesses grapple with material shortages and rising costs. According to World Commerce & Contracting, such inefficiencies lead to an average 9% revenue loss in every contract. This is a substantial financial impact for enterprises with thousands of agreements.

      Contracts serve as the foundation of commerce, governing every transaction and acting as the single source of truth for business relationships with customers and suppliers. Sellers need clarity on their rights, and buyers need certainty about deliverables. Therefore, ensuring contract language addresses potential supply chain disruptions is critical to help enterprises navigate today’s complexities with greater agility.

      Traditional approaches to managing contracts fail to account for the unpredictability of modern supply chains. Procurement teams must develop contracts that anticipate and respond to disruptions. Mechanisms like inflation-adjusted pricing, force majeure clauses, and renegotiation terms to maintain flexibility are all critical in this endeavour. Additionally, teams must automate the monitoring of such clauses to ensure they are properly enforced during turbulent times.

      Leveraging AI for Smarter Contracting

      Many organisations fail to fully leverage the true potential of contracts. Now, however, artificial intelligence (AI) is revolutionising contracting to help enterprises control costs, recapture revenue, and reinforce compliance across their organisations. Research from Icertis reveals that 90% of CEOs and 80% of CFOs struggle with effective contract negotiations, leading to significant revenue leakage. 

      AI transforms contracts into data-rich resources, delivering real-time insights into bottom-line risks like cost escalations and upcoming renewal deadlines. These insights empower procurement leaders to make proactive decisions, such as renegotiating unfavourable terms or identifying alternative vendors if there are gaps in supply chains.

      By digitising contracts and applying AI, organisations can enhance visibility, streamline processes, and position their procurement teams to make a notable impact on business outcomes. For example, AI can detect risks in supply chain routes and recommend backup suppliers to prevent delays from escalating into costly disruptions. When contract data is integrated with core procurement systems like SAP Ariba, AI can also flag unpaid supplier invoices or discount opportunities that enable enterprises to recapture lost revenue. 

      Nearly half of Chief Procurement Officers have led AI adoption initiatives. However, AI’s full potential in contracting – also known as contract intelligence – still has substantial room for growth. AI has the power to free procurement teams from routine tasks, enabling them to focus on strategic initiatives and become effective change makers within their organisations. 

      Negotiating for Resilience

      To succeed, procurement leaders must take a proactive, technology-first approach to contract management. 

      This requires treating contracts as living resources that address supply chain vulnerabilities and advance commercial goals. By centralising and analysing contract data through AI-driven platforms, companies can diversify their supplier base. Doing so reduces reliance on single sources, allowing them to better manage costs, and negotiate more favourable outcomes.

      In today’s geopolitical environment, AI in contracting also supports compliance by helping to align agreements with changing regulations, reducing the risk of legal and financial penalties. With the right elements built into every contract, procurement teams can better anticipate risks and enhance their organisations’ longevity.

      Contracts as Catalysts for Value

      At its pinnacle, effective contract management drives value creation. Well-structured contracts improve supplier relationships by promoting transparency and trust. Procurement professionals can use AI-driven insights to make smarter decisions, secure better terms, and improve profit margins in every department of the business.

      By treating contracts as powerful partners, procurement leaders can recover lost revenue, optimise supply chain performance, and capitalise on growth opportunities. This shift is essential for navigating the complexities of modern commerce and solidifying procurement’s central role in organisational success.

      The Future of Procurement 

      Procurement challenges demand a fundamental shift in how businesses view and manage contracts. In an era of uncertainty, relying on traditional, outdated methods – like saving signed PDFs in a forgotten shared folder – is no longer sufficient. 

      Procurement leaders must embrace AI-powered contract intelligence to build resilience, control costs, and turn contracts into tools for transformation. In today’s financial climate, where every pound matters, the time to invest in AI is now.

      • Risk & Resilience

      Stefan Spendrup, VP, Northern and Western Europe at SOTI, explores the benefits of enhancing device visibility in the logistics chain.

      From scanning inventory when it first enters the warehouse to tracking parcels out for delivery, devices are heavily relied on by the transport and logistics (T&L) sector. When devices go offline or when applications malfunction, multiple points of the supply chain can be disrupted. As a result, staff productivity can be severely hindered. 

      This lost time quickly adds up. New data from SOTI reveals that T&L workers each lose an average of 11 hours a month to device issues. This is costly for companies, especially during the festive shopping season when demand is high.  

      SOTI’s data suggests that a lack of visibility may be the root of the problem. Over a third of workers reported an inability to identify downtime issues and fix them quickly as a key source of delays. 

      Coupled with ongoing labour shortages, this makes visibility, or a lack thereof, a crucial factor for businesses to address. Without doing so, goods can’t be delivered as efficiently and seamlessly as possible. 

      Tackling Tech Stress 

      A big part is making sure that employees have the necessary tools for their role. Vitally, those tools must also be charged, updated and ready to go. Yet, SOTI’s study found that over half (54%) of UK workers are experiencing increased stress due to device issues impacting their ability to get on with their job. This includes fast battery drain and apps being slow to load or not working at all. Much of this could be avoided if logistics businesses could take stock of their full fleet of company devices. Doing so would allow them to better monitor health and performance. 

      Another issue is the rising trend of device swapping within organisations. Almost three-quarters (71%) of respondents reported that device swapping was becoming more common. This is due to scanners being uncharged or not working, or there not being enough to go around. 

      While SOTI found that 82% of workers feel adequately trained in data security, this culture of sharing devices increases the risk of data breaches as employees may gain access to sensitive information not required for their role.  This can be prevented if each employee has their own well-managed, working device. Central visibility also means that if a device becomes lost or stolen, it can be tracked and locked down immediately. 

      Combatting E-Waste

      In addition to battling downtime, workforces are expecting more from their employers when it comes to sustainability, and some are even willing to walk out the door. SOTI’s report found that half of T&L employees would leave their jobs if their employer was not doing enough to protect the environment. And one of the biggest preventable issues is e-waste. 

      There needs to be a bigger spotlight on how businesses repair, reuse and improve existing devices as too many are thrown away for ‘shiny, newer’ models, simply because it’s easier. This rip and replace culture of devices needs to be addressed from a wider environmental perspective but the enterprise mobility industry has a huge role to play. By enabling better visibility and quick, remote fixes, organisations can reduce the swap mentality and focus on identifying device issues upfront. 

      This not only contributes to a more sustainable tech ecosystem but helps improve employee morale, enhance operational efficiency and bolster security. 

      Road to Success

      We’ve seen this in action through our work with logistics provider, DPD Ireland. DPD has a network of over 300 delivery vans and drivers within its network of depots. The company manages up to 25,000 parcels every single day. And this volume doubles during peak periods like Christmas. Due to these high volumes, it needed to ensure its devices were up to the task, allowing its workforce to get on with the job. With SOTI, DPD gained instant visibility over operations throughout the complete job cycle. Immediately, they began receiving updates on the state of devices so that issues could be dealt with quickly. 

      The Top Five Benefits of Increased Device Visibility:

      • Security. The T&L sector can ensure the security, compliance and protection of sensitive data by locking down managed devices. Critically, this can be done from any location at any time.
      • Deployment. Companies can rapidly deploy devices, content and apps, out to their fleet of devices. 
      • Tracking assets. Real-time tracking allows businesses to see the location and status of assets, so operations can continue to run smoothly. 
      • Increased productivity. Reduced downtime from device issues means staff can focus on getting the job done. 
      • Reduced e-waste. With access to device diagnostics and intelligence, managers can make more informed decisions on whether a device needs to be replaced or simply repaired.  
      • Digital Supply Chain

      Supply chain experts from Ivalua, DataDocks, SCALA, Brookfield, Project44, and more share their predictions for the future of the sector in 2025.

      With 2024 drawing to a close, we reached out to some of the industry’s leading experts to get their predictions on what the next year might hold for the global supply chain sector.

      The responses we received covered a wide range of topics, from warehousing to AI and cybersecurity. One thing remained constant, however: 2025 will be a year that poses significant challenges for supply chain professionals around the world, and it will take a combination of technology adoption, strategic planning, and collaboration to rise to them.  

      Understanding the supply chain to manage risk has never been more important

      Sue Williams, Managing Director at Hexagon Consultants

      “More in depth risk assessments will become increasingly essential. It’s crucial for businesses to have a deep understanding of their supply chain, conducting thorough risk assessments and scenario planning in order to foresee and mitigate risks before they become major problems. 

      Organisations need to ensure that they are mapping their supply chain network, ideally collaborating with suppliers to get as far down the supply chain as possible: consistently providing updates and regularly communicating to avoid any disruptions.” 

      Visibility, technology, and risk mitigation will separate 2025’s winners and losers 

      Phil Reuben, executive director at SCALA

      “We’ve experienced a series of turbulent years for global supply chains. With ongoing geopolitical changes and technological progress, 2025 is set to be another crucial year for building supply chain resilience.

      Trade tariffs proposed by the Trump administration on major manufacturers like China will have major implications for businesses with global supply chains. Very soon, businesses will have critical decisions to make about how they continue to source raw materials, manufacture, and ship products.

      “Furthermore, ongoing global conflict could threaten supply and distribution in certain global territories, necessitating more resilient and adaptable supply chain strategies. Nearshoring is emerging as a strategic response to disruption, with companies opting to bring production closer to key markets, thereby reducing transportation costs and mitigating risks. 

      “One area that could be increasingly key in creating resilience is effectively deploying emerging technologies. Those businesses choosing to integrate Artificial Intelligence (AI) across supply chain operations may reap the benefits of improved demand forecasting, inventory management, and general efficiency, for example. 

      “Ultimately, understanding your operations, making the most of technology, and mitigating risks in the supply chain will be critical in 2025.”

      2025 will be the year of smart, strategic warehousing 

      Ben Segelman, Head of Portfolio Management – European Logistics, at Brookfield

      “Throughout the latter part of 2024, we saw a return of confidence to the European logistics market as inflation began to turn and interest rates cooled off. As a result, we are seeing a number of large asset portfolios come to the market, as well as occupancy rates within our own portfolio growing – largely driven by built-to-suit projects with large corporates. As we look ahead to 2025, the European logistics market is poised for significant activity and transformation as tenants demand high-quality spaces. 

      “The primary themes driving the logistics landscape in 2025 will be automation, digitisation, and sustainability. Companies across the entire supply chain, from sourcing to fulfilment, will prioritise these elements, even as they navigate the challenges of rapidly evolving trends. 

      “This is why the role of the landlord will become ever more important in 2025. Businesses will increasingly turn to warehouse and logistics partners who can leverage the power of ‘connected networks’ to achieve maximum optionality from their space, such as unlocking access to land banks and the grid.

      “There will be a particular focus on premises in strategic, best-in-town locations that offer excellent transport links, as well as spaces which attract talent. A move to campus locations, such as multi-functional logistics parks, is therefore an emerging trend that I believe we will see more of as we progress through 2025.”

      The next generation of supply chain leaders will accelerate tech disruption

      Tom Perrone, SVP Global Professional Services at project44

      “2025 will be a transformative year for the supply chain – not just through the implementation of disruptive technologies, but also through new business models driven by a new generation of supply chain leaders.

      “Data shows that today, millennials represent most of the global workforce. Over the next few years, leadership teams are set to become a millennial territory.

      “This will undoubtedly cause a shift in processes and technological adoption across the supply chain, with millennials open to innovation based on their ability to quickly adapt and learn to use new platforms.

      “Here, we can expect the next generation of supply chain leaders to increasingly harness automation and AI to streamline workflows without sacrificing productivity.

      “At the same time, millennial employees prioritise sustainability and ethical practices in the companies they work for. With more millennials stepping into leadership roles, we can expect this shift to push more organisations to adopt new processes and technologies that enable more sustainable supply chain operations, as well as enhanced traceability to ensure socially responsible sourcing. Ultimately, this unique perspective and new set of leadership skills will help to drive innovation and enhance the resilience of supply chain operations.”

      Progress on sustainability starts with data 

      Jarrod McAdoo, Director of Product at Ivalua

      In 2025, data will be as important as ever as organisations face increasing regulatory pressure and growing consumer demand and expectations for sustainable practices. Organisations’ ability to collect, manage, and utilise data will be key to ensuring they don’t fall behind the competition.

      In addition to the need to comply with regulations such as CSRD and CS3D, initiatives like Digital Product Passports (DPPs) will gain traction, particularly in sectors like retail and battery production, to respond to growing consumer demand for transparency. Added pressure for circular initiatives will come from the EU’s forthcoming introduction of DPPs in 2027 which aims to tackle unsustainability by providing detailed digital records on product origins, materials, and recyclability. Forward-thinking brands, like Tesco’s F&F clothing range, and fashion brand Nobody’s Child have already taken steps toward this change, and more will follow suit next year.  


      “The real challenge and opportunity we’ll face in the coming year lies in identifying which solution providers will effectively address the comprehensive data management challenges presented. The technology must enable companies to facilitate data collection from different sources to track metrics, monitor progress, and identify areas for improvement, as well as report. We’re likely to see a phased approach, with the key focus being on balancing regulatory requirements with practical implementation. This will require significant investment in both technology and process transformation, but sustainability should be seen as an investment, not a cost.”

      Cybersecurity problems in the supply chain aren’t going away

      Dominik Birgelen, CEO of oneclick AG Group

      “In 2025, cybersecurity is likely to remain a priority for supply chain businesses. As supply chain companies leverage innovative solutions and digitise their operations, the risk of cyberattacks can also increase.”

      “According to Statista, approximately 183,000 customers were affected by supply chain cyberattacks worldwide in 2024. This makes cybersecurity a critical issue to address for supply chain businesses. Cyberattacks can easily disrupt supply chain operations, resulting in delays, lost revenue, and a damaged reputation. This, in turn, can hinder the long-term growth of supply chain businesses.” 

      “By deploying advanced solutions based on the Zero Trust Architecture (ZTA), supply chain operators can ensure that suppliers, warehouses, and logistics systems operate securely without interruption.” 

      In 2025, organisations will struggle to juggle cost reduction with managing supply chain risks 

      Alex Saric, Smart Procurement Expert at Ivalua

      “In 2025, as investment into peak procurement staff has stalled, organisations will need to juggle a stubborn focus on cost reduction against demand to re-architect supply chains so they are more flexible than ever before. This comes as geopolitical tensions mount, a shortage of critical materials remains, and more extreme weather events loom – all making the risk of supply chain disruption even more unpredictable.

      “Procurement teams will face a tough balancing act next year, so understanding how to optimise suppliers and spend in these complex times will be critical. Organisations will need to focus on diversifying supply chains to reduce risk of disruption and reliance on China. This means making sure they can build strong relationships with their strategic suppliers, and that they can identify alternative sources of supply in case of unexpected disruptions.”

      Geopolitics, economic pressure, and AI will shape the post-pandemic supply chain landscape

      Nick Rakovsky, CEO of DataDocks

      The post-pandemic supply chain transformation is about to hit its stride. 2025 will mark the end of reactive digitalisation and the beginning of truly intelligent operations.

      Three forces will define the year. 

      First, geopolitical tensions will intensify supply chain scrutiny. Border checks will become more stringent, documentation requirements more complex, and origin verification more demanding. 

      Second, the economic climate will force a bifurcation in the industry. Companies that have invested in automation and AI will pull decisively ahead of those still relying on manual processes and disconnected systems. The performance gap between digital leaders and laggards will become too wide to ignore, particularly in warehouse operations and logistics coordination.

      The third and most interesting force is the maturation of AI-powered compliance tools. These systems will transform how organisations handle regulatory requirements, turning what was once a burden into a competitive advantage. Supply chains will become simultaneously more compliant and more agile – a combination that would have seemed paradoxical just a few years ago.

      These changes won’t happen all at once. Most companies will take a “wait and see” approach in the first half of the year. But those waiting for perfect certainty before acting will find themselves scrambling to catch up when the market accelerates. 

      The supply chain industry has received its lessons about preparedness – 2025 will show which companies took those lessons to heart.

      The future of supply chain innovation lies with emerging technologies

      Adam Spurdle, COO, at Communisis Brand Deployment

      “Emerging technologies like Gen AI, blockchain, and IoT are revolutionising supply chain operations, with AI taking centre stage in marketing procurement categories, including in-store marketing materials, printed communications, and marketing incentives such as in-store purchase-linked redemption programs and couponing for large brands.

      As businesses in this sector aim to streamline complex processes, the granular insights provided by AI are proving indispensable. AI enables real-time monitoring and analysis, offering the visibility needed to optimise workflows and make data-driven decisions that directly impact efficiency and outcomes.

      For marketing procurement, advanced AI models are set to transform demand forecasting, particularly in areas like production scheduling for printed communications and inventory management for in-store marketing materials. AI-driven insights can also anticipate fluctuations in redemption program participation or coupon usage by analysing historical and IoT data patterns. These capabilities help prevent overproduction, reduce waste, and align procurement strategies with actual consumer demand, ultimately improving sustainability outcomes.

      Moreover, AI’s ability to automate routine tasks—such as processing procurement documents, analysing supplier data, or tracking marketing asset delivery—through intelligent automation and robotic process automation (RPA) will allow teams to focus on higher-value activities. This means marketers and procurement professionals can dedicate more energy to creativity and strategic decision-making, ensuring campaigns are innovative, impactful, and aligned with brand objectives as we move into 2025.

      In short, AI is not just a trend but a transformative force for marketing procurement, enabling smarter, faster, and more sustainable operations across categories. As these technologies evolve, their role in shaping efficient and creative supply chains for brands will only grow.

      • AI in Supply Chain
      • Digital Supply Chain
      • Risk & Resilience

      Christina Slaughter, Senior Vice President, Supply Chain Management at tms, breaks down the preparations businesses can make for a tariff-heavy Trump presidency.

      The global supply chain playbook will need a major update after Donald Trump takes office for the second time on January 20. Trump’s promises (or threats) to impose a wide array of new tariffs on imported goods might mean major changes for the ways that US businesses source supplies.

      In the month since Trump’s November presidential victory, businesses have already stepped up their imports of goods from China. Many are hoping that they can build up the necessary stock surpluses to get ahead of the tariffs Trump has promised to implement come January. 

      Warehouses are bulging with tariff-beating goods as businesses look to stock up before the Lunar New Year holidays when much of the country’s manufacturing will grind to a halt for up to a month. Businesses globally are holding their breath to see what comes next. 

      But what else can and should businesses be doing now?

      During his presidential campaign, Trump vowed to impose tariffs of between 10-20% on all imports – a massive expansion of the 10-25% levies imposed solely on Chinese goods during his previous term. 

      He’s also threatened to impose an extra 60%-100% tariff on Chinese imports in addition to punitive 25% taxes on imports from Canada and Mexico. But his scattergun statements have businesses second guessing how the new regime will apply these restrictions. Understandably, it’s created a lot of uncertainty. 

      What is clear is that US businesses must prepare for a range of possible scenarios and be ready to act depending on how they unfold, which means closely monitoring developments, getting contingency plans ready and having funding and logistics to react at lightning speed. 

      During the last Trump presidency, suppliers developed Country of Origin Diversification strategies to avoid US tariffs on goods from China. They sourced production from alternative markets such as Vietnam, Malaysia and Indonesia. 

      However, they may need to think again if universal tariffs are applied. And many are looking at onshoring and sourcing from US-based suppliers. 

      “All you have to do is build your plant in the United States and you don’t have tariffs,” Trump has told US businesses. 

      So, how could this work? 

      From our experience, built over years supplying Fortune 500 clients – including providing drinkware, merchandise and related promotional accessories for several QSR clients, we have noted a number of things.

      Some businesses are already prepared for the new regime. Beauty company Bath & Body Works, for example, is ahead of the curve using largely onshore manufacturing, with 85% of its products made in the US, mostly at a production site in Ohio. 

      For many others, however, significant challenges remain. Many US businesses suddenly looking to source from suppliers within the US at the same time, for example, will strain the capacity to fulfil those orders and could drive up prices. 

      Depending on the products, US-based suppliers will have to source purpose-built machinery to manufacture their goods. Yet in many cases, the specialised engineers qualified and experienced to build those machines are only found in Southeast Asia and China, meaning a further challenge: getting them to come to the US. 

      US suppliers are throwing themselves into the breach

      Many US-based suppliers are bullish about fulfilling the new contracts and have a refreshing “Yes, can do” approach. Yet many suppliers tend to be based in locations where they will find it hard to attract the workforce to fulfil large orders at short notice. 

      It’s hard enough finding staff for retail chains these days, let alone the hundreds of manufacturing workers needed to work the challenging schedule in the same way as Chinese and SE Asia workers. 

      US-based suppliers will also need access to a pool of resources to turn around large orders quickly. They’ll have to import the raw materials and tooling expertise to set up the production facilities. Establishing this infrastructure is time-consuming and requires sustained commitment. 

      Sourcing from the US will also be expensive as labor and material costs are considerably higher than in China and other Asian countries. Ultimately, it may not work out any cheaper to source from the US. Paying the tariff could turn out to be more cost-effective. 

      Businesses will need to make these calculations about costs and to develop a strong radar for available capacity. It could take time to establish the new supplier relationships, creating a period of instability for businesses. 

      Challenging suppliers to prove they can deliver 

      In the light of all this, we believe it will be important for businesses to challenge suppliers to demonstrate just how they plan to deliver their goods and services. 

      Many – smaller suppliers, especially – will struggle to balance the right quality of product at a price point their buyers will still want to purchase and it is unlikely there will be a practical solution for everyone.

      While business leaders crave stability, fortunes are also made during periods of disruption. When doing their calculations, businesses should remember that there are also advantages to sourcing goods from within the US. 

      If production capacity becomes available, businesses will be able to fulfil their orders more rapidly – in weeks rather than the two and a half months transit time it can take ordering from a Chinese producer.

      The size of orders could be smaller, too – allowing businesses to reduce their inventory, eliminating the need to sit on large amounts of stock for weeks or months, which is another overhead – which could lead to faster, more agile supply chains. 

      Businesses would also save on transportation costs and lower mileage travelled would bring environmental savings. 

      With no universal panacea, each individual business will need to do what it can within the parameters of its business model, product requirements and trading relationships. 

      Here are some lessons based on preparations we are seeing businesses make now:

      Don’t reinvent the wheel.

      You may need to change a supplier, but this need not necessarily mean starting again from scratch. Explore ways to encourage existing suppliers to work with new suppliers to share expertise. 

      Some organisations are assessing the potential for leveraging existing facilities in order to encourage them to partner in the US and also Europe to take their manufacturing there, rather than building a completely new supply chain.

      Consider off-the-shelf solutions. 

      Can elements of your product be off-the-shelf rather than bespoke? 

      Many organisations are exploring the potential for using off-the-shelf bodies to keep down costs while still maintaining product quality.  

      Prioritise careful management of stakeholder expectations. 

      Being open and transparent with all customers and suppliers is critical and builds good faith.

      This means strengthening and consolidating the partnerships we have with customers and suppliers. It is vital to ensure that all players align with one another on the different options and solutions they may need to implement. 

      So far, our openness with our clients about the efforts we are taking to develop options for them have gone down well. 

      It’s never too soon to plan ahead. 

      No one knows quite how Trump’s tariffs promise will play out. It’s also unclear who will feel the impact most severely and to what extent these tariffs could hurt the US economy. Nevertheless, it is essential to act and be proactive by putting in place what you can now – not least due to the timescales involved in re-tooling, and so on.

      The year ahead holds some significant challenges for US businesses, make no mistake. And while the tariff regime will likely create headaches for the supply chain, as expected, everybody will be in the same boat. 

      But remember, for those who have preparations in place and can strike a good deal there will be opportunities to get ahead of the pack, too, and the canniest players will find first mover advantages. 

      tms is a marketing, sourcing and technology company.

      • Risk & Resilience
      • Sourcing & Procurement

      Jon White, CCO of global shipping solutions provider InXpress, dives into some survival strategies for the busiest time of the year in logistics.

      The festive season, while joyous, presents a whirlwind of challenges for businesses managing deliveries. As the holiday spirit ignites a shopping spree, customers expect their gifts to arrive on time, adding pressure to supply chains and couriers. Meeting these heightened demands requires strategic planning, technological adoption, and a customer-first approach.

      Today’s consumers have higher expectations than ever, especially during the Christmas season. Retailers must align their operations with modern consumer trends, which increasingly prioritise speed and convenience. Offering same-day or next-day delivery services is no longer a luxury but a necessity to remain competitive.

      Additionally, reliable tracking systems play a crucial role in managing expectations. Customers want real-time updates on their packages, from warehouse dispatch to doorstep delivery. Providing this transparency ensures that customers remain confident in the retailer’s ability to meet their needs. It’s not just about delivering a product; it’s about delivering peace of mind.

      Responsive Customer Support: The Holiday Lifeline

      The surge in orders during Christmas amplifies the importance of responsive customer support infrastructure. With delayed or lost packages being inevitable in high-pressure periods, businesses need to establish fast and effective communication channels to resolve issues promptly.

      Live chat, dedicated support hotlines, and social media responsiveness become critical tools. These platforms allow customers to voice concerns and receive timely assistance. A well-prepared customer support team can turn a potential complaint into an opportunity to strengthen customer loyalty. Furthermore, proactive communication from customer support teams, such as updates on delays, can prevent misunderstandings and build trust.

      Automation and Real-Time Updates: Keeping Customers Informed

      In the digital age, automated notifications and real-time updates on order status are indispensable. These features help businesses manage the customer’s anxiety surrounding their Christmas purchases. By integrating automation into the delivery process, retailers can send instant order confirmations, provide real-time updates on shipping progress, and notify customers of any changes or delays in their delivery timeline.

      Such transparency not only enhances the customer experience but also reduces the volume of inquiries to customer support teams, allowing them to focus on resolving complex issues.

      The bottom line

      The Christmas delivery frenzy may be daunting, but it is also an opportunity for businesses to showcase their reliability and commitment to customer satisfaction. By aligning with consumer expectations for speedy and transparent deliveries, bolstering customer support infrastructure, and leveraging automation for real-time updates, businesses can navigate the festive rush successfully. 

      These strategies ensure not only a smoother holiday season but also a stronger foundation for year-round customer loyalty. This Christmas, businesses who thrive will be those who prioritise precision, responsiveness, and innovation.

      • Risk & Resilience

      The International Air Transport Association has warned of “severe” supply chain issues poised to define 2025.

      After a rocky 2024, the global aviation industry’s supply chain headwinds are expected to continue in the year ahead. In a new report, the International Air Transport Association (IATA) predicted severe supply chain issues will continue to impact airline performance next year. These issues will have the combined effect of raising costs and limiting growth. 

      “Supply chain issues are frustrating every airline with a triple whammy on revenues, costs, and environmental performance.  Load factors are at record highs and there is no doubt that if we had more aircraft they could be profitably deployed, so our revenues are being compromised. Meanwhile, the aging fleet that airlines are using has higher maintenance costs, burns more fuel, and takes more capital to keep it flying. And, on top of this, leasing rates have risen more than interest rates as competition among airlines intensified the scramble to find every way possible to expand capacity,” said Willie Walsh, IATA’s Director General.

      Challenges growing in scale 

      IATA’s industry outlook report quantifies the scale of the supply chain challenges facing the airline industry. 

      The average age of the global fleet has risen to a record 14.8 years. This represents a significant increase from the 13.6 years average for the period 1990-2024. Aircraft deliveries have fallen sharply from the peak of 1,813 aircraft in 2018. The estimate for 2024 deliveries is 1,254 aircraft, a 30% shortfall on what was predicted going into the year. In 2025, deliveries are forecast to rise to 1,802. This is well below earlier expectations for 2,293 deliveries with further downward revisions in 2025 widely seen as quite possible.

      The backlog (cumulative number of unfulfilled orders) for new aircraft has reached 17,000 planes, a record high. At present delivery rates, this would take 14 years to fulfil, double the six-year average backlog for the 2013-2019 period. However, the waiting time is expected to shorten as delivery rates increase.

      The number of “parked” aircraft is 14% (approximately 5,000 aircraft) of the total fleet (35,166 as at December 2024, including Russian-built aircraft). While this has improved recently, parked aircraft remain 4 percentage points higher than pre-pandemic levels (equivalent to some 1,600 aircraft). Of these, 700 (2% of the global fleet) are parked for engine inspections. 

      The IATA’s report adds that they expect this situation to persist into 2025. “This is a time when airlines need to be fixing their battered post-pandemic balance sheets,” added Walsh. “But progress is effectively capped by supply chain issues that manufacturers need to resolve.”

      Knock-on problems 

      In particular, the IATA report identified two knock-on negative effects resulting from the industry’s supply chain issues.  

      First, fuel efficiency (excluding the impact of load factors) was unchanged between 2023 and 2024 at 0.23 litres/100 available tonne kilometers (ATK). This represents a step back from the long-term (1990-2019) trend of annual fuel efficiency improvements in the range of 1.5-2.0%.

      Secondly, the industry expects to see exceptional demand for leased aircraft. This demand will push leasing rates for narrow body aircraft to levels 20-30% higher than in 2019.

      “The entire aviation sector is united in its commitment to achieving net zero carbon emissions by 2050. But when it comes to the practicality of actually getting there, airlines are left bearing the biggest burden. The supply chain issues are a case in point. Manufacturers are letting down their airline customers and that is having a direct impact of slowing down airlines’ efforts to limit their carbon emissions. If the aircraft and engine manufacturers could sort out their issues and keep their promises, we’d have a more fuel-efficient fleet in the air,” said Walsh.

      • Risk & Resilience

      Holly Clarke, Product Manager for Inventory AI at Peak, explores the hidden pitfalls when fostering agility in the supply chain.

      Supply chain leaders are constantly having to adjust their strategies as the world around them changes. Global issues hit, consumer behaviour shifts, and then within a couple of years it all changes once again — just when supply chain managers are starting to readjust. But the ironic thing is that supply chains aren’t agile; the steering of a ship takes time to change direction. 

      Having to adjust course is no easy feat. This is especially true as we continue to get hit by an increasing number of legislative impacts such as Brexit, sustainability requirements and other regulations — all of which are making things even more complex.

      The core fundamentals are still just as important, such as efficient stock holding, maximising service and operating efficiently. But with interest rates and the cost of capital at a high, this is becoming more of a knife-edge. Businesses can’t afford to have capital tied up in overstocked products, but they can’t afford to miss sales either. And, to add another complexity into the mix, they don’t want to pass too much of the cost on to their customers.

      Meeting demand is constantly taking on a new meaning: how do I meet demand in the most cost- efficient way?

      We must turn to technology to help us. Accessing optimal demand predictions, leveraging better inventory and pricing strategies, and more agile ways of working are a must — they will help you steer that ship faster than ever before and, crucially, ahead of competitors.

      Tackling the tightrope: data is key

      Supply chain leaders are walking an increasingly challenging tightrope, and they have had to learn how to do it in real time. To keep output well-balanced, trade-offs between cost, speed and service must be factored in; this is at the same time as the landscape shifts, where uncertainty and higher customer expectations go hand in hand.

      The agility of any supply chain is dependent on the strength and reliability of its data. That’s why how it’s captured is crucial, both in terms of accuracy and speed. Without this data providing a full overview of the supply chain, leaders are walking the tightrope blindfolded and imprecise data could send them further off course.

      Agility over easy-going: give it time

      Enhancing flexibility, responsiveness and adaptability are the key focuses for future-facing supply chains. But this can’t be achieved overnight. The entire business, at every level, should be on board with the fact that true supply chain optimisation takes time.

      Yes, embracing tech will encourage flexibility and provide detailed analysis, but instant success should not be expected. It’s essential that the supply chain team is committed to utilising the newfound tech in as many ways as possible.

      AI-powered optimisation: achieving optimal inventory levels and pricing

      Knowing how much stock to hold is an ever-present challenge for supply chain leaders. If demand suddenly changes, sales can be lost or capital gets tied up in excess stock. But the use of AI is providing companies with in-depth, accurate insight to achieve optimal inventory levels. AI can monitor stock in real time. It can balance fluctuating demand with factors like sales history, product availability and location. As a result, it can ensure the right product is in the right place at the right time. 

      The technology can also show teams the optimum price for products throughout their lifecycle. It can provide recommendations that balance customer demand and business objectives in a way that maintains margins and drives profit.  

      Predicting uncertainty? The power of accurate forecasting 

      Uncertainty will always be rife in the world of supply chain,. Nevertheless, AI’s insights can ensure quicker decision making when your supply chain feels the ripples of a global event. AI can improve demand forecast accuracy and agility, helping organisations maintain good service and inventory levels while minimising waste.

      While not easy, agility in the supply chain should always be strived for; it powers a balance between operational efficiency and the flexibility needed to react swiftly when issues arise.

      The bottom line

      As supply chain leaders battle ongoing uncertainty, having accurate data and an agile team is crucial to effectively meet changing demand in a cost-efficient manner. It enables managers to walk an increasingly challenging tightrope of balancing internal strategy with external trends.

      To implement such a strategy, embracing AI is key. Supply chain managers can capture and access real-time insights on their inventory levels, allowing them to maintain the right amount of stock and offer it at the optimum price. Crucially, this means that if global events impact demand, organisations can remain operationally resilient and steer their ship far quicker than would otherwise be possible. 

      • Collaboration & Optimization
      • Risk & Resilience

      Giuseppe Bergamaschi, Sales Director at Milexia Italy, looks at military aircraft as an object lesson in supply chain lifecycle management.

      The longevity of military aircraft, if handled correctly, can span several decades. This is important considering the average Boeing aircraft costs anywhere from $89 million to over $442 million, depending on model. Because of the considerable expense involved, the military aerospace industry takes the issue of a plane’s lifespan very seriously. Effective supply chain management solutions are paramount. 

      Complex and expensive decisions in a rapidly changing landscape

      Distributing high-reliability components for military aircraft throughout their entire lifecycle presents multi-layered supply chain challenges. Adding to this complexity is obsolescence management. Internal components for these aircraft systems, including semiconductors, and mechanical parts, have much shorter life cycles. In some cases, their life span can be less than five years. 

      The prolonged operational lifecycles of military aircraft work in parallel with rapid technological developments. This create a dynamic landscape where components risk obsolescence before the end of an aircraft’s service life. This means managing products with long lifecycles. At the same time, however, militaries need to balance the engineering costs for eliminating internal essential components with shorter lifecycles. Supply chain disruptions, strict budget controls, legacy system integration, and regulatory obligations increase the urgency for effective obsolescence management systems.

      To address this ‘two-speed’ challenge, military aerospace organisations must implement a complete lifecycle management framework. Such a framework must qualifies all component aspects occurring during the complete lifecycle of the system. One that on every level strengthens the integration of technologies, processes, and methodologies. Only by doing so can such a plan ensure the agility, upgradeability, and sustainability of military and aerospace systems.

      Developing a lifecycle management framework 

      Here are some of the important considerations for developing a complete management lifecycle framework:

      Technological Innovation:
      • Digitalisation, data analytics, and artificial intelligence – must be adopted to enhance predictive maintenance and proactive monitoring capabilities, improve asset tracking and management, and aid solid decision making across the lifecycle. 
      • Digital twin technology – a new evolving technology that by virtual representation of a system or a physical object holds immense potential for quantifying the impact of obsolescence and mitigation issues and strategies.
      • Obsolescence design innovation – develop modular designs with the use of open-source infrastructures to help expedite the replacement or upgrade of components as needed.   Obsolescence considerations should be factored into the design of new components and offerings from the outset. Involving design experts early on in the process in cooperation with engineering units, suppliers, and other stakeholders. 
      Processes:
      • lifecycle forecasting – implement proactive tools and methodologies to predict and monitor potential obsolescence issues. 
      • In-depth qualification process – successful qualification, of all aspects occurring during the complete lifecycle of the system must be implemented. For the integration of the components into the manufacturing process, component deviations need to be considered as well as component tolerances within the qualification process. Additionally, the reliability of components and sub-systems considering the harsh environmental and operational situation within military air vehicles has to be taken into account. 
      • Circular economy strategies – develop refurb, repair, and recycle strategies to extend life and make the best use of components in the lifecycle. 
      • Robust supplier verification – to eliminate the risk of counterfeit technologies. Counterfeit components are often difficult to identify by visual inspection alone. As such, businesses must take proactive measures to detect these fake parts from the supply chain, by having strong relationships with verified suppliers.
      • Aircraft manufacturing diligence abide by the aircraft manufacturer’s recommended maintenance schedule and schedule repairs, routine servicing, and inspections accordingly. Ensure all maintenance work is carried out by a highly skilled maintenance crew that can provide expertise about an aircraft’s unique and ultimate operating conditions and state of maintenance.
      • Enforce a service life assessment programmeconsider a formalised service life assessment, to optimise the lifecycle potential of military aircraft. Real-time monitoring will identify issues as they arise rather than using an interval-based maintenance model. Aircraft should be systematically rotated to different tasks, in different phases of their lifecycle to test for longevity, agility, and capacity to upgrade or transition to alternative missions as they age.
      People:
      • Collaborative partnerships – with industry partners and government agencies to share obsolescence methodologies and co-create for developing innovative solutions. 
      • Supply chain collaboration – embrace strong communication and collaboration between OEMs, suppliers, and end users to ensure a cohesive approach to obsolescence management, and the sustainability of aircraft. 
      • Dedicated teams – establish a dedicated obsolescence management team responsible for tracking and addressing potential risks in a timely manner. Their role should include developing a replacement strategy, working with suppliers, maintaining an obsolescence database, and strategic planning for obsolescence.
      • Educate employees – implement an ongoing training programme for the education of important best practice methodologies, and the maintenance of components. Include training schemes to educate employees on how to recognise counterfeit components. What signs to look out for when inspecting parts and how to spot fakes through comprehensive testing processes. 

      Technological developments are pivotal in shaping the future of military aircraft, offering transformative capabilities to enhance performance and effectiveness. A proactive and complete lifecycle approach is the only way to manage the ‘two-speed’ challenge for the long-term sustainability and operational agility of any military operation.

      • Sourcing & Procurement

      Mauro Cozzi, CEO and Co-founder at Emitwise, explores the role of accurate data in driving sustainability throughout the supply chain.

      As we bring in the new year, 2030 emissions reduction targets are transitioning from long or mid-term to near-term. This increasing urgency to fulfil public commitments is increasing pressure to calculate, disclose, and reduce emissions. The complexity of Scope 3 emissions data that encompasses the entire value chain, continues to challenge organisations – many of which still rely on broad estimates to measure their carbon footprint. These inaccuracies hinder effective decision-making and limit the impact of sustainability initiatives. Given these challenges, procurement emerges as a pivotal starting point for reducing carbon emissions and achieving sustainability targets. 

      By fostering partnerships with sustainable suppliers and prioritising accurate Scope 3 emissions data, companies can embed environmental accountability throughout their value chains, paving the way for more precise carbon tracking and impactful emissions reductions.

      Tackling Transparency in Supply Chains

      Supply chain complexity and inconsistent data practices make achieving emissions transparency particularly challenging. Traditional methods often inflate carbon footprints, complicating efforts to make informed sustainability decisions. According to recent research, one-third of procurement leaders cite data accuracy as a significant obstacle to measuring Scope 3 emissions.

      Four methodologies are commonly used for calculating Scope 3 emissions:

      1. Spend-based: Relies on procurement spending data but risks overestimating emissions as expenditures rise, even when actual emissions remain unchanged.
      2. Average data: Bases calculations on the volume of goods or services consumed, offering better accuracy than spend-based methods but lacking the specificity required to capture supply chain intricacies.
      3. Supplier-specific data: Utilises primary data from suppliers for more precise calculations but demands significant engagement and collaboration.
      4. Hybrid methods: Combines primary and secondary data, striking a balance between accuracy and feasibility by leveraging supplier-specific data where possible and supplementing it with industry averages.

      To enhance data accuracy, businesses should prioritise incorporating primary supplier data into their reporting processes. Though labour-intensive and requiring specialised skills, this approach delivers a clearer picture of supply chain emissions, bolstering decision-making and resilience.

      Building Stronger Supplier Partnerships for Sustainability

      Effective Scope 3 emissions management begins with embedding sustainability into procurement processes. From supplier selection to contract negotiation, prioritising partners committed to environmental responsibility and accurate data reporting can reduce overall emissions and foster collaborative relationships.

      Segmenting suppliers by their data maturity and emissions capabilities allows businesses to allocate resources more effectively:

      • High-maturity suppliers: Capable of providing verified data across Scopes 1, 2, and 3, along with product carbon footprints (PCF).
      • Medium-maturity suppliers: May require support to meet emerging data standards.
      • Low-maturity suppliers: Benefit from training, educational resources, and incremental steps toward emissions tracking and reporting.

      This targeted approach ensures advanced data requests are directed at capable suppliers while supporting others in their journey towards greater transparency.

      Harnessing Collaborative Industry Initiatives

      Sector-wide and cross-industry collaborations play a crucial role in standardising Scope 3 data practices. Initiatives like the Partnership for Carbon Transparency (PACT) provide shared reporting methodologies, simplifying the process for suppliers and procurement teams.

      Sector-specific alliances, such as Together for Sustainability in the chemicals industry, help align Scope 3 standards, reducing discrepancies and enabling consistent supplier comparisons. These initiatives streamline reporting processes, enhance data quality, and drive systemic change aligned with global sustainability goals.

      Decoding the Regulatory Landscape for Scope 3 Emissions

      Global regulatory shifts demand precise, verifiable carbon emissions data, with Scope 3 emissions increasingly coming under scrutiny. The EU Corporate Sustainability Reporting Directive (CSRD), for instance, obligates large EU firms and their value chains to disclose detailed carbon data, including Scope 3 emissions. Non-EU companies are also feeling the ripple effects, as stakeholders worldwide demand heightened sustainability transparency.

      This evolving regulatory environment leaves no room for estimated or incomplete data, making the need for precise Scope 3 reporting a critical factor for maintaining global market competitiveness.

      The Strategic Value of Sustainable Procurement

      Embedding Scope 3 data practices within procurement not only positions organisations to meet their near-term public commitments but also strengthens supplier relationships, mitigates climate risks, and bolsters organisational resilience in unstable economic conditions.

      As primary data becomes central to achieving emissions reduction targets, procurement emerges as a strategic lever for driving the low-carbon transition, delivering environmental and long-term business benefits.

      By making procurement a core tool for carbon management, businesses can foster accountability across supply chains, build robust partnerships, and ensure their sustainability efforts are both measurable and impactful.

      In the pursuit of a sustainable future, procurement stands as the critical link between ambitious goals and actionable outcomes.

      • Sourcing & Procurement
      • Sustainability

      Organisations predict tariffs will pass higher costs onto customers, with many warning sweeping trade changes put them at “risk of collapse”.

      Supply chain organisations and procurement leaders are bracing for a major crisis, as the incoming Trump administration promises sweeping tariffs in Q1 of 2025. A new report by spend management solutions firm Ivalua has revealed that half of organisations in the US and UK are preparing for changes in US trade policy, including rising tariffs

      These changes, they believe, will create sweeping supply chain disruptions, resulting in higher costs for customers. Multiple organisations also warned that sweeping trade regulation changes could put them “at risk of collapse.”

      Free trade agreements under threat 

      Ivalua’s study of 200 US and UK supply chain and procurement decision-makers identified restrictions on exports of certain products and materials as their top concern (89%). The majority (84%) pressed worry about the overhaul or elimination of existing free trade agreements. A similarly overwhelming number (89%) also expressed concerns over broad tariffs on imports, while 84% fear high tariffs on goods imported from China. 

      Sparked by President-elect Trump’s recent threats to hike tariffs on goods imported to the US from China, Canada and Mexico upon taking office, organisations’ fears could be realised as early as January when the new administration comes into power. 

      “President Trump has been forthright in his position on tariffs, but the final details may vary based on negotiations with  certain countries and some categories of imports,” commented Alex Saric, a procurement expert at Ivalua. Uncertainty around how trade policies and tariffs will be implemented means companies won’t know how best to optimise supply chains to mitigate the impact until the last minute. At a minimum, organisations should start working with suppliers now to reconsider supply chain operations and identify ways to mitigate the impact of likely trade policy changes in the new year.”

      The impact 

      The impact, according to Ivalua, could be significant for US and UK businesses. Of the firms who anticipate more disruption from January:

      • 52% say they will need to completely reevaluate which suppliers they work with.
      • 51% say they will pass the cost onto customers – US organisations (65%) are more likely to do so than those in the UK (36%).
      • Almost half (48%) foresee rising supply chain costs that reduce profitability.
      • 45% warn rising supply chain costs will put their business at risk of collapse – with US organisations (52%) having a greater fear of collapse than those in the UK (36%).

      “Organisations should prepare for the possibility of nearshoring or onshoring operations, factoring in evolving ‘made in USA’ thresholds and the impact increased tariffs will have on suppliers in China, Mexico, and Canada,” Saric added. “But the reality is that certain industries, especially those dependent on rare earth minerals or established manufacturing clusters, can’t easily shift away from China.”su

      • Risk & Resilience

      Onyekachi Izukanne, CEO of TradeDepot, looks at the ways supply chain leaders can prepare to tackle the busiest time of the year.

      The holiday season is a high-stakes period for retailers and logistics companies, demanding seamless coordination across staffing, technology, inventory, and customer service. Here’s how these sectors are preparing to tackle the challenges of peak season.

      Managing Seasonal Workforce Challenges

      The holidays often call for a rapid workforce expansion, with retailers and logistics firms doubling or tripling their staff to meet demand. However, recruiting and training reliable temporary workers can be daunting. For logistics, the stakes are particularly high as delivery volumes surge, and errors in last-mile fulfilment increase significantly. Studies indicate that up to 25% of such errors during peak periods are due to insufficiently trained staff.

      To address this, companies are implementing seasonal training programs well before the rush, ensuring temp workers can adapt quickly. Others rely on flexible staffing solutions by partnering with logistics agencies, enabling them to handle demand surges without overloading core teams.

      Leveraging AI and Automation for Efficiency

      Technology continues to reshape holiday operations, with AI and automation leading the charge. Retailers are using AI-driven tools to predict demand spikes, manage stock efficiently, and optimise delivery routes. Logistics firms are turning to automation in warehouses, with robotic picking and packing systems minimising errors and accelerating fulfilment.

      For example, companies like Ocado use advanced robotics to handle peak-season orders efficiently. Meanwhile, smaller retailers and importers are adopting targeted solutions like AI-powered inventory systems, which help anticipate consumer needs and prevent overstocking or shortages.

      Adapting to Evolving Consumer Expectations

      Consumer behaviour during the holiday season has undergone significant shifts. With e-commerce dominating, customers demand faster shipping, real-time inventory updates, and transparent delivery tracking. This places immense pressure on retailers and logistics providers to meet soaring expectations.

      As the season progresses, demand patterns change. Early in the season, electronics and apparel top the list, while December sees a surge in food, beverages, and gift items. Platforms like TradeDepot enable distributors to adapt by connecting them to global suppliers who can quickly respond to these shifts, ensuring timely deliveries and satisfied customers.

      Mastering Inventory Management

      Effective inventory management is critical during peak periods. Retailers must strike a delicate balance—stock enough to meet demand without overloading warehouses. Mismanagement can result in lost sales during stockouts or inflated costs from overstocking.

      Seasonal trends further complicate the equation. For example, confectionery demand peaks in October for Halloween, while December brings higher demand for beverages and holiday-themed goods. Businesses using demand-driven supply chains, supported by AI and real-time data, tend to perform better, ensuring smoother operations throughout the holiday season.

      A Test of Agility and Innovation

      The holiday rush presents unique challenges for the retail and logistics industries, testing their ability to scale, adapt, and innovate. Success hinges on proactive workforce management, cutting-edge technology, and dynamic inventory strategies.

      Large e-commerce players leverage robust systems to manage seasonal demand seamlessly. However, smaller importers and distributors are finding opportunities through platforms like TradeDepot, which connect them to responsive global supply networks. This adaptability is essential in an increasingly complex retail landscape, ensuring businesses survive the holiday crunch and thrive.

      • Collaboration & Optimization

      Almost half of all supply chain leaders recently named tariffs and trade barriers as their top concern going into 2025.

      In the wake of US President-Elect Donald Trump’s latest vocal assertions regarding upcoming international tariffs, barriers to international trade have swiftly risen to the top of supply chain leaders’ lists of concerns headed into 2025. A new report released by logistics SaaS company Descartes Systems Group found that close to half (48%) of supply chain leaders surveyed identified rising tariffs and trade barriers as their top concern. This was closely followed by supply chain disruptions at 45% and geopolitical instability at 41%.

      Jackson Wood, Director, Industry Strategy at Descartes, noted that “With the potential for the incoming US administration to impose new and additional tariffs on a wide variety of goods and countries of origin, US importers may need to significantly re-engineer their sourcing strategies to mitigate potentially higher costs.”

      Trump promises tariffs will define the outset of his second presidency 

      At the end of November, Donald Trump made repeated posts on his social media platform Truth Social promising that, on day one of his administration — in addition to deporting large numbers of allegedly illegal immigrants — he would impose significant and broad new tariffs on goods entering US ports. 

      Trump has claimed he will impose a 25% levy on all goods entering the US from Mexico, and Canada on his first day in office. The move will, Trump claims, somehow help crack down on immigration and illegal drug smuggling. In addition to the blanket 25% tariff on all products, Trump also said that China would be subject to an additional 10% “above any additional tariffs.” While campaigning earlier this year, Trump floated the possibility of tariffs as high as 60% on all Chinese-manufactured goods. 

      Tariffs provoke uncertainty as supply chains race to diversify

      The potential for tariffs to eat into profit margins for western companies, which in turn will pass that cost on to consumers, is creating a scramble among companies of all sizes to place orders quickly and for supply chain leaders to rapidly reshore what elements of their supply chains they can. Descartes’ research found that tariffs and trade barriers ranked as the priority issue regardless of company size, as respondents at companies with less than 250 employees, 251-500, 501-1,000, 1,001-50,000 and 50,000+ employees all cited it as the most significant issue they are currently facing.

      A recent report found that various manufacturers in the tech and consumer goods sectors are seeing huge upticks in overseas orders as businesses attempt to secure critical goods ahead of Trump’s inauguration, which also falls around the regional shutdown caused by the Lunar New Year. Affected industries will likely include display panels, IC design, memory, and optical communications. 

      But beyond short-term overstocking, Descartes notes that a tariff-happy Trump presidency could highlight a newfound necessity for organisations involved in international trade to sharpen their supply chain analytics practices to help build more resilient supply chain networks. 

      “Evolving tariffs and trade policies are one of a number of complex issues requiring organisations to build more resilience into their supply chains through compliance, technology and strategic planning,” argued Wood.

      • Risk & Resilience
      • Sourcing & Procurement

      Nick Rakovsky, CEO of Data Docks, examines four warehouse management challenges poised to intensify in the year ahead.

      In 2025, we might see something of a shake up in supply chain operations. Four big areas could be in the crosshairs for warehouse managers in particular.

      1. Cybersecurity & Data Privacy

      Evolving Cyber Threats

      Hackers are getting craftier. They’re not just after financial data anymore, but any information they can exploit. Geopolitical players are targeting systems to cause economic havoc without needing direct financial gain. 

      Companies like Expeditors International and the US-based retailer Ace Hardware both had their Warehouse Management Systems brought down by cyberattacks in 2022 and 2023. Warehouses are becoming prime targets, all the more so because they don’t tend to have the strictest information security policies.

      The big win with tech in supply chains is better collaboration with partners. If your WMS talks directly to suppliers’ systems, you get real-time updates on lead times and stock levels. But these connections can also open up new vulnerabilities if not handled properly. Robust cybersecurity measures are now more critical than ever.

      Impending Data Privacy Regulations

      2025 might also be the year data privacy regulations finally hit the spotlight. Slapdash tech solutions won’t cut it anymore. Businesses will need fully auditable systems with well-organised data to keep regulators happy.

      Digital transformation efforts are going to have more stakeholders. Warehouse managers need to stand their ground and push for the right investments, or they risk being overruled by departments that don’t understand operations.

      2. Retaining Skilled Team Members

      Automation and Workforce Dynamics

      Automation promises efficiency, but it also changes what we need from our staff. Younger workers have different expectations. This calls for a new management approach to keep them engaged.

      High turnover might become a bigger issue. Managers who think tech will make training a doddle might be in for a shock. As warehouses adopt more specialised systems, processes could differ wildly between companies. Even experienced hires will need time to get up to speed, so you need to hold onto your best people.

      Investing in Employee Growth

      To keep talented staff, warehouses have to provide opportunities to learn high-demand skills. Aligning personal development with company goals can build a more dedicated team.

      Success comes when you tackle tech implementation and people management together. Ignore one, and you might find that your investments in the other don’t deliver the expected benefits.

      3. ESG and Sustainability

      Shift to Scope 3 Emissions Reporting

      Sustainability reporting is expanding to include ‘Scope 3’ emissions. This means companies are now expected to account for the environmental impact of their entire supply chain—not just their own direct emissions (Scope 1) or the energy they purchase (Scope 2). This broader focus will hit logistics and warehousing harder than previous efforts.

      Lots of companies have set big sustainability goals with 2025 deadlines. Suppliers and partners are under pressure to meet these targets. Investors and insurers are also paying attention. If senior execs are feeling the heat, they’ll pass it down to operations.

      Green Capital Investments

      Tech like electric forklifts and energy storage systems might cross the cost-viability threshold in 2025. Companies with the capital to invest in these advancements may lower their operational costs, putting pressure on others to catch up or risk falling behind.

      Warehouses will need to juggle the cost of new sustainable tech with the competitive edge it offers. Those who can invest might not only boost their green credentials but also gain efficiencies that save money.

      4. Rightsizing Inventories

      The Aftermath of Overcorrection

      During the pandemic, many companies swung to ‘just-in-case’ inventory strategies, leading to stuffed warehouses and, later, record shrinkage. Now, they’re dealing with the fallout of excess stock.

      While some analysts predict a shift back to ‘just-in-time’ (JIT) models, it’s not that simple. Advanced demand forecasting makes hyper-optimised JIT more tempting, but uncertainties in global supply chains throw a spanner in the works.

      Global Logistics Volatility

      Governments are pushing for nearshoring and cutting trade with ‘risky’ countries. This makes global freight less predictable. In the electronics sector, the uncertain supply of semiconductors tempts companies to stockpile. 

      2025 might also be a strange one for consumer habits. Despite inflation, people are splashing out on personalised and ethically-minded products. Exceptional customer service, including speedy fulfilment, is vital—and warehouses play a central role.

      Warehousing in 2025 Won’t Just Be Business as Usual

      With technological leaps, new regulations, workforce changes, and shifting consumer habits all in play, the challenges are mounting. Staying ahead on cybersecurity, keeping skilled staff, meeting sustainability goals, and getting inventory levels right will demand clever strategies and a proactive approach. Those who anticipate and adapt to these evolving challenges will be better positioned to succeed in an increasingly competitive landscape.

      • Collaboration & Optimization
      • Risk & Resilience

      Industry experts weigh in on the role of technology in overcoming demand fluctuations, out-of-stocks, inventory mismanagement, increased cyber threats, and the other challenges posed by mega shopping events like Black Friday.

      Black Friday 2024 is over. This year, while customers’ enthusiasm for in-person shopping was muted, online retailers saw their revenues rise yet again year-on-year. While the shopping extravaganza can provide numerous opportunities for retailers, brands also face issues such as demand fluctuations, out-of-stocks, inventory mismanagement, and increased cyber threats — especially as online shopping continues to rise in popularity.

      This year, we spoke with a range of industry experts to take a deep dive into the challenges Black Friday poses for supply chains, and understand how the industry can use innovative tech to address them in the upcoming holiday shopping period and beyond

      Streamlining inventory management

      There are several challenges that retailers and supply chain brands face during Black Friday and inventory mismanagement remains at the top. During the busy shopping period, brands need to maintain high inventory accuracy for effective order fulfillment. According to Amber Hovious, VP of Marketing & Partnerships at Teamwork Commerce: “During Black Friday, the focus on stock management should become a top priority.” 

      “Being able to provide high-quality experiences is one thing, but it is a waste of time if a retailer doesn’t have a specific product available. With increased traffic both online and in-store around Cyber Weekend, the potential for stockouts, and ultimately, disappointed customers, increases significantly.” 

      Similarly, Dean Drew, President of the RFID Solutions Division at SML Group, highlights the crucial role of inventory replenishment during Black Friday. Frew believes: “Replenishment  during peak holiday sales periods is critical in order to avoid out of stocks in distribution centers and on the sales floor.”

      It is clear that retailers should find ways to navigate the right solutions to meet their specific needs. Teamwork’s Hovious suggests: “Once Black Friday sales begin, retailers need to utilise the right technology that can track inventory across all locations, from the supply chain to the shop floor. The right platform can keep an accurate view of all sales – both online and in-store – as well as stock, flagging when inventory levels begin to deplete. From here, associates can replenish shelves, or they can redirect more stock from warehouses to various locations depending on sales demand.”

      “Product availability can make or break a retailer’s performance during Black Friday.” — Amber Hovious, VP of Marketing & Partnerships, Teamwork Commerce

      There is no denying that brands should invest in cutting-edge technologies that can enable them to keep accurate track of inventory which is key not only to drive sales but also to deliver high-quality customer experience. Highlighting the importance of inventory accuracy, Hovious adds: “Product availability can make or break a retailer’s performance during Black Friday. There is no greater disappointment for a customer than discovering an item they want is out of stock. By getting their inventory practices right during Black Friday, retailers can maximize their opportunities for success.”

      When it comes to ensuring inventory accuracy, technology such as item-level RFID can be instrumental. SML’s Frew suggests: “By employing item-level RFID, retailers can easily track stock levels across their entire supply chain. This enables brands to identify individual products and components and trace them throughout the supply chain from production to point of sale.” Explaining why brands must use RFID technology during Black Friday, Frew adds: “It [RFID] provides retailers with supply chain clarity and sets the foundations for an efficient operation during Black Friday weekend.”

      Cybersecurity & crime during Black Friday

      Cybercrime remains a pressing concern during the busy shopping season. Dominik Birgelen, CEO of Oneclick AG Group points out: “Black Friday is often a busy period, providing countless opportunities for supply chain businesses. But, it’s also a prime time for hackers seeking vulnerabilities during the busy period. The supply chain sector remains a lucrative target for cybercriminals, having significant amounts of critical data.”

      Cyber attacks can significantly impact operations during busy periods, along with other severe consequences. Birgelen highlights: “Cyberattacks can easily disrupt supply chain operations, resulting in delays, lost revenue, and a damaged reputation. This, in turn, can hinder the long-term growth of supply chain businesses.” Outdated software and the lack of technologies can lead to increased vulnerabilities. To protect themselves from cybercriminals, retailers and supply chain companies should lean on robust security solutions. Birgelen advises companies to use zero-trust solutions. He says: “By deploying advanced solutions based on the Zero Trust Architecture (ZTA), supply chain operators can ensure that suppliers, warehouses, and logistics systems operate securely without interruption.” 

      In addition to cybercrime, theft continues to be a serious issue for brands, increasing retail shrink. According to Sarah Bird, Head of Local Services at NBCS: Supply chain crime has been making the headlines recently as a significant amount of cheddar was recently stolen from the London cheese producer Neal’s Yard Dairy – a fraudster impersonating a French retailer managed to scam the business.” Businesses must invest in significant in-store security measures to reduce losses while ensuring high-level security for their staff. 

      Black Friday and beyond

      To capitalise on Black Friday opportunities, businesses must first address inventory and security issues. As per industry experts, leaning on innovative technologies can be a wise choice for brands to empower themselves and drive growth. 

      Those who can get the right tech stack in place can operate effectively, navigate the season’s demands and achieve sustainable growth.

      • Digital Supply Chain
      • Risk & Resilience

      Nearshoring promises to reduce the chances of disruption, but also threatens higher costs and the added risk of the unknown.

      The last five years have seen a near-complete reimagining of the globalised, cost-driven approach to procurement that defined sourcing between the end of the 20th century and the worldwide disruption caused by the COVID-19 pandemic. 

      Prior to 2020, purchasing was defined by sprawling supply chains which prioritised speed and cost over other virtues. These just-in-time supply networks performed poorly when the pandemic caused unexpected spikes in demand, disruption throughout the value chain, and prices to skyrocket. While the effects of the pandemic have gradually faded over the last four years, subsequent geopolitical events and economic pressures point to it as the dawn of an era in which McKinsey analyst Karl-Hendrik Magnus notes “volatility [looks] more and more like the rule rather than the exception.” The current climate of ongoing supply chain disruptions shows few signs of growing more hospitable. As a result, rising costs, extreme weather, and geopolitical tensions have placed nearshoring at the top of the agenda for many supply chain leaders in search of a way to reinject resilience into their supply chains. 

      From “Just in Time” to “Just in Case”

      It doesn’t matter how cheaply you can buy something if it spends months in transit, costs too much money to ship, or never arrives at all. Yogen Shah, a procurement director working in the oil and gas sector, observes that many of the economic and technological systems upon which the modern world depends are overly concentrated in the hands of a small number of large corporations. 

      “It’s not just about supply chains—it’s the whole world depending on one or two companies based in the United States for their operations,” Shah said, in reference to the outage in late July that left 8.5 million Microsoft computers offline, grounding flights, and disrupting critical systems around the world. “This is similar to what was happening in supply chains before COVID-19, where most large companies depended solely on China for sourcing.” 

      Shah notes that, by depending on a single country to supply the vast majority of a certain commodity — whether that’s manufactured goods or digital infrastructure — not only does the system become more susceptible to shocks and disruption, but the ability to cultivate those capabilities elsewhere will also be limited, making it progressively harder to pivot away from the single, monolithic supplier market. 

      “Nobody was thinking about diversification before the pandemic because it was cheap and so everyone was building capacities in China, completely ignoring the risk of depending on one country for their materials,” he says. “If you’re dependent on just one country, over time you’re also losing the skill sets needed to manufacture whatever that country produces elsewhere. With China, we’re losing the ability to manufacture low-tech items. Today, if someone needs to produce something simple like a needle, nobody in Europe or America knows how to do it. It’s not just about losing jobs or economic benefits; we’re losing vital skills.” 

      In the wake of the COVID-19 pandemic, Shah acknowledges that “there’s at least a realisation that we need a ‘China plus one’ strategy.” In the US, a 2023 report found that companies are aiming to reduce exposure to the Chinese economy by 40%. Chinese exports to the US dropped by 20% last year, compared with 2022. 

      He adds that a rise in right wing political movements over the past five years has also eroded much of the neoliberal, globalist status quo that preceded the pandemic. “Many are now shifting from globalisation to localization, with governments becoming more right-leaning, like Trump, Modi, or what’s happening in France. Everyone wants to protect local jobs and local economies,” he notes. “We’ll likely see ‘China plus one,’ or even ‘plus three,’ strategies being developed because companies don’t want to depend on one or two countries, or even just Asia. What happens if there’s a civil war or disruption in shipping routes? Where will you turn for your critical operations? That’s why many companies are ensuring that their critical supplies have options available within their own country or region. It might be slightly more expensive, but it’s better to produce something at a higher cost than nothing at all.”

      Nearshoring for a more resilient supply chain 

      From nationalist protectionism to fears of another pandemic-scale disruption, many organisations are increasingly finding reason to disentangle their supply chains from markets on the other side of the world.

      Gemma Thompson, a Senior Consultant for Strategy and Growth at supply chain and procurement consultancy Proxima, notes that, “when done effectively,” nearshoring “can reduce dependence on more distant suppliers, which, when done well, can provide resilience in procurement and sourcing strategies.” Hoping to mitigate the risks posed by more complex, geographically distributed supply chains, companies are starting the process of shifting resource extraction, production, manufacturing, and other critical elements of their value chain closer to home. 

      Thompson adds that there are other attractive qualities to nearshoring than simple risk reduction. “Shorter, more efficient logistics networks will present an opportunity to reduce carbon footprint, and in theory, a shorter supply chain should offer greater visibility and, thus, greater transparency. Operating closer to home also presents an opportunity to simplify regulatory compliance,” she says. 

      At the same time, however, companies exploring the benefits of a more local supply chain still want to preserve the financial benefits that pulled their business overseas in the first place. This creates some challenges, however.

      “Often, the initial costs of nearshoring may be higher due to infrastructure investment and, in particular, higher labour costs,” admits Thompson. However, she notes there may be upsides for some industries that can help balance the scales, and that organisations should view the trade-offs of nearshoring more holistically.

      “Reduced transportation costs and lower tariffs could prove to present initial savings, whilst the business case to nearshore may also involve investing in tech to mitigate costs and future-proof supply solutions,” she adds. “Unpicking complex global supply chains is not easy, nor economically feasible for some organisations, in some sectors, or some locations… We are talking about the implications of changing supply models here, and that needs serious consideration in strategy, execution and ongoing management.” 

      Read the full issue of SCS here!

      • Risk & Resilience
      • Sourcing & Procurement

      From simulating so-called “black swan” events to the day-to-day pressures of the source-to-pay, could wargaming be a useful tool in the hands of supply chain managers?

      What kind of potential do wargames have to help organisations prepare for not just the worst, but also the day-to-day struggles of the modern supply chain landscape? 

      Tearing up the rulebook — a new age of supply chain disruption 

      The last five years have — I don’t think it’s controversial to say — been a wild ride for global supply chains. 

      From trade wars between the US and China to an actual war in Ukraine; from an ongoing genocide in Gaza to the seizure of shipping in the Red Sea; from climate crisis-related crop failures and extreme weather events to the rise of generative AI and the ascendency of a US president who is still a vocal climate skeptic; the needle measuring the number, frequency, and scale of disruptions to global supply chains feels like it buried itself in the red circa 2020 and has barely dipped below that line since. 

      Not only is it a fact that our current state of heightened disruption has made it more important than ever that supply chain managers plan and prepare for the unexpected, but shifting trends in supply chain organisation brought on by this new climate of disruption are making it uniquely difficult to draw on past experiences in order to predict the future. After all, much about the neoliberal philosophies of globalisation and free market economics that defined trade from the 1980s through to the spread of COVID-19 has been shown to be ineffective.

      As the Harvard Business Review noted back in September of 2020, the “economic turmoil caused by the pandemic has exposed many vulnerabilities in supply chains and raised doubts about globalisation.”

      Out of the frying pan

      In response, many organisations are looking to restructure their value chains, moving manufacturing and assembly closer to home with the hope of reaping the triple benefit of increased resilience, cut carbon, and lower costs. But successfully nearshoring your business is complicated, and success isn’t guaranteed. Organisations looking to move their operations away from China, for example, often find themselves jumping out of one geopolitical frying pan and into the fire as they explore Eastern Europe, Africa, and South America as alternative sources of cheap labour and materials. 

      “We’re in a new era. I don’t think that there is a normalisation anymore. I think that what companies are now facing is that supply chain disruption is the new norm” – Marissa Adams, head of global trade solutions at HSBC Americas  

      This trend isn’t going anywhere, either. As the world ramps up for an AI revolution and a green transition, competition over critical resources like lithium and other minerals, as well as scarcer water, food, and land will only intensify as the century continues. If things move even half as fast as we expect, the supply chains that wealthy nations consider critical are about to change radically in the next few decades—crude oil giving way to lithium and cobalt to some degree, for example. Even in wealthy, relatively stable nations like the UK, experts have warned that food shortages due to extreme weather could trigger civil unrest within the next decade. Over the next 50 years, nearly 80% of experts believed civil unrest was either possible (45%), more likely than not (24%), or very likely (10%) in the UK, as the climate crisis puts pressure on global supply chains. 

      Supply chain managers in the public and private sectors are going to be critical over the coming decades (even more so than they are now) as the world figures out how to maintain the flow of goods and materials in the face of ever more common disruptions. 

      Gaming out the unknown

      The problem with something new, of course, is that it’s hard to predict exactly how to respond to it. Taking the past ten years worth of data and finding the averages only really works if the fundamental shape of the system remains the same. Given the amount of change we’ve seen in just a few years, who knows what 2030 will look like, let alone 2050. Who could predict what shape the next global disruption will take? Will it be war? Another pandemic? Extreme weather? Civil unrest? Crop failure? In all likelihood, it will be some new combination of the above that our global supply chains have never faced before. 

      How do you prepare for something you’ve never faced? Simple. You wargame it.

      Taiwan has fallen 

      Back in 2023, UK telecom company BT got together to run a series of “nightmare scenarios”, testing how their operations would respond should the unthinkable happen and a major geopolitical flashpoint ignite into conflict. 

      BT carried out tests on its supply chain to better understand and prepare for any fallout amid escalating conflict between China and Taiwan, which was at a high point in April of that year following Speaker Nancy Pelosi’s visit to Taipei. 

      In a “war game” that lasted two days, BT’s supply chain and procurement teams tested how they would respond in the event of a conflict in the region escalating further — an event that could overnight halt over 60% of the world’s semiconductor production. According to political-economic think tank Rhodium Group, if China and Taiwan enter into open conflict, it could “put well over $2 trillion in economic activity at risk, even before factoring in the impact from international sanctions or a military response”.

      But what does a supply chain war game look like? According to Johan Gott, co-founder of US political risk consultancy Prism in an interview with the Financial Times, participants receive a series of “news flash” events which the participants have to respond to — the success or failure of their efforts determined by a combination of digital tools and human adjudicators. 

      A BT spokesperson said that “like many businesses, we regularly run simulations to stress test our business on a range of scenarios as part of our risk management and planning”.

      Game on — What to expect when wargaming #

      With origins dating all the way back to Prussian military commanders during the early 1800s, wargaming has a long history tangled up with, among other things, the author H.G. Wells, Dungeons & Dragons, and the modern military industrial complex. The practice is actually having a moment right now as global uncertainties increase, and everyone from militaries to humanitarian aid groups seek to make their responses to each new crisis more likely to be effective. 

      Wargaming a supply chain has a few key steps.

      1. Identify

      Identifying the Black Swan Events that are most likely to cause serious damage to your supply chains. Consider the current events, trends, and interlocking relationships (both economic and political) in your region.  Try to find commonalities between the ways in which different events could impact your supply chain. Consider everything from natural disasters and political instability to cyberattacks and pandemics.

      2. Tool up 

      Build your testing tools. Most organisations start by creating a digital replica of their entire supply chain using simulation tools. This digital twin should represent all critical elements of your network, including suppliers, manufacturing sites, transportation routes, and customer locations. However, the intricate interactions between multiple actors in complex systems are difficult to map with digital tools alone. Often — just as in 1800s Prussian wargames — an experienced “referee”, a human who can add their own opinion and intuition to interpret the results can be helpful. It’s actually somewhat similar to the reason why Dungeons & Dragons needs a human dungeon master; there are simply too many different outcomes to consider. 

      3. Play

      Whatever blend of digital, data-based, and human tools you choose to use, the next step is actually running a wargame. Use your tools to simulate various disruption scenarios, focusing on the potential impact of “black swan” events. Evaluate how these disruptions influence production, inventory, and delivery timelines to gain insights into your network’s vulnerabilities.  

      4. Implement

      From there, use the simulation results to evaluate the effectiveness of your current contingency plans and identify areas needing improvement. Address gaps by developing and testing new strategies, such as diversifying suppliers, establishing alternative transportation options, or increasing safety stock levels.

      Should you be wargaming? 

      Well, it depends. As games journalist Quintin Smith notes at the end of his excellent documentary on wargaming, wargames… don’t actually always work. It’s one of the reasons why predictions at the outset of the war in Ukraine were so wildly off the mark. The data being used to wargame scenarios pointed one way, but because they didn’t account for things like the role of UAVs or overestimations of the Russian army’s readiness, their predictions were wrong. Dead wrong. 

      Nevertheless, wargames could still very much have a role in helping organisations game out the next big disruption, especially as we now have more recent major events to draw data from, and our digital tools are getting better all the time. In October of 2024, a wargame conducted by the CNA exploring the military clothing supply chain revealed bottlenecks that “in a major war scenario would have left military personnel short of uniforms.” 

      “The implications of these findings could extend well beyond uniforms,” said Gordon Jaquith, executive director of CNA’s Department of Navy Relations. “It’s a wake-up call to prepare for wartime demands on the US industrial base as a whole.”

      With the potential to expose glaring weaknesses in critical logistics and supply chain systems, wargames could be an important weapon in the hands of supply chain leaders. 

      This article appeared in Issue 6 of the SupplyChain Strategy magazine. Click to read the whole magazine for in-depth interviews, analysis, and coverage of the biggest trends shaping the supply chain sector.

      • Risk & Resilience

      Siddharth Rajagopal, Chief Architect, EMEA at Informatica, explores the need for effective data management to ensure the UK’s food security.

      After one of the wettest winters on record, farming leaders  are warning that flooded fields and massively delayed sowing will likely lead to shortages and price rises on crops like wheat, oilseed rape, potatoes, and barley later this year. 

      That’s not just an ‘industry problem’: warnings of wet weather washing out domestic food supplies will be a major headache for families with dietary restrictions or those on tight budgets.   

      But despite farmers’ best efforts, you simply can’t put seeds into a field that resembles a lake. 

      The UK’s food needs aren’t going anywhere, so the food will have to come from somewhere. And that means the burden of feeding the nation significantly falls to the food industry’s importers, shippers, and distributors. Locating, securing, purchasing, and moving food on this kind of scale is no small feat – not least because accessing and managing all the information involved is a tall order in itself.

      Stepping into the breach

      The initial response to the weather crisis will likely focus on protecting this year’s food stock. 

      This will mean either stretching out tight supplies, or careful planning to make up any shortfalls by importing more from abroad. Both will require retailers and distributors to have a single, 360-degree view of supplier profiles if they’re to get the right volume of products to the right place at the right time.

      That in turn means they need the right technology approach for the job. In particular, the ability to maintain accurate data on supplier status, pricing, and stock levels, as well as the location of current shipments and information on any potential delays. The more the industry knows about the wider situation, the more agility and accuracy it can bring to purchasing decisions and shipping plans. 

      With the right data strategy in place, it will be possible to source and import the staple supplies the UK needs, albeit at a higher price and with little benefit to the farmers whose annual income will have been significantly impacted thanks to the heavy rain. 

      Future-proofing the UK’s food supply

      Unfortunately, this type of disruption is highly likely to become more commonplace in the future. As the effects of climate change take hold, the UK is set to have longer, wetter winters that will impact annual food supplies and severely challenge the whole food production and distribution ecosystem. 

      To protect food security, farmers, retailers, and distributors will need to work closely together to build greater resilience into food supply chains

      A clear approach to data management and governance can provide visibility over potential sources of disruption, ensuring companies can respond promptly and do their best to mitigate against costly delays. An example of what this looks like in practice is having a common terminology of food supply related glossaries, processes and policies.

      Not only do supply chain stoppages cause added logistical costs – with many crops, they can be the difference between a usable product and a totally spoiled cargo. Given that demand is likely to be high during periods of weather-related disruption, strong data management will also help retailers navigate a crowded market, securing products and shipping windows efficiently.

      As artificial intelligence applications become more available to wider sections of the industry, they can also help to offer a clear view of strategic supplier relationships. As a result, organisations will be better able to manage supply chain challenges, plan ahead, and mitigate the effects of any potential food shortages. 

      Creating a comprehensive view of the market

      These kinds of advanced data management solutions and data-driven applications not only enable companies to get a more comprehensive overview of the market situation – they also free up staff time to ensure people can focus on value-add tasks rather than the manual work of compiling, cleaning, and storing ever-growing datasets. 

      Organisations already waste too many man-hours on repetitive tasks. The more this kind of work is streamlined through the use of automated solutions, the greater the opportunities will be for organisations to develop innovative responses to the growing pressure of unpredictable weather.

      Winters like the one we’ve just endured are only the tip of the iceberg (so to speak). Logistics professionals across a whole range of industries are going to face a raft of new challenges in the coming decades. Increasingly they will have to grapple with more dramatic weather patterns, work to decarbonise their supply chain and comply with global sustainability reporting requirements. 

      As the old proverb goes, knowledge is power. 

      Companies need to equip themselves with advanced data management capabilities to ensure they can make intelligent, data-driven decisions when crises hit – and emerge stronger on the other side.

      This article appeared in Issue 6 of the SupplyChain Strategy magazine. Click to read the whole magazine for in-depth interviews, analysis, and coverage of the biggest trends shaping the supply chain sector.

      • Collaboration & Optimization
      • Risk & Resilience

      Pietro D’Arpa explores nearshoring, intermodality, and greenwashing in the logistics industry’s journey to decarbonisation and net zero.

      The logistics sector has undergone significant transformation over the past decade. The shift has been marked by a series of major disruptions that have reshaped global supply chains. From the COVID-19 pandemic to ongoing conflicts in Europe and the Middle East, the industry has faced challenges unlike any in recent history. At the same time, logistics has become a central player in addressing the global green transition, further complicating an already turbulent landscape, particularly in Europe.

      The logistics sector has transformed dramatically over the past two decades in large part thanks to the shifting conversation around sustainability. “Climate change is a pressing reality. It, among other sources of disruption, is reshaping logistics from being important but secondary to being a decisive factor in supply chain success,” explains supply chain veteran Pietro D’Arpa. Recently retired from a near-40-year career in the consumer goods industry, D’Arpa spent the last seven years leading Procter & Gamble’s logistics operations in  Europe, as well as several other markets. Today, he works as a visiting professor and serves as a board advisor to startups, taking a particular interest in those focused on sustainability. “Today, state-of-the-art logistics are essential for thriving in the modern world,” he explains. “This shift has spurred nearshoring, digitisation, and automation, which are redefining logistics. Sustainability has evolved from a ‘nice-to-have’ to an absolute necessity, fundamentally changing our strategic approach to logistics.” 

      The perks of nearshoring 

      After the COVID-19 pandemic wrecked the hyper-globalised, just-in-time logistics networks that came to define global supply chains over the past 30 years, the natural response has been for networks to contract. Supply chains have shortened as production has been moved closer to home. According to D’Arpa, this trend is also helping organisations align their logistics operations with sustainability goals. After all, less distance to travel theoretically means fewer emissions. Of course, things are rarely all that simple. 

      “Nearshoring offers resilience and enhances agility. It also shortens supply chains and reduces emissions, as well as enabling companies to tailor logistics strategies to meet regional sustainability goals,” D’Arpa explains. By reducing reliance on transoceanic routes, companies can limit their Scope 3 CO2 emissions. In 2018, commercial shipping emissions accounted for close to 10% of global emissions caused by human activities, according to the International Energy Agency’s data. Moving supply chains closer to home reduces the need for long-distance logistics, cutting a significant source of emissions. However, D’Arpa warns that “the shift to land transport will be impactful only if alternative fuels, electric trucks, and intermodal solutions are embraced. Nearshoring is a significant opportunity for companies to advance both sustainability and resilience, but it requires a conscious shift toward intermodal transport and alternative fuels”. 

      Going Intermodal 

      The essence of intermodality in logistics is in using the right type of transport at the right stage of every journey. It’s nothing new. People have been using multiple methods of transportation to shift goods throughout supply chains for centuries. Just because stagecoaches and sailing ships have been replaced by HGVs and cargo planes (and might still be replaced by self-driving robo-trucks and, apparently, sailing ships again?) doesn’t mean that the process isn’t pulling most of the same levers in the supply chain. 

      Seeing as intermodal transportation refers to any logistical journey that uses two or more types of transportation to move goods through a supply chain, the majority of international shipping is intermodal, with single-mode transportation being more common over shorter distances or within single markets. 

      Intermodal transportation typically utilises some combination of road, rail, and ship transport to move goods over long distances. Intermodality in logistics helps strike a balance between cost, speed, and resilience. Recently, D’Arpa points out, intermodality has become a key driver of sustainability in logistics as well.  

      “Adopting multimodal or intermodal transport involves integrating electric and hybrid vehicles for short-haul routes, which is crucial for reducing emissions. For long-haul transportation, rail is already an effective solution, but it needs to be used more. Additionally, route optimisation through advanced digital platforms helps improve efficiency,” says D’Arpa. By combining multimodality, alternative fuels, and route optimisation, organisations can significantly reduce the emissions stemming from their logistics operations. D’Arpa argues that, “while alternative fuels may be more expensive upfront, ongoing technological advancements, economies of scale, and increased government incentives are expected to drive down their costs over time. As these fuels become more cost-competitive in the future, they will provide long-term environmental and economic benefits for the logistics sector”.

      The greenwashing issue 

      While a combination of intermodality and nearshoring promise to cut both emissions and, in the long run, costs, many organisations are falling short of their net zero commitments — either intentionally or otherwise. “Greenwashing is a real issue,” admits D’Arpa. “Some companies claim large emissions reductions, but in reality, they’re offsetting emissions instead of reducing them at the source. Don’t misunderstand me; offsetting has its place. But true sustainability comes from reducing emissions at the source, not relying on certificates as a shortcut.” 

      D’Arpa, who advises on the board of a carbon credit trading platform startup, explains that he believes offsetting is a necessary “last resort” on the road to net zero. “The correct approach is to focus on reducing CO2 emissions first. There may be a remaining 5–10% of emissions by 2040, which technology may not be able to eliminate entirely. For that final 5–10%, offsetting has a role,” he says. “But companies should prioritise reducing emissions as much as current technology allows.” 

      However, critics of carbon offsetting argue that the legitimisation of pollution for a price only ever undermines decarbonisation efforts, and that offsetting is more of a way to avoid taking critical first steps towards net zero, rather than a final leg up. 

      Another common pitfall D’Arpa points to is the logistics sector’s tendency to focus solely on last-mile electrification. While electric trucks are a promising solution for short hauls, they are also gaining momentum for medium-haul routes. However, D’Arpa emphasises the need to address emissions from long-haul freight, which often remains the largest contributor. To achieve true sustainability, he advocates for a comprehensive approach that integrates green initiatives across the entire supply chain, rather than isolating efforts to one specific area.

      Taking meaningful steps, today 

      Government support to incentivise electric vehicle adoption and expand charging infrastructure is also critical, he adds. “My advice to companies is to view this as a phased journey: start with visible, achievable actions today, like route optimisation and load sharing, and explore electric vehicles for short hauls and biofuels. Technology and government intervention will play a role in the future, but companies can already take meaningful steps now.” 

      According to D’Arpa, the next five to ten years will be transformative, with a worldwide acceleration toward electrification and alternative fuels. “We may see hydrogen trucks become a viable option for long-haul transportation as well,” he says.

      Intermodal transport will continue to evolve across the supply chain. Logistics will also play a key role in supporting the circular economy by repurposing waste, contributing to broader environmental goals beyond CO2 reduction. “In Europe, there’s a high level of awareness about these issues, and logistics will be a central player in decarbonising the economy,” says D’Arpa, but stresses that “sustainability in logistics is as much about people as it is about technology and regulation. Collaboration is essential to drive meaningful change.” He reflects that even large corporations like Procter & Gamble cannot succeed alone. “We must work with competitors, startups, academia, customers, and suppliers, aligning on goals and sharing knowledge to accelerate innovation,” he says. “The target is 2040, and while that may seem far off, the steps required to reach net zero are immense.”

      This article appeared in Issue 6 of the SupplyChain Strategy magazine. Click to read the whole magazine for in-depth interviews, analysis, and coverage of the biggest trends shaping the supply chain sector.

      • Sustainability

      From risk and resilience, to AI and sustainability, supply chain industry experts weigh in on the biggest trends set to shape the future of the sector in 2025.

      The past 12 months have been a challenging time for the world’s supply chains. 2024 was shaped by geopolitical conflict, pivotal elections in the majority of the world’s largest nations, worsening symptoms of climate collapse, and the ever-changing conversation surrounding technology’s role in day to day life. If there’s one thing that’s remained consistent and predictable over the course of the past year, it’s a marked trend in chaotic, inconsistent, disruptive conditions throughout global supply chains. 

      Throughout this year and now, going into 2025, supply chain leaders have responded to these challenges — exploring new ways to unlock resilience while containing costs, embracing new technologies while remaining cyber secure, and walking the increasingly narrow line between failure and success that the supply chain industry is forced to tread. As the year draws to a close, we spoke to 10 experts from organisations throughout the supply chain sector, from technology vendors to logistics analysts, to find out what the supply chain industry’s leaders expect from the next 12 months (and beyond). 

      In 2025…

      … Visibility and control will remain key

      Steve O’Keeffe, RVP UK&I at Epicor

      “There are a few key strategies that distributors will need to focus on in the face of supply chain disruptions and inflationary pressures as we move toward 2025. First, it’s important to recognise the significant demand for products from the UK to Europe and beyond, which presents both opportunities and challenges. Managing this effectively hinges on one crucial asset: inventory.

      “Visibility and control are key. Distributors must optimise their ability to monitor stock — they need to be able to ensure that they have the right amount of product in the right areas to meet customer demand. Technology will be a major enabler in this, providing faster insights and helping to optimise decision-making processes. Distributors will need systems that allow them to act quickly, repositioning inventory closer to customers to reduce costs and improve delivery times.

      “AI will play a big role in helping distributors manage this. By analysing vast amounts of data — whether it’s from different distribution partners, product types, or warehouse locations — AI can provide insights that allow distributors to make more informed decisions on where to position stock for optimal efficiency. This will help with cost management and also enable faster, more agile responses to customer demands.”

      … Supply chain strategies and business strategies will become increasingly intertwined. 

      Tom Perrone, SVP Global Professional Services at project44

      “Before the pandemic, the planning and execution of a company’s supply chain strategy resided with only a few technically minded specialists. Next year, however, supply chain strategy will become even more intertwined with wider business strategies that centre around cutting costs, creating competitive differentiation and ensuring excellent customer service and delivery experiences.

      “Currently, supply chain and logistics costs account for 10% of an organisation’s overall spend. However, ongoing economic uncertainty will put supply chain efficiency high on the priority list for executive teams looking to cut costs. You can’t streamline what you can’t measure, so gaining end-to-end visibility of supply chain operations will be essential to identify areas to automate and minimise excess spending while enabling staff to focus on higher-value tasks. At the same time, this level of visibility will be important to compliance teams within large organisations that are faced with increased pressure to report on Scope 3 emissions reductions.

      “Meanwhile, customer service teams will become more involved, with the last mile of the supply chain having the potential to make or break customer loyalty. Here, new technologies to enhance supply chain visibility and provide real-time order intelligence will be invaluable to communicate with customers, particularly when it comes to unprecedented delays. Next year, digital tools that promote visibility and collaboration will be key to breaking down internal siloes and ensuring greater alignment.’

      Tariffs and geopolitical unrest will see new sourcing hubs appear across Asia and beyond – Alex Saric, Smart Procurement Expert at Ivalua

      “In 2025, we’re likely to see sourcing hubs appear in new areas across Asia and Eastern Europe – with the US, EU, and the UK continuing to impose tariffs against suppliers in countries like China and Russia. New supply chains will be created in areas close to tariffed nations, as organizations find new ways to buy critical materials or components while sidestepping eye-watering tariffs. This will be particularly important for industries impacted by shortages like raw materials, fuel, and semiconductors.

      “For example, the Taiwanese chipmaker TSMC has already agreed to build a third factory in Arizona, while U.S. chipmaker Onsemi has invested $2Bn to set up a full semiconductor production chain in the Czech town of Roznov pod Radhostem. We will likely see more of this type of investment over the next 12 months.

      “It will take time and investment to shift operations fully, but organizations will need to bolster their supplier visibility to identify new sourcing hubs and gain access to the products they need at a lower price.”  

      … Generative AI will solve its own skills gap

      Pascal Bensoussan, Chief Product Officer at Ivalua

      “In 2025, Generative AI (GenAI) will tackle the procurement and supply chain industry’s AI skills gap by becoming more autonomous and user-friendly. Despite plenty of experimenting taking place since 2023, many teams have not integrated GenAI into their day-to-day workflows. But, as semantic data retrieval, AI orchestration, and LLM technologies advances, Generative AI systems are becoming more intelligent and more autonomous. Next year, we will see the emergence of AI agents that are capable of understanding high-level directives and act autonomously on specific events, evaluate options, make decisions, and generate  detailed analytics, forecasts, and recommendations. Procurement and supply chain professionals will be able to interact with those AI-powered assistants by simply describing their needs in natural language, without having to master complex prompt engineering or coding skills. This will dramatically lower the barrier to entry for using – and benefitting from – AI.”

      “With more users across the business, GenAI will become the de facto corporate ‘business operating system’, fundamentally reshaping the user experience. Rather than being simple “one-and-done” features sprinkled across the spend management suite, assistants will act as a central interface or in the background, seamlessly integrating data sources, decision-making models, and workflow automations into one unified space. As a result, AI will dynamically adapt to support everything from procurement to demand forecasting, helping teams to focus on more high-value tasks and adding strategic value.”

      … Retailers will focus on nearshoring and resilience. 

      Rob Shaw, MD EMEA at Fluent Commerce 

      “Supply chain disruptions have been a cold shower for retailers this year. From the Red Sea crisis to the recent US port strikes, these events have been a shock to the system. Retailers didn’t realise how big of an impact it could have on their operations. They’ve been bitten, and now they’re shy. As a result, CFOs will be nervous about over-exposing themselves. 

      It’s cognizant of when COVID-19 hit. Initially, we experienced a massive shortage of products. Then, supply chains opened up and people over-ordered and overstocked. A lot of brands fell by the wayside as they overspent on purchasing products they couldn’t turn into revenue. It’s a balance between feast and famine – one that retailers will be paying closer attention to in the coming year. 

      Learning from these events, retailers will change the way they source goods. More near-shore supply chains could emerge as companies look to reduce reliance on the Far East. The introduction of export taxes in the US may also have a significant impact on overseas trade, possibly leading to shifts in market strategies for European brands as they reconsider their expansion plans.

      Retailers will also be looking closer at how they orchestrate and manage their inventory to ensure they can fulfil the customer promise. With real-time inventory data that shows what stock is available now and in back order transit, retailers can know for certain what they can promise to their consumers – and provide timely updates if disruptions occur.”

      … Supply chains will enter a new age of efficiency. 

      Holly Clarke, Product Manager for Inventory AI at Peak

      2025 will be the year of supply chain efficiency. With the explosion of Generative AI in 2024, excitement will begin to settle in the New Year. The focus will shift; emphasis will be less about the expectation of it doing ‘everything’ within the supply chain, and more about its practical use.

      This means supply chain staff will see the true value in AI’s breakdown of data, automation of some manual tasks, and the ability to ask questions about next steps. In the coming year, GenAI’s role will be focused on helping supply chains optimise efficiency and output within its strongest capabilities.

      Production planners, too, will see their roles change in 2025. With AI continuing to reshape the role, it is vital production planners are AI-literate, particularly as tech’s importance will grow. With less supply chain staff in the industry, leaning on tech is going to be more important than ever and production planners must embrace AI as a supporting tool in the workplace. Those who don’t risk being left behind. There may be less resources at hand, but AI will guarantee stronger outcomes.

      On top of this, there’s a misconception around AI that production planners need an extremely granular focus when it comes to planning, but this can actually hold you back. Higher level planning is much more effective, especially as it prioritises flexibility and the ability to be as agile as possible in the face of global issues.

      … Regulation has a role to play in maintaining supply chain resilience. 

      Simon Bowes, CVP Manufacturing Industry Strategy EMEA at Blue Yonder

      “Today’s supply chains remain volatile. From the ongoing Red Sea crisis, US port strikes, rising inflation and new global pandemic health emergencies, businesses are under immense pressure to identify and manage systemic risks in supply chains. 

      However, there is an answer and a way in which the Government can build a secure supply of critical goods, mitigate risks within the global trading environment, and support businesses with supply-chain resiliency. Introducing a government-mandated electronic supply chain trading network with end-to-end visibility would aid organisations with insights to see, understand, act, and learn from real-time information from the entire digital ecosystem. This should be based on an AI-powered unified platform that enables multi-tier orchestration, planning, and collaboration to accelerate processes with autonomous and semi-autonomous decision-making. 

      Think of it this way: just as services such as electricity and broadband are provided via government-mandated markets, creating an engine for supply chain planning could also be provided via a government-rolled-out network. If all trading partners in a supply chain can derive confidence in each other from having confidential electronic visibility of forecasts, inventory, shipments and invoices they will reduce lead times and excess inventory which releases working capital.

      It is time to take control of the systematic risks in our supply chains with one unified global supply chain operating system – unlocking the barriers essential for delivering long-term, sustainable, inclusive, and resilient growth.”

      … Supply chains will need to carefully navigate regulatory changes.

      Ricky Alfred, Director of Responsible Business, Communisis Brand Deployment

      “Next year will be impacted by the European Commission’s recent decision to delay the EU Deforestation Regulation (EUDR), giving businesses across the supply chain the new deadline of compliance by December 30, 2025. Looking forward to 2025, affected businesses, including our own, will be refining preparations, to ensure readiness to comply with the legislation.

      “While the EUDR is well-intentioned, it has faced considerable challenges. Developing nations have raised valid concerns about the intense compliance requirements and the investment needed from some of the world’s poorest farmers. Additionally, major economies like the US and China have expressed reservations, complicating traceability efforts for commodities.

      “This next year will be crucial for us all. It will allow us to thoroughly assess our supply chains, engage with our partners, clients, and suppliers to understand how we can work together to satisfy legislative requirements. A significant part of this effort will involve evaluating the systems we use and what we need to provide along the value chain to ensure compliance across all stakeholders. It’s also an opportunity to explore, in even greater depth, innovative technologies such as AI and blockchain to help meet these requirements effectively.”

      … Cyber security will be more important than ever.

      Dan Bridges, Technical Director – International at Cyware

      “As we look toward 2025, it is more crucial than ever to remember the importance of securing our supply chains against the ever-growing threat of cyber attacks and the harm these can cause. 

      “With increasing interconnectivity and supply chain complexity, breaches in one part of the ecosystem can quickly ripple through to other areas, making collective defence strategies more vital than ever to maintain business resilience. Organisations must stay vigilant and acknowledge the need to assess, monitor, and review their own cybersecurity practices as well as those of their third-party vendors. This shift will likely push companies to not only improve their own security postures but also to collaborate more effectively across industries. 

      “The coming year is set to be significantly influenced by regulatory frameworks like the EU’s Digital Operational Resilience Act (DORA) and the Network and Information Systems Directive 2 (NIS2). These regulations are already shaping the landscape by imposing stringent requirements on organisations to secure their supply chains and critical infrastructures, particularly in sectors such as finance and essential services. In the coming years, it is likely that such regulations will expand to encompass more industries, creating a uniform standard for operational resilience and cybersecurity risk management across the board.

      … AI and RFID will be technological cornerstones of the supply chain.

      Amber Hovious, VP of Marketing & Partnerships at Teamwork Commerce

      “As supply chain requirements evolve and businesses are presented with new challenges, the role of innovative technologies such as AI and RFID will become more important in 2025. Omnichannel retail has already taken retail by storm, and the supply chain industry acts as the foundation to any omnichannel success, where businesses need increased accuracy, visibility, and transparency of their supply chains.”

      “Solutions powered by AI and RFID are likely to remain in demand in 2025, solving supply chain challenges for businesses. The integration of AI into operations is expected to become more common as supply chain operators strive to gain higher precision and improve predictive analytics.” 

      … The retail supply chain will move beyond logistics. 

      Henry Ayres, Head of Engineering Practice at Daemon

      “In 2025, the retail supply chain will redefine itself as more than just a logistics process, it will be a strategic driver of customer loyalty. As competition tightens, Artificial Intelligence (AI) and data analytics will take centre stage, and supply chains will shift from multiple experimental investments to larger scale transformative tech solutions that deliver tangible ROI and impact the bottom line. This means no more AI for AI’s sake and retailers will double down on solutions that directly impact sales and optimise store operations.

      “One way we’ll see this step change come to fruition is the implementation of high-value product vending machines. In this system, instead of high-value and/or rarely purchased stock occupying shelf space, customers take a ticket for the product and retrieve the item at the checkout. This innovation not only frees up in-store real estate for more products but also mitigates theft and ensures consistency of product availability across locations—key to maintaining customer loyalty.”

      This article appeared in Issue 6 of the SupplyChain Strategy magazine. Click to read the whole magazine for in-depth interviews, analysis, and coverage of the biggest trends shaping the supply chain sector.

      • AI in Supply Chain
      • Digital Supply Chain
      • Risk & Resilience

      Oleksandr Martyshko, Senior Mobile Software Architect at Teamwork Commerce, on why supply chain efficiency is increasingly reliant on RFID technology.

      The role of radio frequency identification (RFID) technology in today’s supply chain is critical. Whether to enhance business efficiency or mitigate losses, RFID technology can significantly streamline retail supply chain operations through enhanced inventory visibility.

      RFID-powered real-time visibility holds the supply chain together

      Supply chain operations — including inventory procurement, storage, distribution, and transportation – rely heavily on accurate inventory data. Without real-time visibility into their stock, retailers are unable to make informed, timely inventory decisions. If they do not know, in real-time, which products are in high demand or have sold out, they can’t restock quickly enough. This can lead to missed sales opportunities and reduced customer satisfaction, ultimately sacrificing business profitability.

      RFID technology bridges the gap between retailers and their inventory, enabling real-time inventory tracking as it moves through the supply chain. As a result, retailers can precisely understand where exactly their products are, identify any red spots where items go missing, and take necessary action to mitigate losses.

      Additionally, the technology allows retailers to replace their manual inventory counting tasks with automated operations. Equipped with handheld RFID readers, products can be instantly scanned in bulk, at the item level. This accelerates both inventory audits and order processing. All this leads to a seamless supply chain where retailers have clear visibility of their inventory and can make effective decisions, faster. RFID, in turn, enables retailers to channel the valuable time of their staff towards more strategic, value-driven tasks. Employees can focus more time on providing high-quality customer experiences, ensuring in-store shoppers are assisted in the best possible way. 

      Ultimately, this allows retailers to maintain more sustainable supply chain practices, reducing waste and making their business operations more environmentally friendly. Retailers can minimise excess production, reduce emissions from unnecessary transportation and storage, and lower the risk of unsold goods ending up in landfill sites.

      Beyond inventory tracking 

      While RFID’s role in inventory management is critical, the technology offers much more than just enhanced inventory tracking; it also provides critical insights for demand forecasting. Retailers can use data provided by RFID tags to better understand purchasing trends, and predict future demand with greater precision. This allows them to adjust their procurement strategies accordingly, identify bottlenecks, predict demand, and optimise their inventory levels ahead of time. 

      Undoubtedly, retailers can significantly reduce the risk of supply chain disruptions using modern innovations. However, there are always chances of unexpected delays. Real-time visibility provided by RFID also enables retailers to take proactive measures to minimise the impact of such unexpected disruptions and drive business continuity. 

      The role of RFID has evolved over the years. From being a ‘nice to have’ technology in the past, RFID has emerged as an essential part of a supply chain ecosystem. Retailers must look for innovative ways to integrate the tech into their operations.

      • Collaboration & Optimization
      • Digital Supply Chain

      Pepetual instability, frequent disruption, and digital upheaval are on the agenda for supply chain leaders, according to Sue Williams, Managing Director of Hexagon Consultants.

      Sue Williams, Managing Director at specialist business improvement firm, Hexagon Consultants, shares insights on the current challenges within the supply chain sector, discusses whether stability will return, and advises organisations on how they identify potential disruptions before they become a real-world problem.  

      Established in 2015 by Peter Ahye and Sue Williams, Hexagon Consultants is a specialist performance improvement firm, which provides business management, strategy and optimised growth solutions. 

      It seems as though disruption is the norm rather than the exception in the supply chain sector right now. Is this the new status quo for the foreseeable future? Do you see stability returning at some point and, if so, when and how?

      Supply chains are a fundamental part of a business. If organisations don’t monitor and assess these functions regularly, organisations run the risk of seeing their performance significantly impacted. Not only that, but a supply chain problem can have a knock-on effect on other areas of the business. 

      Events of the last few years have demonstrated there can be no expectation of stability within a supply chain. While we’re hopeful that a more stable supply chain environment will return in the future, business leaders need to focus on achieving transparency across the supply chain to identify potential risks (and opportunities), which will enable plans to be prepared for the most likely outcomes. 

      What are the biggest supply chain pain points you’re seeing organisations struggle with right now?

      Currently, the most common supply chain pain points businesses are encountering include a lack of visibility, demand volatility, and problems with technology adoption and integration. 

      In the current economic climate, it’s crucial for businesses to establish a holistic understanding of their supply chain. This knowledge enables leaders to conduct thorough risk assessments in relation to all elements of their supply chain function, allowing them to be prepared with strategies to mitigate the most probable scenarios before they become major issues.

      At the same time, unpredictable shifts in consumer demand, often driven by market trends or global events, make it difficult for companies to forecast accurately and balance inventory levels. Lastly, identifying the right technologies (like AI, IoT, blockchain, etc.) and integrating them into the supply chain operations can be challenging due to legacy systems, high investment costs, lack of expertise or just poor data.

      How are you seeing the more successful organisations solve those pain points?

      Supply chain mapping is crucial, ideally collaborating with suppliers to get as far down the supply chain as possible. This will allow for complete clarity of the function of a supply chain, allowing companies to identify risks and opportunities at every touchpoint.

      To combat demand volatility, as a minimum, organisations need to keep a close eye on market demand patterns and changes in behaviour using segmentation and analytics. Investing in advanced demand forecasting tools using AI and machine learning will be hugely beneficial here. In addition, using scenario modelling to understand the consequences of different demand patterns and their potential impact will help in establishing contingency plans that can be implemented should a problem arise.

      When it comes to technology adoption and integration, start by selecting the right tool for the job. Start small and build confidence and capability. It’s also important to engage internal teams in the process of adopting new technology, as this will allow them to become completely immersed in new systems, support their learnings, reduce resistance and improve usability. 

      What pitfalls are the less successful organisations falling into when they try to tackle disruption?

      Many organisations have not completed comprehensive supply chain mapping and risk assessment exercises, which identify potential pitfalls, meaning they haven’t developed alternative options ready to help mitigate possible problems. 

      Not understanding the implications that supply chain disruptions can have on the wider organisation also means that business leaders are led by knee-jerk reactions when issues present themselves. The unintended consequences of these crisis-driven decisions are then often felt across other areas of a business, impacting service delivery and performance. 

      In addition, many organisations work in isolation when reacting to a problem, missing the opportunity to work in collaboration with their suppliers, who will also be responding to the disruption, resulting in a sub-optimal solution.

      Exactly what makes a supply chain more flexible and how can you make an inflexible one more able to respond to changing circumstances?

      A flexible supply chain can adapt to changing circumstances whilst minimising the impact on the service delivery and controlling costs.  

      Having flexibility within a supply chain includes being able to scale operations, reallocate resources, react to changes and disruptions, and take advantage of opportunities. Identifying constraints, bottlenecks and risks is imperative, as is evaluating your supplier base, production and inventory management for rigidity.

      Flexibility improvement opportunities within a supply chain could include; 

      • Diversification of the supply base
      • Increasing the agility in manufacturing
      • Building more flexibility into the logistics operations
      • Using segmentation to minimise inventory risk whilst keeping control of inventory cost.
      In your opinion, what do the next 12-18 months have in store for supply chain teams?

      One of the problems organisations are going to continue to experience is the pressure to improve their sustainability credentials, particularly with the UK’s wider efforts to achieve Net Zero successfully by 2050. 

      There are various strategies that organisations can implement to mitigate such challenges. For example, creating a circular economy by improving lifecycle management to reduce pollution, waste and improve product life and end of life management. 

      Flexibility across supply chains is going to become increasingly important because it allows businesses to quickly adapt to changes in demand, disruptions and market conditions. This flexibility can help businesses respond to change, reduce costs, mitigate risks, optimise inventory, enhance collaboration and gain a competitive advantage.

      We can expect to see AI and digital twins become an instrumental part of supply chains, as these technologies alleviate human error and connect decision making. 

      With supply chain challenges being ever present and ever changing, it’s imperative for businesses to maintain a holistic overview of their supply chain. Going forward, they should position themselves to pivot and adapt according to market conditions and customer demand.

      As retailers gear up for the biggest shopping event of the year, here are five ways that—according to the experts—businesses can prepare their supply chains to meet demand on Black Friday.

      Industry figures show that UK shoppers have put off spending in anticipation of Black Friday promotions this year. Around 37% of shoppers have stated their intention to shop during the sales. Amazon’s last two massive sale events were all-time record beaters for the e-commerce giant, and the company is aiming to do the same again on November 29, 2025. This presents a huge opportunity for retailers to boost sales and attract new customers. 

      However, given the continued high demands, coupled with supply chain issues and staff shortages, scaling up for peak season will be more difficult than in years past. 

      This Black Friday, preparation will be key for brands looking to deliver exceptional customer service and pull in the crowds. Here’s five ways they can prepare: 

      1. Review your supply chain

      As Black Friday approaches, the importance of strategic planning and adaptability in retail has never been clearer. Starting with the beginning of the retail journey, resilient supply chains must be prioritised to effectively manage potential disruptions and ensure shelves remain optimally stocked. 

      “Warehouse and logistics operations need to remain efficient whilst managing peak demand,” explains Wayne Snyder – VP Retail Industry Strategy, EMEA at Blue Yonder. “This means that teams must have visibility across the supply chain to understand late shipments and respond quickly and optimally to disruption.

      “End-to-end orchestration across the supply chain ensures that every department, from procurement to shipping, is aligned and working towards a common goal – optimising inventory levels, reducing the risk of stockouts, and providing more efficient fulfilment.” 

      Leveraging the latest technology can improve supply chain resilience, helping accurately predict and prepare for shopping behaviour.

      2. Ensure your technology doesn’t let you down 

      Ensuring that all IT equipment is up and running will prevent negative customer experiences this Black Friday. “Avoiding system downtime and providing accurate stock availability should be top priorities for retailers, notes Rob Shaw, GM EMEA at Fluent Commerce

      “For many, however, the limitations of an outdated order management system (OMS) or legacy systems will make it difficult to make the most from the high sales potential. Retailers need confidence that their technology is resilient and scalable, ready to meet the pressures of Black Friday and deliver on the customer promise.”

      “To prepare, retailers should undertake a thorough stress test of the system in place,” he adds. “Simulating Black Friday conditions with load-testing tools can help identify weak points and prepare the system for high demand.” 

      Bruce Kornfeld, Chief Product Officer at StorMagic, agrees, suggesting that stores at the edge implement hyper-converged infrastructure (HCI) to ensure smooth running IT operations. 

      “HCI simplifies management and offers built-in benefits that are ideal for handling high-demand events. These systems are often built with robust security in mind, offering integrated encryption, authentication, and compliance features for protection against holiday-season cyber threats. 

      “Their easy scalability allows retailers to adjust resources up or down as needed, so they can expand capacity before Black Friday or the pre-Christmas rush without a major infrastructure overhaul and scale down afterward, maximising cost-effectiveness.” 

      IT should be a focus year-round, but the increased stress on retail makes it a particular focus for Black Friday and considering alternative or new edge solutions can increase trust in IT systems. 

      3. Don’t overlook cyber security

      As retailers gear up for the surge in traffic during Black Friday, the focus on cybersecurity remains as critical as ever. “Retailers collect and store vast quantities of data, much of it sensitive customer data like credit card details or personally identifiable information (PPI) – a treasure trove for attackers,” warns Dan Bridges, Technical Director – International at Cyware

      “With cybercriminals often targeting businesses during their busiest times, including Black Friday and Cyber Monday, it’s essential for retailers to bolster their security defences, to protect both their customers and their reputation.”

      He stresses the importance of keeping cyber security tight, adding: “At the end of the day, threat intelligence only works when it can communicate the relevant data to the right people, at the right time, so they can quickly take meaningful action. 

      “As has been written about many times over, there is no silver bullet when it comes to tackling cybercrime – whether it’s a genuine mistake or a deliberate, targeted attack – but by fusing disparate elements of the cybersecurity stack, the risk of falling victim will be reduced.”

      4. Maintain staffing levels 

      Retailers will need to manage staffing levels amid the surge in demand, ensuring that the frontline team is large enough to handle the increased workload, and maintain a high standard of customer service. 

      Mark Williams, Managing Director EMEA at WorkJam, suggests, “organisations must be able to provide tools that allow for easy, yet effective, scheduling whilst still giving employees flexibility.” 

      “This gives frontline workers autonomy over their shifts, and provides a better employee experience, which empowers workers to deliver the best possible customer experience.” he added. 

      “Going further, offering an ‘Open Shift Marketplace’– a virtual picklist of available shifts personalised to the workers’ skills and location – allows for neighbouring stores to share staff between locations to fulfil the required number of workers on shift.”

      5. Keep promotions sustainable

      Traditionally, retailers have responded to Black Friday by stocking up heavily on promotional labels and packaging. However, this approach carries the risk of overestimating demand, leading to excess stock.

      Retailers often over-order seasonal labels to meet demand, but this strategy comes with a downside, warns Gavin Thurston, Business Development Manager for Business Systems at Epson UK. “Wastage, including unused packaging, has been reported to increase by 25% during this period.”

      This problem not only poses logistical challenges but also exacerbates environmental concerns.

      “A solution to these challenges is the growing adoption of on-demand inkjet printing in the production process. Rather than pre-ordering large quantities of themed labels, retailers and manufacturers can now produce labels for packaging in real time, based on more accurate sales trends and demand forecasts.”

      Making Black Friday a success

      Delivering a seamless shopper experience this Black Friday will take a lot of hard work and preparation. However, it will be worth it. Ensuring all elements of retail uphold and exceed consumer expectations will help retailers maximise profits and maintain consumer loyalty.

      • Collaboration & Optimization
      • Risk & Resilience

      Ronald Kleijwegt, CEO of Vinturas, explores the need to balance security and interoperability when managing data in the modern supply chain.

      Data security issues have become a new frontier for supply chain disruptions in 2024. While much of the recent discussion around supply chain volatility has focused on international conflict, disturbances in key shipping lanes and ongoing trade tensions, those who work in international logistics have started to sound the alarm on the scale of cyber threats for supply chains. 

      Data disturbances and risk aversion 

      It is easy to see why supply chain managers are so concerned. The modern supply chain ecosystem thrives on data exchange between trading partners. But the exchange of important and often sensitive data between disparate systems and different trading partners leads to risk. What’s more, in today’s supply chain ecosystem the use of IT systems to optimise delivery is all but a given. However, this means when things do go wrong businesses are uniquely exposed to IT outages or data breaches. The CrowdStrike outage, to take a recent example, had a ripple effect across global supply chains, causing many companies’ operations coming to a near standstill.  

      However, technological backsliding or a retreat from the use of cutting-edge technology in supply chain ecosystems should not be the lesson taken from the increased prevalence of cyber threats. 

      Data sharing and collaboration do not come with data security issues by necessity. The important thing is for businesses to take a more considered approach when integrating data sharing technology into their supply chain operations. 

      The case against technological backsliding 

      To understand why technological retreat is far from the optimal strategy for companies worried about data breaches and cyber threats in their supply chain ecosystems, we need a better sense of the problems at hand. 

      Most companies are understandably wary of exposing sensitive data like intellectual property, pricing strategies, or production details through a data exchange platform. And this sort of anxiety does not stop with data exchange platforms. 

      To take another example, the recent experiences of many OEMs and LSPs with Transportation Management Systems (TMS) and visibility platforms have eroded trust. These solutions, intended to enhance collaboration, have in many instances collected information and data without explicit approval. Some organisations end up using this data, even if anonymised, for purposes beyond the original scope of the agreement, or even sold to third parties. This raises critical questions about data ownership and transparency within the supply chain ecosystem.

      Clearly, hesitation surrounding data security is a valid concern for supply chain managers and the natural reaction might be to retreat from using any platform, building data fortresses to insulate from risk. 

      This would be a mistake, however. Limiting data sharing hinders collaboration and reduces flexibility within supply chains. Without good data on the status of each linkage within a supply chain ecosystem, companies and their trading partners are running blind. This means that if data security issues do arise, they are even harder to diagnose and deal with. The key, therefore, lies in finding the right balance between data security and collaboration. 

      Setting up secure supply chain ecosystems  

      At its most basic level, a data exchange network with enhanced security features improves cyber security compared to traditional visibility platforms, offering robust security protocols, access controls, and audit trails. It is worth going the extra mile when integrating these processes. However, securing the data exchange network is just one piece of the puzzle for supply chain managers. 

      A truly secure supply chain ecosystem requires a multi-layered approach. Ultimately, building trust through transparency is key. Companies need to understand how their data is being used and protected within the supply chain ecosystem. And IT systems that have interoperability at their core are central to that objective. 

      Interoperability for supply chains means secure and seamless communication and data sharing between different systems applications and trading partners, technologies, and organisations. This reduces bottlenecks and provides the sort of data that stakeholders or security partners need to respond to issues in real time. What’s more, it enables the integration of diverse security protocols, ensuring that organisations can more consistently protect their data (and that of their partners) as it moves through various stages of the supply chain. Interoperability also facilitates collaboration and trust between trading partners by standardising data security practices, minimising vulnerabilities caused by isolated or incompatible systems. Ultimately, it strengthens the overall resilience of supply chain ecosystems, making them more agile and better equipped to mitigate risks.

      As always, there’s no silver bullet 

      Of course, it is important to remember that interoperable systems are not a silver bullet against cyber threats and that a multi-layered security framework remains essential. 

      However, supply chain managers need to reach a stage where they are confident in that technology that their systems are using. This is key to avoid technological backsliding and less efficient supply chain ecosystems, but also to ensure systems are secure in the face of modern cyber threats.

      • Digital Supply Chain
      • Risk & Resilience

      New research shows almost half of all circular economy implementation efforts in the UK have stalled.

      Efforts to implement circular economy practices in UK organisations are struggling, according to new research from Ivalua. According to the research, just one-in-four businesses surveyed have been able to successfully make their supply chains more circular.  

      Many to miss out on economic and sustainability benefits.

      Ivalua’s research found that more circular economy models are helping UK businesses meet persistent efficiency, cost and sustainability challenges. 

      The circular economy essentially refers to practices that replace the traditional linear model of take-make-waste with a more regenerative approach. This approach, according to the World Economic Forum, emphasises the restoration and regeneration of products, materials and energy. As a result, circular economic practices include recycling, part harvesting and remanufacturing, repair, refurbishment and re-commercialisation. However, circular economic thinking doesn’t just seek to replace the existing disposable manufacturing culture with one that favours more recycling; the circular economy challenges conventional metrics of value creation, pushing manufacturers, supply chain managers, and sourcing teams to design products, supply chain models, and logistics networks that put durability, repairability and recyclability in mind.

      Ivalua’s report finds that  more than half of organisations implementing circular economy models generated more revenue. Not only that, but these organisations also reported more efficient material usage, a reduced carbon footprint, and lower costs. However, most organisations still struggle to instil circular economy practices in their business. Therefore, they are also failing to see the benefits. .

      Struggle to implement  

      The study of 300 UK supply chain and procurement decision-makers found that just 25% have implemented a circular economy model. Almost half (49%) say they are in the process of, or planning to implement a circular economy model, while 22% still have no plans at all.

      The findings indicate that the circular economy slowdown stems from basic sustainability shortcomings. UK businesses currently lack comprehensive and fully implemented plans for using renewable energy (75%), buying recycled materials (76%) and exchanging resources with suppliers (81%).

      “Against persistent inflation and rising energy and fuel costs, UK businesses must urgently find new ways to optimise their supply chains,” says Jarrod McAdoo, Director of Product at Ivalua. “In our ‘survival of the fittest’ economy, circularity will improve the financial and environmental standing of businesses – particularly those who can gain a first-mover advantage. In fact, our data shows more than half (51%) of UK businesses say if they don’t implement circular economy models, they’ll be overtaken by greener, more efficient competitors.”

      • Sourcing & Procurement
      • Sustainability

      Bharat Ahir, CEO of 28one, explores the disconnect between the will to drive sustainability and the way to realistically drive change throughout the supply chain.

      The sustainable supply chain is top of the agenda for an increasing number of companies today, as pressure builds from consumers, regulators and investors. This pressure is only building with daily headlines on global crises driving demands for greater transparency from all stakeholders and retailers coming under ever greater scrutiny about ethical sourcing.

      The consensus from consumer to CEO is that active efforts towards implementing sustainable practices throughout supply chains is an objective good. However, there is still a significant gap between the will and the way. 

      The gap between intention and action 

      Well-intentioned producers and retailers might want to progress from being end-stage transactors to become pioneers of sustainable practices who can verify the ethical origins of every component of the products they sell, but the obstacles to such a transition can make companies scale back or abandon their ambitions. 

      A key driver of success in establishing a sustainable supply chain is the extent of the internal expertise at the company.

      When businesses take a closer look at their supply chains, they often find shortcomings in the levels of visibility and management throughout. Without the necessary experience of building or integrating sustainability into the supply chain, these companies often make unforced errors or spend valuable time reinventing the wheel at great expense.

      Even with the best intentions, businesses continue to fall short of what is expected by stakeholders and even what they themselves have committed to achieve. A recent IBM study found that 61% of businesses wanted to pursue supply chain sustainability improvement. But one in five companies are not on track to meet their Scope 1 and 2 decarbonisation targets and nearly two thirds do not have a strategy to reduce upstream Scope 3 emissions, according to a recent Bain study.

      In order to succeed, companies need a roadmap that can help them build resilient supply chains reinforced with robust validation and verification practices. 

      At the heart of this process is data. Knowing the scale at which a company’s supply chain is underperforming in terms of sustainability is the first step before tangible progress can be made. 

      Using data to bridge the gap  

      Supply chain management is a complicated process, with multiple categories, territories and stakeholders to satisfy. This is made even more complex when sustainability becomes a focus. By deploying technology and expert analysis, companies can identify the weak links in the chain and make modifications to align operations with strategy.

      Complex supply chains firstly rely on data to operate efficiently. 

      Collected data offers companies a tangible means of understanding supply chains, providing dynamic insights into quality, merchant sourcing, fail rates, sustainability and more. Many companies have this data but face the additional challenge of being able to interpret and act on it appropriately. 

      Where knowledge gaps exist in supply chain management, at any stage or hierarchy, external expertise is often the best filler. New real-time transparency technologies allow companies to instantaneously rectify wastage and excessive carbon or water usage to get ahead of delays, losses or non-compliant utility expenditure. Partnering with external experts means you can action these insights immediately and effectively.

      Procurement and sourcing 

      Sourcing practices are also evolving to meet the new environment with the advent of AI accelerating responses to global supply chain crises and raw material shortages.  However, this new frontier for supply chain management can be difficult to understand and external expertise is often a cost-effective, and efficient means of being able to rapidly respond to a developing situation. External experts working with retailers to implement agile supply structures and to automate management and resolution functions can be a rapid and flexible solution

      Equally, antiquated manual sustainability and quality reporting gives management teams a lack of visibility and understanding of their products. New technologies offer real-time quality visibility and reporting with global GPS tracking of products that can seamlessly integrated into business systems with APIs. These programs are fully customizable to client business, processes, KPIs and needs.

      The sustainable supply chain is inevitable 

      Sustainable supply chains are the future. Many companies will face fines from regulators, as well as repurcussions from investors and consumers unless they make the transformation. A lack of internal expertise, fears of rising costs and supplier resistance create an atmosphere that isn’t conducive to positive change, but ultimately the failure to engage could prove far more costly.

      Until companies have real-time visibility across their supply chain, transparency at every stage of the process, and access to the right expertise, transitioning to truly sustainable supply chains will remain a daunting task that deters many businesses from making enduring changes. But it doesn’t have to be this way. 

      Those who will thrive and prosper will be those who think ahead and actively pursue sustainable supply chain strategies for reasons driven by ethics, efficiency, foresight and profitability.

      Richard Davies, UK Managing Partner at Netcompany UK, explores how business leaders can harness technology to protect their supply chains by sticking to tried-and-true, customer-centric methodologies.

      These past few years have not been easy for UK supply chain leaders. In addition to the continued pressure to deliver year-over-year financial growth faster and with less budget, business leaders in the sector are faced with labour shortages, congestion along the supply chain, and a shift in skills and knowledge required in workforce talent. One of the first instincts in addressing these challenges is to implement new technology or integrate a digital solution. In today’s crowded marketplace, it seems like an easy, obvious move. After all, there are hundreds of solutions promising flashy dashboards, easy integrations and a long checklist of features.

      However, all that glitters is not gold, and it’s the same for many off-the-shelf (OTS) offerings. Without due diligence, decision-makers may find themselves in a rabbit hole of technology for technology’s sake. This can happen whether the technology is built in-house or OTS. As a result, they may move too far from what the end-user experience truly needs.

      To ensure modern and resilient supply chains with increased efficiency or reduced operating costs, business leaders can instead harness technological advancements as part of a wider customer-centric transformation toolkit.

      Focusing on the Customer in the Supply Chain

      Ultimately, a solution is introduced to add value to a customer. It is important to remember that new solutions aren’t about introducing technology for the sake of it but introducing new capabilities that genuinely impact an organisation’s processes and customers in a helpful way.

      Solutions should be chosen and applied with precisely this in mind. Also, your objectives for your customers should be involved from the outset. This way, the whole process of building, developing, or upgrading solutions can be better orientated around a single source of truth — what you are trying to achieve for the end user. 

      This is especially important to remember when trying to achieve more with less. Introducing new systems is complicated, and this isn’t helped by tight budgets and short timeframes. Keeping your objectives clear and your customer in mind throughout the process ensures that the reason you are undertaking this task doesn’t get lost behind the inevitable complications that will arise. 

      To Build, Buy or Reuse

      When approaching technology and solutions, one of the first considerations is whether to build the solution in-house or simply purchase it from an external vendor. 

      Both have their merits. Building technology or a specific tool in-house offers a team the chance to fully customise and seamlessly integrate it into existing systems precisely the way they want and need. This is ideal when an organisation has the resources, budget and risk tolerance to develop something from scratch. Buying pre-built is more suitable when finding a cost-effective solution is the priority. Technical support and maintenance are usually provided on an ongoing basis, which can be particularly useful for smaller organisations.

      However, both also have their pitfalls. Building in-house is a heavy, costly and time-consuming exercise, stretching resources thin and adding pressure to already diluted teams. Purchasing OTS solutions may seem convenient but could lock organisations into costly subscriptions over time and with volume. 

      Sometimes the best solution is one that already exists. More often than not, a company or team already uses some kind of application to achieve its goals, and, crucially, software can be upgraded. Legacy systems are often considered old or outdated, but upgrading them instead of replacing them can come with a number of advantages. For example, upgrading an existing system comes with the benefit of familiarity; the team knows how to use it and you can save on the costs of onboarding teams or whole organisations onto new tools. 

      For many companies, the best option is a combination: a tried-and-true solution that can be customised to meet specific requirements.

      The best of both worlds  

      Taking supply chain management as an example, the use cases for a new digital platform are common across businesses, even if they are in different sectors. From real-time collaboration on data to predictive analytics, the objective is to take previously siloed data and produce one source of truth that provides transparency and the ability to make good decisions. 

      The underlying technology to solve these cross-industry problems already exists. The best of both worlds can be achieved by using pre-built systems. These can be easily integrated and offer extensive build-on capabilities.

      When implementing any new technology or digital solution, decision-making should be customer-led. Often, however, businesses find themselves adapting to the product’s limitations. This probably means the value they were looking to add in the first place will not be realised. 

      Agreeing on the value-add for the supply chain

      Regardless of the solution, businesses must answer one important question at the very beginning. “What is the value-add we are going to achieve?

      When this is not clearly defined, project scope can quickly be lost.

      It is crucial to clearly define the added value that any new technology will bring to the business. This involves identifying the specific problems the technology will address, the expected benefits and how these will contribute to the organisation’s overall goals. By understanding the value-add upfront, organisations can ensure that their technology investments are aligned with their strategic priorities. This in turn makes it more likely that they can deliver a tangible return on investment.

      To agree on the value-add means first understanding the use case that will deliver a measurable benefit to the business. In my experience, this comes after bringing together stakeholders, sometimes over the course of a few days, to discuss and scope out the use case in its simplest form. This might, for example, be gaining visibility on an order when it is in transit. If this value proposition can then be demonstrated to benefit the business, whether that’s by automating processes, improving data-driven decision-making, or even reducing operational expenses, there is a solid use case from which to start a project.

      Commitment is key to any kind of digital transformation. They are not short projects, but equally, they don’t have to be overly complex. Focus on the value added to keep on course. 

      Achieving resilience

      The COVID pandemic demonstrated that supply chains are not resilient enough. Recently, the appetite for digital transformation in the supply chain has come from the need to future-proof businesses. 

      However, too many projects have been conceived without a clear goal and become bloated and cumbersome due to ineffective management. The debate over whether to build or buy is worthwhile. Nevertheless, the first answer you must find is where value will be added to the organisation.

      Shane Geary, SVP of Manufacturing & Logistics at Pragmatic Semiconductor, looks ahead to the next global supply chain crisis and how to defeat it.

      The past few years have thrown the fragility of global supply chains into sharp relief. Disruptions have had profound impacts on industries worldwide. While supply chains are continually changing in response to the shifting commercial landscape, rapid inflation, geopolitical uncertainty, extreme weather, and COVID-19 have all brought about an unprecedented period of volatility, with a wide array of challenges for businesses and operators. In such a risk prone world, the need for supply chain resilience and efficiency is greater than ever.  

      Mitigating risk and reducing disruption requires a multifaceted approach. Diversification of suppliers is essential; relying heavily on a single supplier or a limited geographical area increases vulnerability. By diversifying their supplier base, companies can reduce dependency on any one source and be better prepared to tackle location-specific disruptions.

      Localised manufacturing is another key consideration. Manufacturing closer to end markets can reduce dependency on global supply chains and transportation routes, allowing smaller, more flexible production facilities to adapt quickly to local demand.

      The integration of advanced technologies is also key. The ability to accurately track goods in transit is vital – particularly when delays or shortages occur. Determining exactly where disruption has taken place can help avoid delays that cascade through the system. 

      Intelligent solutions to the supply chain’s biggest problems

      Embedding intelligence into products allows real-time tracking and management of goods, helping to predict disruptions, monitor goods, and optimise logistics. But there are several hurdles to overcome to achieve ubiquitous connectivity. 

      Cost is the first problem. Smarter supply chains typically rely on silicon semiconductors, but it’s expensive to add a silicon chip to each and every item in the supply chain. The long lead times and high costs associated with standard chip design mean that it’s best used to create complex, hi-spec chips in applications that demand high performance. However, this means that production is rarely agile, and rapid customisation is not an option. The value of the intelligence must outweigh the cost of implementation – and it must be quick and easy to deploy.

      Environmental impact is also a consideration: currently, producing silicon semiconductors uses up vast amounts of water and energy, and up to 30 different process gases, many with much higher global warming potential than CO2. Their production also involves moving the various components around the globe to areas of expertise, which slows production and increases carbon emissions.

      New chips, new supply chain transformation possibilities

      Non-silicon semiconductors – chips that use new, advanced materials – have the potential to change the narrative around item-level intelligence, unlocking the potential for implementation at scale.

      These new materials allow for simplified production processes at much lower temperatures than silicon, consuming significantly less energy and water, and fewer harmful chemicals. This both drives down cost and reduces carbon impact, making low-cost, sustainable, item-level intelligence a reality. It also allows end-to-end production at a single site. As a result, production is significantly faster – typically just a few weeks, compared to the months of standard chip production – making customisation rapid and agile.

      These advanced chips are ultra-thin and also physically flexible, making it possible to deploy them almost anywhere – from clothing and textiles to bottles or coffee cups – with few constraints on form-factor.

      Embedded directly into packaging, they’re not obvious to the touch. They don’t get in the way of product branding, can’t be covered or replaced – and are robust enough to avoid being damaged during the rigours of transportation.

      This low-cost technology makes it viable to add intelligence to high volume products, making insights available to retailers and increasing widespread adoption.

      Item-level intelligence at scale

      The benefits of putting item-level intelligence into in the supply chain are numerous and transformative, leading to increased efficiency, transparency, and adaptability. 

      Advanced material microchips, in combination with sensors and RFID tags, allow end-to-end visibility of individual items as they pass through the supply chain, enabling monitoring of precise location, movement – and even condition – in real time. 

      This level of transparency allows businesses to reduce the risk of loss or theft, identify bottlenecks, optimise inventory, and monitor transit conditions like temperature and humidity.

      Monitoring individual items, rather than relying on aggregate stock data, reduces the likelihood of overstocking or stockouts, and allows just-in-time inventory systems to reduce carrying costs and increase cash flow. Rapid identification of delays – from production slowdowns to transportation issues or customs holdups – means that supply chain managers can quickly trace disruptions to their source, and take corrective action.

      These advanced material chips can also support the transition to more circular supply chain models, where products and materials are reused, recycled, or remanufactured rather than being discarded after use. They also enable easier post-sale returns and product refurbishment, boost recovery of materials and improve recycling accuracy, allowing for more sustainable consumption.

      Affordable, item-level intelligence also plays an important role in the consumer experience, verifying product authenticity and preventing counterfeiting – crucial in industries such as pharmaceuticals, luxury goods, and electronics, where fake products could pose significant risks

      But supply chains can also use the technology to deliver a richer, personalised experience, from real-time visibility of order status, to custom content served up at the tap of a smartphone. As well as delighting consumers with an interactive experience tailored to factors such as their location, time of year or previous interactions, brands also obtain first party data to inform future content and campaigns, further driving consumer loyalty.

      A low-cost, low-carbon approach

      In short, advanced material chips have the potential to transform supply chain management through low-cost, low-carbon connectivity, creating unprecedented visibility, control, and adaptability. 

      From enhancing inventory management to improving customer experience, the ability to track and monitor individual products throughout their lifecycle creates more efficient, responsive, and sustainable supply chains. As companies continue to face new, constantly changing challenges and market demands, the adoption of item-level intelligence will become an essential strategy for building more resilient, secure, and agile supply chain systems.

      • Risk & Resilience

      Phil Reuben, executive director at SCALA, breaks down how to generate new efficiencies in the supply chain post-M&A.

      In the current business climate, organisations are navigating many issues. These include the rise of Artificial Intelligence (AI) and various ongoing geopolitical disruptions. To foster growth, businesses must consistently adjust and adapt to keep up with these shifting conditions. 

      Mergers and Acquisitions (M&As) are one popular route by which businesses can do this. Morgan Stanley predicts that M&As will double in volume this year compared with 2023. However, often short pre-M&A timelines leave little time to conduct exhaustive due diligence, putting higher pressure on post-M&A procedures. M&As, therefore, must have well-thought-out end-to-end strategic planning. This is particularly the case when it comes to integrating supply chain and logistics processes. This is because these operations are often the most complex part of a business.  

      For a merger or acquisition to be successful, the transition cannot compromise business resilience. Organisations must have resilient supply chains that can adapt to the ever-changing demands of the business world. Not only that, but they must also be able to help optimise business performance.  

      The importance of monitoring integration  

      Organisations can’t afford to ignore the importance of monitoring supply chain and logistics operations post-deal. Effective supply chain and logistics management is critical for achieving operational excellence, driving customer satisfaction, and maintaining a competitive edge in the marketplace. Keeping a close eye on suppliers and on-the-ground teams early on keeps small issues from escalating into larger problems.  

      It’s not uncommon for a new business entity to face teething issues in the post-M&A period. However, having a responsive supply chain (and an effective team to manage it) can make all the difference. They should be able to adjust to disruptions – whether due to supplier issues, logistical challenges, or market shifts. By maintaining a proactive approach to supply chain monitoring, businesses can ensure a seamless transition that minimises disruption, fosters resilience and seizes opportunities for optimisation. 

      Tackling teething issues 

      The pre-M&A period is often conducted under considerable time pressure. Therefore, pre-acquisition due diligence sometimes begins and ends with the finance and legal side of business. This doesn’t necessarily account for all the operational detail which is central to a business continuing to run effectively. Plus, there is always potential for market shifts or complications to disrupt operations, adding unforeseen risks and costs. 

      When it comes to integration, in practice, challenges can arise from various sources. These can include operational and cultural clashes between merging organisations, glitches in new technology systems, and knowledge gaps between teams.  

      One of the most significant hurdles post-M&A can be the human element. Teams coming together might result in the need to restructure. Workplaces may need to be relocated, and job roles may need to transition to account for changing supply chain responsibilities. Companies can manage this by implementing dual systems initially before operations are streamlined.  

      Conducting a comprehensive post-M&A supply chain and logistics review is a critical stage that can be overlooked in the initial period following the merger or acquisition. If a full review was not completed pre-M&A, then the new entity should identify opportunities to streamline operations and pinpoint inefficiencies that may have been overlooked. This review process is not just about fixing immediate issues; it is an opportunity to integrate best practice from both organisations, fostering a collaborative environment that encourages continuous improvement.  

      As we discussed in our good practice guide, engaging with experienced supply chain experts during this phase can provide valuable insights and facilitate smoother transitions, ultimately supporting greater success in the marketplace. By prioritising these aspects, businesses can mitigate the impact of teething issues, ensuring a more seamless integration that lays a strong foundation for future growth. 

      Navigating evolving markets post-M&A 

      As market conditions continue to evolve with high interest rates, political uncertainty, and the disruptive potential of AI, navigating business conditions post-M&A has never been more challenging. KPMG predict that this year, 50% of supply chain organisations will invest in AI, stating that the supply chain landscape is undergoing a profound transformation. As such, it is more prevalent than ever for organisations to review and optimise their supply chain procedures.  

      On top of AI, recent geopolitical disruptions have impacted global supply chains massively. Ongoing conflicts, trade tensions, and regional instabilities have resulted in transportation disruptions. For example, the Red Sea crisis has severely disrupted shipping routes through critical waterways, drastically affecting delivery times and costs. Companies are being forced to re-evaluate supply chain strategies and prioritise agility above all, focusing on resilience and diversification to mitigate risks. 

      M&As present a unique opportunity for organisations to reinvent themselves or pursue growth during these times of uncertainty. It is therefore paramount that supply chain leaders prioritise strategic planning and post-M&A supply chain review in their initiatives to fully leverage the benefits that M&As have to offer.  

      Ultimately, the journey through a merger and acquisition presents challenges and opportunities amid an unpredictable and evolving market. Strategic end-to-end planning is essential, and it is vital that post-M&A operations are not overlooked. By adopting a proactive approach to monitoring supply chains and operations post-M&A, businesses can overcome teething issues and achieve a smoother integration; they can also position themselves for long-term success and growth in an ever-changing business landscape. 

      • Collaboration & Optimization

      Mark Holmes, senior adviser for global supply chain at InterSystems, explores “first mile” logistics’ role in optimising supply chains.

      In the food and beverage (F&B) industry, much of the recent focus has been on the way organisations handle the last mile – the final stage of delivering products to consumers. This makes sense, given the rise of quick commerce and home delivery services like JustEat, Deliveroo, and Tesco Whoosh, which have extended their reach to include groceries alongside traditional take away food.

      Even major brands such as Heinz, Unilever, and PepsiCo have set up direct-to-consumer delivery options. However, this focus on the last mile risks overlooking an equally crucial phase of the supply chain: the first mile, where raw materials are sourced, and the journey of the product begins.

      The hidden costs of neglecting the first mile

      The first mile forms the bedrock of a successful supply chain. Poor management in the initial phase can lead to issues like excess inventory, difficulties in supplier coordination, and overall inefficiencies that ripple throughout the supply chain. These problems can result in higher operational costs and missed opportunities for reinvestment in areas that directly benefit the customer, such as product quality and pricing.

      For F&B supply chain organisations aiming to boost efficiency, the first mile is a logical starting point. By harnessing the power of data, companies can identify and address inefficiencies early in the supply chain process.

      However, currently, many companies still grapple with challenges like a lack of real time data visibility and reliance on outdated manual processes. According to an InterSystems survey of supply chain leaders, 41% cite the absence of real time data as a major barrier to progress, while 39% struggle with manual processes.

      The ability to quickly ingest, analyse, and subsequently make strong business decisions is critical in demand sensing and forecasting. Yet, antiquated data management processes and inaccurate data (37%) impede progress. Nearly a third (30%) of supply chain leaders said processes built on outdated algorithms without agility to adapt present a key challenge in this space.

      InterSystems research reveals that the biggest barrier to achieving full supply chain optimisation is the lack of integration between disparate data sources, including systems and applications, cited by 46% of respondents, rising to 56% in the fast-moving consumer goods (FMCG) space.

      Overcoming the hurdles

      To overcome these obstacles and optimise the first mile, F&B supply chain organisations must look to better integrate and use trusted and clean data.

      A smart data fabric architecture, underpinned by advanced analytics and decision intelligence (A&DI) platforms, is instrumental in providing supply chain organisations with this clean, reliable data needed to optimise the first mile. The smart data fabric accesses, transforms, and harmonises data from multiple sources, on demand. This seamless integration of the various data sources involved, both within and outside of the organisation, gives F&B supply chain businesses a comprehensive view of the whole supply chain. This approach allows supply chain firms to leverage usable, trustworthy data to make faster, more accurate decisions in the first mile and beyond.

      The smart data fabric also integrates a broad range of embedded analytics capabilities, such as data exploration, business intelligence, and machine learning. These tools empower F&B supply chain companies to gain new insights and fuel intelligent predictive and prescriptive services, and applications.

      This real time access to trusted, unified data and intelligent insights delivers significant opportunities for F&B businesses across the supply chain, enabling them to improve demand forecasting, optimise inventory levels, and improve overall supply chain performance.

      Data-Driven optimisation in the first mile

      Continuous data flow and the use of advanced analytics facilitate ongoing analysis and optimisation of first-mile processes, leading to greater efficiency and productivity.

      Key areas for improvement include demand forecasting and planning, where bringing together real time sales and consumption data improves demand forecasting. This also allows for more precise production scheduling, reducing lead times and enhancing manufacturing efficiency.

      Automated workflows are another area where real time data can make a significant impact, reducing the need for manual intervention and boosting operational efficiency.

      Enhanced communication is another benefit of real time data, supporting instant engagement between suppliers and manufacturers and allowing for quick order adjustments based on current demand and supply conditions. Similarly, real time tracking of orders ensures that suppliers are meeting delivery schedules, reducing the risk of delays and helping ensure timely production.

      Dynamic inventory management becomes possible with real time data, allowing inventory levels to be adjusted dynamically in response to demand signals, minimizing excess stock and reducing storage costs. At the same time, stock replenishment benefits from automated triggers based on real time inventory data, ensuring raw materials are available when needed, avoiding overstocking.

      Quality control also sees improvements with real time monitoring of temperature, humidity, and other conditions during the transport of raw materials helping to ensure quality and compliance with safety standards.

      Traceability and compliance are enhanced through real time data, enabling full traceability of raw materials from source to production, aiding regulatory compliance, and allowing for swift responses to quality issues or recalls. Additionally, sustainability and waste reduction efforts benefit from real time data, which helps identify resource inefficiencies, supporting waste reduction and improved sustainability practices. Companies can also track the environmental impact of sourcing and transportation activities, helping to meet sustainability goals and reduce their carbon footprint.

      Delivering better value to customers from first mile to last

      While the last mile of the F&B supply chain has received considerable attention, neglecting  the first mile could be costly. By investing in first-mile logistics and operations, and supporting them with robust data and advanced technologies, companies can achieve efficiencies that benefit the entire end-to-end supply chain – from first mile to last.

      Optimising the first mile, not only reduces excess inventory, and improves supplier coordination, but also enhances sustainability efforts, ultimately leading to greater value for customers. The integration of smart data fabrics is vital in this process, enabling businesses to maintain a competitive edge in a rapidly changing market.

      • Collaboration & Optimization
      • Sourcing & Procurement

      As part of our LogiPharma 2024 coverage, we speak to Program Director Ryan Portela about the event and its role in supporting the pharmaceutical industry supply chain.

      At this year’s LogiPharma 2024 event, we caught up with some of the pharmaceutical supply chain sector’s leading executives to learn more about them, their analysis of the trends shaping the industry, and how their organisations are responding to the challenges ahead. 

      LogiPharma is the premier event for pharmaceutical supply chain professionals. Every year, the event brings together over 500 professionals from the sector’s top manufacturers, as well as their partners, government agencies, academic institutions, and industry media to network, benchmark and learn how to improve supply chain operations. 

      With this year’s LogiPharma 2024 event in our rear view mirror, we sat down with Ryan Portela, Program Director for LogiPharma USA, for a post-event debrief, and to get his take on the opportunities, pain points, and strategies defining success in the pharmaceutical supply chain sector. 

      1. Ryan, can you quickly outline your role in the LogiPharma event? Why should people attend?

      I’m Ryan Portela, and I am the Program Director for LogiPharma USA. My job is to research current trends and needs for the pharmaceutical supply chain industry, create an agenda that addresses main hurdles and opportunities in the pharma supply chain sector and recruit speakers to speak to the issues that are top of mind for the industry. 

      I believe people should attend because LogiPharma is the one and only event that is created in conjunction with industry leaders. It’s a program for pharmaceutical supply chain professionals, by pharmaceutical supply chain professionals. 

      2. With the event running since 2002, how much change and transformation has taken place since then? This event and the pharma supply chain space generally must look completely different to the first one, right?

      Well, I wasn’t here for the event in 2002, but we are lucky enough to have some supporters and contributors that have been here since the beginning. When I ask them this question, they all agree that the program has grown immensely since its inception.

      My job is to ensure that the needs of the pharma supply chain are being addressed in the sessions that we are discussing at LogiPharma. With that, as you can imagine, things have changed in conjunction with the needs of the industry. 

      While things like supply chain visibility, risk management, supply chain planning and security are a constant need, the ways to improve these functions surely have changed and will continue to change as technology and the landscape evolves. That’s where LogiPharma comes in. We stay in tune with that evolution so the industry can trust us to keep them on target with how things are changing. 

      3. What is the planning like for making an event like this so successful? Is it an all-year round process?

      It’s a lot of planning and coordinating not only with our internal team, but also with our external partners that make the event possible. We have a dedicated team that works on the experience, another that works on building the audience, and another team that focuses on bringing on our sponsors. 

      Our teams work year-round to ensure that the quality at all levels of the program remains in step with the expectations of our audience and the industry. We know the responsibility that we have to provide the supply chain with quality connections and education, and that’s not something we take lightly. Therefore, we work tirelessly to ensure that the event is spot on and runs as smoothly as possible. 

      4. What makes LogiPharma different and such an important event in the supply chain calendar?

      As mentioned before, we work closely with our industry partners to gain insights into the current hurdles and opportunities that the supply chain faces. 

      I believe that, just like the supply chain, the trust in our partnerships and the effective collaboration between our speakers and our production team ensures that this event is addressing the right issues at the right time. 

      At LogiPharma, you are hearing directly from the industry where things are, where things are going, and where they need to be. 

      5. How do you make the experience different every year for attendees?

      The best thing about working in this industry is working with people who love what they do. 

      When you have motivated individuals who want to create leading content and experiences, magic happens. 

      At WBR, the company who produces LogiPharma, we have what I believe are the best event professionals in the industry. The team we have focuses on how to improve every year and takes our wins, losses and draws and goes back to the drawing board to fine and refine the program. 

      6. What were the biggest takeaways from this year’s LogiPharma 2024 for you?

      There are quite a few! Some of the biggest takeaways for me centre around sustainability, supply chain security & risk management and E2E visibility.

      Sustainability is here to stay. As more pharmaceutical manufacturers begin to tackle their SCOPE 1,2 and 3 emissions, key questions around data collection and standardisation are emerging. The European landscape is ahead in many regards, but US partners are quickly realising the importance of being able to talk sustainability with pharma manufacturers. What we are seeing is forwarders, data providers and other key supply chain partners learning what they can about their own capabilities and working to support manufacturers in their sustainability initiatives.

      Topics around supply chain risk and security are also emerging. As we know, being able to support our hospitals and patients with safe and sound medication, in a timely manner, is at the heart of what these professionals do. The threats to the digital and physical supply chain are many and, as the supply chain itself, evolving. 

      7. What topics were people particularly focused on this year?  

      The conversations had at LogiPharma this year were centred around improving communication with your downstream partners, enhancing digital supply chain security capabilities and learning about the resources available to both manufacturers and their partners to be able to continue their mission of securing the supply chain. As we look at an increasingly volatile world, the security of medications is paramount not only to the industry, but to societies all over the world. We are proud to be able to provide a platform where these issues can be not only discussed, but where progress can be made.

      E2E visibility is the dream for most everyone in the supply chain. Being able to track across the source, make and deliver landscapes effectively is a goal that many are focusing on. And some are close! However, just like any digital system(s) there are many improvements to be made. Understanding what E2E means is key for the industry. Figuring out how to best enable this capability in a safe, transparent and efficient manner is what organisations need to explore. Each individual organisation across the value chain is unique in its capabilities and in its scope.

      Therefore, if E2E is to be achieved, everyone who is involved needs to know not only what they must do, but what they can do and be able to communicate those capabilities to their partners up and down stream. Overall, I feel the future of E2E will hinge on trust and at LogiPharma, we do all we can to put folks in front of each other so that trust can begin to take hold. 

      8. How does the average Chief Supply Chain Officer juggle all the important items on their agenda today? With digital transformation, sustainability and diversity (among others!) all key areas in their own right, what tools can help CSCOs meet all their objectives and succeed?

      I think we are learning just how interconnected our supply chains are. Juggling isn’t easy for anyone but improving the way supply chain teams communicate across organisations both internally and externally seems to be one of the major focus areas for supply chain leaders. We constantly hear about the need to break down silos – across the data, planning, and the delivery landscapes (to name just a few). 

      Of course, digital tools that improve planning and visibility will greatly aid in achieving some of these goals. Where would we be if we didn’t throw AI into the mix as well?

      But I think that at the heart of what we are learning is that, beyond tools, understanding your own capabilities and, again, building trust with your partnerships is what will hold the key to success.

      Being able to trust your data, trust your partnerships, trust your systems, and most importantly your teams! When you know that you have the right tools to do the job, and the right people in place to execute on strategies, I think CSCOs will find juggling their responsibilities a bit easier as the supply chain evolves. 

      9. What does the future of LogiPharma look like?

      The future for LogiPharma is one that I hope the whole industry helps to decide. What I mean by that is that we have worked hard to ensure that the supply chain leaders that share with us feel heard and feel like LogiPharma is the event they can feel confident that they can come together to not only find solutions and ideas, but also grow their community and build those networks that are so important to keeping things moving – both professionally and personally.

      LogiPharma’s mission of being a resource for the pharma supply chain across all the nodes it touches is one that our event team realises and doesn’t take lightly. We will continue to work with supply chain leaders, our partners, government agencies, academia and media institutions to bring the pharmaceutical supply chain cutting edge innovation, timely learnings and a community of supply chain professionals that will continue to move the supply chain forward together. 

      10. Is there anything else you wish to share?

      I hope that if you are interested in sharing with us that you reach out and learn more about the event. 

      Whether you want to speak, promote your organisation, find business solutions or simply grow your network – LogiPharma wants to continue to be the premier event for all things pharmaceutical supply chain related. Hope to see you all in Boston for LogiPharma USA 2025!

      • Collaboration & Optimization
      • Sourcing & Procurement

      Shabbir Dahod, President and CEO of TraceLink, talks risk, resilience, and maintaining visibility in the pharmaceutical supply chain.

      At this year’s LogiPharma 2024 event, we caught up with some of the pharmaceutical supply chain sector’s thought leaders. We asked them about everything from digital transformation to AI and the climate crisis, hoping to learn more about the trends shaping the industry, and how their organisations are responding to the challenges ahead. 

      Here’s  Shabbir Dahod, President and CEO, TraceLink, discussing the most pressing issues facing the global pharmaceutical supply chain. TraceLink is a leading end-to-end digital network platform for intelligent orchestration of the supply chain. It enables visibility, traceability, and collaboration between supply chain partners. Through its Opus Platform, solutions like the Multienterprise Information Network Tower (MINT), and its B2N Integrate-Once™ network, TraceLink connects manufacturers, suppliers, distributors, healthcare providers, and regulatory agencies on a single platform. This enables seamless data sharing, real-time tracking of products, and ensures regulatory compliance. These benefits are especially important for for pharmaceutical products where patient safety and drug authenticity are critical. TraceLink’s solutions help reduce inefficiencies, prevent drug shortages, and verify timely delivery of critical healthcare products.

      1. What are your biggest takeaways from this year’s LogiPharma event?

      At LogiPharma, supply chain digitalisation emerged as a key theme. It highlighted how digital platforms are transforming pharmaceutical operations by offering real-time visibility, better coordination, and reduced inefficiencies. 

      Companies are increasingly relying on these tools to meet the growing demand for faster, more accurate delivery of medications. Another prominent topic was the use of AI for supply chain resiliency. Here, predictive analytics are helping companies anticipate disruptions and optimise inventory. 

      Additionally, DSCSA compliance was a major focus, stressing the need for digital tools to ensure traceability, product safety, and regulatory adherence.

      2. More broadly, what kind of shape does the pharmaceutical supply chain find itself in after such a remarkable few years? 

      The pharmaceutical supply chain today is navigating a period of intense transformation and pressure. 

      Factors such as COVID-19, political conflicts, and inflation have shown us the weak points in the supply chain, such as over-reliance on certain regions for manufacturing, a lack of visibility across the supply chain, and challenges in meeting demand surges. However, these challenges have given rise to great opportunities to transform legacy supply chain processes, which have previously held back the industry. 

      For example, we’ve seen tremendous innovation over the last few years. Companies are adopting AI to improve resilience, visibility, and collaboration across the supply chain. The focus is shifting toward greater agility and patient-centric approaches to ensure the continuous supply of essential medicines.

      Looking ahead, the pharmaceutical industry’s adoption of new technologies is creating a more resilient and agile global supply chain. 

      These advancements, coupled with a growing emphasis on patient-centric approaches, position the industry to overcome current challenges and build a stronger, more adaptable supply network. With continued collaboration and innovation, the future of the global supply chain holds great promise for ensuring the consistent delivery of essential medicines to patients worldwide.

      3. What do you feel are the biggest lessons that the last few years have to teach us about the future? And are modern supply chains prepared to deal with the kind of ‘black swan’ events we’ve seen recently?

      In recent years, supply chains have learned that resilience and adaptability hinge on real-time, end-to-end visibility across the entire network. This level of visibility allows companies to make proactive, data-driven decisions, swiftly reroute operations, and respond to sudden disruptions in ways that were previously unimaginable.

      The move towards digital transformation has accelerated the adoption of advanced technologies like AI and predictive analytics. These tools turn real-time data into actionable insights. It helps supply chains not only detect potential risks but also intelligently orchestrate responses. For instance, AI can analyse patterns in data to anticipate shortages, and automation can trigger adjustments in inventory or production levels before disruptions impact customer delivery.

      Furthermore, real-time visibility enhances collaboration with suppliers and partners across the globe. Rather than being limited to isolated insights, companies are now operating within interconnected multi-enterprise ecosystems where data is shared seamlessly across the supply chain. This transparency fosters a collective agility that strengthens resilience, ensuring that everyone from manufacturers to distributors to retailers can adjust in sync.

      With this digital transformation and the focus on real-time data, modern supply chains are more agile, resilient, and prepared to navigate future “black swan” events. The shift towards end-to-end network visibility and intelligent orchestration is not just about meeting today’s challenges. It’s also about setting a foundation for a new era of supply chain management—one where AI-driven foresight and flexibility become the norm rather than the exception.

      TraceLink’s network platform plays a critical role in feeding data lakes. It does this by capturing and consolidating vast amounts of real-time supply chain data from multiple stakeholders, including manufacturers, distributors, and healthcare providers. 

      This networked approach ensures that data, such as transactional records, inventory levels, shipment tracking, and compliance information, is aggregated and structured efficiently for analysis. By feeding this data into data lakes, businesses can leverage advanced analytics, AI, and machine learning to derive actionable insights, enhance decision-making, and optimise supply chain performance.

      For CSCOs looking to start their generative AI journey, the first step is to evaluate their current data infrastructure. Generative AI relies heavily on clean, high-quality data. Therefore, understanding the maturity of existing data systems, identifying gaps, and ensuring data governance policies are in place is critical. This involves assessing how well the organisation collects, stores, and manages supply chain data, as well as determining whether the current IT infrastructure can support the integration of advanced AI technologies​.

      Next, CSCOs should align AI initiatives with business goals, ensuring that AI use cases—such as demand forecasting, inventory optimization, or supply chain risk mitigation—are directly tied to strategic objectives. They need to prioritise areas where AI can deliver immediate and measurable value.

      It’s also crucial to build cross-functional collaboration between IT, operations, and supply chain teams. AI implementation requires a strong partnership between technical experts and supply chain leaders to ensure that solutions are both technically feasible and operationally relevant​.

      Finally, start small and scale. Pilot programs are an excellent way to test AI capabilities before putting them in place throughout the organisation. These pilots help identify potential challenges, refine AI applications, and build confidence within the organisation. 

      5. What’s the next step for pharma supply chain leaders and how can they take it? 

      The pharmaceutical supply chain can take the next step forward by focusing on a few key strategies. First, digitalising end-to-end information flows is critical because it lays the groundwork for every other advancement. Without digitalisation, supply chains lack the unified, real-time data necessary to track product movement, monitor quality, and proactively respond to disruptions. 

      Digital information flows make it possible to see and manage the entire supply chain as a connected ecosystem, breaking down silos and enabling faster, data-informed decisions at every stage. 

      Collaboration is equally important. By encouraging better integration between suppliers, manufacturers, and logistics partners through shared digital platforms, the industry can improve communication and alignment across the entire ecosystem.

      To build resilience and agility, the industry must diversify suppliers, regionalise production. Not only that, but it should use AI-driven forecasting to predict and mitigate risks. 

      Lastly, as the industry shifts towards patient-centric models, supply chains will need to adapt to handle smaller, specialised shipments. This is particularly true for sensitive products like gene therapies and vaccines. This can be achieved by investing in advanced logistics infrastructure, such as temperature-controlled systems, to ensure product integrity​.

      • Digital Supply Chain
      • Risk & Resilience

      Stuart Swindell, Risk and Compliance Strategy Director at Dun & Bradstreet, takes a closer look at supplier relationship management in the run up to 2025.

      As the global business landscape continues to evolve, organisations are increasingly prioritising Supplier Relationship Management (SRM) to navigate a complex and uncertain supply chain environment which is fraught with geopolitical tensions and climate-related disruptions. SRM now requires a systemic approach from organisations. By developing mutually beneficial relationships businesses can enhance supply chain efficiency, quality, innovation, and risk management.

      Our latest Global Business Optimism Insight Report found that businesses are quietly optimistic. The Global Business Financial Confidence
      Index improved 12.3% for Q3 2024, as businesses worry less about supplier delivery time, delivery cost, and concentration. However, managing disruptions to supply chains effectively and maintaining supplier relationships in the face of global adversity remains a challenge. 

      Adapting to the new normal

      Globally, businesses predict that supply chain risks will remain elevated and have proactively adapted to this new environment. 

      Geopolitical tensions, soaring shipping and freight costs, unsafe trade routes, protracted delivery delays, container shortages, and traffic jams at several transshipment ports serve as obstacles to supply chain continuity. In the UK alone, supply chain continuity took a 10.8% hit as the country grappled with lorry driver shortages and other means of land transport, as highlighted by our latest research. 

      Labour disputes, industrial action, and the growing danger of pervasive cyberattacks for third-party suppliers are exacerbating organisations’ concerns. Around the world, organisations are braced for sustained supply chain risks. As such, the focus on robust SRM strategies has never been more critical to maintaining continuity and competitiveness.

      Shrinking confidence in large businesses

      The third quarter of 2024 revealed stark differences in how businesses of varying sizes are coping with supply chain challenges. 

      Optimism among small businesses surged remarkably by 21.8%, thanks to their ability to source locally. Nevertheless, medium and large enterprises remain cautious, facing a decline of 2.4% and 13.4% respectively in their confidence indices. This disparity underscores a growing trend: localised supply chains are proving more resilient. Large businesses linked to global supply chain networks and sources across geographies face the most exposure to unpredictability. This is true whether in terms of shipping costs, congestion across routes, or lengthier routes. 

      For the past decade, many companies have prioritised lean supply chain strategies aimed at reducing waste and maximising value. One on hand, this approach seeks to provide customers with what they want at the lowest possible cost. Hwoever, it’s impossible to deny that it has made supply chains increasingly fragile. Companies have become overly reliant on limited suppliers and just-in-time delivery models, leaving them vulnerable to disruptions. 

      Recent shocks have shown that supply chain challenges disproportionately impact these lean organisations. To combat this fragility, businesses should adopt flexible strategies that incorporate multi-sourcing, near-shoring, and on-shoring practices. Building redundancy within inventory systems may seem counterintuitive to lean principles but it is essential for ensuring resilience in operations. By diversifying their supplier base and maintaining a buffer of critical supplies, businesses can mitigate risks associated with localised disruptions. Not only that, but they can ensure continuous supply, minimising delays and maintaining service levels despite any unforeseen challenges.

      Additionally, knowing your consumer demand can help expose any business vulnerabilities, giving owners a better understanding of their business operations. 

      How data and collaboration can bridge the resilience gap

      In times as uncertain as these, adaptability runs supreme. By harnessing real-time monitoring and predictive modelling, businesses can identify potential risks and vulnerabilities within their supply networks based on historical trends, market dynamics, and weather patterns. 

      This proactive approach of incorporating data and analytics enables swift response and adaptation enabling companies to safeguard against disruptions and ensure business continuity. 

      Businesses of all sizes should also lean on strategic diversification to mitigate supply chain risks. By diversifying their supplier base geographically, businesses can reduce the impact of disruptions in any one region. 

      Furthermore, by moving production closer to consumer markets or forming agreements with suppliers in politically stable regions, organisations can minimise the risk of unforeseen, wider disruptions while maximising cost-efficiency. In this volatile landscape, effective SRM is no longer just a competitive advantage—it’s a necessity. Collaborative initiatives such as supplier partnerships and consortiums can also foster greater resilience. by pooling resources and expertise to address common challenges.

      The challenges faced by businesses across the supply chain must be seen as a clarion call for leaders to reevaluate their approach to supply chain resilience, and proactive risk management and strategic foresight prove to be indispensable tools for navigating the complexities of today’s interconnected world. By leveraging smart data and analytics in risk monitoring, organisations will be better positioned to understand the evolving risk landscape enabling proactive decision-making and agile response strategies which will ultimately lead to a more resilient supply chain. 

      Adopting emerging technologies and automation tools to enhance efficiency, and transparency will chart a course towards resilience and sustainable business growth in the face of macro-challenges that are beyond a business’ control. 

      Moving forward, organisations that can successfully navigate these complexities will be better positioned to ensure supply chain continuity and maintain a competitive edge in an unpredictable world.

      • Collaboration & Optimization
      • People & Culture
      • Sourcing & Procurement

      Kenneth Kallstrom, Vice President Global Healthcare Sales at DSV, talks resilience, sustainability and nearshoring pharma supply chains.

      At this year’s LogiPharma 2024 event, we caught up with some of the pharmaceutical supply chain sector’s leading executives to learn more about them, their analysis of the trends shaping the industry, and how their organisations are responding to the challenges ahead. 

      Here’s Kenneth Kallstrom, Vice President Global Healthcare Sales at DSV, with answers to some of the most pressing questions facing the global pharmaceutical supply chain. 

      1. Would you be able to give me a brief introduction to your role and the company you work  for? 

      At DSV Group, we are structured into three divisions – DSV Air & Sea, DSV Road and DSV Solutions. Having three divisions allows for greater specialisation, flexibility, and customer focus. In my role as VP Global accounts, my team manages our top pharma customers for all the DSV divisions. We act as single point of contact for our customers for all DSV divisions. DSV is a a one stop solution for all their logistics and supply chain needs.

      We provide and manage supply chain solutions for thousands of companies every day – from the small family run business to the large global corporation. Our reach is global, yet our presence is local and close to our customers. We have 75,000 employees in more than 80 countries who work passionately to deliver great customer experiences and high-quality services. 

      2. Given the global disruption faced over the past few years, what state is the pharmaceutical supply chain in today?  

      The distribution of Covid vaccines taught us that nothing is impossible. As long as you have the right people and flexible infrastructure processes in place, of course. 

      Now pharma companies design their supply chains with a focus on building more resilient, agile, and transparent systems. Companies are prioritising the diversification of suppliers and localised manufacturing to mitigate risks. 

      3. What are the biggest lessons supply chains have learnt over the past few years?

       Just in time is possible only if you have agile, resilient supply chains as there is always some disruptions you never expect. Despite all risk mitigation there can always be disruption and one need to be prepared for the unexpected.

      I see the industry is rapidly adopting digital tools like AI, blockchain, and IoT. These tools are providing better visibility, real-time monitoring, and predictive analytics. 

      They are helping companies optimise inventory management, traceability, and compliance with regulations. As a result, they’re building more resilient supply chains with fewer disruptions. 

      4. Amid government legislation and changing customer demands, is a sustainable supply chain a non-negotiable in today’s world? 

      Yes, as there is also pressure from consumers and companies are under pressure to make the pharmaceutical supply chain more sustainable, and companies are exploring eco-friendly packaging, reducing waste, and lowering carbon emissions throughout supply chains. 

      5. In what ways have you incorporated sustainability into operations? 

      As one of the world’s largest transport and logistics providers, DSV has a strong focus on ensuring responsible and sustainable business practices everywhere we operate. We have procured Sustainable Aviation fuel, Electric vehicles for pick ups and final mile delivery. And, we are also investing in sustainable warehouses.

      Recognizing our role in the industry, we are firmly committed to playing an important role in enabling the change that is necessary to reach net-zero emissions in our industry as well as in our business. To deliver on this responsibility, we have committed to reaching net-zero emissions across our operations by 2050. 

      • Risk & Resilience

      As part of our ASCM CONNECT coverage, we speak to Velosio Consulting Manager Amir Hemani about helping the supply chain sector embrace digitalisation.

      This year at ASCM CONNECT, we caught up with some of the supply chain sector’s leading executives to learn more about them, their analysis of the trends shaping the industry, and how their organisations are responding to the challenges ahead. Amir Hemani is a Consulting Manager in Velosio with 15+ years of experience in business applications. Velosio specialises in Microsoft cloud ERP and CRM solutions, as well as productivity and analytics tools like Microsoft 365, Power Apps, Power Automate, Power BI, and Power Virtual Agents. Velosio comprises more than 400 members and supports over 4,000 clients in their digital transformation initiatives.

      What are your biggest takeaways from this year’s ASCM CONNECT and how they relate to the broader supply chain landscape?

      The focus on digital transformation and sustainability, as well as the practical case studies on how companies are leveraging AI and latest trends to solve complex supply chain problems.

      The supply chain space is in a state of transformation, adapting to new disruptions and leveraging technology to build resilience. Flexibility and innovation are now core to modern supply chains. Supply chains have learned the importance of flexibility, resilience, and digital adoption. Companies that invested in these areas were better prepared for black swan events, and modern supply chains are now more agile and capable of handling future disruptions.

      Sustainability is also increasingly non-negotiable. Companies face pressures from both regulators and consumers to adopt sustainable practices, and ignoring this can lead to reputational damage and regulatory penalties.

      Where are generative AI and data analytics having the biggest impact in the supply chain? 

      Generative AI helps in demand forecasting, procurement optimization, and risk management. It enables faster decision-making by analysing vast data sets in real time, something that was far more manual just a few years ago.

      Of course, data security and trust in AI-generated outcomes are common concerns. Companies need to choose platforms that prioritise data governance and transparency to address these issues. Many companies have siloed and unstructured data, making it hard to gain actionable insights. Generative AI and knowledge graphs can organise and structure this data, providing a more holistic view of the supply chain.

      How do you approach change management and get people on board with innovation?

      Effective change management and continuous training are key. Involving employees early in the transformation process and demonstrating how technology can improve their work leads to better adoption.

      Promoting the dynamic and tech-driven nature of modern supply chains is crucial. Offering mentorship, flexible career paths, and emphasising the impact supply chains have on global issues will attract younger talent.

      What strategies can be implemented to support the supply chain sector going forward?

      Embracing advanced technologies like AI, and IoT, while also promoting collaboration across the supply chain ecosystem, will drive the next wave of innovation and efficiency.

      • AI in Supply Chain
      • Sustainability

      As part of our LogiPharma coverage, we speak to pharma supply chain expert Sankalp Raviprolu of ZS about the industry’s most pressing challenges.

      At this year’s LogiPharma 2024 event, we caught up with some of the pharmaceutical supply chain sector’s leading executives to learn more about them, their analysis of the trends shaping the industry, and how their organisations are responding to the challenges ahead. 

      Sankalp Raviprolu is an experienced supply chain advisor who works closely with clients to drive operational excellence, build differentiated digital capabilities, and enhance supply chain strategies across manufacturers, wholesale distributors, and retailers. At this year’s event, we spoke to him about the pain points facing the industry and how he leverages his expertise in technology, advanced data science, and AI to achieve his goals.

      ZS is a management consulting and technology firm that partners with companies to improve life and how we live it. ZS’s supply chain and manufacturing team has deep domain and industry expertise. They help their clients optimise planning and operations, design agile and resilient supply chains, achieve supply chain visibility and digitise manufacturing using data, analytics and technology.

      Inside LogiPharma 2024

      1. What is the value of events like LogiPharma 2024? How important is this conference in the supply chain pharma calendar?

      Events like LogiPharma provide industry practitioners, academics, and thought leaders a forum to collaborate, share perspectives, and learn best practices in a dynamic setting. 

      These events create a unique opportunity for logistics solution providers, technology partners, and product companies to demonstrate their latest innovations to a relevant and engaged audience within the pharma logistics industry. The opportunity to network and form partnerships is invaluable in solving some of the industry’s biggest challenges.

      2. What are the biggest takeaways from this year’s LogiPharma for you?

      The pharmaceutical logistics industry is evolving rapidly. If there was ever a time to embrace data, technology, and strategic partnerships, it’s now. We’re seeing a meteoric rise of new modalities such as cell and gene therapies and radiopharma therapies. In this new context, supply chain operations must become even more adept and agile. 

      End-to-end visibility solutions are moving from descriptive and predictive models towards prescriptive and autonomous supply chain solutions. Track-and-trace devices, temperature monitoring sensors, advanced data platforms, and robust partner ecosystem—including 3PLs and logistic providers—are pivotal in achieving supply chain excellence from raw material at source to the point of care for the patient. Carbon emission tracking, network orchestration, and n-tier supplier visibility are no longer “nice-to-haves” but essential elements in identifying and addressing the weakest links in supply chains before they become larger disruptions.

      The global supply chain

      3. How would you sum up where the pharma supply chain space finds itself today? 

      The pharmaceutical supply chain has experienced significant challenges in recent years including supply shortages, volatile demand, and geopolitical shifts. The industry now faces a more complex landscape with an increasing number of modalities across biologics, small molecules, and advanced therapies lined up. To navigate this environment, supply chains must ensure that the right product is delivered at the right time, at the right quality, and to the right patient—every single time.

      The Drug Supply Chain Security Act (DSCSA) is a major milestone in establishing traceability and accountability within the pharma value chain, enhancing transparency across various parties involved.

      4. What do you feel are the biggest lessons supply chains have learnt over the past few years and how well equipped is the modern-day supply chain now to deal with ‘black swan’ events like the ones we’ve seen recently?

      The key lesson is that there is no one-size-fits-all approach to supply chain management. Each supply chain is unique and the metrics we use to measure, monitor, and react must evolve with patient needs and product complexities. Organisations must prioritise flexibility and resilience, recognizing that the frameworks they use today may need to be rapidly adapted tomorrow.

      During the pandemic, for example, companies that had already invested in advanced scenario planning and predictive analytics capabilities were able to adjust more quickly to sudden changes in demand and supply chain disruptions compared to those that relied on traditional models.

      Sustainability in the pharma supply chain 

      5. Sustainability is an important item on most Chief Supply Chain Officers’ agenda. Amid government legislation and changing customer demands, is a sustainable supply chain a non-negotiable in today’s world?

      Sustainability is no longer just a corporate initiative; it is a non-negotiable requirement for Chief Supply Chain Officers (CSCOs). Sustainability is intertwined with every decision made throughout the supply chain, from sourcing raw materials to carriers delivering products to patients. Governments and consumers are increasing pressure on companies to demonstrate sustainable practices and failing to do so not only risks reputational damage, but can also impact compliance and operational efficiency.

      Driving digital transformation

      6. How are you navigating the world of generative AI?

      Generative AI is revolutionising logistics and supply chain operations by transforming how we interact with data and how we work every day. 

      It enables faster decision-making through synthesising vast sets of data both structured and unstructured, thus allowing companies to anticipate disruptions and optimise their supply chains in near real-time. AI can also facilitate personalised supply chain strategies, adapting to the unique needs of different therapeutic areas and modalities.

      For instance, supplt chain managers are using AI-driven models to optimise cold chain logistics for temperature-sensitive therapies. This ensures the integrity of products from the point of manufacturing to the patient point of care.

      7. What should CSCOs consider before starting the gen AI journey?

      The first step for CSCOs is to identify and prioritise specific business cases that can benefit from generative AI. 

      There is a lot of hype surrounding AI. However, organisations should adopt a structured, value-driven approach to separate reality from the hype. Experimenting with pilot projects, learning quickly from failures, and scaling successful initiatives is the best way to ensure AI adoption yields measurable outcomes. It’s essential to focus on the problem AI is solving rather than implementing technology for technology’s sake.

      8. What are the biggest challenges or hesitations you’re seeing companies have around AI? What should organisations look for in technology to hedge against these concerns?

      One of the biggest challenges companies face when adopting AI is trust in the data. AI models are only as good as the data designers use to train them. As a result, many organisations struggle with fragmented, incomplete, or inaccurate data. 

      Additionally, concerns about the ethical use of AI and transparency in decision-making are common. To overcome these challenges, companies should invest in robust data governance frameworks and ensure that AI tools are designed to be explainable and accountable. Finally, AI adoption in the context of pharma and controlled environments also comes with some nuances. These require careful consideration and navigation in GxP environments.

      The future of the pharma supply chain

      9. How exciting a future does the pharmaceutical supply chain have? 

      There is no better time than now to be involved in the pharmaceutical supply chain. With years of digitization across core capabilities and transactional systems, organisations are now poised to leverage their digital assets (data) to turbocharge their supply chains to build agility, anti-fragility and resilience. 

      By embracing predictive insights and data-driven decision intelligence platforms, supply chains can become a true competitive advantage. They can enable faster, more efficient operations that deliver value to patients and the business alike.

      • AI in Supply Chain

      Sophie Tuson, Senior Associate at RPC, examines the EU’s new deforestation regulations and their effect on global supply chains.

      As sustainability and environmental responsibility take centre stage, regulations like the EU’s Deforestation Regulation (EUDR) are poised to reshape how businesses manage their supply chains. 

      From December 30, 2024, companies importing, exporting, or selling certain “forest-risk” products within the EU will need to comply with stringent requirements. This will involve organisations ensuring their products are “deforestation-free” or face significant penalties.

      What is the EUDR?

      The EUDR aims to reduce global deforestation by making companies accountable for tracing the origins of “forest-risk” products. These are products that originate from land where there is a risk of deforestation. Examples include cocoa, coffee, rubber, cattle, and wood. Under the EUDR, businesses can only sell these products in the EU if they are prove they are deforestation-free.

      Why does it matter?

      The scope of the EUDR is broad, covering a wide array of goods. These range from foodstuffs like cocoa and beef to everyday consumer products like wooden furniture. To comply, businesses will need to demonstrate that any land used to produce these products has not been converted from forest to agricultural use since December 31, 2020. Not only that, but they must prove that all production is in line with local laws.

      Ensuring supply chains meet these standards will require a high level of transparency. 

      Comprehensive supply chain due diligence is necessary to ensure that businesses can verify their products’ origins. Companies will need to provide geolocation data, identifying where their suppliers produced the commodities. If a batch of goods is found to contain products from deforested land after the cut-off date, the entire batch could be deemed non-compliant.

      The challenges ahead

      Implementing these changes poses significant challenges, particularly for businesses with complex or global supply chains. Tracing every plot of land linked to a product’s origin requires detailed information that may not always be readily available. There have been calls for the European Commission to delay the EUDR over concerns about readiness. Nevertheless, the regulation will take effect as scheduled.

      The consequences for non-compliance are steep. Businesses may face fines of at least 4% of their total annual EU-wide turnover, as well as confiscation of non-compliant products or revenue from their sale.

      What can organisations do now?

      To prepare, businesses should begin assessing their current due diligence systems and mapping their supply chains to identify in-scope products and suppliers. Companies can use traceability software, digital tools like Geographic Information Systems (GIS), and satellite data to track the location of producing plots and assess the risk of deforestation.

      1. Audit your systems: Conduct a thorough review of your existing due diligence processes. Ensure that supplier questionnaires, internal checklists, and risk assessments are updated to reflect the requirements of the EUDR.
      1. Map your supply chain: Work with procurement and legal teams to trace products through every level of the supply chain. Identify potential risks, focusing on regions and suppliers associated with deforestation.
      1. Collect geolocation data: Businesses must gather geolocation coordinates for all plots of land involved in the production of relevant commodities. Leverage digital tools and existing databases, such as Global Forest Watch, to obtain the necessary data.
      1. Start now: Although the EUDR doesn’t take effect until December 2024, it applies to products being produced today. Businesses, particularly those with long production cycles, should begin gathering the necessary documentation to prove compliance.
      1. Monitor EU guidance: The European Commission continues to provide updates on the EUDR, including a newly launched observatory on deforestation. Keep track of evolving guidance to ensure your business stays ahead of any changes.

      Looking ahead

      A 2024 report from the Carbon Disclosure Project found that only 30% of companies surveyed had achieved 100% deforestation-free sourcing in their supply chains. With the EUDR fast approaching, the pressure to adopt sustainable practices is mounting. 

      Businesses that act now to improve supply chain transparency and traceability will be better positioned to meet these new regulatory demands.

      • Collaboration & Optimization
      • Sustainability

      We catch up with Anna Tinnin, Director of Strategic Accounts at GeakMinds, to get her take on the supply chain sector’s use of technology to circumvent disruption.

      From extreme weather events to political tensions, the world is becoming an increasingly unpredictable place. For supply chain teams, finding ways to combat the uncertainties of the modern supply chain is critical. Geakminds is a business consulting firm that focuses on using advanced analytics to help businesses make data driven decisions.

      Recently, we caught up with their Director of Strategic Accounts, Anna Tinnin, to get her take on the challenges and opportunities facing the supply chain space, as well as how a data driven approach can help supply chain managers unlock the resilience and agility they need

      1. How well suited is the modern day supply chain to deal with ‘black swan’ events like the ones we’ve seen recently?

      In recent years, supply chains have learned to prioritise resilience over efficiency by diversifying suppliers and increasing inventory. 

      There’s been a strong shift towards real time visibility using technologies like IoT and blockchain to better respond to disruptions. Accelerated digital transformation, including AI and automation, has become crucial for enhancing agility and predictive capabilities. 

      Companies are now more mindful of geopolitical and environmental risks when selecting suppliers and recognise the importance of strong collaboration with suppliers for effective crisis management. 

      While modern supply chains are better equipped with improved risk management, technology, and contingency plans, they still face vulnerabilities due to their complexity, making ongoing investment in resilience and flexibility essential to prepare for future ‘black swan’ events.

      2. What types of supply chain and procurement decisions are now possible, or much easier to make, with the rise of AI and LLMs? And how quickly are things changing? 

      Generative and conversational AI are revolutionising supply chains by enhancing demand forecasting, inventory management, supplier risk assessment, procurement optimisation, logistics, and communication. 

      AI driven models now provide more accurate demand forecasts by analysing vast amounts of data, including unstructured sources like news and social media, allowing companies to optimise inventory levels. Supplier risk management has become more proactive, with AI enabling real time risk monitoring by analysing diverse data sources. In procurement, AI automates and optimises processes by analysing purchasing data, market prices, and supplier performance, making strategic sourcing decisions faster and more accurate. 

      Logistics and route optimization have also improved, with AI algorithms dynamically adjusting routes based on real time conditions, significantly boosting efficiency. Conversational AI, such as chatbots, streamlines supplier and customer interactions, handling complex queries and reducing the need for human intervention. 

      Compared to a few years ago, AI and large language models have transformed supply chain and procurement decisions, making them faster, more data driven, and predictive, leading to more resilient and responsive supply chains.

      3. What are the biggest challenges you’re seeing companies have around AI? What should organisations look for in technology to hedge against these concerns?

      Companies face several challenges with AI adoption, including issues with data quality, lack of expertise, ethical concerns, cost and ROI uncertainty, integration difficulties, and security risks. Poor data management can hinder AI effectiveness, so investing in systems that ensure clean, integrated data is crucial. 

      The need for specialised skills is also a barrier, making user friendly AI platforms and expert partnerships valuable. Ethical concerns, such as bias and transparency, require companies to prioritise AI solutions with bias detection and ethical practices. High costs and unclear ROI cause hesitation, so starting with small, measurable projects and choosing solutions that are easier to scale is a better way to go about the process. Integration with legacy systems can be challenging, so opting for AI technologies that are compatible and easy to integrate is essential. 

      Finally, AI raises data security and privacy concerns, making it important to select tools with robust security features and regulatory compliance. By focusing on flexibility, ethical AI practices, ease of use, and security, companies can adopt AI more confidently and effectively.

      4. People are a business’ greatest asset but can also be a hurdle to overcome when it comes to innovation. How do you manage change and create buy in when approaching innovation?

      Getting employees on board with innovation requires a strategic approach. Start by clearly communicating the vision behind the change, explaining not just what is changing but why it’s important for the company’s future and how it benefits them personally. 

      Involve employees early in the process to build ownership and reduce resistance, and provide the right training and support to help them feel confident with new skills. Address concerns transparently to build trust, and highlight quick wins to demonstrate the benefits of innovation. Fostering a culture of innovation, recognising and rewarding innovative behaviour, and leveraging key influencers within the organisation can further support the change effort. 

      Ongoing communication and feedback, combined with empathy and patience, help ease the transition, while linking the change to personal and professional growth opportunities ensures that employees see the value in embracing innovation.

      5. How can the supply chain industry take that next step and what strategies can be put into place to push the industry forward even further?

      To advance the supply chain industry, companies need to embrace several key strategies. Adopting advanced technologies such as AI, machine learning, blockchain, and IoT can significantly enhance visibility, efficiency, and decision making. Leveraging big data and analytics allows for deeper insights into operations and predictive analytics.

      Focusing on sustainability by implementing environmentally responsible practices and optimising resource use is crucial for meeting regulatory requirements and reducing impact. Improving collaboration with suppliers and partners through shared platforms and real time communication can lead to more synchronised supply chains. 

      Utilising digital twins for real time monitoring and scenario simulation can optimise operations without disrupting the actual supply chain. Investing in workforce development ensures employees can effectively use new technologies, while robust cybersecurity measures protect data and systems from threats. Integrating automation technologies like robotics and automated storage systems enhances efficiency and reduces errors. 

      Adopting agile practices enables greater flexibility and responsiveness to changes, and staying informed about emerging trends such as 3D printing, autonomous vehicles, and drone delivery can offer new opportunities for transformation. By implementing these strategies, the supply chain industry can achieve greater efficiency, resilience, and sustainability, positioning itself to better navigate future challenges and opportunities.

      • AI in Supply Chain
      • Risk & Resilience

      Mauro Cozzi, Co-Founder of Emitwise, explores the labyrinthine world of environmental compliance regulation.

      The rapid expansion of environmental legislation worldwide is creating a maze of compliance challenges for organisations with complex supply chains. 

      Regulations aimed at reducing carbon emissions, enhancing transparency, and promoting sustainable practices are becoming more stringent. Increasingly, businesses are finding it difficult to keep up. However, the absence of a unified approach to sustainability across supply chains has led to widespread confusion and inefficiencies. This often results in missed opportunities for genuine environmental impact. 

      To navigate this evolving regulatory landscape and future-proof their operations, organisations must adopt best practices for compliance. Also, they must do this while fostering greater collaboration among fellow industry players.

      The Challenge of Disparate Sustainability Efforts in Complex Supply Chains

      For organisations with complex supply chains, the lack of coherence in sustainability initiatives is a significant hurdle. Diverse standards, certifications, and reporting requirements across regions and industries create a fragmented landscape that complicates compliance efforts. When suppliers adopt varying approaches to environmental management, the resulting inconsistency increases the risk of non-compliance. Not only that, but it also erodes the overall effectiveness of sustainability initiatives.

      In complex supply chains, the actions—or inactions—of a few suppliers can impact the entire operation. For instance, a supplier’s failure to meet environmental standards can damage the reputation of the entire supply chain. This failure affects all associated brands and organisations throughout the chain. Such a ripple effect can be especially detrimental in industries where transparency and sustainability are becoming key differentiators in the eyes of regulators, investors, and consumers.

      Moreover, the lack of a unified approach often leads to operational inefficiencies. Organisations may find themselves juggling multiple audits, overlapping certifications, and disparate reporting formats, all of which can drain resources and increase costs. This fragmentation not only takes away from the broader goal of achieving substantial environmental improvements but also poses significant challenges for organisations striving to maintain their competitive edge while meeting regulatory requirements.

      Best Practices for Ensuring Compliance and Future-Proofing Complex Supply Chains

      To effectively manage the surge in environmental legislation, organisations with complex supply chains need to unify their sustainability strategies. This involves streamlining compliance processes, leveraging technology for better data management, and fostering stronger collaboration across all tiers of the supply chain. Here are key practices to consider:

      Standardise Across the Supply Chain

      Organisations should advocate for and adopt industry-wide standards that streamline compliance across their supply chains. By aligning on common metrics and reporting protocols, companies can reduce the complexity of managing multiple, sometimes conflicting, requirements. This not only simplifies compliance but also enhances visibility and accountability throughout the supply chain, making it easier to identify and address environmental risks.

      Build Vertical Coalitions

      One of the most effective ways to unify sustainability efforts is by forming vertical coalitions—collaborative partnerships that span the entire supply chain, from raw material suppliers to end product manufacturers. By working together, organisations can share data, resources, and best practices, creating a cohesive strategy that addresses the environmental impact at every stage of the supply chain. Vertical coalitions also enable organisations to present a unified front when engaging with regulators, helping to shape realistic and effective environmental policies.

      Leverage Advanced Data Management Tools

      Complex supply chains require advanced technological solutions to manage their environmental impact effectively. Data analytics platforms and AI-driven tools can provide organisations with the ability to gather accurate, real time data from across their supply chains, enhancing the precision of emissions reporting and compliance tracking. By focusing on primary data sourced directly from suppliers, organisations can gain a more accurate picture of their carbon footprint, enabling more targeted and effective decarbonisation efforts.

      Prioritise Continuous Improvement and Adaptation

      Environmental regulations are constantly evolving, and organisations must be prepared to adapt. This requires a commitment to continuous learning and improvement. That includes staying up to date with the latest legislative changes. It also means investing in the skills and technologies needed to meet new challenges. By fostering a culture of adaptability and resilience, organisations not only maintain compliance but also position themselves as sustainability leaders.

      The Imperative for Unified Environmental Action in Complex Supply Chains

      As the pressure to meet sustainability targets intensifies, the repercussions of fragmented efforts within complex supply chains will become increasingly apparent. Organisations that take a unified approach—characterised by standardisation, collaboration, and strategic use of technology—will be better equipped to navigate the changing regulatory environment and guard their operations against future disruptions.

      Sustainability is not just about compliance; it is about creating long-term value and resilience in a rapidly changing world. For organisations with complex supply chains, achieving this requires more than individual efforts—it demands collective action. 

      By working together and adopting a cohesive approach to sustainability, organisations can drive meaningful change, mitigate risks, and ensure a more sustainable future for all stakeholders involved.

      • Collaboration & Optimization
      • Sustainability

      Geodis’ SVP of Vertical Market Healthcare, David Frouin, talks disruption, resilience, and better sourcing procedures in the supply chain.

      This year at LogiPharma 2024 we caught up with some of the pharmaceutical supply chain sector’s leading executives. We asked them for their analysis of trends shaping the industry, and how their organisations are responding to new challenges. 

      We spoke with David Frouin, Senior Vice President of Vertical Market Healthcare at Geodis. Here he is discussing his takeaways from this year’s event, mitigating supply chain disruptions, and the need to improve sourcing. 

      1. Given the global disruption over the past few years, where does the pharmaceutical supply chain space find itself today?

      Today, the pharmaceutical supply chain is in a state of transformation. This is largely driven by the need for increased resilience in response to recent global disruptions such as the COVID-19 pandemic, geopolitical conflicts and economic pressures. 

      The fragmentation of pharma manufacturing across various regions has highlighted the importance of building a robust supply chain capable of withstanding crises. For instance, the industry is seeking to mitigate risk of supply shortages during unforeseen events by moving away from single source models and embracing dual sourcing strategies. 

      Companies have also focused on developing sourcing continuity plans to ensure a more agile response to future disruptions. These measures are crucial for maintaining the flow of essential medications and healthcare supplies.  

      2. What do you feel are the biggest lessons supply chains have learned over the past few years?

      One of the biggest lessons supply chains have learned in recent years is the critical need to improve sourcing processes. Recent global disruptions have highlighted the vulnerabilities in relying too heavily on single sources. As a result, they’re driven a shift toward diversifying suppliers to increase resilience. These events have also raised public awareness of the essential role supply chains play in ensuring the availability of goods. This has emphasised the need for greater flexibility and agility in operations.

      Modern-day supply chains are now better equipped to handle “black swan” events, with many businesses implementing strategies like dual sourcing, enhancing digitalisation and strengthening risk management frameworks. While challenges certainly remain, the industry has made significant strides in becoming more adaptable and responsive to crises and is positioned to manage future disruptions more effectively.

      3. Amid government legislation and changing customer demands, is a sustainable supply chain a non-negotiable in today’s world?

      The topic of sustainability is certainly more prevalent than it’s ever been in the mind of consumers. However, the way that is reflected at the organisational level still varies quite drastically. What is a non-negotiable today is ensuring product integrity throughout the supply chain, which is perhaps most critical with pharmaceuticals. For medicines, maintaining temperature control is essential, making the supply chain highly energy intensive. Traditionally, pharma companies have relied primarily on air transport. 

      However, with corporate social responsibility coming to the forefront, we’re seeing a shift toward a balance of air and ocean freight in the overall transportation strategy. The key to more sustainable operations also lies in efficiency and optimisation. 

      For instance, reducing excess packaging and maximising cargo loads can significantly reduce the industry’s environmental footprint. By leveraging forecasting and identification tools, more informed decisions can be made to minimise the impact on the planet.

      4. What are the biggest challenges or hesitations you’re seeing companies have around AI and how do we overcome them? 

      One of the biggest hesitations companies have with AI is the risk of inadvertently disclosing sensitive information, both from within the company and from customers. Protecting customer data, which can be highly confidential, is a major concern and something that all organisations, not just those in the supply chain industry, are grappling with as they explore the role they want AI to have in their business.

      To address these concerns, companies should implement clear guidelines and provide proper training to their teams, ensuring AI is used securely and responsibly. Organisations should look for technology solutions that emphasise strong data protection measures and offer transparency in how AI processes and stores information. This way, businesses can confidently leverage AI while safeguarding all sensitive data.

      5. What is the value in events like LogiPharma 2024? How important is this conference in the supply chain pharma calendar?

      LogiPharma is a critical event in the supply chain pharma calendar, offering a unique opportunity to meet with customers and strengthen brand presence in the U.S. market. With the event held in Boston, a pharmaceutical industry hub, it’s ideal for engaging with key U.S. stakeholders on behalf of our global clients. 

      It allows us to connect directly with decision makers in the industry. It helps ensure we remain aligned on the latest developments in the US market and our customers’ needs. Given its significance, LogiPharma has become a non-negotiable event for Geodis to attend. This is particularly true as we continue to expand our presence in the US market.

      6. What are your biggest lessons you’re taking away from this year’s LogiPharma?

      My biggest takeaways from this year’s LogiPharma centre around how to prepare for future supply chain disruptions and ways to better manage unforeseen events, which seems to be more and more prevalent in our industry. 

      The content explored strategies for building more resilient and adaptable supply chains, which is critical in today’s volatile landscape. There was also a strong focus on addressing sustainability challenges. That resonated with me. It’s becoming an increasingly pressing issue as we work toward becoming better stewards of the environment industry wide.

      • Risk & Resilience
      • Sourcing & Procurement

      James Fisher, Chief Strategy Officer at Qlik, explores the potential for AI to help mitigate disruptions caused by the climate crisis.

      Consumers today expect online deliveries to arrive in two days or less – especially when buying from suppliers like Amazon. In fact, research this year found that 80% of organisations reported higher customer satisfaction levels, and 70% experienced higher sales, when able to offer same-day delivery. But climate disasters and severe weather conditions, which are unfortunately becoming increasingly prevalent as we battle with climate change, pose a significant challenge for shipping and logistics companies to meet customer expectations. 

      Drought conditions in the Panama Canal have disrupted shipping, snowstorms have closed roads, and heatwaves and hurricanes have also made guaranteed fast deliveries harder. Overall, experts predict that weather related supply chain disruptions will cost the shipping industry $100 billion in 2024.

      While we can’t put an immediate stop to severe weather conditions, we can take steps to help minimise disruption and support the shipping and logistics industry to keep customers happy and business profitable. It all comes down to predictive analytics and automation.

      Traditional ML models can’t handle today’s climate impact 

      Traditional machine learning models learn from existing data, and map potential outcomes based on this information. But when it comes to the type of climate impacts we are facing today, we cannot just rely on replicating previous scenarios. Past data doesn’t accommodate for all the new possibilities that could, and are more likely, to happen in the future. 

      Temperatures are changing, and ‘freak’ weather events are happening more than ever before. The Covid-19 pandemic offers a good parallel to this. Its impact on the modern world was unlike any health crisis previously. Therefore, using past information was not useful to map its potential trajectory to determine how to react.

      When facing net-new challenges, we can’t look backwards. 

      The role of real-time data and automation

      To navigate new or unexpected challenges, like emerging climate disasters, we need other ways to remain operational and meet customer needs. This is where real-time data and generative AI becomes vital.

      With access to real-time data, like emerging weather or traffic conditions, logistics, shipping and retail businesses can build more resilient operations. 

      If you can apply AI to model and predict how a scenario may play out based on information that is correct up to the minute, you can make well-informed decisions that reflect the exact scenario you face. This could be changing delivery routes, shipping products from a different warehouse in an unaffected area, or even just having information early enough to let customers know ahead of time that their delivery will be delayed. Combine that with automation and AI powered agents and we can give customers warning about possible delays and offer alternatives, all can help to improve their overall experience.. 

      Putting predictive analytics into practice 

      One example of how AI and predictive analytics is helping to manage supply chains and minimise disruption is Penske, the company which operates and maintains more than 422,000 logistics vehicles across the USA and Canada.

      Penske worked with Qlik to develop Fleet Portal. Fleet Portal provides information and analytics related to a vehicle’s operation, as well as how it is used and maintained in near-real time. The company is also implementing AI to reduce repair time for vehicles, and in some cases, predict maintenance events before they become a problem, helping to reduce any potential delays or disruptions from broken down vehicles.

      It’s clear to see how this type of sophisticated real-time data insight can help react to everything from adverse weather conditions to real climate crises like wildfires or hurricanes. 

      Unfortunately, today we face many climate challenges and severe weather conditions. There is a lot of pressure on logistics and shipping companies to meet customer expectations and drive business success, even in the face of these obstacles. 

      Understanding and harnessing data in the correct way means businesses will be better equipped to predict the potential impact of climate events in as near to real-time as possible, thus mitigating business disruption and, critically, keeping loyal and new customers happy. 

      • AI in Supply Chain
      • Sustainability

      As part of our ASCM CONNECT coverage, we speak to Nulogy CEO Jason Tham about overcoming the industry’s most pressing challenges.

      This year at ASCM CONNECT, we caught up with some of the supply chain sector’s leading executives to learn more about them, their analysis of the trends shaping the industry, and how their organisations are responding to the challenges ahead. 

      Jason Tham is the co-founder and CEO of Nulogy. Nulogy focuses on using its purpose-built platform to power multi-enterprise collaboration networks that enable real-time data visibility and seamless communication for external supply chain partners, including FMCG brands and the contract packagers and manufacturers that support them.

      We spoke to Jason about the need for supply chain resilience and the importance of creating visibility when managing modern supply chains.  

      1. Given the backdrop of the global disruption over the past few years (COVID, war, inflation, etc.), how would you sum up where the supply chain space finds itself today? 

      Supply chains have been stumbling over the last few years amid global disruptions like the pandemic, geopolitical conflicts, and rising inflation, because I think companies have gained enough footing to start thinking proactively instead of reactively. The real opportunity now lies in building operations that aren’t just resilient, but also agile enough to anticipate changes before they happen.

      This proactive approach is essential if we’re to handle the uncertainties of the future. It’s not about waiting for the next disruption, but about creating supply chains that can adapt in real time and thrive amid challenges.

      2. What do you feel are the biggest lessons supply chains have learned over the past few years and how well equipped is the modern day supply chain now to deal with ‘black swan’ events like the ones we’ve seen recently?

      The past few years have shown that the strength of modern supply chains doesn’t lie in individual organisations but in the synchronisation of the entire network. One of the biggest lessons we’ve learned is the critical importance of visibility and real-time data sharing across supply chain partners. 

      Without this, the risks of delays and miscommunication increase significantly, leading to cascading failures—the domino effect—and amplifying the bullwhip phenomenon, where small fluctuations in demand can create large disruptions across the supply chain.

      Supply chains are now better equipped with technology that enables real-time visibility, predictive analytics, and collaborative platforms to tackle these issues more proactively. 

      However, the key takeaway is that success depends on the ability for organisations to incorporate and leverage these multi-enterprise technologies to work better together. It’s no longer about one company or one part of the chain succeeding in isolation; resilience is achieved when the entire network is synchronised, agile, and able to respond collectively to disruptions.

      3. Amid government legislation and changing customer demands, is a sustainable supply a non-negotiable in today’s world?

      Sustainability is indeed becoming a non-negotiable for supply chains in today’s world, driven by both regulatory pressures and evolving customer expectations. Governments across the globe are enacting stricter environmental regulations, such as the EU’s Green Deal and various carbon reduction initiatives, while consumers are increasingly choosing brands that prioritise sustainability. 

      This shift means that Chief Supply Chain Officers (CSCOs) must embed sustainability into every aspect of their operations, from sourcing to production and distribution.

      Nulogy is well-positioned to support companies in achieving these sustainability goals. By offering real-time data visibility and collaboration tools, Nulogy helps businesses reduce operational waste, optimise resource use, and improve efficiency—key components of a more sustainable supply chain.

      Additionally, Nulogy’s platform ensures that companies can comply with evolving environmental regulations by providing transparency across their extended supply chains. This not only helps reduce carbon footprints but also fosters more sustainable and ethical sourcing practices.

      4. What are the biggest challenges or hesitations you’re seeing companies have around AI? What should organisations look for in technology to hedge against these concerns?

      From a supply chain perspective, some of the biggest challenges companies face around AI often stem from managing complex supply chains involving multiple parties. 

      Minimising waste is crucial to improving quality, reducing costs, and ensuring timely and complete fulfilment. However, achieving this requires seamless synchronisation and virtual vertical integration across manufacturing, warehousing, and other nodes in the supply chain.

      Since supply chains typically consist of a network of specialised organisations whose inputs and outputs are interdependent, no single ERP system can manage them all, and a multi-enterprise solution becomes essential. Only multi-enterprise collaboration solutions allow for real-time collaboration, orchestration, and synchronisation across diverse entities, and brings together data, enabling all parties to work together in harmony.

      5. People are a company’s greatest asset but can also be a hurdle to overcome when it comes to innovation. How do you get people on board with change?

      Managing the “people challenge” in fast-paced and innovation-driven environments, especially within the world of supply chain, involves building a sense of mutuality and shared goals among all stakeholders. 

      At Nulogy, we connect brands with their upstream suppliers to improve visibility and collaboration. The key is to align teams around shared goals, showing how change benefits everyone. Involving people early, addressing concerns, and providing training help build trust and engagement. When teams see how new technology enhances efficiency and performance for all, they’re more likely to embrace it.

      6. What about the next generation of talent? What is the key to encouraging more people into a career within the supply chain?

      Attracting the next generation of supply chain talent starts with fostering an inclusive environment where people feel their contributions matter. As the recipient of a 2024 ASCM Award of Excellence for Diversity, Equity, and Inclusion (DEI), I believe that diversity is key to driving innovation. 

      At Nulogy, we’ve implemented equitable hiring practices and created programs like our apprenticeship for women and people of colour, which helps make the field more accessible and appealing to younger professionals. By doing this, we ensure the supply chain industry is seen as both essential and inclusive.

      7. What’s the next step for the supply chain sector? What strategies can it implement to push the industry forward even further?

      The supply chain industry can take the next step by adopting tools that capture real-time production data. Our solutions enable customers to track line capture data, including what’s being produced, when, and the bill of materials involved. We provide precise tracking throughout the production line, whether in machine processing or during kitting and co-packing.

      Our shop floor solution is also designed for multi-enterprise collaboration, allowing seamless data sharing between upstream suppliers and downstream customers. This federated approach ensures all parties in the supply chain can access real-time data, improving visibility, collaboration, and efficiency across the network.

      8. Are there any exciting projects that you’re currently working on or any past ones that you’re proud of that you’d like to highlight?

      Yes! There are a lot of exciting things happening at Nulogy. A major milestone for Nulogy this year was our acquisition of Mingo Smart Factory, which allows us to bring additional innovation to our customer base and the broader market. 

      Mingo will further enhance our ability to capture real-time data from the factory floor, such as machine performance and production throughput. These capabilities will enable our customers to make data-driven decisions even faster and take a proactive response to shifting market dynamics.

      • Risk & Resilience

      New supply chain consultancy Kōse Advisory will provide actionable insights to organisations tackling the biggest problems facing the supply chain industry.

      Koray Köse, futurist and expert in geopolitical risk, supply chain technology, and strategic advisory, has announced the launch of Kōse Advisory. Specialising in providing actionable insights, Kōse Advisory focuses on the convergence of people, processes, and technology to create tangible business impact for its clients.

      Kōse Advisory: The Vision 

      Kōse Advisory’s vision, according to its founder, is to inspire and empower technology companies, corporations, and investors to navigate an ever-evolving landscape by helping them strategise for visionary success, prioritise transformative initiatives, and elevate their operations through innovative technology and AI. The organisation has committed to managing the convergence of people, processes, and technology. It will do so with a focus on effectiveness, responsibility, and competitiveness. 

      Sustainability is also central to its founder’s vision for the business. Kōse Advisory’s services also focus on ensuring the organisation’s comittment to a more resilient and responsible future.

      Kōse Advisory will serve a wide range of clients, including:
      • Technology Firms (Startups & Scale-ups). Companies eager to advance in market presence, investor and analyst relations, and efforts to scale.
      • Corporations on a Journey. Enterprises seeking technologies to enhance their value and supply chains while becoming more sustainable and resilient.
      • Venture Capital & Private Equity Firms. Investors exploring their next supply chain technology investment or looking for industry expertise to support their current portfolio through mergers and acquisitions.
      • Events & Conferences: Organisers seeking cutting-edge, research-driven content, engaging public speakers, and dynamic panel discussions.
      • Research Organizations and Consultancies. Firms looking to collaborate on advancing their coverage in AI, advanced technologies, and supply chain risk management.

      “In today’s interconnected world, sustainable supply chains are not just a competitive advantage; they are essential for long-term success. At Kōse Advisory’s, we empower organisations to harness the potential of AI and emerging technologies, transforming challenges into opportunities for growth and resilience,” said Köse. “We are dedicated to providing strategic insights that not only enhance operational effectiveness but also foster a responsible and sustainable future.”

      Kōse Advisory’s mission is to deliver actionable strategies and cutting-edge insights to technology companies, corporations, and investors. Going forward, the company will focus on creating tailored strategic plans. These plans will prioritise key initiatives, and leverage advanced technology and AI to drive operational excellence. “Our research into technology, geopolitics, and economics informs our approach to enhancing global value chains and procurement. We guide clients through every phase of transformation—from strategy development to implementation—while integrating sustainability to achieve lasting benefits for businesses and the environment,” added the company in a press statement. 

      • Digital Supply Chain

      As part of our LogiPharma coverage, Gísli Herjólfsson, CEO and co-founder of Controlant, answers our questions on the future of the pharmaceutical supply chain space.

      From natural disasters and geopolitical conflict to the threat of a future pandemic, the challenges facing global pharmaceutical supply chain operators are daunting. The global supply chain landscape is becoming more unpredictable and prone to disruption. Not only this, but supply chain organisations are, some argue, ill-equipped to tackle these challenges. 

      At this year’s LogiPharma 2024 event, we caught up with some of the pharmaceutical supply chain sector’s leading executives to learn more about them, their analysis of the trends shaping the industry, and how their organisations are responding to the challenges ahead. 

      Gísli Herjólfsson is CEO and co-founder of Controlant, which provides real-time monitoring solutions for pharmaceutical supply chains. 

      1. Would you be able to give me a brief introduction to your role and the company you work for?

      The seed for Controlant was planted when a group of friends were studying together at The University of Iceland, experimenting with wireless technology and real-time data access. We quickly realised that applications of simplification, automation, and real-time monitoring for supply chains for perishable goods added up to a business idea. Founded in 2007, Controlant was based on this idea. 

      The swine-flu epidemic in 2009 changed the course of Controlant permanently. We realised that our technology would have the greatest impact in pharma. By the time the Covid-19 pandemic broke out, Controlant had developed its pharma-validated devices, platform and services and was in collaboration with pharma companies around the world. The global pandemic put the company’s solutions to a test of speed and scale not seen before. The crisis proved the value that real-time visibility brings to pharma supply chains. 

      Today, Controlant is a global leader in the digital transformation of pharma supply chains. Its solutions are trusted by leading pharmaceutical companies and logistics providers to make their supply chains more efficient, reliable, and sustainable. Our vision is to unleash the power of people and technology to deliver zero-waste supply chains for patients, the planet, and our partners.

      Inside LogiPharma 2024

      2. What is the value of events like LogiPharma 2024? How important is this conference in the supply chain pharma calendar?

      Partnerships are incredibly important to us at Controlant. LogiPharma is an important venue for the global pharma community. The event gives us an opportunity to connect with our partners, customers, and industry experts.

      In-person collaboration on supply chain challenges and solutions, and sharing our expertise of real-time visibility for pharma supply chains, for example through our keynote, are important for continuous innovation in the industry. Access to industry subject matter experts, including speakers on critical challenges such as waste reduction, drug delays, sustainability, and regulatory change, helps us deepen our understanding of where the industry is heading and at what pace. These face-to-face interactions strengthen our partnerships with our customers. Not only that, but inspire us as we develop new solutions to advance the industry in a way that benefits patients and the planet.  

      3. Is there anything that makes this event stand out for you? How is it different from others you’ve attended?

      What sets LogiPharma apart is the collaborative environment which encourages the development of forward-thinking strategies, allowing attendees to future-proof their supply chains with robust technologies and visibility platforms. The biggest takeaway from this year’s LogiPharma was the opportunity to engage with colleagues and customers. Through networking with them, we aim to better understand what matters most in today’s supply chain landscape. 

      4. What are the biggest takeaways from this year’s LogiPharma for you?

      It was clear that many pharmaceutical supply chains are still operating with outdated technology. This hinders supply chain visibility, process automation, and optimisation of supply routes. There is a significant opportunity to enhance efficiency, drive digitalization, and improve sustainability efforts across the industry.

      One of the major barriers holding companies back is the reliance on disparate systems, inconsistent data models, and fragmented business units. The discussions at LogiPharma revealed a clear urgency to future-proof supply chains with the best technology available, such as real-time visibility technology, and ensure any solution implemented is sustainable at scale.

      It was inspiring to hear from some of the most forward-thinking companies and brightest people in our space. These people have embraced technology to future-proof their supply chains, addressing the triple bottom line of people, planet, and profit.

      5. Given the backdrop of the global disruption, how would you sum up the pharmaceutical supply chain space today? 

      The Covid-19 pandemic was a great testament to learning by embracing the impossible. Controlant had the privilege of being a part of a collaborative effort defined by unprecedented willingness from an entire ecosystem to embark on a transformational journey. Faced with the task of delivering COVID vaccines in record-breaking time at a global scale, transformation was the only way. By embracing technology and working in a trusted partnership, the outcome was the safe delivery of billions of doses of vaccines shipped to destinations around the world with a 99.99% success rate. 

      The pandemic and other disruptions to global supply chains have only highlighted the impact of real-time visibility on all aspects including patient safety, efficiency, resilience, and sustainability. With impressive growth in drug development and clinical trials – including new, revolutionary treatments on the horizon such as cell-and-gene and personalised medicine – the parameters and challenges placed on pharma supply chains will only grow. Without real-time visibility, pharma supply chains stand to become a bottleneck rather than an enabler for treatments reaching patients worldwide without delay, while safeguarding product quality and minimising environmental footprint. 

      6. What do you feel are the biggest lessons supply chains have learnt over the past few years? Also, how well equipped is the modern day supply chain to deal with ‘black swan’ events?

      The implications of not taking leadership when you see new technology on the horizon is triple negative effect. Delaying hurts patients, planet and profits. 

      Just as the pharma industry is making great strides by applying technology such as AI to drug development, clinical trials, diagnosis, there are vast opportunities in applying technology to the supply chain to reduce waste and ensure patient safety throughout. 

      Major events in recent years have showcased the value of having a single source of truth, data that is accurate, reliable and in real time, and sharing the data with all stakeholders involved in the process of getting the product safely, efficiently and sustainably to its destination. Adopting real-time visibility is a game-changer, especially when dealing with deviations or extreme events.

      Sustainability in the supply chain 

      7. Sustainability is an important item on most Chief Supply Chain Officers’ agenda. Amid government legislation and changing customer demands, is a sustainable supply chain a non-negotiable in today’s world?

      Controlant’s zero-waste vision for pharma supply chains is at the heart of everything we do, whether internally in our operations or in the solutions we develop for our customers. Tackling waste along the pharma supply chain while not making any compromises to patient safety is the key driver in all we do.

      There is no planet B. That makes it even more important that we partner for impact along the value chain for positive impact.  

      Our customers are highly ambitious, not just when it comes to treatments, vaccines and medicines for patients to improve health outcomes and quality of life for as long as possible. They are also very ambitious when it comes to their sustainability impact. Our customers need like-minded partners like Controlant that can support them with measuring and reporting the environmental, social, and governance performance. We are their strategic partner for sustainable supply chains, enabling them to meet their sustainability targets.

      8. In what ways have you incorporated sustainability into your own operations?

      Controlant has a clear vision and demonstrated track record for incorporating sustainability into its operations. Not only that, but we also extend our impact beyond our own operations, to customers, partners, and the wider community. 

      With an estimated 30% of all medicines wasted globally, the greatest impact we have is through our real-time visibility solutions that enable pharma companies and logistics providers to reduce waste along their supply chain. With data at their fingertips, the pharma industry can take proactive steps to reduce waste from lost or discarded medicines and vaccines, and reduce the need for extra manufacturing and transportation of safety stock, thereby lowering emissions, costs, and time required to get medicines and vaccines to where they are needed.

      The Saga logger, our flagship IoT device, is re-usable and enables our customers to reduce emissions by 86% per pharma shipment. At our service centres, we repair, recharge and recalibrate devices for reuse. Our devices are eco-friendly and designed for extended durability. The first life-cycle assessment of a Controlant product was conducted in 2023 for the Saga logger. The assessment revealed that Controlant avoided more than 8,203 tonnes of CO2 equivalent for its customers in 2023, the equivalent of driving more than 30 million kilometres in an average fuel-powered passenger vehicle.

      On our journey toward sustainability leadership, we have reached several significant milestones. In May 2023, Controlant’s science-based target to reduce scope 1 and 2 emissions by 42% by 2030 was validated by the Science Based Targets initiative. This made Controlant one of the first companies among industry peers to have a validated target. We are proud to report that our overall emissions decreased by 68% in 2023, with a 38% reduction in scopes 1 and 2, putting us on track to meet our science-based target. 

      9. And how else are you promoting sustainability?

      Major ESG rating agencies also endorsed our progress and commitments towards sustainability. In 2024 EcoVadis, the world’s most trusted business sustainability rating provider, rated Controlant Silver. That placed us in the top 15% of more than 125,000 companies rated globally from a variety of industries. Controlant’s coordinated action on climate issues was recognized by the Climate Disclosure Project (CDP), the global non-profit that runs the world’s leading environmental disclosure platform, with a B- rating. In addition, we also received a B rating in the CDP Supplier Engagement Rating, which measures the company’s performance on governance, targets, Scope 3 emissions, and value chain engagement. 

      Controlant is a participant of the UN Global Compact, and supports the United Nations Sustainable Development Goals. Community engagement is integral to Controlant and its culture, connecting the company beyond its traditional value chain. 

      By collaborating with local causes and initiatives, we strive to put our weight on the scale when it comes to our social performance and give back to the communities that we are a part of. A flagship of our community engagement is our partnership with UNICEF, launched in 2023, with a focus on child immunisation. As part of the collaboration, the two partners, joined by the Chief Epidemiologist of Iceland, launched an awareness campaign on childhood vaccinations in Iceland in early 2024, spotlighting immunizations as one of the most effective ways to prevent infants and children from falling seriously ill or dying from preventable diseases. Our volunteer day is another way we empower our global team to have a positive impact on the community. It gives every member of our team the opportunity to take one paid day to pursue volunteering activities.

      The future of the pharma supply chain

      10. What’s next for the pharmaceutical supply chain industry?

      Future-proofing the pharmaceutical supply chain requires a forward-thinking approach, built on a foundation of strong partnerships and collaboration. In today’s interconnected world, no single entity can drive meaningful change alone. By working together across the value chain, we can tackle the complex challenges that lie ahead.

      It’s also essential that we embrace technology with confidence. The next evolution of our industry will be powered by real-time data. Accurate, precise, and actionable insights are critical for proactive decision-making. Real-time visibility enables companies to become more proactive and agile. It means they’re not just reacting to disruptions, but anticipating and strategically managing them.

      The digitalization of supply chains is the key to unlocking these insights. By harnessing the power of data, pharmaceutical companies and logistics providers will be better equipped to drive efficiency, reduce waste, and enhance their ability to deliver life-saving therapies to patients worldwide. This is how we move the industry forward—by leading with innovation and a shared commitment to excellence.

      11. Are there any of Controlant’s exciting projects, past or present, that you’d like to highlight?

      Controlant provides a holistic set of solutions for pharma supply chains encompassing IoT devices, the cloud-based Aurora platform, and dedicated services including our 24/7 monitoring and response teams. Our comprehensive solution offering puts us in a unique position to apply our industry expertise and technological leadership to invent new solutions that help pharma and logistics providers future proof their supply chains. 

      Highlights from our product pipeline include Zero-Touch Release, our recently launched Supply Chain Soft Spots, and the Saga Card, now in the pilot phase. 

      Controlant’s GxP-validated “zero-touch” automated release process is leading in automating supply chain processes to improve resilience and reduce the risk of disruption. The zero-touch release application automates the product release process. This simplifies and accelerates release processes while relying on verified data sources to ensure quality standards. Using this platform, pharmaceutical firms can drastically reduce lead times and save on work hours. The zero-touch approach speeds up time to market, improves OTIF performance, reduces expenditure, and minimises carbon footprint. 

      The Supply Chain Soft Spots dashboard addresses inefficiencies in the supply chain. It helps customers identify the lanes and other places along the chain where issues such as temperature deviations occur. Supply Chain Soft Spots is a dashboard with an interactive map-based interface. The solution allows for identifying where critical temperature excursions occur with Points of Interests, such as airports and harbours, automatically mapped through 3rd party data.

      12. How exciting a future does the pharmaceutical supply chain have? 

      For agile pharma companies that are ready to adopt new technologies, the pharmaceutical supply chain has a very exciting future. Pharma companies are leading the way in developing new therapies that can transform patients’ lives by improving health outcomes and quality of life. Controlant’s global team is driven by the goal of ensuring patient safety while reducing waste in the pharma supply chain. 

      We are proud to support our customers in delivering therapies to patients worldwide in a safe, efficient, and waste-free manner. 

      Every day, we work to make a positive impact by cutting waste at every stage, and ensuring patient safety. This ultimately benefits patients by improving health outcomes, increasing access to medicines, and ensuring the safety and effectiveness of treatments.

      • Digital Supply Chain
      • Risk & Resilience

      Cat Brownlie, Partner at global operations transformation consultancy Argon & Co on why periods of transition present a new opportunity for firms to rethink and optimise their supply chain practices.

      Change is an inevitable part of life. Whether moving house, getting married, or having a baby, major life transitions often create their fair share of stress. For organisations, change can be equally as daunting. A new CEO, an acquisition, or even being slapped with an unexpected regulatory fine can create periods of upheaval for firms. But, much like in our personal lives, these situational changes also present an opportunity for transformation and growth.

      There has been a flurry of firms announcing new CEOs in recent months, from Burberry, Schroders, and Starbucks, hoping to bring these firms a ‘fresh start’. With the right approach, what many firms might see as a rocky patch can be a real chance to optimise operations, strengthen workplace culture, enable quicker decision-making and enhance supply chain management – setting them on a path for new beginnings. 

      However, these major operational changes can also come with teething issues as firms look to find their feet. Navigating this transition period successfully starts with having a defined plan in place to avoid any turbulence.

      Starting a new chapter

      When faced with a period of transformation, the mantra “fail to prepare, prepare to fail” rings true for many firms. Undergoing major change, whether planned or unanticipated, can be disorienting, and for firms pushing ahead without a clear, strategic roadmap, even minor hiccups can snowball into larger issues.

      For instance, British luxury brand Burberry has recently announced its new CEO in a surprise change for the company, aiming to steer the company in a new direction. 

      Retailers have battled consistently tough market conditions in recent years, with many consumers reining in their spending, and high inflation impacting retailers’ revenues. However, a new CEO could signal a fresh start for Burberry, as it positions itself ready to embrace change and adapt quickly. 

      For organisations in transitional periods, this opens up a chance to rethink and improve existing processes. Firms should adopt a new mindset to seize this transition as an opportunity to establish a strong, independent corporate identity, liberated from its previous self. 

      Effective leadership and a strong change management approach play pivotal roles during the transition phase, helping to motivate employees and build a distinct corporate culture. Focusing on transparent communication and prioritising people and culture ensures its employees feel valued, engaged, and committed to the success of the firm. 

      Smoothing supply challenges

      These periods of change can also be golden opportunities to reevaluate and potentially reshape the supply chain to be leaner, more sustainable, and better aligned with the organisation’s goals. 

      Companies can invest in technology for improved demand forecasting, optimise distribution routes, form new partnerships, or strengthen relationships with existing core suppliers to drive lasting, positive changes. 

      To make this teething period smoother, conducting a thorough data audit is crucial. This allows firms to identify essential operational information, providing clear insights into the key data needed for traceability and visibility across the entire value chain. 

      By leveraging this data, businesses can create more agile and resilient supply chains. These more agile structures can help businesses both meet current demands and prepare them to tackle future challenges. Prioritising data integrity and accessibility from the outset sets firms in pole position to uphold the highest degree of transparency across their supply chains.

      Transparency is also essential for embedding sustainability into the daily operations of organisations undergoing transformation. 

      New leadership, divestment, acquisition, and other major business changes offer a valuable chance to reassess supply chains and redesign processes to align with sustainable practices and regulatory requirements. Stamping out unethical labour practices or environmental-related risks can be driven by improving traceability and visibility into both tier-one and sub-tier suppliers. This has benefits which extend beyond the organisation’s four walls alone; it can drive meaningful change to benefit society at large. 

      Making the most from change

      It’s no surprise that firms are operating in a turbulent business environment – and we’ll likely see a sustained spike in M&A and even divestment activity, switches in leadership, and regulatory changes over the coming months. 

      While firms might want to bury their heads in the sand over these changes, and just focus on keeping afloat during business transformation, these transitional periods offer a chance for a clean slate. Setting a defined plan can help firms optimise supply chains, minimise costs, and build a deeper workplace culture – not only surviving these periods of change, but creating lasting benefits. 

      • Risk & Resilience

      As part of our LogiPharma coverage, Elissa Libby, VP of Operations for Pharma Storage at Alcami, answers our questions on the pharma supply chain.

      At this year’s LogiPharma 2024 event, we caught up with some of the pharmaceutical supply chain sector’s leading executives to learn more about them, their analysis of the trends shaping the industry, and how their organisations are responding to the challenges ahead. 

      Here’s Elissa Libby, Vice President of Operations for Pharma Storage at Alcami, discussing the future of pharma logistics in a post-COVID world, digital developments, and change management. 

      Would you be able to give me a brief introduction to your role and the company you work for?

      I’m Elissa Libby, Alcami Vice President of Operations for Pharma Storage. Alcami is a US-based contract development and manufacturing organisation (CDMO) headquartered in North Carolina with 45+ years of expertise advancing pharmaceuticals and biologics from development to delivery.  

      In addition to a robust nationwide network of cGMP pharma storage sites and support services including environmental monitoring, calibration, and validation, we also provide fully integrated lab services and drug product manufacturing. The advantage of working with Alcami is our ability to provide an end-to-end, scalable solution across multiple services as needed.  

      I am responsible for all of our Pharma Storage operations across the US. We have a presence in New England, Garner, NC and Reno, NV. I offer 20 years of experience within the biotechnology industry, much of that time in a Quality role. I’ve stood up and led raw materials testing laboratories, in-process testing labs and finished product disposition organisations. I have also led warehousing and logistics operations. 

      Alcami’s state-of-the art pharma storage network offers a full range of standard and custom conditions ranging from cryogenic LN2, ultra-low freezer, freezer, refrigeration, controlled room temperature and ambient conditions. All chambers undergo rigorous and robust mapping, qualification and validation and are continuously monitored with multiple redundancies built in to reduce risk. 

      As part of our service offerings, we also have the capabilities to support aliquoting, dispensing, and kitting within our qualified sample booths.  We also offer full-service stability management programs, reference standard management, and calibration and validation field support.  

      Is there anything that makes this event stand out for you? How is it different from others you’ve attended?

      It was super memorable for me, as it was my first time attending LogiPharma and my first time presenting!

      It was such a pleasure getting to meet so many folks and share my industry experience as we took a deeper dive into the critical role that cGMP storage plays in delivering optimum product quality. 

      Given the backdrop of the global disruption over the past few years (COVID, wars, inflation etc), how would you sum up where the pharmaceutical supply chain space finds itself today?

      From my perspective, the pharmaceutical supply chain is still in the rebuilding phase. If we look at the COVID situation, there was an immediate reaction to the crisis which caused increased inventories and rapid growth. 

      Now that the vaccine for COVID co-exists much like the flu vaccine, organizations are running things differently and are likely to accept more risk now that the supply chain is finding its new normal.

      We find that many innovator companies do not have the bandwidth to invest, validate and maintain conditioned storage chambers in addition to the physical management of their materials like labelling, sampling, testing etc. We play a critical role in providing these materials services to clients to enable them to focus on innovative therapies

      People are a company’s greatest asset but can also be a hurdle to overcome when it comes to innovation. How do you manage the people challenge and get them on board with change?

      Change is essential and an inevitable part of managing an operational team (or any team for that matter). 

      Not all individuals will buy into change in the same way or within the same timeframe. It is important to be transparent about the why behind the changes being made while at the same time being empathetic to the fact that individuals are just that and will each fall someplace different on the change curve. 

      Being transparent, visible, and creating an environment where questions and feedback are welcome will help facilitate open conversations with people.

      Are there any exciting projects that you’re currently working on or any past ones that you’re proud of that you’d like to highlight? 

      Alcami’s pharma storage footprint spans multiple locations within the US; New England, Garner NC, and Reno NV.  

      We are excited to offer aliquoting and dispensing solutions within all three locations, which enables location diversification. We are also expanding our CRT spaces in both Garner and Amherst, NH, with a combined total of over 9000 additional pallet locations at 20-25oC. Also, we are currently adding a 20,000 sq ft expansion at our Shirley, MA location that has the potential to house any storage condition needed. Our Reno facility has undergone significant transformation and capacity optimization which now includes High Density storage on the West Coast. New England has also grown the cold storage capacities at both -20 oC and -75oC.

      • Collaboration & Optimization

      As part of our LogiPharma coverage, Olga Blaut, Country Head of Sales for Pharma & Healthcare at JAS, talks trends, challenges, and opportunities in pharmaceutical logistics.

      At this year’s LogiPharma 2024 event, we caught up with some of the pharmaceutical supply chain sector’s leading executives to learn more about them, their analysis of the trends shaping the industry, and how their organisations are responding to the challenges ahead. 

      Here’s Olga Blaut, Country Head of Sales for Pharma & Healthcare at JAS, answering our questions about the event, JAS, and both the ongoing disruption pressuring the industry, and how the pharma supply chain can develop the resilience to survive and thrive in the new normal. 

      1. Would you be able to give me a brief introduction to your role and the company you work for?

      My name is Olga Blaut, and I am the Country Head of Sales for Pharma & Healthcare at JAS. In my role, I navigate the ever-evolving world of pharma logistics with a mission to deliver solutions that are not just effective, but exceptional. I have a noble but challenging task of matching our clients’ needs with JAS’s global expertise to support wellbeing of the patients globally. 

      On top of that, I am also proud to wear the badge of Pharma & Healthcare Champion at JAS, which is a special certification recognizing our commitment to the highest standards in the industry. So, whether it is about moving medicine across borders or brainstorming the next big logistics innovation, I am your go-to person.

      Inside LogiPharma 2024

      2. What is the value of events like LogiPharma 2024? How important is this conference in the supply chain pharma calendar?

      Events like LogiPharma 2024 are like the Super Bowl of the supply chain pharma calendar—without the commercials, but with all the excitement! These conferences are invaluable because they bring together the brightest minds and biggest innovators in our industry under one roof. It is a prime opportunity to exchange insights, discuss challenges, and uncover the latest trends and technologies shaping the future of pharma logistics.

      For me, LogiPharma is not just an event—it is a cornerstone of the year’s strategy. 

      It is where industry leaders, like us at JAS, can connect with our customers, partners and even competitors to share knowledge and drive the industry forward. The importance of this conference goes beyond networking, it is about staying ahead of the curve, discovering new cold chain solutions, and making sure we’re all aligned in delivering safe, reliable, and innovative supply chain services for healthcare worldwide.

      Plus, let us be honest—it is a great place to catch up with old friends and make new ones, all while keeping an eye on the future of pharma logistics!

      3. Is there anything that makes this event stand out for you? How is it different from others you’ve attended?

      What makes LogiPharma stand out for me is the way it feels like a reunion of the industry’s best and brightest, but always with something new and exciting on the agenda. I had the pleasure of attending LogiPharma in Lyon, which was an incredible experience with its own European flair. But this will be my first LogiPharma event in the USA, and I am thrilled to see how the American side of the industry tackles the same challenges from a different angle.

      This year, JAS is taking things up a notch—we have a booth where we are showcasing our latest solutions, and we are also speaking at the event. It is a unique opportunity for us to not only present what we do but also to actively engage with the audience and learn from them too. What really sets this event apart is the level of interaction and collaboration—you are not just attending; you are participating in shaping the future of pharma logistics. 

      Global supply chain

      4. Given the backdrop of the global disruption over the past few years (COVID, wars, inflation etc), how would you sum up where the pharmaceutical supply chain space finds itself today? 

      Indeed, the pharmaceutical supply chain space today feels like it has been through a series of boot camps—COVID, wars, inflation, you name it. If the past few years have taught us anything, it is that resilience is not just a buzzword; it is a survival skill. We have had to adapt, innovate, and sometimes completely reinvent the way we operate, all while ensuring that critical medications reach patients who need them the most. 

      Despite the challenges, I would say the industry has emerged stronger, more agile, and laser-focused on building supply chains that are not just efficient, but also robust and adaptable. We are seeing an accelerated push towards digitalization, greater emphasis on data transparency, and more collaborative efforts across the board to tackle disruptions head-on.

      JAS presented to the market unique charter solutions between Europe and USA to support pharma flow. JAS has invested in 4 global pharma Centers of Excellence to support local operations of our Customers. We developed device-agnostic visibility platform with full integration capabilities and automated CAPAs process to support our Customers and their patients.

      We are in a state of continuous evolution—embracing new technologies, enhancing risk management strategies, and finding new ways to navigate uncertainty. It is not easy, but then again, nothing worth doing ever is. JAS – together with the Industry – is moving from crisis mode to proactive, strategic thinking, and I am excited to see where we go from here.

      5. What do you feel are the biggest lessons supply chains have learnt over the past few years and how well equipped is the modern day supply chain now to deal with ‘black swan’ events like the ones we’ve seen recently?

      The past few years have been a masterclass in navigating uncertainty, and the biggest lessons supply chains have learned revolve around resilience, adaptability, and the importance of strong relationships. We have seen firsthand how crucial it is to build flexible and transparent supply chains that can quickly pivot in response to unexpected disruptions.

      One key lesson is the value of data and technology in enhancing visibility and agility. Modern pharma supply chains are leveraging advanced analytics, digital tools, and real-time tracking to stay ahead of potential temperature excursions, delays and other multiple issues, and make informed decisions for the patients benefits.

      Another important takeaway is the power of collaboration, and the strength found in a
      committed team. At JAS, we truly believe in our motto “People Make the Difference.” Our values emphasise the importance of a cohesive team—our JAS family—that goes above and beyond to support our clients and adapt to new challenges. It is this collective effort and shared dedication that helps us tackle ‘black swan’ events and emerge stronger.

      Today’s supply chains are better equipped to handle these rare and unpredictable events thanks to these lessons. We are more proactive, data-driven, and collaborative than ever before. However, staying prepared for the unexpected remains a continuous journey, and our values and commitment to excellence guide us every step of the way.

      Sustainability

      6. Sustainability is an important item on most Chief Supply Chain Officers’ agenda. Amid government legislation and changing customer demands, is a sustainable supply chain a non-negotiable in today’s world?

      It’s a great question to ask at Logipharma! Did you know that Pharma Industry emits more CO2 than Automotive? 

      No surprise that it is on the agenda of the Board Meetings of Big Pharma. In today’s world, sustainability is indeed a non-negotiable aspect of supply chain management. It is no longer just about meeting regulatory requirements but also about adapting to evolving customer demands for greener, more responsible practices to save this planet for future generations.

      7. In what ways have you incorporated sustainability into operations?

      At JAS, we recognize that sustainability is critical for both business success and environmental stewardship.

      Amid government legislation and increasing pressure from various stakeholders, we put a lot of efforts to embed sustainability into our core operations. This includes optimising transportation routes to reduce carbon emissions, investing in greener technologies, and working closely with our partners to ensure that our entire supply chain adheres to responsible practices.

      Our commitment to sustainability also aligns with our long-term strategy, focusing on innovation and continuous improvement to minimise environmental impact while maximising efficiency. By doing so, we help our customers achieve their own sustainability goals, which has become a key differentiator in the marketplace.

      Sustainability is not just about compliance for JAS but also about future-proofing our supply chain against environmental risks, contributing to a more circular economy, and building trust with customers who are increasingly prioritising sustainability in their decision-making processes.

      8. People are a company’s greatest asset but can also be a hurdle to overcome when it comes to innovation. How do you manage the people challenge and get them on board with change?

      At JAS, we firmly believe that people are indeed our greatest asset— as I mentioned, our company’s motto, “People Make the Difference,” reflects that. However, as with any transformative journey, getting everyone on board with innovation can be challenging. That is why we focus on building a culture of adaptability, open communication, and continuous learning to ensure that our team not only embraces change but thrives in it.

      One of the key ways we manage the people challenge is through clear and consistent communication – the size of the company and flat hierarchy allows to execute this without any internal barriers. Thanks to regular CEO, CCO and COO updates, we make sure that our employees understand the why behind the changes we are implementing—whether it’s new technology, processes, or systems. When people see how innovation directly supports the company’s growth, customer satisfaction, and their own professional development, they are far more likely to embrace it.

      We also prioritise upskilling and reskilling initiatives. At JAS, we invest in training programs to help our teams develop the technical and soft skills they need to navigate an increasingly digital and data-driven environment. By empowering our employees with the right tools and knowledge, we alleviate fears around innovation and ensure they are confident contributors to the change process.

      Ultimately, we see change as an opportunity for growth, and we align our people strategy with our innovation goals. Through leadership support, ongoing communication, and a focus on development, we ensure that our team is not just on board but is leading the charge toward a more innovative future.

      9. What about the next generation of talent? What is the key to encouraging more people into a career within the industry?

      Encouraging the next generation of talent into the pharmaceutical and healthcare logistics industry is critical for sustaining innovation and ensuring long-term growth. At JAS, we believe the key lies in creating a purpose-driven environment that not only highlights the vital role we play in saving lives but also offers clear pathways for personal and professional development.

      First, we emphasise the impact that a career in this industry can have on society. In the Pharma & Healthcare vertical, every day brings the opportunity to contribute to the timely delivery of life-saving medicines, vaccines, and medical devices. When young professionals see the real-world difference they can make, it adds a deep sense of purpose to their careers, making this sector highly appealing. This is the Industry where “People Make the Difference”.

      Secondly, we invest in mentorship and development programs that help new talent grow within the industry. Through internships, apprenticeships, and mentorship initiatives, we provide young professionals with hands-on experience and guidance from industry veterans. This not only helps them develop the technical and operational skills they need but also fosters a strong connection to the industry early on.

      Finally, we actively promote diversity and inclusion, ensuring that people from all backgrounds feel welcome and valued. A diverse workforce brings fresh perspectives, and that’s crucial for fostering innovation and encouraging creative problem-solving, which appeals to the next generation of professionals who value inclusion in the workplace.

      Looking to the Future

      10. How can the pharmaceutical supply chain industry take that next step and what strategies can be implemented to push the industry forward even further?

      Taking the next step in the pharmaceutical supply chain industry involves a combination of embracing innovation, enhancing collaboration, and prioritising sustainability. 

      Embracing AI, machine learning, and blockchain today revolutionise our operations. Imagine AI predicting the next supply chain hiccup before we even see it coming—now that’s what I call a crystal ball upgrade!  With advanced data analytics, we can forecast with pinpoint accuracy. It’s like having a GPS for our supply chain—just without the “recalculating” every time something goes off course.

       Implementing green practices helps both the planet and our bottom line. Stronger relationships across the supply chain lead to smoother operations. 

      At JAS, our commitment to these strategies is reflected in our values and the dedication of our JAS family. By embracing innovation and working collaboratively, we can drive the industry forward and ensure that the pharmaceutical supply chain continues to meet the evolving needs of the global market.

      Many thanks to Logipharma for an opportunity to connect with Industry leaders and work together on discussing these strategies! We hope to see you next year!

      11. Are there any exciting projects that you’re currently working on or any past ones that you’re proud of that you’d like to highlight?

      At JAS, we are constantly working on exciting projects to expand our capabilities in the Pharma & Healthcare sector, ensuring that we meet the growing demand for high-quality, temperature-controlled logistics. One of our most notable ongoing projects is the significant investment in our temperature-controlled facilities across the globe.

      In Europe, we’re particularly excited about JAS Amsterdam, which will soon be ready to become a new home for pharmaceutical products. This facility is being developed with state-of-the-art temperature control systems that will allow us to handle sensitive Pharma products with precision and care, ensuring compliance with the strictest industry standards. It’s a key step in further strengthening our European network.

      Additionally, we are upgrading our JAS CDG (Charles de Gaulle) facility to enhance its capabilities for handling Pharma shipments. These upgrades will improve our service offerings in the region, making it easier for us to manage the complexity of Pharma logistics and meet the needs of our customers with even greater efficiency.

      And of course, we have exciting news coming soon from the United States, particularly in Miami. While I can’t reveal all the details just yet, it’s a project that we are incredibly proud of, as it will significantly boost our capacity to serve the Pharma & Healthcare sector in the Americas. This new development will further position JAS as a leader in temperature-controlled logistics, both in the US and globally.

      12. How exciting a future does the pharmaceutical supply chain have? 

      The future of the pharmaceutical supply chain is nothing short of exhilarating! We are on the brink of a revolution where innovation, technology, and collaboration are set to transform the industry in ways we’re only beginning to imagine.

      Imagine handling pallets not just with vaccines and medications but with 3D-printed hearts, limbs, and even an elixir of youth—now that is a supply chain I would love to manage! It is a future where our logistical challenges are matched only by the incredible advancements in medical technology.

      Think about it: With advancements in AI, blockchain, and data analytics, we’re talking about supply chains that can anticipate issues before they even arise—like having a GPS that not only tells you where to go but also predicts traffic jams before you hit them!

      The integration of these technologies means our supply chains will be faster, smarter, and more resilient. Imagine a world where disruptions are quickly addressed, inventory levels are optimised in real-time, and every shipment is tracked with absolute precision. It’s like having a crystal ball, but better—because it actually works!

      Moreover, the push towards sustainability will not only help the environment but also make our operations more efficient. Less waste, smarter logistics, and greener practices will make us the superheroes of the supply chain world.

      In short, the future of the pharmaceutical supply chain is bright, dynamic, and full of possibilities. With the continued evolution of technology and a focus on collaboration and sustainability, JAS is  not just preparing for the future—we are creating it. So buckle up, because it’s going to be an exciting ride!

      Consumers today are more environmentally conscious than ever, making sustainable procurement essential for businesses aiming to thrive. By integrating Corporate…

      Consumers today are more environmentally conscious than ever, making sustainable procurement essential for businesses aiming to thrive. By integrating Corporate Social Responsibility (CSR) principles into procurement processes, organisations can go beyond traditional criteria like price and quality to include environmental and social factors, supporting their sustainable development goals. Writes Adam Spurdle, COO at Communisis Brand Deployment.

      Unilever’s Sustainable Living Plan is a prime example of this. Launched in 2010, this initiative aimed to align profit with purpose by decoupling business growth from environmental harm while enhancing social impact. With ambitious goals like sourcing 100% of its agricultural raw materials sustainably, Unilever shows us that sustainable procurement can create real value—not just for the company, but for all stakeholders.

      Tim Mawhood, Executive Director, GHD Advisory, answers our questions on supply chain sustainability and procurement’s role in driving ESG transformation.

      Consumers are cutting businesses no slack when it comes to sustainability, and so procurement has to meet high environmental, social and ethical standards. It’s only by taking consumer demands seriously that companies will start to significantly reduce their environmental footprint, promote fair labour practices, and improve their reputation. 

      However, it’s not only about reputation and ethics. A sustainable approach to the supply chain also helps to mitigate risks associated with supply chain disruptions and regulatory compliance while also leading to cost savings through improved efficiency and waste reduction. 

      As resources become scarcer and consumer expectations evolve, sustainable procurement ensures that businesses remain resilient and competitive, ultimately contributing to a more sustainable future for all.

      Despite its benefits, unfortunately sustainable procurement does come with some challenges.

      Initial Costs 

      Sustainability often comes with an initial price tag that can be daunting for businesses. The higher cost of sustainable materials may deter companies focused on cost-containment, keeping consumption of sustainable products low. 

      However, as sustainability becomes the norm, increased competitiveness within supply chains will likely drive prices down. By starting their sustainability journey now, businesses can position themselves for greater savings and environmental value over time, ultimately balancing those initial expenses with long-term financial and ecological benefits.

      Supply Chain Complexity

      Navigating diverse regulations across countries poses a significant challenge for businesses. Different regions have varying sustainability requirements, making compliance complex, especially in less mature markets where partners may not yet recognise the value of sustainable practices. 

      To overcome this, organisations must stay informed about regulatory changes and actively engage with stakeholders to promote sustainable sourcing and practices, ensuring consistency across their supply chains.

      Ian Thompson, VP Northern Europe at Ivalua, explores the road to supply chain recovery, starting with procurement’s source-to-pay process.

      Data Visibility

      A lack of standardised metrics for measuring sustainability can complicate efforts to track and compare environmental and social impacts. Inconsistent tracking methods and varying approaches to sustainability can lead to confusion and conflicting results for the same product. This challenge is amplified when sourcing for multiple clients. 

      To improve data visibility, businesses should adopt unified standards for traceability and carbon output, leveraging technology to streamline data collection and reporting across their supply chains.

      Culture and Incentives

      Establishing the right organisational culture is essential for driving meaningful change in procurement. Currently, many procurement functions prioritise cost savings over sustainability gains, creating a capital-focused culture rather than one centred on carbon reduction. 

      To create a culture that prioritises sustainability, businesses need to align incentives with environmental objectives, scrutinising purchasing volumes and actively working to reduce their carbon footprint.

      Lack of Visibility

      Inconsistent data flows and limited collaboration among stakeholders can cloud transparency in supply chains. When systems are not cooperating and data anomalies arise, tracking goods and operations becomes particularly challenging. Siloed operational units and a reluctance to share information further complicate matters. 

      To improve visibility, organisations should encourage collaboration and open communication across departments, breaking down silos to achieve a clearer understanding of their entire supply chain.

      Getting technical

      Technology, including AI, is starting to be more widely used to improve chain visibility. By incorporating AI into their analytics processes, organisations can analyse large amounts of data, uncovering patterns and insights that lead to better-informed decisions. 

      Integrate AI with IoT and cloud computing allows for continuous monitoring of supply chains in real time. So, rather than being reactive to issues, AI can help businesses anticipate potential disruptions, including downtime, and optimise their operations in light of that. Some AI platforms even provide recommendations on how to mitigate these disruptions and improve workflows, including exploring alternative suppliers, managing production schedules, and improving logistical routes.

      • Data in Procurement
      • Sustainable Procurement

      As part of our ASCM CONNECT coverage, we spoke to ASCM CEO, Abe Eshkenazi, about delivering events that educate, engage, and unite the supply chain sector.

      In a global supply chain sector increasingly facing major challenges that range from natural disasters to economic pressure, sharing knowledge and collaborating with the wider ecosystem are emerging as key strategies that separate successful supply chain managers from those at the mercy of disruption. 

      The Association for Supply Chain Management (ASCM) is the global pacesetter of organisational transformation, talent development and supply chain innovation. As the largest association for supply chain, ASCM members and worldwide alliances fuel innovation and inspire accountability for resilient, dynamic and sustainable operations

      We caught up with ASCM CEO, Abe Eshkenazi, at the ASCM CONNECT event in Austin, Texas to learn more about the trends affecting the supply chain sector and how ASCM’s diverse and comprehensive supply chain conference helps supply chain professionals interact with peers and experts to tackle the most business-critical challenges in supply chain today.

      1. Could you introduce yourself briefly? 

      I’m Abe Eshkenazi, CEO of the Association for Supply Chain Management (ASCM). ASCM is the global leader in supply chain organisational transformation, innovation and leadership. 

      We connect companies around the world to the latest tools, education and thought leadership on all aspects of the industry. As CEO, I lead a team of talented individuals who make it possible for our members to better navigate the fast-paced world of supply chain.

      2. You’ve been leading ASCM since 2006, witnessing plenty of changes in supply chains. How would you summarise the last 20 years? 

      We’ve had a truly dramatic evolution over the past two decades. Initially, the primary focus was all about cost reduction. However, the world has changed significantly, and supply chains now must achieve numerous goals simultaneously. 

      We’re keenly focused on resilience, sustainability and digital transformation. Major disruptions — the financial crisis, geopolitical turmoil, COVID-19 and many others — demonstrate how important these aims are. At the same time, supply chains are under intense scrutiny, and not just in boardrooms but on a global stage. 

      ASCM works to ensure they are equipped to navigate these challenges and thrive in a rapidly changing environment.

      3. How much planning goes into making an event like ASCM CONNECT successful? Is it a year-round effort? 

      Absolutely. We constantly track industry trends to build educational content that addresses the most pressing challenges. 

      But it’s not just about educational sessions; we created experiences like the Innovation Hub Expo and the Masterclass Series to give people hands-on learning. And we always plan for some fun and excitement too, like this year’s Formula 1 simulator and ticket giveaway.

      4. What makes ASCM CONNECT such a special event in the supply chain calendar? 

      It’s our blend of education and engagement. Attendees don’t just sit and listen; they engage with thought leaders from around the globe, exploring top supply chain trends and the very latest innovations. 

      They experience real-world case studies, factory tours and interactive panels that really bring the learning experience to life. 

      5. How long has ASCM CONNECT been around, and how do you keep it fresh for attendees each year? 

      ASCM has had an annual conference since its inception in 1957. Of course, back then it was on a much smaller scale. And as the CONNECT we have today grew over the years, we always kept evolving. 

      We do this by closely monitoring the evolving landscape of supply chain management to ensure that the conference content is relevant and timely, curating diverse speakers and topics to give attendees a broad perspective on the challenges and opportunities facing the supply chain, and prioritising engaging experiences that encourage active participation and knowledge exchange among attendees. 

      6. What were your biggest takeaways from this year’s ASCM CONNECT? 

      AI, resilience and sustainability were definitely the core themes, but there was also a big focus on digital transformation and workforce development. Arianna Huffington and Guenther Steiner gave standout sessions.

      The Innovation Hub Expo was a real highlight, allowing attendees to see and try the latest tech innovations. And our conferences always provide ample opportunities for participants to connect with peers, other industry professionals and potential business partners. 

      Networking events, social gatherings and dedicated networking zones facilitate meaningful connections — which are often the biggest takeaways and real career-changers.

      7. Why should people attend ASCM CONNECT? 

      It’s a must for anyone serious about supply chain. You get to learn from top experts, thought leaders and practitioners while engaging in hands-on activities and invaluable networking. 

      Our attendees come back year after year because they know there’s no better event for advancing their networks and their careers. 

      One of my favourite parts of our conference is seeing professionals reconnect with others in the field who have truly become their friends, thanks to ASCM events.

      8. With so much on their plates — digital transformation, sustainability, diversity — how can today’s chief supply chain officers (CSCOs) manage everything? 

      CSCOs are juggling a lot, and the key is using the right tools intelligently. AI, advanced analytics, and pretty much anything supporting digital transformation are essential to streamline decisions and ensure collaboration. 

      At the same time, talent development is crucial for keeping pace with all these changes. It’s about building a team and a strategy that ties everything together.

      9. What about the next generation of talent? How can we inspire more people to enter the supply chain field? 

      Supply chain is everywhere, and young people are seeing more and more how impactful and exciting careers can be. There’s real-world problem-solving and innovation happening every day. 

      Early exposure, whether through internships, mentorship, or real-life programs, is important. We also need to showcase the cutting-edge technology that’s reshaping the industry and making it an exciting place to be. All of us at ASCM work to promote and highlight supply chain’s impact on everyday life, diverse role models, and technology and innovation.

      10. How exciting is the future of supply chain and procurement? Is now the best time to be in this space? 

      Without a doubt, now is the best time to be in supply chain. The industry is at a pivotal point, with emerging technologies, sustainability and global challenges driving rapid change. 

      Supply chains are more visible and strategic than ever, and we have an unprecedented amount of influence on where communities, economies and the global marketplace will be heading in the future.

      11. What does the future hold for ASCM CONNECT? 

      We’re hard at work preparing for our next event,  September 8-10, 2025, in Columbus, Ohio. We’ll continue to focus on emerging trends, ensuring ASCM CONNECT remains the top event for supply chain professionals to learn and network.

      12. Is there anything else you’d like to share? 

      Supply chain professionals have shown incredible resilience, and with all the innovation happening in tech and sustainability, the future looks bright. 

      We’ll continue shaping the global supply chain space through premier education, essential collaboration and pacesetting innovation.

      • Collaboration & Optimization

      Sue Williams, Managing Director at Hexagon Consultants, breaks down the best ways to deal with the most common pitfalls when managing a supply chain.

      Supply chains are an integral part of a business and can significantly impact performance if not regularly monitored and assessed closely. Should problems with a supply chain arise, this can have a negative knock-on effect on all other aspects of the business. 

      What are the most common pitfalls in supply chain management?

      With the increasing challenges facing supply chains, especially in the aftermath of the pandemic, businesses need to be able to adapt quickly to market changes to reduce the risk of encountering problems, which could have a significant impact on their wider business and, more worryingly, their customers.

      There are a number of pitfalls which businesses can encounter when it comes to supply chain management, the most common of which include; 

      Lack of visibility 

      In the current economic climate, it’s crucial for businesses to have a deep understanding of their supply chain. This knowledge enables them to conduct thorough risk assessments and be prepared with strategies to mitigate the most probable scenarios before they become major problems.

      Demand forecasting 

      Demand forecasting involves analysing historical data, market trends, and other relevant factors to anticipate customer demand for a product or service. Aligning supply with demand is key for an organisation’s supply chain management to reduce costs and optimise inventory. 

      Structural flexibility 

      This is vital across supply chains for businesses as it allows organisations to naturally respond to changes within the supply chain rather than wasting resources to respond to shifting dynamics.  

      Other challenges that can arise within supply chains include product life and end of life management, water usage and pollution, economic pressures and consumer awareness. 

      How can businesses prevent these pitfalls?

      To avoid lack of visibility in a supply chain, organisations need to ensure that they are mapping their supply chain network and consistently providing updates and communicating with suppliers to avoid any disruptions. Having this oversight of your supply chain will allow for more in depth risk assessment and reduce disruptions, allowing businesses to prepare to mitigate potential issues.

      Adapting a supply chain to match shifting demand enables businesses to set prices at a more competitive level and manage costs effectively.  By understanding supply and demand, companies can accurately adjust prices to reflect market conditions, which in turn can attract more customers and increase sales. This strategy plays a pivotal role in maintaining cost controls and service delivery performance, as well as optimising inventory volume, which ultimately leads to better financial management and improved customer satisfaction.

      Structural flexibility refers to the ability to fundamentally adapt or change the supply chain design in response to changes in global demand or supply. Structural flexibility helps prevent supply chain pitfalls by allowing for quick adjustments in production, distribution, and inventory levels in response to changes in demand or supply. This flexibility gives businesses a competitive advantage and enables the supply chain to adapt to unforeseen events, such as disruptions in production, changes in consumer preferences, or fluctuations in raw material availability. 

      The future of supply chain management

      Businesses across multiple sectors are experiencing a range of challenges in relation to their supply chains and how they function. 

      One of the most prevalent problems organisations are experiencing is the increased pressure to improve their sustainability and carbon footprint, particularly with the UK’s wider efforts to achieve Net Zero successfully by 2050. 

      There are various strategies that can be implemented to mitigate such challenges, for example, creating a circular economy by improving lifecycle management to reduce pollution, waste and improve product life and end of life management. 

      AI and technologies such as digital twins offer vast solutions to streamline and improve the efficiency of supply chains, which can in turn improve sustainability.  We can expect to see this become an instrumental part of supply chains, with AI and other digital technologies alleviating human error and connecting decision making. 

      With supply chain challenges being ever present and ever changing, it’s imperative for businesses to maintain a holistic overview of their supply chain and be positioned to pivot and adapt according to market conditions and customer demand. 

      By seeking support and expert guidance on supply chain management and strategy, organisations can ensure that they are able to effectively navigate the numerous potential challenges supply chains face, while maintaining minimum disruption for customers and the wider business.

      • Risk & Resilience

      As part of our LogiPharma 2024 coverage, we talk to Steve Bonadio, Vice President of Global Marketing at Tive, about data, IoT, and a sustainable pharma cold chain.

      From hurricanes in the Southern US to conflict in Europe and the Middle East, global supply chains are increasingly at severe risk of disruption. For pharmaceutical organisations, ensuring supply chain speed and resilience is a non-negotiable goal. 

      Steve Bonadio, Vice President of Global Marketing at supply chain and logistics visibility technology company Tive, believes that traceability driven by strong data collection and analysis is the key to unlocking the resilience that global pharma supply chains need. 

      With 25 years of industry experience and a distinctive background that combines expertise as both an industry analyst and a revenue-driven growth marketer, Steve has a proven track record in building scalable marketing and go-to-market organisations. Before joining Tive in 2022, Steve led a global demand generation team that contributed to the rapid growth of Ivalua (enterprise procurement SaaS). He has also held senior positions at leading companies such as Oracle, Vidyo, and META Group (acquired by Gartner).

      At this year’s LogiPharma 2024 event, we caught up with some of the pharmaceutical supply chain sector’s leading executives to learn more about them, their analysis of the trends shaping the industry, and how their organisations are responding to the challenges ahead. 

      1. Would you be able to give me a brief introduction to your role and the company you work for?

      I am the Vice President of Global Marketing at Tive, a global leader in supply chain and logistics visibility technology. 

      Inside LogiPharma 2024

      2. What is the value of events like LogiPharma 2024? How important is this conference in the supply chain pharma calendar?

      LogiPharma U.S.—and its sister show in France each spring—are among the top conferences that Tive invests in year-after-year. 

      The quality of the audience, excellent conversations with customers and prospects, and the intimacy of the event really stand out.

      3. Is there anything that makes this event stand out for you? How is it different from others you’ve attended?

      The audience with whom we’re trying to connect is well represented at LogiPharma. Specifically, this means senior-level supply chain and logistics executives from the major life sciences and pharmaceuticals companies. 

      Not only do we get to spend valuable face time with our customers and prospects at LogiPharma, but we also get to meet professionals from new companies that are actively seeking a complete chain solution which enables them to monitor their shipments in real time, achieve compliance, reduce excursions and waste, and ensure product quality and patient safety. 

      Additionally, unlike a major tradeshow exhibition where the show floor seems to go on forever, the intimacy of LogiPharma and the focused agenda truly stand out to us.

      4. What are the biggest takeaways from this year’s LogiPharma for you?

      The need for accurate, real-time data and insights came across loud and clear—from all corners of the industry. 

      As life sciences and pharma leaders move from passive shipment tracking or legacy EDL solutions to real-time location and condition tracking, the opportunity to collect multimodal shipment data in real-time is unlocking tremendous ground truth insights that can be used to drive supply chain efficiencies—optimising lanes and routes, minimising dwell time, understanding cargo theft danger zones, and more.

      The global pharma supply chain

      5. Given the backdrop of the global disruption over the past few years (COVID, wars, inflation etc), how would you sum up where the pharmaceutical supply chain space finds itself today? 

      From the perspective of traceability and visibility into the location and conditions of life-saving pharmaceuticals (e.g., vaccines, drugs, cell & gene therapies), many pharmaceutical companies still rely on legacy passive loggers to monitor their shipments. 

      Passive loggers may check the box for creating an audit trail and maintaining cold chain compliance, but they are often cumbersome to work with. For example, the receiver of a shipment needs to manually extract the data via USB, transfer and review the data, and email/fax the data to the shipper for review. 

      This is inefficient at best, and at worst doesn’t provide the opportunity to intervene—in real time—should a shipment exceed certain thresholds (e.g., temperature, humidity).

      On the other hand, our research reveals that real-time visibility is no longer just a value-added service—it’s become a fundamental customer expectation. 

      The adoption of real-time IoT trackers and devices has more than doubled over the past year—from 25% in 2023 to 53% in 2024—and Tive continues to experience tremendous growth as a result of customer demand to unlock ground truth operational data and drive best-in-class supply chains. 

      6. What do you feel are the biggest lessons supply chains have learnt over the past few years and how well equipped is the modern day supply chain now to deal with ‘black swan’ events like the ones we’ve seen recently?

      Modern supply chains require strategic vision, a focus on operational efficiency and flawless execution, and robust technology infrastructure. Together, these requirements are essential to building resilient supply chains—and black swan events like COVID-19 have illustrated beyond a doubt that resilience is key.

      From Tive’s perspective, resilience is knowing where your shipments are in real time, seeing what condition they are in, and having the ability to act immediately when excursions occur. During the COVID-19 pandemic, Tive was right there in the thick of things—driving successful vaccine deliveries for the Australian government and others, which this customer story dives into.

      Sustainability in the supply chain 

      7. Sustainability is an important item on most Chief Supply Chain Officers’ agenda. Amid government legislation and changing customer demands, is a sustainable supply chain a non-negotiable in today’s world?

      Absolutely, yes. At Tive, sustainability starts with visibility. All the major life sciences and pharmaceutical companies have set targets to reduce the Scope 3 greenhouse gas (GHG) emissions that occur in their supply chains. Achieving a more sustainable supply chain requires anticipating and adapting to unforeseen events, and Tive ensures that our solutions provide access to the end-to-end data visibility and real-time alerts shippers need—while also protecting the environment.

      Tive actively supports sustainability initiatives on millions of shipments moved by all modes of transportation—around the globe. We help our customers reduce their Scope 3 emissions by:

      • Providing traceability: Tive trackers help customers know the exact location and condition of their shipments at all times, which helps minimise transit time—and carbon emissions generated.
      • Saving shipments: Real-time alerts enable shippers to mitigate disruptions—or avoid them altogether—reducing transit time and preventing waste.
      • Reducing truck “dwell” times: When a container is detained or delayed, Tive helps shippers quickly detect and leverage strategic appointment scheduling—decreasing idling time.
      • Eliminating empty miles: Identify round-trip opportunities across all lanes—creating more efficient routes.
      • Tracking damaging events: Documentation and real-time reporting capabilities enable Tive customers to quantify the impact of real-time visibility in relation to reducing damages, spoilage, and waste.
      8. In what ways have you incorporated sustainability into operations?

      Tive’s Green Program is the heart of our sustainability strategy. Introduced in 2021, the Green Program is built on a simple yet powerful idea: incentivise customers and receivers (those receiving trackers at the completion of a shipment) to return used Tive trackers to us instead of discarding them. 

      We encourage customers and receivers to gather trackers post shipment; once they have a full box, we send them a prepaid shipping label—facilitating a simple return process.

      This initiative serves a couple of key purposes. First, it significantly reduces electronic waste by renewing and recirculating trackers, extending their useful life, and reducing the demand for new device production. Second, this program provides an opportunity for customers to be part of a sustainable cycle—which helps them contribute to their own ESG initiatives and priorities.

      What the future holds for the pharmaceutical supply chain

      9. How can the pharmaceutical supply chain industry take that next step and what strategies can it implement to push the industry forward even further?

      From a shipment tracking and supply chain visibility perspective, as mentioned earlier, the shift from passive logging to real-time tracking—and the ground truth insights that it enables—will have a profound impact on how vaccines, drugs, and therapeutics are delivered to both end users (e.g., retailers, hospitals/clinics, CROs) as well as direct to consumer. 

      10. Are there any exciting projects that you’re currently working on or any past ones that you’re proud of that you’d like to highlight?

      We are particularly excited about the success our customers are achieving with Tive’s solutions. In the first half of 2024, we achieved a customer Net Promoter Score (NPS) of 48 and Customer Satisfaction Score (CSAT) resolution of 96%, with less than 1% revenue churn in Q2 2024—highlighting Tive’s deep commitment to its global customers.

      11. Is it an exciting time for pharmaceutical supply chain management? 

      The sky’s the limit. The amazing innovations being developed by life sciences and pharmaceutical companies—new treatments and drugs, cell and gene therapies, etc.—can only be truly harnessed to drive positive patient outcomes when the rest of the pharma supply chain collaborates and joins to drive innovations of their own. 

      At Tive, we’re developing modern new products to stay abreast of the innovations in the industry as a whole—and we couldn’t imagine a more important cause or better place to be.

      • Digital Supply Chain

      Sophie Tuson, Senior Associate at RPC, makes the case for embedding sustainability in every new supply chain innovation.

      The demand for sustainable practices in supply chains is transforming how businesses operate globally. Increasing consumer expectations, coupled with the rapid introduction of regulations such as the EU’s Eco-design for Sustainable Products Regulation (ESPR), are pushing companies to integrate sustainability at every stage of their operations. The ESPR is a landmark shift towards circular economy principles, driving innovation in product design, transparency, and reporting obligations.

      A new era for product innovation

      The ESPR came into force in July 2024 and introduces significant requirements to improve the sustainability of products sold in the EU market. Initially focusing on textiles, apparel, and footwear, the regulation will gradually extend to other categories. It sets minimum eco-design standards, including limits on carbon footprints, water use, and the durability of materials. The aim is to reduce waste and environmental harm throughout the product lifecycle, from raw material sourcing to end-of-life disposal.

      For businesses, this shift means more than just compliance. As part of the European Union’s Circular Economy Action Plan, the ESPR encourages innovation in product development and supply chain management. Retailers and manufacturers are rethinking the materials they use, exploring recyclable and biodegradable options, and developing products that are easier to repair or upgrade, rather than replace.

      Transparency and traceability

      One of the most transformative aspects of the ESPR is the introduction of Digital Product Passports (DPPs). All products sold in the EU will be required to have a DPP, providing a unique identifier that tracks detailed sustainability information throughout the product’s lifecycle. Consumers will be able to scan a QR code on the product to gain insight into the materials used, their origins, environmental impact, and disposal guidelines.

      For companies, DPPs offer an opportunity to showcase their sustainability credentials, providing greater transparency and trust in the supply chain. However, implementing these passports will require significant investment in digital infrastructure. Brands must ensure they have the capability to track materials, verify supplier data, and provide real-time updates as products move through the supply chain. Businesses that effectively integrate these systems will not only meet regulatory requirements but also differentiate themselves in a market where sustainability sells.

      Addressing the challenge of unsold products

      A critical feature of the ESPR is the ban on destroying unsold products, particularly in fashion and textiles. Beginning in 2026, the EU will require companies to report on the number and weight of unsold products and provide details about how they reuse, remanufacture, or recycle them. Unsold products will no longer be discarded or destroyed but instead repurposed, creating new challenges for supply chain management.

      For many retailers, this regulation represents a significant change in how they handle inventory and returns. Forecasting demand more accurately and reducing overproduction will become paramount. The industry is already seeing advancements in technology, such as AI-driven forecasting tools and virtual fitting rooms, which help consumers make better purchasing decisions and reduce the likelihood of returns. Brands will need to invest in solutions that not only cut waste but also align with circular economy principles, where products are reused or recycled rather than discarded.

      Driving supply chain innovation

      As sustainability becomes a competitive advantage, companies are increasingly viewing these regulations as a catalyst for innovation rather than a burden. Supply chain leaders are investing in new technologies and forging partnerships with sustainable suppliers. For instance, some organisations are using blockchain technology to track sustainable sourcing and ensure that products meet the stringent requirements of the ESPR.

      Moreover, the reporting and transparency demands of the ESPR are driving advancements in digital tools that can monitor and optimise every stage of the product lifecycle. These tools not only help businesses comply with regulations but also improve operational efficiency, reduce waste, and cut costs in the long run.

      The road ahead

      The ESPR, along with other measures like the Deforestation Regulation and the Corporate Sustainability Due Diligence Directive is ushering in a new era of sustainable supply chains. For businesses, this means rethinking product development, embracing transparency, and innovating to reduce environmental impact. While the transition may be challenging, companies that adapt swiftly will not only comply with these regulations but will also position themselves as leaders in the global shift towards sustainable commerce.

      • Sustainability

      Rob Shaw, MD EMEA at Fluent Commerce, shares his top five techniques for combatting the rising tide of returns fraud in the supply chain.

      Returns fraud is an escalating challenge in the retail industry. Research from ReBound found that nearly half (48%) of British consumers admitted to having bought, used and then returned an item. This is causing significant financial and operational burdens for retailers – costing the UK retail sector £11.3 billion in 2023. It’s also causing a ripple effect that extends across the entire supply chain. 

      As the number of online sales increases and we head into peak trading season, the returns tsunami is only going to get worse. With this in mind, here’s five ways retailers can reduce returns fraud:

      1. Invest in real-time inventory

      Fraudulent returns can compromise the accuracy of inventory data. Items are often returned in unsellable condition or not returned at all. This lack of accuracy can disrupt the supply chain and hinder retailers’ ability to fulfil customer commitments. Discrepancies in stock levels result in stockouts or excessive inventory. Both incur significant costs for retailers.

      Real-time inventory management must incorporate up-to-date data on returns. Monitoring returned products at every stage of the reverse logistics process means retailers can ensure that only sellable items are restocked. Effective inventory management can minimise the financial repercussions of fraudulent returns.

      1. Introduce return fees

      In the last few weeks, ASOS has become the latest online fashion retailer to start charging for returns. And new data from Shippit and Fluent Commerce shows the brand is not alone. While nearly half of all retailers offered free returns six years ago, less than 20 per cent do so now. And, this number is expected to continue to drop steeply.

      Retailers can discourage casual or fraudulent returns by implementing return fees. However, they need to manage this strategy carefully to prevent alienating high value customers. But it can substantially decrease the number of returns, alleviating the strain on reverse logistics and the supply chain.

      Another option is to introduce two categories of customers: ‘Verified’ ones with a low returns rate who can still access free returns. And a second group for new customers or customers who have a higher returns rate. They will then only be given the option to return at a fee. That way you don’t alienate your best customers but discourage the repeat offenders. 

      1. Ramp up the reverse logistics

      By making it easier to return items, retailers can help  overcome the disappointment customers may feel for paying for returns. When allowing people to return in store, staff onsite can quality check and then put the items back into sellable inventory right away (rather than heading back to the warehouse). etailers will then be able to sell those items again quickly. Indeed, many customers who return in-store end up exchanging rather than returning, finding something else to buy. It’s also much harder to return a ‘fraudulent’ item in store than via mail.

      1. Introduce stricter verification processes

      Introducing stricter verification procedures at the point of return can also help. Retailers can track a product’s lifecycle using technologies like AI-driven analytics and blockchain, to ensure that returned items correspond with the original purchase. By identifying irregularities in return patterns, these tools can help flag potential fraudsters. This helps decrease the number of fraudulent returns entering the reverse logistics process.

      1. Partner wisely

      To mitigate returns fraud, retailers can collaborate with third-party logistics providers. Providers specialising in reverse logistics should have the infrastructure to efficiently manage returns and reduce the operational disruptions associated with fraud. These providers can also offer valuable insight into return trends. Armed with their strategic counsel, retailers can fine-tune their approach to reduce the impact on the supply chain.

      There is no silver bullet to reducing returns fraud. But if retailers use a mix of the above and explain their return policies (and costs) clearly with customers, then they can significantly reduce the likelihood of abuse.

      • Risk & Resilience

      Henry Ayres, Head of Engineering Practice at Daemon, explores the potential of voice-directed picking in factories and warehouses.

      The supply chain has long been the unsung hero of the retail world. For decades, it has quietly powered the intricate web of logistics that keep products flowing from factory to doorstep. Now, this once-staid industry is now on the brink of a technological revolution.  

      For years, the retail supply chain has been saddled with outdated processes, siloed data and even risk-averse stakeholders. Together, this has made it difficult to respond to the evolving demands of the e-commerce era. Moreover, the rise of omnichannel retail has transformed from a forward-thinking concept to an operational necessity. Customers now expect seamless, same-day fulfilment across multiple channels, leaving many retailers struggling to keep up. This presents new complexities that the supply chain was simply not built to handle. 

      But just as the challenges seem impossible, a new wave of technologies is poised to disrupt the status quo. These innovations are not just improving efficiency–they’re redefining what’s possible in warehouses and factories. With so many stakeholders and legacy systems in place, the road to modernisation is long.  

      Supply chain organisations implemented legacy systems to bring order and efficiency. Now, however, they stand as barriers to the agility and responsiveness demanded by modern consumers. As e-commerce giants set new standards for speed and flexibility, traditional retailers find themselves hamstrung by their technological foundations. 

      Yet, the winds of change are blowing. Forward-thinking organisations are beginning to recognise that the cost of inaction may soon outweigh the pain of transformation. According to VDC’s research, warehouse worker productivity has increased by 15.6% among organisations adopting voice-based solutions to support operations. The question is no longer if legacy systems should be replaced, but how organisations can do so strategically and effectively. 

      The supply chain’s new backbone 

      In the quest for greater efficiency and responsiveness, one technology has emerged as a true disruptor. Meet the voice-directed picking system. 

      These systems have progressed from simple task-guiding devices to become the central nervous system of modern warehouses. The advancements in natural language processing (NLP) technology have made voice-directed picking systems more sophisticated. This allows them to understand context, intent, and even subtle vocal nuances. 

      These improvements yield tangible benefits across the supply chain. Faster onboarding for new employees, reduced errors, and a user experience that enhances, rather than hinders productivity. Additionally, the increased accuracy and expanded language capabilities make these systems more accessible to a diverse workforce. Effectively, this is breaking down communication barriers in the warehouse environment. 

      For supply chain managers, voice-directed picking has become an essential tool in their arsenal to modernise operations and keep pace with the speed of e-commerce. 

      Integration with automated systems 

      The true power of voice-directed picking systems lies in their seamless integration with other automated technologies within the warehouse. By doing so, these intelligent assistants are helping to create a cohesive, data-driven warehouse environment. In this environment, voice commands can initiate and coordinate multiple processes simultaneously. 

      These intelligent assistants have become integral ingredients of modern warehouse automation ecosystems, working in harmony with Warehouse Management Systems (WMS), robotics, conveyor systems, and AI-powered analytics platforms. 

      If we consider the WMS as the brain of the warehouse, voice-directed picking acts as its vocal cords, providing clear, real-time communication throughout the facility. This integration, typically achieved through standardised protocols and APIs (Application Programming Interface), allows for smooth data flow and comprehensive visibility. For warehouse managers, this level of integration provides the control and insights needed to make more informed decisions and streamline workflows across the entire facility. 

      By bridging the gap between human workers and the complex technological infrastructure of the modern warehouse, voice-directed picking systems are redefining the very foundation of the retail supply chain.  

      The factory of tomorrow 

      Imagine a warehouse where voice commands not only guide picking, but also trigger replenishment, adjust conveyor speeds, and dispatch robots – all in real-time. With the continued advancements in AI and machine learning, voice-directed systems will become increasingly proactive and provide personalised coaching to workers. 

      For supply chain leaders, embracing this vision is no longer a choice, but a strategic imperative. Those who invest in voice-powered automation will unlock unprecedented levels of efficiency, responsiveness, and competitive edge. These are essential qualities in the new era of retail, where customer expectations change in the blink of an eye. Supply chain leaders who innovate now will be the ones to lead the charge into the next chapter of the retail revolution.

      • Collaboration & Optimization

      Simon Bowes, CVP Manufacturing Industry Strategy EMEA at Blue Yonder, looks at ensuring growth and sustainability aren’t mutually exclusive.

      The new Labour government has announced its legislative agenda for the next Parliament, including its intention to “pursue sustainable growth by encouraging investment in industry, skills and new technologies”. Although not explicitly mentioned in the King’s Speech, a key goal of its leadership will be to boost growth by “strengthening the resilience of supply chains in key sectors.”  

      Clearly, these are very important issues. As supply chains have become more complex, and as more companies reduce risk by diversifying sourcing of products globally, there is an increased demand for sharing information and resources across the whole value chain. This, along with increased disruptions and geopolitical risks, has put pressure on organisations to build more resilient and robust supply chains. Recent industry research, for example, revealed that the overwhelming majority (84%) of global businesses had experienced supply chain disruptions within the last year. 

      As part of its Prosperity through Partnership: Labour’s Industrial Strategy, the new Government will set up a supply chain task force to review potential supply chain needs across critical sectors. The question is, what should be the priority for this task force and how can they learn from companies that intricately understand the challenges and the workings of the supply chain? 

      Introduce a mandated supply chain trading system

      High on the list of objectives should be the introduction of a government-mandated electronic supply chain trading system so every stakeholder in the supply chain ecosystem can see what everyone else is planning. This should be based on a secure unified platform that enables multi-tier orchestration, planning and collaboration to accelerate processes with autonomous and semi-autonomous decision-making and execution across the supply chain.

      Think of it this way: just as services such as electricity and broadband are provided via government-mandated markets, creating an engine for supply chain planning could also be provided via a network rolled out by the government. This would deliver much-improved performance and resilience benefits and help alleviate payment problems because there is clear visibility of receipts and associated invoices by all parties involved.

      Embrace AI to improve supply chain resilience

      Turning specifically to the question of supply chain resilience and how to improve it, the integration of advanced predictive AI and generative AI tools will have a key role to play if industry is to benefit from orchestrated performance measurement.

      For example, better risk scenario planning should be embedded into the supply chain workflows, with automated scenario planning used to assess the impact of different scenarios on supply chain dynamics.  As organisations deal with sudden spikes in demand, supply chain disruptions or geopolitical shifts, automated scenario planning provides them with a proactive framework for decision-making. This level of preparedness not only minimises the impact of any disruptions but also positions organisations to capitalise on emerging opportunities.

      Using AI for proactive demand planning can leverage advanced algorithms to analyse vast data sets, identify patterns, understand external factors and assess future demand trends with remarkable accuracy. Predictive AI also provides organisations with the foresight to make agile decisions in different areas, including production schedules, resource allocation and distribution channel optimisation. For instance, by anticipating demand fluctuations, predictive AI helps optimise inventory levels, preventing overstock or stockouts.

      Gen AI can also be applied to enhance performance by providing context-aware, data-driven insights, assisted decision-making and the automation of repetitive workflows. In practical terms, this means supply chain teams can analyse data, interpret connections and understand the intricacies of the manufacturing landscape. Users can also ask questions and receive insights without needing a predefined report – all without the challenges associated with managing data, toggling between multiple software applications or relying on a technical team to create the framework or view.

      Prioritise supply chain sustainability

      Inefficient legacy supply chains have contributed to the current climate crisis, and it’s vital that organisations embed sustainability principles into every aspect of business operations. This includes transforming sourcing, logistics, production, inventory and data management to become a driving force for better decision-making, improved efficiencies and a positive environmental and social impact.

      The government has an important role to play in ensuring supply chains continue to prioritise sustainability and are held accountable for environmental performance. At present, the EU is leading advances in sustainability regulations, but there is also a clear need for the UK to drive its own positive agenda and play a positive role in building a coherent approach that goes beyond national boundaries.

      Collectively, these issues present some difficult challenges but also offer an unparalleled opportunity to build a supply chain ecosystem that delivers across a range of critical objectives. Success will deliver a win-win for the industry and our shared environment.

      • Sustainability

      Jane Broberg, CHRO of Basware, examines the changing metrics for supply chain success and the role sustainability increasingly plays.

      For CFOs, ESG is a new part of the currency for corporate success. In today’s rapidly evolving business landscape, the integration of Environmental, Social, and Governance (ESG) criteria into financial practices is not just a regulatory necessity but a crucial differentiator for sustainable and ethical operations. As the significance of ESG grows, environmentally-friendly procurement processes are emerging as a key driver of sustainable operations, enabling companies to align their practices with broader societal and sustainability goals

      Evolving ESG regulations are making businesses and their respective supply chains more accountable to shareholders and customers. This new way of working is transforming supply chains into a catalyst for sustainable development, emphasising the social dimensions of ESG alongside environmental and governance aspects.

      ESG Integration: Transforming Finance for Sustainable Operations

      Companies are increasingly aligning their financial and accounting processes with sustainability initiatives to address stakeholder concerns, reduce emissions, manage risks more effectively, and contribute to societal wellbeing. 

      This shift towards ESG in finance is driven by a growing recognition of its importance in corporate performance, with 71% of corporate leaders anticipating a larger role for ESG in the future. This highlights the need to incorporate ESG into everyday business activities, not just for compliance but also for social impact.

      In financial services, upcoming regulations like the European Sustainability Reporting Standards (ESRS) and the SEC’s guidelines are pushing ESG to the forefront of business strategies. For instance, a survey with Forrester found that 90% of accounts payable decision-makers in the EU and 74% in the US prioritize improving their ESG footprint

      Research indicates that the average enterprise still receives almost 50% of its invoices in paper format. An automated e-invoicing platform can reduce paper-based invoicing by 80%. This shift to digital invoicing helps businesses significantly cut their carbon emissions.

      The environmental benefits of e-invoicing go beyond saving paper. Beyond the conservation of trees, it also decreases waste in landfills and eliminates the need for the energy-intensive processes involved in paper production and transportation, reducing methane emissions. Moreover, the streamlined electronic process saves office resources and reduces energy consumption for physical storage, contributing to more savings in energy conservation. Additionally, the adoption of digital solutions like e-invoicing can reduce the need for commuting to the office, as tasks can be completed remotely, further lowering carbon emissions associated with transportation.

      Wider ESG: A Broader Social Dimension

      This focus on ESG is not just about meeting regulatory requirements but also about being held accountable for social and environmental impact. By revamping financial reporting processes to prioritise ESG factors, finance departments can influence company policies across the supply chain, driving widespread positive change and contributing to broader societal goals which are increasingly becoming a priority.

      The social dimension of ESG is increasingly becoming a priority. Companies are now recognizing that addressing social factors—such as labour rights, community impact, and ethical business practices—is essential for building trust with customers, partners and all stakeholders and ensuring long-term sustainability. By integrating these into CFO strategies, companies can enhance their social footprint and also mitigate risks associated with unethical practices in their supply chains. 

      The social dimension of ESG is increasingly becoming a priority. Companies are now recognizing that addressing social factors—such as well-being, Diversity, Equity, Inclusion, and Belonging — is essential for building trust with customers, partners, and all stakeholders, and ensuring long-term sustainability. Additionally, community impact, labour rights, and ethical business practices, which are part of the Governance and Ethics dimension, play a crucial role. By integrating these elements into CFO strategies, companies can enhance their social footprint and also mitigate risks associated with unethical practices in their supply chains.

      Additionally, according to ‘The 2023 State of Corporate Compliance’. 60% of companies are willing to invest in ESG to gain a competitive advantage which is pivotal in redefining procurement to meet sustainability goals. This investment is not just about improving environmental and social footprints, but also about standing out in the marketplace. Companies that lead in ESG integration are more likely to attract socially conscious consumers, investors, and great talent, therefore enhancing their brand reputation and market position.

      Supplier Spotlight: Assessing ESG Compliance for Ethical Supply Chains

      Companies are focusing on setting clear ESG criteria for their suppliers based on industry standards, conducting thorough audits and assessments, and fostering continuous improvement to promote compliance and sustainability. 

      Effective strategies for maintaining high ESG standards in supply chains include:

      • Detailed due diligence processes
      • Robust supplier evaluation methods
      • Regular audits

      These steps are critical for ensuring that suppliers adhere to ethical standards and contribute positively to society. 

      For instance, companies are increasingly conducting comprehensive assessments to evaluate suppliers’ adherence to labour laws, health and safety standards, fair wage practices, as well as working environments that are inclusive, fair, and free from harassment and discrimination. This thorough approach helps identify potential risks and areas for improvement, fostering a culture of continuous improvement and accountability 

      The emphasis on supplier compliance is highlighted by the fact that more than half (56%) of company leaders acknowledge the high value of ESG investment. This demonstrates the growing recognition that ethical supply chains are not only a moral imperative, but also a strategic advantage. By ensuring that suppliers meet high ESG standards, companies can mitigate risks, enhance their reputation, and build stronger, more resilient supply chains.

      Innovating ESG Integration: Tech-Driven Transparency

      Technology plays a significant role in driving transparency and efficiency in ESG integration within procurement and accounts payable (AP) practices. 

      Innovations such as ESG analytics and automation are reshaping how companies measure, report, and act on ESG metrics, including social impacts. These technologies help track compliance, reduce complexities, and foster collaboration among stakeholders working towards shared sustainability and social goals. 

      Given that 91% of companies use third-party solutions for ESG management, the impact of technology in this area is significant. It simplifies the process of measuring and acting on ESG metrics, making it easier for companies to integrate ESG processes effectively and transparently.

      Technological advancements are enabling companies to gain deeper insights into their supply chains, enhancing transparency and accountability. For example, ESG analytics tools can provide real-time data on suppliers’ performance across various ESG criteria, allowing companies to identify potential issues and take proactive measures. 

      The Path Forward towards Supply Chain Sustainability

      Automation technologies streamline data collection and reporting processes, reducing administrative burdens and enabling companies to focus on strategic initiatives. Moreover, technology fosters collaboration among stakeholders by providing platforms for information sharing and engagement. 

      Companies can collaborate on their ESG goals and progress with suppliers, customers, partners and investors, building trust and transparency. This approach is essential for driving collective action towards sustainability and social responsibility.

      The integration of ESG criteria into financial practices and supply chain management is no longer optional—it’s imperative for long-term success. CFOs must lead this charge, leveraging technology and innovative strategies to transform supply chains into catalysts for sustainability. 

      By prioritising ESG, companies can mitigate risks, enhance their reputation, and drive positive societal impact. The benefits extend beyond compliance, offering competitive advantages in attracting conscientious customers, partners and investors. The time has come for CFOs to embrace their crucial role in this transformation.

      • Sustainability

      Scott Robertson, Co-Founder of HaulageHub, takes a look at the role of AI in the UK freight sector’s green ambitions.

      The UK’s haulage industry is a cornerstone of the supply chain, playing a crucial role across sectors from retail to manufacturing. Responsible for transporting 89% of all goods by land, the industry employs hundreds of thousands of people and remains vital to the UK economy. However, it faces significant challenges, particularly in addressing inefficiencies such as empty runs—when Heavy Goods Vehicles (HGVs) travel without cargo. Empty runs currently account for over 30% of all HGV miles in the UK, contributing to increased operational costs and more than five million tonnes of unnecessary CO2 emissions annually.

      These inefficiencies, combined with rising fuel costs and increased interest rates, have placed immense pressure on haulage companies, many of which have struggled to stay afloat over the past year. In response, the industry is turning towards technology, especially artificial intelligence (AI), to streamline operations and promote sustainability.

      AI: A Game-Changer for Efficiency and Sustainability

      AI models have emerged as a promising solution to some of the longstanding issues in the haulage industry. By analysing data and making real-time decisions, AI has the potential to reduce inefficiencies, cut costs, and lower the environmental impact of logistics operations.

      A digital freight marketplace, like that developed by HaulageHub, is an example of how AI is being used to transform how shippers and hauliers connect. This platform utilises AI to match loads with hauliers, particularly those with routes that would otherwise run empty. This not only maximises the use of available capacity but also reduces the number of empty miles travelled, thus cutting fuel consumption and emissions.

      By continuously analysing traffic conditions, vehicle availability, and other real-time factors, AI systems can optimise routes, improve load distribution, and predict vehicle maintenance needs. This ensures trucks are operating at peak efficiency, reducing both fuel use and downtime. Moreover, platforms equipped with AI capabilities can provide detailed emissions data, allowing businesses to track and reduce their carbon footprint, which is increasingly important as the logistics industry looks to improve sustainability.

      A Data-Driven Approach to Reducing Emissions

      The use of AI in the haulage sector is already delivering tangible results. For instance, HaulageHub has successfully reduced the average rate of empty runs from 33% to 19%, a significant improvement that translates into both cost savings and a reduction in CO2 emissions. This highlights the broader potential for AI to create a more sustainable future for the industry as a whole.

      In addition to optimising operations, AI systems also offer flexibility for hauliers of all sizes. Small-scale shippers, as well as large corporate entities, can benefit from enhanced operational efficiency, while also gaining access to tools for managing subcontracting volumes. As technology evolves, further integration of AI in logistics could revolutionise how the industry operates, from route planning to vehicle management.

      The Future of AI in Freight: Beyond Efficiency

      Looking to the future, the haulage industry is poised for even greater transformation. AI is not just improving operational efficiency but also opening the door to innovations such as autonomous trucks, advanced telematics, and the integration of electric and hydrogen-powered vehicles. These developments will be key to reducing the sector’s environmental impact and moving towards a zero-emission future.

      Companies like HaulageHub, with a focus on AI-driven solutions, are at the forefront of these changes. Their plans for a Transport Management System in a SaaS format and expansion into telematics and tachograph management illustrate how AI can be leveraged to improve transparency and efficiency in logistics. By exploring the use of electric and hydrogen powered vehicles, the industry can further reduce its reliance on fossil fuels and accelerate the shift towards more sustainable freight transport.

      The integration of AI in the UK’s freight industry is not just about addressing inefficiencies; it’s about driving the sector towards a more sustainable future. As the industry faces increasing economic pressures and growing environmental concerns, AI offers a pathway to greater efficiency, reduced emissions, and improved profitability. By embracing these innovations, the UK’s haulage industry can stay competitive and resilient, ensuring its continued role in supporting the economy while minimising its environmental impact.

      • AI in Supply Chain
      • Sustainability

      Trevor Dearing, Director of Critical Infrastructure Solutions at Illumio, explores how to protect the modern supply chain from a rising tide of cyber crime.

      Global supply chains continue to be a favourite target for cybercriminals. This isn’t surprising given that targeting a single supply network can allow threat actors to cause large-scale disruption. For cybercriminals, it’s an opportunity to hit multiple targets with a single arrow. 

      Since 2018, the number of businesses impacted by supply chain attacks has increased by over 2,600%. According to ITRC’s data, more than 54 million organisations were impacted last year across 242 breaches. 

      These statistics and recent high-profile attacks on giants like Toyota, the NHS, and Ministry of Defence indicate that businesses need to rethink their approach to conventional cybersecurity across the entire supply chain.  

      The old ways of dealing with cyberattacks are no longer enough. Traditional methods like perimeter defences, incident response, and backups are still important practices for cyber hygiene, but they don’t complete the cyber resilience puzzle. 

      In the modern threat landscape, businesses need to anticipate breaches and arrange their defences accordingly. There is an increasing volume of potential entry points for an attack. Almost every supplier is now incorporating cloud assets within their networks, which is greatly expanding the attack surface. 

      So, breaches are inevitable, and the focus should be on containing them.

      Cloud migration and its new attack vectors

      The growing adoption of the cloud has been a blessing for supply chains. However, rushing into cloud adoption without the necessary safeguards and pre-emptive strategies puts businesses at risk from cybercriminals. 

      For instance, traditionally isolated systems, such as ICS and OT systems, are now connected to cloud infrastructures. These physical systems were designed without security in mind and don’t have the same in-built security mechanisms as other internet-facing assets. 

      So, integrating them with cloud systems automatically instils a certain extent of vulnerability. This is why cloud-based attack vectors have significantly increased across supply chains. Cybercriminals are constantly exploiting vulnerabilities in cloud configurations, APIs, and third-party services. 

      For example, attackers can gain access to cloud environments through phishing campaigns, targeting employees or by exploiting weak authentication protocols. Once inside, they can move laterally across the network, potentially reaching critical operational systems. This level of exposure is deeply concerning for businesses with internet-facing assets across their supply chains.

      Additionally, the use of third-party cloud services introduces further risk. Companies today have to rely on the security practices of their vendors, which may not always align with their own security standards.

      Disruption and downtime over data exfiltration

      Cybercriminals also recognise that disrupting supply chains can be far more damaging (and profitable) than stealing data. For instance, the attack on Toyota led to a temporary shutdown of production at multiple plants. The incident highlighted that even a short-lived disruption can have significant ripple effects throughout a global supply chain, especially on businesses operating on just-in-time (JIT) production schedules.

      For ransomware gangs, targeting operational up-time also increases their likelihood of attaining a ransom. In 2023, for example, the CLOP ransomware group, exploited a zero-day vulnerability in the MOVEit software, which is widely used for secure file transfers. This breach impacted hundreds of companies globally within the software supply chain, including manufacturer Leggett & Platt as well as oil and gas multinational Shell. As a result, some of the businesses ended up paying around $75 to $100 million in ransom to CLOP. 

      The interconnected nature of global supply chain networks means that manufacturers can’t prevent every attack. So, the key is to minimise an attack’s impact. The only way to achieve this is by adopting an assume-breach-mindset and implementing risk-based strategies to contain the exposure. 

      Towards a “break-glass style” response system with Zero Trust

      Ultimately, the onus of mitigating these supply chain risks falls on the customer-facing businesses themselves. This means companies that leverage the manufacturing or production supply chains to market the products to the general consumers.

      Businesses today need a proactive “break-glass style” emergency response system across its supply chain. They must implement predefined emergency protocols to prioritise operational continuity. The Zero Trust model is the perfect strategy to establish this practice. 

      A Zero Trust security model operates on the principle of “never trust, always verify.” It’s a dynamic security strategy for building cyber resilience, and assumes that threats can exist both outside and inside the network.

      At the core of Zero Trust is the principle of least privilege access. Users and devices are granted only the permissions necessary to perform their tasks. This minimises the attack surface by ensuring that even if a system is compromised, the potential damage is limited. 

      In practice, Zero Trust means that unauthorised access is blocked at every level. So, it becomes exceedingly difficult for cybercriminals to move laterally across the network. 

      5 steps to establishing a Zero Trust architecture

      The most effective approach to building a Zero Trust network architecture starts with a 5-step model. 

      Step 1: Identify 

      Primarily, organisations must identify essential systems required to maintain production during an attack. They must identify where their sensitive data is stored, who accesses it, and how it’s used. This requires a clear and simplified data classification system. 

      Step 2: Map 

      From there, security teams must map out how the sensitive data flows across the network, between users and resources. In this phase, it’s important to engage stakeholders like application and network architects to create accurate transaction flow maps. This is crucial for effective data security.

      With this knowledge, security teams can now start implementing Zero Trust Segmentation (ZTS) or microsegmentation technologies.

      Step 3: Implement 

      ZTS divides networks into isolated segments. Each segment has its own security controls, containing breaches and protecting critical systems. Unlike traditional security methods, ZTS is dynamic. It allows quick, flexible security adjustments, which are essential for protecting hybrid environments. 

      This ensures that even if one segment of the supply chain network is compromised, the entire operation isn’t disrupted. In fact, in a recent survey with 1,600 IT and security decision makers, we found that 93% consider ZTS as a critical component to their cloud security strategy.

      Step 4: Automate 

      The next phase is to establish an automated rule base to enforce access control and inspection policies. Security teams must define rules that strictly limit access to each network segment based on need-to-know principles. All traffic, both internal and external, must be logged and inspected to detect potential threats and identify areas for improvement. 

      Step 5: Monitor and maintain

      Finally, make sure to continue to monitor and maintain the network. As businesses become more globalised, supply chain networks will only become larger and more complex. Cloud migration and digital transformation will continue in full swing. And for cybercriminals, the attack vectors will only increase. 

      However, with Zero Trust in place, attackers can’t force the mass-scale disruption they strive for every time. Shifting to a break-glass style response system with Zero Trust is the only viable way for supply chains to become more resilient.

      • Digital Supply Chain
      • Risk & Resilience

      Tony Mannix, Strategic Advisor – Retail Logistics at GXO, takes a closer look at the rise of pre-loved fashion and how retailers can respond with procurement.

      The rise of ‘pre-loved’ fashion has been undeniable in recent years. Second-hand purchases in the UK reached £1.2 billion and Vinted has grown to a third of the size of Asos. This trend is driven by the increasing demand for sustainable choices among consumers and businesses. This is further encouraged by the cost-of-living crisis prompting individuals to reconsider their wardrobe expenditures.

      Platforms like eBay, Vestiaire, and Vinted have become dominant players in the eCommerce space. These second hand platforms have emerged as go-to destinations for consumers seeking to add new pieces to their wardrobes. In addition to these platforms, initiatives and trends like the “Rule of five”, started by fashion consultant Tiffanie Darke, challenge consumers to buy no more than five new items a year.

      While this shift promotes sustainability, it creates a market that traditional retailers are not directly part of. This leads to challenges for the industry. Revenue loss is obvious. However, companies also have less control over the quality of items being sold bearing their brand name.

      However, with the right partnership, retailers have the opportunity to establish their own pre-owned fashion channels. These are driving revenue, attracting new customers, and strengthening relationships with existing ones. This approach is particularly crucial in light of impending legislation encouraging businesses to take more responsibility for pre-owned fashion.

      The Challenges of Unregulated Peer-to-Peer Commerce

      The growth of peer-to-peer commerce is forcing established retailers to try and find ways to positively partake in this movement, even though many of the products being sold on the current platforms do not go back in their supply chain directly.

      Brands lack control over the provenance of products listed on peer-to-peer marketplaces. This can pose risks in the form of counterfeit goods tarnishing their reputation, with sub-par quality associated with their label. This issue was highlighted when a US jury found that luxury reseller ‘What Goes Around Comes Around’ had sold counterfeit goods and falsely implied its affiliation with Chanel.

      The overall sustainability of the brand is also an important factor. The fashion industry is under immense pressure to reduce the number of garments going to landfill. No matter where the consumer buys their product, the responsibility will continue to be on the brands to proactively think about their own sustainability commitments.

      Seizing the Opportunity

      To evolve with customer desires, participating in the second-hand movement is crucial for brands. Research from ThredUp shows that over half of Gen Z prefer brands that offer both new and used items.

      Yet how can retailers retain control over their brand and the products being resold?

      Partnering with the right experts can help retailers to embed sustainability into their brand, create new revenue streams, and extend the lifecycle of clothing through the resale of pre-loved items. This strategy, combined with repair, cleaning, and restoration capabilities, attracts new customers and underscores the value of buying directly from the brand.

      In 2022, GXO collaborated with the luxury children’s clothing brand Polarn O. Pyret (PO.P) to develop an integrated pre-loved solution. Customers can register trade-ins online, send unwanted items to the distribution centre, and receive vouchers for new or pre-loved stock. The extensive rejuvenation service ensures items are in prime condition for resale, maximising their value and preventing disappointing their customers.

      PO.P offers pre-loved items with new season stock on its website, offering customers a seamless shopping experience. This approach has been well-received, with demand exceeding expectations and expanding PO.P’s customer base, as 35% of pre-loved shoppers were new to the brand. 

      The integration of new and preloved within the same webstore offers more choice for the consumer but equally importantly does not differentiate between customers who may be seeking either option, This creation of a single channel for the brand has proved powerful as it treats all customers in the same manner and offers the same brand experience. It is now common for customer orders to feature both new & preloved items.

      Collaborating for Growth

      PO.P’s approach not only capitalised on the demand for pre-loved clothing but also enhanced customer loyalty and brand connection. This strategy is vital for retailers in a competitive market, as diverse services appeal to various audience groups.

      With external factors like the cost-of-living crisis and environmentally conscious shoppers driving the second-hand market, there are no signs of this trend slowing down. Retailers must define a strategy to offer the experiences and products customers seek elsewhere. Doing so will add value to the brand and promote sustainability. Adapting to these changes is essential to avoid losing out to competitors.

      GXO’s solution set allows for rapid deployment, enabling brands to swiftly enter the pre-loved market with sector leading capabilities The Polarn O.Pyret experience has demonstrated that when approached in the right manner, with a partner with expertise, Preloved can offer a commercially viable solution that is brand enhancing and delights customers.

      • Sourcing & Procurement
      • Sustainability

      Carlos Arnal, product marketing manager at WatchGuard discusses supply chain risk and how to increase an organisation’s resilience.

      In today’s digital landscape, businesses heavily rely on third-party software for their daily operations. This reliance has led to a surge in sophisticated software supply chain cyber attacks. These attacks exploit vulnerabilities in external tools or services to gain unauthorised access and compromise systems. The growing dependence on external software solutions amplifies the risk for organisations. Therefore, it’s essential that they take steps to bolster their security across the entire supply chain. 

      According to Verizon’s latest Data Breach Investigations Report (DBIR), cyber attacks in the supply chain have shot up by 68%. In addition, around 15% of all breaches reported in 2023 affected third parties. This represents a significant increase compared to the 9% reported in 2022. 

      The escalating risks within the supply chain present an ever-growing and alarming threat. The rising danger poses a concerning challenge to businesses of all sizes. Protecting customers’ and partners’ sensitive information from potential cyber attacks needs to be a priority, especially to mitigate new and emerging threats that are spreading fast among cyber criminal operators.  

      Risk assessment: an ally for cybersecurity systems 

      When using external providers, certain services and users will be managed outside the company. This means that people who are not part of the organisation are able to gain access to its systems. This complicates the task of detecting breaches and potential threats in the devices that form part of the supply chain. Unfortunately, this then meaningfully increases the likelihood of cyber attacks through this channel.  

      In light of this, the solution lies in ensuring a comprehensive analysis of the security status of all endpoints with access to an organisation’s systems.  

      It is only by conducting a thorough risk assessment, that companies can proactively identify current threats and potential risks and vulnerabilities across all their devices. This information enables organisations to tailor their cybersecurity systems to address any detected gaps, thereby mitigating the risk of attacks and protecting their data and confidential information. 

      Other tips to mitigate cybersecurity breaches  

      Once the vulnerabilities in devices have been identified, companies need to establish the solutions that are appropriate to protect themselves against these weaknesses and be able to remediate them. Some of these key measures include:  

      Patch Management 

      A risk assessment will pinpoint the weaknesses in your devices and servers, but what then? With Patch Management solutions, companies are able to plan, implement and manage the entire patch lifecycle. This allows them to prevent and mitigate vulnerabilities that could compromise endpoint cybersecurity. 

      Implement or adopt a zero trust approach  

      One of the risks of allowing third parties to enter a company’s systems is the possibility of losing control over who accesses sensitive information. Implementing zero trust technologies promotes a default-deny approach, allowing that only processes and applications classified/verified as trusted can run on the systems. 

      Establish a unified cybersecurity platform 

      Given the exposure to potential third-party vulnerabilities, it’s best to implement layered security to protect from all angles in case one security control fails. By adopting an integrated platform, businesses are able to create a cybersecurity mesh that safeguards networks, devices, users, and data from any threat across all aspects of their business model. 

      Establishing a cybersecurity protocol to mitigate supply chain risk is a serious responsibility for organisations. To ensure that the measures implemented are as effective as possible, it is essential to first run a risk assessment that detects vulnerabilities and threats throughout the supply chain. This will help strengthen protection against new and evolving threats.  

      • Risk & Resilience

      Business groups warn of “devastating impact” of an ILA strike in ports along the US’ East and Gulf Coasts on supply chains.

      Just six months after the partial collapse of the Francis Scott Key Bridge in Baltimore, Maryland, threw the US’ supply chain into disarray, the country’s logistics operators are staring down the barrel of another major disruption. 

      “Things were just starting to get back to normal,” Kenneth Sanchez, CEO of Chesapeake Specialty Products, told Reuters on Wednesday. 

      However, unlike the unexpected, accidental closure of Baltimore’s port, the looming crisis is both predictable and entirely avoidable. The 85,000-strong International Longshoremen’s Association (ILA) is preparing to begin industrial action that will halt operations at every major port on the US’ East and Gulf coasts. 

      The strike is taking place in response to attempts by the United States Maritime Alliance (USMX) to get the union to accept what ILA President and chief negotiator, Harold J. Daggett, calls “a low-ball wage package.” 

      A low-ball offer 

      Refuting repeated claims by the USMX that negotiations over an upcoming contract had broken down, the ILA claimed in a statement that the two sides have communicated multiple times in recent weeks. The stalemate remains in Master Contract negotiations because USMX continues to offer ILA longshore workers an unacceptable wage increase package, according to an ILA statement. 

      “They call me several times each week trying to get the ILA to accept a low-ball wage package,” Daggett said. “My ILA members are not going to accept these insulting offers that are a joke considering the work my ILA longshore workers perform, and the billion dollar profits the companies make off the backs of their labour.” 

      The East Coast ports handle approximately 35-40% of US imports and exports, while the Gulf Coast ports account for 10-15% of imports and 20-25% of exports.  

      A full scale shut down of 36 ports in the Eastern United States could have major consequences for the country’s supply chain. Last month, the five biggest ports on the East and Gulf Coasts processed about 24,766 40-foot containers of imports and exports, with a total value of around $2.7 billion per day.

      2024’s biggest supply chain disruption? 

      If the ILA goes on strike, it could represent a disruption of similar magnitude to the drought in the Panama Canal earlier this year. A report by industry intelligence firm project44 highlights a previous example of the impact that a stevedore strike can have on US supply chain. Their report notes that the US West Coast experienced similar disruptions in June of 2023 due to delays in reaching a new contract. 

      On June 3, 2023, after working without a contract since July 2022, union workers staged a “no-show,” where none reported to work for the day.  After just one day of closures, it took three weeks for ports to return to normal dwell times, with delays increasing by as much as 148%. If a full-scale strike occurs on the East Coast, it would likely last longer than one day, and the disruptions would be even more severe. For every one week of an ILA strike in 2024, project44 estimates it would take 4-6 weeks to fully recover.  

      “Ahead of the peak holiday retail season, extreme weather and industrial strikes are heightening pressures for supply chains. With supply chain disruption becoming the norm, organisations must become more agile to avoid lasting impacts; data insights are key to this,” said Renaud Houri, EVP of International Markets at project44. “In layman’s terms, this means businesses have a holistic view of their operations to make better, faster decisions in the face of disruption, therefore resulting in superior on-time deliveries and happy customers.” 

      Rail, air, and the West Coast

      A strike or work stoppage would severely limit the amount of cargo that can be processed at US ports, and organisations are already scrambling to find workarounds. 

      These have included retailers, manufacturers and other importers rushing to import goods ahead of the strike deadline to avoid having their cargo stuck. Other organisations have turned to costly air freight alternatives, or rerouted shipments to West Coast ports, completing their journeys via rail

      A prolonged strike by the ILA, alongside an ongoing strike by 30,000 machinists at Boeing that Reuters reports has already started affecting the embattled aircraft maker’s supplier network, could allegedly harm growth in the US job market next month ahead of the November presidential election. 

      • Risk & Resilience

      Philip van der Wilt, SVP and GM EMEA at Samsara, explores the role of AI in transforming the logistics space.

      When it comes to using artificial intelligence (AI) in road transport, it no longer falls into the category of “too new to try”. Instead, it is a market-tested technology that is driving results across the supply chain, particularly the logistics sector. 

      In fact, advancements in AI have ushered in a new era of transformative technology, as well as speculation about how it will revolutionise the world — not least in the world of transport and logistics. 

      While AI’s potential might not be immediately obvious to everyone, its impact in this sector is already profound. From enhancing safety to reducing costs, AI is driving significant improvements across the board and streamlining workflows for fleet managers and drivers alike.

      Driving safety forward

      AI’s integration into existing technologies opens the door for significant improvements in driver safety, and dashcams are an excellent example of this. When enhanced with AI, dashcams can monitor driver behaviour in real-time, helping to prevent incidents and save lives.

      For instance, AI can detect distractions such as a driver picking up their phone or signs of fatigue, automatically issuing alerts that prompt drivers to refocus or take necessary breaks. These interventions go beyond passive observation and instead, actively contribute to preventing accidents.

      Wholesale food distribution giant, Sysco, reported significant results since implementing Samsara’s AI safety system, including a 40% decrease in on-road accidents within just three months. In addition, it also witnessed a 17% reduction in harsh driving events and a 15% reduction in insured costs year-on-year – and they’re not alone.

      M Group Services, which equipped over 8,500 of its vehicles with dual-facing AI dashcams, saw an almost 30% reduction in incidents per million miles.

      AI is facilitating never-before-seen levels of safety, and its potential for growth in this area is exponential. As more businesses integrate these technologies into their logistics functions, our roads will become safer, meaning that all drivers will reap the benefits of this new standard of road safety.

      Returns on AI investment

      Not only does AI save lives, it also helps to mitigate risk and reduce costs. By minimising accidents and monitoring driving behaviours, AI can save businesses money in terms of repairs, replacing damaged vehicles and hefty insurance premiums.

      Moreover, by crunching much larger amounts of data than humans can, AI can spot anomalies such as excessive fuel use among particular drivers, vehicles, or routes, and identify changes that can lead to greater efficiency.

      Beyond cutting costs out on the roads, AI is saving time and money in the back offices too. By automating workflows and removing the need for human intervention on more menial, time-consuming tasks, AI has become a real game changer for an industry where many are often still reliant on manual, pen-and-paper based processes.

      Another impactful application of AI is predictive maintenance. By using real-time data and performance history, AI allows businesses to forecast when a vehicle is likely to need maintenance. As a result, fleet managers can get the most value for their money as AI allows them to carry out maintenance exactly when needed.

      A glimpse into the future

      The benefits of AI are constantly evolving and embracing this technology early on will provide significant long-term benefits to businesses. In the next five years, AI is poised to seamlessly connect all parts of the supply chain, as fleet leaders increasingly turn to AI not only to cut costs and improve safety in logistics, but ultimately to remain competitive. 

      Samsara’s new State of Connected Operations report found that, of the 1,500 operations leaders surveyed, more than half (51%) reported that their organisation is already using AI in some capacity.  Of those leaders, 90% also said that their employees feel positive about the technology. While this is a promising start, there’s still a great deal of progress to be made to ensure fleet organisations are fully realising AI’s potential across all operations.

      Trust and AI

      However, with so much happening at pace, it’s crucial to make the right preparations and to stay focused on deploying AI responsibly. Issues such as privacy, data quality, and data protection are all potential obstacles to the implementation of AI, which could undermine trust if left unaddressed.

      In fact, the top three barriers to implementing AI technology solutions are data quality and availability (41%), privacy and security concerns (40%) and integration with existing infrastructure (39%).

      Of those already using AI, our research shows that the majority report that their organisation is currently deploying privacy and data protection measures (58%), establishing AI ethics and principles (57%) and making efforts to mitigate bias in AI (54%). 

      These priorities indicate that organisations are taking a measured and thoughtful approach to AI implementation, focusing on addressing legal and ethical risk before tackling logistics and rollout.

      Data fuels AI 

      Ultimately, one thing has to be understood from the outset: AI is fuelled by data. The better the data, the better the outcomes. So investing in AI also means fleets also need to invest in digital management platforms capable of providing accurate real-time data.

      For those already on the digital transformation journey, AI is opening up a world of possibilities. For those yet to start, AI will increasingly be built into applications as standard.

      • AI in Supply Chain

      Laure El Mhadder, Sales Director Electronics, and Alain Gorrec, Integration Advisor at Milexia France, explore the market liberalisation trend in the EU’s rail sector.

      Over the last decades, the European Union (EU) market liberalisation movement. has rejuvenated the region’s rail sector. The overarching goal has been to bolster competitiveness and attract innovative contributions to railway sustainability and efficiency from new incumbents and firms operating in diverse transport markets.

      Different countries have chosen different paths, leading to varying results. And for the many successes, there have been failures too. In this article, we evaluate the lessons learned from railway market liberalisation. We also highlight why a robust and proactive supply chain strategy makes the difference between those who retain a competitive advantage and those firms who get derailed after tender victory. 

      Market Liberalisation – Leading by Example

      Eliminating the exclusive rights of existing operators for commercial long-distance railways has been a core objective of the EU’s railway liberalisation movement. The initiative was first introduced with the fourth railway package back in 2016. 

      The first railway package came into effect in 2001. The legislation was a significant evolution in rail market liberalisation, making public tendering a standard process.  Railway companies, for the first time, were given the chance to enter this market under a free competition model that respects the principles of transparency and non-discrimination. This opened up opportunities in the European railway market for any European rail operator, public or private, from any country. Competition between incumbents and new players created greater capacity and inspired new technology innovation and services for travellers. 

      Today, SNCF cominates France’s passenger rail market. The market is heralded as achieving the most significant transformation by railway liberalisation. The shift has created many opportunities for new incumbents to win contracts formerly reserved for national operators. For example, Italian rail operator Trenitalia has operated Frecciarossa trains on the Paris–Lyon line since autumn 2021. Likewise, Spanish rail operator Renfe has served the Paris–Marseille corridor since 2024. France has seen a significant increase in the number of private rail operators. These operators offer a range of services from high-speed trains to regional commuter services. Also, companies such as Ouigo, a subsidiary of SNCF have disrupted the traditional rail market. They’ve done this by offering low-cost, high-quality services that appeal to a wider range of passengers.

      Challenges and setbacks 

      However, for the many tender successes, there have been failures too. The open-access rail co-operative Railcoop had been hoping to rejuvenate the Bordeaux to Lyon route but failed to ever launch the passenger service and went into liquidation. While it is not clear what exactly went wrong, what we can be sure of is that Railcoop was unable to match its intentions outlined in the tender application. A compelling entry-level strategy was not backed up by a robust supply chain management infrastructure and a sustainable operating model. 

      The opportunity for private companies to contribute to the development of the country’s railway infrastructure is a highly lucrative one for companies of all sizes and specialties. Only if they get it right for the long haul. Entering a highly competitive new market presents uncertainties and risks, and strict compliance procedures need to be adhered to. On top of this, an aggressive price strategy coupled with a low carbon footprint should always be a top priority for any tender application.

      At Milexia, we recommend a strategic four-stage process to gain and maintain a footing in a competitive railway liberalisation market. With grave consideration, that the successes of stages one and two will become irrelevant if they cannot be backed up and reinforced by stages three and four. 

      Stage One: The Qualification Phase

      The tendering of rail services subject to Public Service Orders (PSOs) is a long and complex process and sets limited timescales for bids meaning bidders have limited time to prepare their offers.

      The perimeter of the tender must be properly defined and qualified from the outset. New entries should identify the robustness of their value proposition against the perimeters of the tender, including operating costs, maintenance costs, and rolling stock availability. 

      Ensuring that rolling stock is available to enter the market in the timeframe set by the tender requires an agile business model to be in place to adapt to changing market conditions and demands. Any tender application must demonstrate a commitment to safety, quality, decarbonisation, and sustainability, showcasing relevant certifications and innovative practices. And must be backed with hard evidence. 

      Stage Two: Project Tenders Offer 

      For driving the contract forward ideally, new entrants into the railway market should consider assigning or outsourcing a skilled bid team – experts in rail engineering with strong technical skills, project management, and financial expertise. And who can advise on how best to utilise existing in-house solutions and optimal procurement needs and standards in line with a roadmap for new product development. 

      Stage Three: Supply Chain Management

      From stock availability, quantities according to their needs, and adapting the multiple small sites available to serve the infrastructure.  The winning organisations are those that can develop a forward-thinking approach for every part of the supply chain. This should range from rolling stock procurement and demand planning to parts delivery and maintenance. And show agility for production delivery in line with defined timelines and with stock approved by the relevant authorities.  

      Stage Four: Ongoing Installation and Maintenance

      Effective planning, coordination, and execution are essential. Without them, it’s impossible toensure the timely completion of projects while maintaining high standards of quality and safety. And must be backed by a solid financial foundation for market agility. We recommend having access to financial capital for at least four years. Additionally having a dynamic outfit that can ramp up and adapt to fluctuating market dynamics is also valuable.

      It is about being meticulous with the coordination of the lifetime of a project and building strategies aligned to KPIs. From planning and scheduling site installations, implementing safety protocols and regulations for compliance to managing resources, and organising logistics. 

      For a typical rail operator project, this should include: 
      1. Implementation and monitoring of the renovation operation.
      2. Proper identification of the components necessary for each application and meeting the operator’s technical requirements. 
      3. Complete traceability of the source, origin, and quality of the components supplied.
      4. First-class productivity and industrial performance through the implementation of a structured process. 
      5. The delivery of ready-to-use named-out kits made available for the trains undergoing maintenance, in line with the schedule requested by the operator.
      6. Economic performance indicators and reporting for the operator.   

      Conclusion: Staying On Track with Railway Liberalisation

      There is a huge opportunity for new incumbents to make their mark and profit from the railway liberalisation movement, but winning the tender means nothing without a robust supply chain infrastructure in place. 

      Navigating opportunities from EU rail liberalisation must be guided by specialised expertise for the definition, realisation, monitoring, and maintenance of any project. Only then can new incumbents bring and sustain an active contribution to the sustainability and effectiveness of our railways.

      • Collaboration & Optimization
      • Sourcing & Procurement

      Dr Marc Manzano, general manager, cybersecurity at SandboxAQ and Ryan Hurst, SandboxAQ advisor, explore the role of cryptography in the software supply chain.

      Securing the software supply chain has become a critical priority due to high-profile breaches and increasing regulatory oversight. International organisations like CISA and NIST stress the urgent need to improve how we inventory and manage the software and services we depend on. 

      The growing complexity of modern software systems, coupled with the potential for widespread disruption from a single compromised component, underscores this heightened focus. Recent events, such as the SolarWinds breach, have demonstrated how interconnected systems can be exploited. Similarly, the recent outage related to CrowdStrike’s software update highlights how a single error can rapidly cascade throughout the global economy. 

      Regulatory bodies worldwide, including the European Union with its EU Cybersecurity Act, are actively working to address the supply chain vulnerabilities that contribute to these incidents.

      As security leaders, we must not overlook a crucial aspect of the software supply chain: cryptography. By establishing comprehensive standards for cryptographic usage, key management, and continuous monitoring, we can more effectively address these challenges.

      The Problem: Inadequate Cryptographic Management

      Modern software relies on multiple third-party libraries, open-source components, and numerous dependencies. 

      This interconnectedness can hide vulnerabilities and create security blind spots, which is also true for these components’ cryptography. According to the Verizon Data Breach Investigations Report (DBIR), leaked credentials—often synonymous with leaked cryptographic keys—are among the most common attack vectors. These machine and workload keys can become compromised due to inadequate key management practices. This then grants attackers unauthorised access to sensitive systems and data.

      The lack of automated tooling to efficiently manage the myriad of software components often leaves organisations unaware of the deep security risks associated with their software dependencies. Outdated or insecure libraries, such as those using broken cryptographic algorithms or outdated protocol versions, may be integrated into critical systems. This makes it difficult to fully understand and address the risks posed by poor cryptographic practices in your software supply chains and deployments.

      Ensuring that third-party vendors adhere to modern cryptography management practices is essential for mitigating these risks. Widespread use of weak cryptography can expose the entire supply chain to catastrophic vulnerabilities. 

      The Heartbleed bug in OpenSSL, used by many third-party providers, exposed millions of systems to data breaches, underscoring the need for cryptographic standards and monitoring for them in your supply chain. The Debian OpenSSL bug, where a change in the code led to predictable keys, affecting millions of SSL/TLS keys, highlighted how critical it is to ensure robust and secure implementations. Additionally, regulatory requirements such as HIPAA mandate the encryption of ePHI, with non-compliance leading to significant fines, as seen in the $16 million Anthem Inc. settlement. This highlights the critical need for robust cryptographic management to avoid legal repercussions and ensure compliance.

      Mitigating Hidden Threats

      There are many vulnerabilities that affect cryptography specifically, from insecure cryptographic libraries and implementations to inadequate monitoring and outdated cryptographic protocol versions. 

      Ensuring compliance with good cryptographic management practices, robust key management, and comprehensive reporting are the first line of defence. Regular audits, integrated into procurement processes, help maintain up-to-date and effective cryptographic practices. Continuous scanning and threat intelligence feeds keep organisations ahead of emerging threats. 

      Organisations must also stay informed about changes in industry standards and update their practices accordingly to ensure ongoing compliance. Recognising the importance of these practices, the White House’s Executive Order on Improving the Nation’s Cybersecurity has mandated the discovery and inventory of cryptographic keys to bolster software supply chain security.

      Operational Continuity is another critical aspect of securing the software supply chain. Disruptions caused by outdated certificates, cryptographic migration issues, or attacks significantly impact business operations. For example, the Microsoft Teams outage in 2020, caused by an expired certificate, demonstrated how failures in certificate management could take down business-critical services. This incident highlighted the importance of maintaining robust cryptographic management practices to ensure operational resilience and reduce the risk of business disruptions.

      Supply chains often involve the exchange of sensitive data and proprietary information between partners. 

      Without modern cryptography management measures in place, it is challenging to reduce exposure to cryptographic vulnerabilities or to provide evidence for compliance with cryptography-related guidelines. The Codecov attack in 2021, where attackers manipulated scripts to exfiltrate sensitive data, highlights the necessity of secure cryptographic practices to protect intellectual property and maintain data integrity. 

      This breach demonstrated how vulnerabilities in the supply chain could be exploited to access and steal valuable information, emphasising the criticality of having robust cryptographic measures in place.

      Robust Key Management

      Implementing automated key rotation and revocation processes is essential to reduce the risk of key compromise. However, focusing on last-mile key management is equally important. 

      This means ensuring secure key distribution and usage at the endpoint, where credentials and keys are often most vulnerable. Many organisations fall short by focusing solely on “secret sprawl”. They focus too much on centralising keys and credentials but then distribute them across deployments without proper controls. This narrow focus leads to “secret spray,” increasing the risk of key leakage and unauthorised access. A stark example of the consequences of inadequate last-mile key management is the Storm-0558 incident. Chinese hackers were able to forge authentication tokens by exploiting poorly managed cryptographic keys. This breach highlighted how failures in endpoint key management can lead to significant security incidents. It also emphasised the need for robust last-mile key management to close the loop on end-to-end security.

      Additionally, employing tools that provide real-time monitoring and alerting for cryptographic missteps and policy violations is crucial. Similarly, requiring vendors to maintain and regularly update Software Bills of Materials (SBOMs) helps ensure transparency of all components. SBOMs provide a detailed inventory of all software components. However, they do not capture the cryptography they use. This makes it hard to identify and address cryptographic vulnerabilities when they become known. 

      This is where discovery tools come into play. They help you hold vendors accountable for their security promises by discovering how they use cryptography, and how you use the cryptographic capabilities of their products.

      The Approach: Centralised Cryptography Management

      Incorporating strong cryptographic management into the heart of software development and operations is essential for overcoming these challenges. 

      A centralised cryptography management system ensures that all software components comply with rigorous cryptographic standards. This system should automate key management, continuously monitor cryptographic activities, and ensure adherence to industry regulations and standards.

      Final Thoughts

      Protecting the software supply chain requires a proactive strategy in cryptographic management. 

      Organisations must adopt comprehensive standards, implement effective key management practices, and maintain detailed inventories of cryptographic usage. Continuous monitoring and thorough reporting are equally crucial to ensure ongoing security and compliance.

      • Digital Supply Chain
      • Risk & Resilience

      Shelley Pierre, commercial director of IPP, argues the case for positive chaos in the battle against climate change.

      A hummingbird flapping its wings in one part of the world can generate untold consequences in another, according to the widely-respected scientific ‘chaos theory’. 

      Such small and incremental actions have defined the wider climate debate led by Secretary General of the UN, António Guterres. The Secretary General warned that ‘humanity is in the hot seat’ after July 2024 was confirmed as the hottest month in human history.

      Humanity’s most vulnerable in the climate “hot seat”

      Small islands such as the low-lying Maldives, which have done nothing in terms of creating the climate challenge, are now at risk of being swallowed up by the overheated oceans that surround them. 

      To prevent this, the industrialised nations must dramatically cut emissions and roll out robust renewable energy strategies to limit the global temperature rise to 1.5°C by the end of the decade. 

      There have been some positive steps from sectors, such as retail with renewable and reusable packaging and the ability of customers to return single-use plastics to supermarkets such as Tesco and Sainsburys, but there is still a long way to go. 

      The mood music is positive but not everyone is singing from the same hymn sheet.

      Renewable packaging shows promise, but no one’s falling over themselves to make big moves

      The Grocer, the food industry bible, has published stories recently of renewable packaging trials ending positively. However, organisations haven’t followed these successful trials with wider rollouts across retail estates. We have even seen the re-introduction of disposable cups in one well-known store which had successfully trialled customers bringing their own in to claim a free coffee with their shop.

      The never-ending saga of the faltering deposit return schemes (DRS) in England and Scotland, designed to incentivise the return of the 13 billion plastic bottles sold in the UK every year, has also not helped the situation.  

      All of this has sent mixed messages to customers who want to be able collectively flap their wings to do their bit for the planet.

      The supply chain business has been developing circular economy for more than a century. As such, we understand the wider need to creatively reduce the carbon footprint through logistical optimisation.

      Networks of pallet repair centres feed the European operation that ultimately reduce empty running and unnecessary miles driven, which ultimately save costs and the climate as part of what we refer to as ECOnomics.

      Sadly, only around 9% of global supply chain companies can claim to be part of the circular economy, a figure that has remained stubbornly low for many years.

      Time for positive chaos 

      Unfortunately, we do not have the luxury of many years to resolve the climate challenge – businesses need to act now. Retailers are taking a lead and championing the small incremental changes that are necessary to create larger, positive change and lead by example to help educate customers and suppliers to do the same. 

      Necessity is the mother of invention and there has never been a more pressing time than now to get in a flap about affecting that change and creating a positive chaos for us all.

      • Sustainability

      Jon White, Chief Commercial Officer EMEA at InXpress, emphasises the importance of maintaining a human presence in an increasingly automated supply chain.

      The future of automation is dynamic, exciting, and here. Increaisngly, automation is playing a crucial role in mitigating supply chain disruptions. It’s also increasing resilience across the courier industry, gaining more momentum with each year. It serves to address some of the industry’s most pressing issues and helps companies make more informed decisions to optimise efficiency

      However, as we adapt to artificial intelligence-powered tools, maintaining the human touch remains an important factor as we usher in the new era of automation.

      The combination of advanced technologies and human intuition in decision making and strategic tasks can create a harmonious balance in the courier industry, as well as keeping it ethical and transparent.

      Ushering in a new era of automation

      Automation is increasing efficiency in supply chain and logistics, freeing up employees’ time and handle demand. Incorporating new technologies like AI also enhances decision-making, allowing for the automation of increasingly complex and valuable manual tasks. Because AI can analyse vast amounts of data quickly, AI-powered automation can help to provide actionable insights into problems ahead of time as well as being able to predict potential disruptions in deliveries for example. It allows businesses to take proactive measures against potential problems before they can escalate.

      A significant improvement that automation can help deliver is enhancing supply chain visibility. By having end-to-end visibility, companies are now able to track the movement of goods and quickly respond to issues. Consumers nowadays are able to see their online delivery from point A to point B, and businesses should expect to see the same visibility in the supply chain.

      Automation filling in the gaps 

      Importantly, automated inventory management systems ensure that warehouses don’t run out of stock. When inventory levels fall too low, automated inventory management systems can trigger a replenishment order, ensuring stock is kept at optimal levels at all times. With the integration of AI, these warehouse automation systems can even forecast demand ahead of time.

      There is always a surge of demand during the summer months as consumers plan ahead of time for the holiday season. When there are sales and stock is still high, customers like to purchase their Christmas presents, creating a surge of demand. 

      Warehouse automation technologies reduce human strain by speeding up tasks that take up employees’ time and reshaping how customer service is delivered.

      The human touch

      While automation promises to help employees with the pressure of routine, tedious tasks, and data processing that can be time-consuming, human touch is still required in the supply chain.

      As the courier industry evolves, the demand for experienced individuals who have the right expertise in managing these automated systems grows. With dedicated individuals to oversee the process, there can be no margin for error and ensure that it remains ethical and meets compliance standards.

      With situations that present unprecedented challenges, like an upset customer, it is undoubtedly better to have human judgement and empathy involved. It can inject the right amount of consideration and thought needed into the situation, helping to resolve issues that automation cannot.

      By building and maintaining relationships with customers and suppliers, and handling situations with human intervention, it continues to create a foundation of trust and collaboration that people require from a company. Automation can’t perform a task that requires emotional intelligence.

      Additionally, humans have a fundamental role in ensuring the use of automation in the supply chain remains ethical. Human oversight is necessary to hold systems accountable for automated decision making.

      Overall, automation remains an important topic in the supply chain as we adapt to a new way of working. However, it is imperative that we never forget how far the human touch can get us, and never erase its value.

      • Digital Supply Chain

      Fewer than half of UK businesses think they’ll meet their net-zero goals, despite mounting pressure from stakeholders and consumers.

      The phenomenon of “greenwishing”, where companies make claims or even commitments to becoming more sustainable without any concrete idea of how to achieve those goals, may be more widespread among UK businesses than was previously thought. 

      New research from supply chain services company Wincanton, has found that more than half of UK businesses don’t think they’ll meet their net-zero targets. 

      Mounting pressure to decarbonise 

      Despite this lack of optimism regarding the feasibility of net-zero commitments, the pressure to hit these sustainability targets is mounting for supply chain operators.

      Two thirds (66%) of UK organisations said that they were under pressure to hit their net-zero targets. In particular, logistics was seen as a key area of focus for achieving goals in this area, according to 83% of decision-makers surveyed.  

      If at first you don’t succeed, give up?

      Nevertheless, businesses aren’t making the progress they want. Of the 54% of businesses who said they are struggling to meet their net-zero goals, many cited cost impacts and concerns about the speed of viability of alternative fuel technologies as the primary barriers to successful decarbonisation. 

      Four in five (80%) said they believe reducing CO2 emissions in their logistics fleet means an increase in costs. As a result of these perceived cost pressures, two thirds (66%) have had to deprioritise hitting these targets. 

      “Sustainability remains a high priority for UK businesses. But it’s clear they aren’t making enough headway when it comes to reducing emissions in their supply chain operations. This is the result of the lack of viability and affordability of alternative fuel vehicles and ongoing cost pressures during a challenging economic period,” said Paul Durkin, Chief Customer and Innovation Officer at Wincanton. “We can see that a gap is emerging between their priorities and the action needed to reach net-zero.” 

      Against this backdrop, 59% want to reduce the environmental impact of their logistics fleet but simply don’t know how, and 42% of organisations admit they do not know how to further optimise their fleet. Only 25% believe alternative fuel vehicles will be affordable in 4-6 years. 

      As a result, 55% state that they are not currently reducing emissions in their logistics fleet. Given the struggles, 84% of respondents expect the government to play more of a role to support CO2 reduction. 

      Emissions reductions doesn’t necessitate cost increases 

      According to the report, 37% of respondents have seen cost reductions from tackling their CO2 emissions, casting doubt over the perceived problems supply chain managers face. Government subsidies and regulatory intervention could play a significant role in keeping supply chain decarbonisation profitable, or simply forcing companies to eat the cost of polluting. 

      Wincanton’s survey also found that better collaboration can help improve sustainable performance. Two-thirds (65%) of survey respondents agree collaboration is key to the future success of the logistics industry. However, executives, borads, and the government need to find ways to make collaboration easier for all involved. Businesses reported they’re nervous, both about the difficulty finding partners to collaborate with (28%) and the lack of internal resources to manage collaboration projects (26%).  

      Helen Flanagan, EyeQ Product Director at Wincanton, added: “More efficient use of existing capacity is key. Last year the Government reported that almost a third of the total vehicle kilometres travelled by HGVs in the UK were empty. Put simply, too much fresh air is being moved around the UK, contributing to high emissions and high costs for businesses. Through technology, UK businesses can collaborate and optimise their fleets to minimise wasted capacity and shift the dial on sustainable logistics.” 

      • Risk & Resilience
      • Sustainability

      Bastien Latargere, Principal at Efficio Consulting, offers six strategies for mitigating disruption and seizing new advantages as 2024 continues.

      In the supply chain sector, disruption is the new normal. Examples range from geopolitical tensions in the Red Sea leading to slower, reduced trade and rising global costs, to mounting pressures on sea freight and truck transport beyond the region. 

      Diversion, disruption, and disaster — Supply chains in 2024 

      Diversions from the traditional Suez Canal route to the longer Cape of Good Hope add approximately 9,000 nautical miles to shipping routes. This has caused air freight costs to skyrocket. As a result, logistics providers reported a 25-30% increase in demand for mixed sea and air transport in January 2024. Meanwhile, the broader transport landscape also faces significant challenges. For example, Mediterranean ports across Algeciras, Barcelona, and Tangier-Med also find themselves grappling with unprecedented congestion. 

      Outside of transport, disruption is also becoming more common and severe. T combined disruptions of the COVID-19 pandemic, political tensions, and extreme weather events have significantly reduced material and labour availability across various industries’ supply chains. In fact, by 2050, developing nations may lose approximately 92 million working-age individuals and gain over 100 million elderly people. This development poses significant issues across a range of industries. The risks associated with overseas operations are leading to an increase in reshoring and nearshoring. But these strategies also come with their own set of obstacles. Reshoring and nearshoring require investment in new infrastructure, updates to distribution networks, and a potential need for buffer stocks to minimise disruptions in the interim. In short, there are no easy answers.

      ESG is another area that poses significant challenges and opportunities for businesses. Reducing Scope 3 emissions, for example, which often make up a substantial portion of a company’s total emissions profile, requires full visibility across complex supply chains, the collection and reporting of organised and standardised data, compliance with regulatory standards, and ongoing stakeholder engagement. 

      In the face of the above supply chain trends and challenges, organisations must build operations with the right balance of resilience and efficiency, or risk losing out. Here are six key strategies to follow to remain ahead in today’s disruptive marketplace:

      1. Data transparency and visibility

      To effectively navigate an interconnected supply chain ecosystem, organisations must establish a robust foundation of transparent and accessible data. 

      Leaders must prioritise rectifying foundational issues within master data, ensuring data integrity, and optimising system architecture for seamless data flows. Enhance visibility and mobilise near-real-time information sharing to detect trends at an early stage and make informed, agile decisions.

      2. Scenario planning

      As supply chain dynamics become more complex, traditional planning methodologies are no longer adequate. Leaders need to invest in advanced scenario modelling capabilities to assess the impacts of possible scenarios across the supply chain. 

      Adopt the right planning tools and integrate inputs from business-wide functions to build comprehensive plans that balance capacity, risks, customer demands, and financial goals.

      3. Diversification and resilience 

      Building resilience through diversification is essential to mitigate disruptions effectively. Organisations must cultivate a diversified network of suppliers, warehouses, co-manufacturers, and distributors capable of swiftly adapting to unforeseen disruptions and shocks.

      4. A balanced approach to inventory management

      Strategically deploy buffers for the right products in optimal locations. 

      Leveraging dynamic portfolio segmentation and predictive replenishment strategies can help businesses shift from a reactive to proactive inventory management approach, allowing them to maintain optimal stock levels while minimising risks and protecting cash.

      5. Strategic partnerships and collaboration

      Strategic partnerships and collaboration are crucial for success in an interconnected global marketplace. 

      Supply chain leaders must collaborate closely with logistics providers, suppliers, and stakeholders to create a network of trusted partners. Sharing resources, information, and best practices can help organisations to enhance their resilience, responsiveness, and overall quality of products and services throughout the supply chain.

      6. Sustainability and circularity

      Supply chain leaders must embrace ESG principles. Sustainability should permeate every aspect of operations, from product design to end-of-life management. 

      Promote circularity by reviewing product lifespans, implementing take-back schemes, exploring recyclable materials, and adopting low-emission distribution channels. By assessing their carbon footprint and building tailored improvement strategies, organisations can integrate sustainability into the very fabric of their operations, paving the way for long-term value creation and resilience.

      Final thoughts 

      Supply chain management has been fraught with challenges in recent years. In response, businesses are trying to acclimatise to the volatile market in which they now find themselves. 

      Meanwhile, they must also prepare themselves for the new challenges that the future is likely to bring. That will requirebuilding operations with the right balance of resilience and efficiency. 

      The companies that are proactively adapting, leveraging technology, diversifying supply chain strategies, and embracing innovative approaches to ensure resilience and competitiveness are the ones that will be able to successfully navigate the ever-changing global supply chain landscape. 

      • Risk & Resilience

      A new report by Ivalua found that 47% of UK businesses experienced a supply chain disruption in the last 12 months.

      Disruption the new normal for UK supply chain managers, according to new research from spend management firm Ivalua.

      Ivalua’s report found that nearly half of UK businesses (47%) have experienced an increase in supply chain disruption in the last 12 months. In the last year alone, a significant portion of UK businesses experienced disruption. High inflation (79%), high energy/fuel costs (75%), the war in Ukraine (53%), and the Red Sea conflict (44%) all affected UK businesses’ ability to procure goods and manage their supply chains.

      The study of 300 supply chain and procurement decision-makers in the UK found that over the next 12 months, 45% anticipate that supply chain disruption will increase. In fact, 60% of UK businesses agree that after years of disruption, their supply chains feel more fragile than ever.

      Beating the trend — effective disruption mitigation strategies   

      As supply chains and procurement teams battle a growing ambient likelihood of disruption, UK businesses highlighted several strategies that they said had been effective at mitigating the impact of disruption to their value chains. 

      Improving the geographical diversity of their supplier base (64%), finding alternative suppliers for critical goods and services (64%), increased nearshoring (63%), and increased onshoring (61%) were all highlighted as increasing supply chain and source-to-pay process resilience

      “Supply chain disruption continues to have a significant impact on business operations due to repeated, unpredictable ‘Black Swan’ events,” comments Ian Thompson, VP Northern Europe at Ivalua. “These major disruptions used to be rare, but now feel like a fact of life. This has meant global supply chains have become more fragile than ever, causing delays, shortages, and increased costs as factories shut down and transportation networks fall victim to delays. Consequently, UK businesses feel like they’re stuck in a loop of constant disruption, unable to fully recover after each event.”

      Preparing for disruption amid uncertainty  

      The increasing number of disruptive supply chain events have prompted organisations to re-evaluate supply chain strategies to insulate themselves from supply chain shocks. However, 46% say they don’t have enough sufficient visibility. This lack of visibility makes it hard to understand which suppliers are impacted by supply chain disruption. At the same time, 43% of organisations say they can’t adapt quick enough.

      To deal with ongoing uncertainty, UK businesses are focusing on adopting the right tools and processes. Over half (58%) of organisations said investing in technology to improve supply chain visibility has been very effective at helping to mitigate the impact of supply chain disruption, while 58% said the same for collaborating with suppliers to share more risk data. A further 71% said implementing AI to automate supplier risk management has been effective at reducing the effect of supply chain disruptions.

      “Four-in-ten UK businesses agree that their supply chain recovery is moving at a snail’s pace, so it’s vital they take proactive measures to minimise the impact of disruptions,” continues Thompson. “This means arming procurement teams with the right tools to improve supply chain transparency and collaboration.”

      • Risk & Resilience

      New sites in Paris, Orleans and Lyon offer Brookfield’s customers direct access to road transport links that span from the capital to the southwest and into Switzerland.

      Investment management firm Brookfield has expanded its French logistics footprint by roughly 1.6 million sq ft following the acquisition of four sites in prime locations throughout France’s supply network. Brookfield’s French logistics platform, Castignac, will manage all of the assets. The company has 25+ assets and projects worth over €1 billion under management. 

      The sites span central France. Brookfield chose the locations with a focus on strategic transport links to the rest of the country and the wider continent. They are part of Brookfield’s strategy to provide Grade A assets to blue chip tenants. The initiative is in response to a growing trend of reconfiguring and strengthening regional supply chains.   

      Castignac, backed by Brookfield’s trusted network, empowers the logistics industry to create resilient supply chains of the future with tech-powered premises and a unique approach to brownfield redevelopments. 

      Its flagship logistics park, e-Valley, is a state-of-the-art carbon-conscious mega-infrastructure project of over 10 million square feet of warehouses, service areas and landholding – located on a decommissioned NATO military base in Cambrai, France.  

       Strategic site selection 

      Sites in Mer and Meung sur Loire in the Orleans region in the Atlantic corridor are close to the A10 Paris – Bordeaux axis linking the capital to the southwest of the country. The asset in Satoles en Bonce is Brookfield’s first acquisition in Lyon, which is an attractive submarket in France due to its proximity to the airport and direct access to the A43 Lyon – Geneva axis. The fourth asset in Marolles, South Paris, is located on the A5 motorway which connects Paris to the Langres area and is expected to extend into Switzerland. 

      Dan Benhamou, Senior Vice President at Brookfield, said: “As we continue to see significant demand for scaled logistics solutions across Europe, we are pleased to acquire these prime logistics assets across France. These premises add to our significant footprint of high-quality warehouse space in strategic locations which connect France with the rest of Europe, allowing us to continue to support tenants in building robust supply chains throughout the continent.” 

      Site Acquisition Details

      Mer – Orleans 

      c. 650,000 sq ft Grade A asset fully occupied by a major tenant with a resilient business model on acquisition. Acquired from CBRE Investment | Broker: Cushman & Wakefield | Notary: Wargny Katz | Technical and environmental advice: Andine Group. 

      Satoles en Bonce – Lyon 

      c. 150,000 sq ft Grade A asset fully occupied by a major tenant with a resilient business model on acquisition. Acquired from CBRE Investment | Broker: Cushman & Wakefield | Notary: Wargny Katz | Technical and environmental advice: Andine Group. 

      Meung sur Loire – Orleans 

      c. 320,000 sq ft asset currently vacant with capital expenditure programme to enhance the building and align technical specifications with current market standards. Acquired from abrdn | Broker: EOL | Notary: Jacquin et Associé | Technical and environmental advice: Andine Group. 

      Marolles – South Paris 

      c.400,000 sq ft Grade A XXL asset with permission for a further c.500,000 sq ft to be built over land area of c. 2.2 million sq ft. Existing building is to be leased at estimated recovery value (ERV), and the extension will be built following a pre-let. Acquired from FM Logistics | Broker: CBRE | Notary: Wargny Katz | Technical and environmental advice: Andine Group and IREO. 

      The asset holds SEVESO low-threshold for dangerous substances storage and an exceptional Haute Qualité Environmentale (HQE) certification. Eight additional cells are to be built including storage of hazardous products and solar panels will be installed on the ground of the green spaces of the land extension. 

      Brookfield has built a leading European logistics business across Europe. Its gross leasable area is on track to reach 43 million square feet (sqft) by the end of 2024. Brookfield is a long-term global partner for blue-chip clients. The company signed 4.3 million sqft of notable leases with blue-chip customers over the past twelve months. The first quarter of 2024 alone accounted for over 3.2 million sqft of activity. 

      • Collaboration & Optimization
      • Sourcing & Procurement

      Clemens Zunk, Chief of Staff at ProGlove, dives into wearable tech, virtual and augmented reality on his journey to understand the future of warehouse logistics.

      Supply chain warehouses today face mounting pressure to accelerate order fulfilment while simultaneously maintaining inventory accuracy. This is particularly evident in e-commerce. Here, cross-border retailers are experiencing rapid growth, and next-day or even same-day delivery expectations have become the norm. Common warehouse processes such as order picking, packing, and shipping preparation are also largely manual, labour-intensive. This makes them prone to human errors, exacerbating existing challenges. 

      As global supply chains become increasingly complex and customer expectations soar, the sector demands a more data-driven approach. Organisations striving to meet these escalating demands places the supply chain sector at a critical juncture. To meet the challenge, the sector requires new new solutions that will help ensure resilience. 

      While digital transformation and automation are frequently discussed as potential remedies, wearable technology offers a promising and oft-overlooked advantage to these challenges confronting supply chain operators. And, although the initial hype surrounding wearable tech products such as VR headsets and smart glasses faced challenges scaling, the dominance of healthcare and fitness driving demand for wearable tech is a prelude to that broader impact wearables can have on industries. 

      The wearable tech industry is on a trajectory for explosive growth, set to hit $290.6 billion by 2030. By drawing from the successes and insights from consumer markets, supply chain operators can harness the potential of wearables to make gains in supply chain operations. 

      The data potential 

      Beyond their fashionable appeal, the wearable devices’ practical applications and promise of transforming healthcare propelled the sector into a success story.

      This same potential exists within the industrial sector. Wearables, in constant proximity to its user, capture granular data on every movement from equipment hum to worker activity. This data isn’t just numbers, but a roadmap to warehouse efficiency. 

      This shift from analog to digital opens up unprecedented opportunities for efficiency gains. For instance, smart glasses with built-in scanners guide workers to the exact item, cutting picking time. Meanwhile, real-time location tracking can safeguard lone workers. 

      The aggregated data can then be analysed to optimise operations, identify bottlenecks, and used to improve overall productivity. This data-driven approach mirrors the success of consumer wearables, where personalised experiences are built upon understanding individual behaviour. 

      A safety net for warehouse workers

      Worker safety is also paramount in high-pressure warehouse environments, where a spike in activity, especially during peak seasons, can lead to an increased risk of worker injuries. Beyond efficiency gains, wearable technology can become a lifeline for worker safety. From invisible ergonomic challenges, to falls and heat exhaustion, the breadth of hazards within a warehouse meant workers need to take extra safety precautions at work.

      Unfortunately, businesses often lack visibility into the day-to-day challenges, or struggle to correct patterns without the data-driven insights. Questions like “Where do workers fall most often?” or “What tasks lead to the highest injury rate?” often go unanswered. This is where wearable technology, particularly those with vital sensors can help businesses monitor worker vitals, detect potential hazards.

      Smart wearables like barcode scanners can be easily integrated into gloves, which streamlines tasks for pickers and warehouse workers. Not only that, but wearable scanners also alleviate physical strain commonly associated with handheld scanners, which can contribute to complications like repetitive strain injuries. Additionally, real-time location tracking enables swift response to emergencies. When a worker has falls, or when an equipment malfunctions, wearables can provide rapid alerts. 

      In saying that, it’s important to recognise that safety wearables are tools and cannot therefore be used in isolation. Supply chain operators should already have established a strong foundation of workplace well-being and safety protocols before a full-scale integration with wearables. This way we can ensure technology complements existing safety practices, rather than replace them. 

      The path forward

      The future of supply chain operations hinges on data-driven innovation, and a blend of human ingenuity. Wearable technology is poised to be a catalyst for transformation. As devices evolve to capture increasingly granular data, an integration with existing IoT and ERP systems will create a comprehensive operational blueprint. 

      While the technology is powerful, its effectiveness is contingent upon a strong foundation of human expertise and established operational protocols. The goal here is to create a symbiotic relationship between technology and human expertise. Through harnessing the power of data and human intelligence, supply chain operations can unlock new levels of efficiency, productivity, and safety to drive operational excellence.

      • Digital Supply Chain

      Andy Coussins, Executive Vice President at Epicor, lays out the role of data and AI in developing supply chain resilience.

      Essential industries — those that make, move, and sell products — are no strangers to using technology to help them navigate supply chain disruptions, escalating costs, and skilled labour gaps. Businesses in sectors like manufacturing, retail and logistics have already embraced cloud computing and the Internet of Things (IoT) to streamline their operations and insulate them from the chill blast of economic uncertainty and supply chain disruptions. 

      A report by PWC, Transforming your supply chain, highlights this trend, discussing industry-wide investment in digital systems and noting that that 77% of UK digital champions have implemented solutions to gain visibility across their end-to-end supply chain. 

      Today, these ‘traditional industries’ are further advancing their investment in cloud and IoT technology by embracing artificial intelligence (AI) and machine learning (ML) to enhance their supply chain resilience.

      AI is key to developing resilience and increasing efficiency 

      One of the main reasons behind the adoption of AI is its almost unlimited potential. It can help establish vital data bridges across departmental silos, automatically analyse disparate business data, and provide actionable insights to enhance operational performance. 

      Not only can AI automate processes, but it can also replace the need for human interventions. Therefore, this streamlines complex processes even further. It can spot trends, carry out mundane and repetitive tasks, flag inconsistencies, make connections, and deliver insights that would be beyond the capability of even the most eagle-eyed employees.

      But there’s a problem. AI relies heavily on access to quality data. Inaccurate, untimely data inevitably leads to poor insights. That’s why a holistic, data-first, ERP business strategy is key to success. 

      Modern ERP system designers are purposefully incorporating AI into their products. This AI-powered software enables quick analysis of large volumes of data, converting a system of record into an organised system of actions. 

      By automating certain manual processes from the shop floor that could take hours to complete, it frees up employees to focus on other important areas of the business.

      The importance of having a clear understanding of operations before adopting AI  

      Businesses can only achieve this if they clearly understand what’s going on both inside and outside of their operations. This means knowing what data they already have access to, where silos exist, and how to strengthen the critical partnerships needed to facilitate seamless and secure data exchange. 

      According to Epicor’s 2024 Agility Index, conducted by independent analysts Nucleus Research, 58% of organisations have already integrated generative AI into their digital supply chain operations. 

      Underlining just how much progress had been made, the research found that businesses had applied AI across various functions within their software applications including product descriptions, customer chatbots, natural language querying, reporting, and in-application assistance. 

      In fact, almost two-thirds (63%) of high-growth organisations have integrated generative AI into their respective supply chain operations through their ERP and supply chain management software applications. 

      These findings point to one obvious conclusion; businesses are increasingly turning to AI, ML and other technologies as part of a strategic move to enhance operational efficiency and customer engagement.  

      A practical approach to adoption

      Of course, the rewards for such strategic decision-making don’t happen overnight. Nor can such results be achieved successfully without taking a measured and practical approach to the adoption of AI. So, what’s the best approach? 

      The message from those that have already begun their AI journey is that an effective data supply chain strategy can only work through a connected ecosystem of partner communities. Not only that, it must also seek to remove data silos by integrating key functions such as finance, design, testing, and manufacturing. 

      For it is only once organisations close the gaps between the shop floor, the boardroom, and different departments, that insights can start to flow more freely. Key to that, of course, is to ensure open communication across all departments and between management layers — as well as trusted strategic digital transformation partners.  

      After all, as ERP specialists they know the industry and can alleviate any anxiety about AI-powered data integrations, cybersecurity, or adaptability. What’s more, they are best placed not only to help businesses capitalise on an AI-led approach but ensure that it’s aligned with the long-term strategic direction of a business. 

      • AI in Supply Chain
      • Risk & Resilience

      Andy Baillie, VP of UKI & APAC at Semarchy, explains how supply chain managers can take on the mammoth task of data management in manufacturing.

      Manufacturers produce vast quantities of data. This information is created at every stage of a complex network of machines, systems, and applications. Annually, the sector generates over 1,800 petabytes of data. This is double the data generation as the next closest industry. 

      Given the ongoing need to reevaluate supply chains in the wake of COVID-19, having reliable and efficient data is crucial for aiding decision making processes and risk management. Reliable data will ensure accurate demand forecasting, improved quality control, efficient inventory management, and true end-to-end visibility. 

      Manufacturers’ primary challenge is the heavy data loads from disparate, poorly connected systems, which complicates effective data management and clarity. Data scientists spend about 80% of their time preparing data instead of analysing it. This is because organisations deal with an average of at least 31 different data sources. Unifying that data and ensuring its accuracy is therefore essential.

      This leads to inconsistencies and inaccurate data. Fixing these problems demands substantial time for proper data preparation for analysis. This is a situation that opens the door for inaccuracies and low quality datadown the road. Consequences include supply chain disruptions, inefficient production scheduling, increased security risks when interfacing with external data environments, and sub-optimal equipment downtime due to siloed maintenance data. 

      These challenges impair operational efficiency and security. An example is the 2018 KFC incident in the UK where a switch in logistics partners led to severe supply chain disruptions, widespread chicken shortages, outlet closures, and damaged brand reputation. The core issue stemmed from poor data integration with the new logistics partner and a lack of real-time supply chain visibility.  

      Role of Master Data Management in the Supply Chain

      Supply chain Master Data Management (MDM) integrates various technologies and information governance practices to ensure the integrity and accuracy of data across the supply network. It offers manufacturers a unified, authoritative perspective on information affecting suppliers and other business aspects. 

      By putting MDM in place, businesses can remove data silos created from different sources and consolidate information, ensuring a comprehensive and high-quality data overview. This process includes cleansing (also known as scrubbing) the data and maintaining consistency. 

      Consistent data maintains the same format, units, and terminology across the dataset. For instance, by organising data into principal categories like suppliers, customers, and products, those master data categories can be uniformly and comprehensively presented.

      Benefits of effective supply chain MDM

      Master data management helps companies identify and resolve challenges through decisions based on ‘true information data.’ Here’s a quick breakdown of supply chain MDM’s main benefits:

      Improved data quality and accuracy

      MDM consolidates and standardises data from multiple sources into a single source of truth through a structured process of sourcing, cleansing, and integration. Automation aids this process by enforcing rules for data cleansing and standardisation, minimising human error and inaccuracies. 

      Enhanced visibility and traceability

      Eliminating data silos improves supply chain visibility and traceability, allowing manufacturers to access comprehensive data from raw materials to final products and customer feedback. Supplier MDM software helps monitor and optimise supplier relationships, improving practices across the product lifecycle and enhancing customer experiences.

      Streamlined operations and reduced lead times

      MDM enables manufacturers to share accurate data across various processes and divisions, facilitating collaboration, streamlining operations, and shortening lead times. This allows team members to understand tasks and timelines easily.

      Better decision-making and increased profitability

      Manufacturers dealing with poorly managed data often miss early warning signs, leading to unforeseen business crises. MDM helps decision-makers extract actionable insights promptly and efficiently, enabling a proactive response to potential issues before they escalate into something severe.

      Critical elements of a supply chain MDM roadmap  

      To develop a robust and effective supply chain MDM strategy, manufacturers must implement the following critical elements first:

      Data governance framework

      This framework ensures data security, integrity, availability, and usability, helping to meet regulatory requirements and maintain effective management for high-quality data production.

      Data standardisation and harmonisation

      Data standardisation involves centralising data from various sources to eliminate accounting variations and unify data presentation. While reducing accounting variations, data harmonisation specifically focuses on improving data quality and usability.

      Data integration and consolidation 

      These actions involve merging data from various sources into a single repository, standardising it for uniformity, and removing duplicates or bad data.

      Data stewardship and ownership

      Data stewardship assigns specific roles and responsibilities for effectively putting an MDM program in place and making sure that policies and practices are adopted. The data’s owners are responsible for the integrity of their data, which is typically managed on a departmental basis.

      Continuous data quality management and monitoring

      MDM is a continuous initiative that requires consistent resource commitment to maintain data quality. Successful MDM programs include regular monitoring to ensure reliable outcomes that support the company’s objectives for the program.

      MDM implementation steps 

      To kickstart MDM for a manufacturing supply chain, follow these six steps:

      1. Assess the current state of data management: Evaluate resources, skill sets, and challenges to see what needs to be done and lay out a plan for how to do it.
      2. Identify gaps and improvement opportunities: Analyse the discrepancies and potential areas for making sets of data better and more useful to the business.
      3. Develop a comprehensive MDM strategy: Create a roadmap with key components such as goals, gap analysis, and data governance strategies.
      4. Select the right MDM tools and technologies: There are specific tools for various MDM categories. These include employee, product, customer, location, and asset data management data.
      5. Implement training and change management: Develop a robust plan for employee training and gaining buy-in from the company as a whole. Managing cultural resistance to digital projects like this is a key part of making sure goals are met.
      6. Monitor and measure the success of MDM initiatives: Use KPIs to track and assess the effectiveness of the MDM strategy.

      A competitive edge

      The cornerstone of effective supply chain management lies in maintaining consistent, up-to-date, and reliable data. For supply chain leaders, successfully tackling data management through MDM is crucial. Doing so allows them to overcome common challenges and hopefully seize a competitive edge in the market. 

      Manufacturers are, therefore, encouraged to explore and implement MDM solutions actively. By doing so and seeking expertise from data management professionals, they can ensure the resilience and efficiency of their supply chains. 

      • Digital Supply Chain

      Neela Ahmed, Country Manager, Head of UK and Ireland at E1, explores tech-driven solutions to the biggest challenges facing the supply chain sector.

      The supply chain ecosystem within construction is facing significant strain. While most severe impacts from the pandemic are easing, challenges like labour shortages and inflation continue to create ongoing pressure throughout supply chain networks. The latest setback is the anticipated 6% decline in construction output this year, as rising mortgage rates start to take their toll. These issues can lead to delays in the delivery of materials and resources, which, in turn, heavily impact a contractor’s finances if not managed effectively. 

      This is where technology could make all the difference. Implementing digital solutions can significantly streamline and optimise their supply chains. Whilst some of these challenges may appear limited to the job site, solving them starts with the estimating and procurement teams, which is where tech can play a main role. 

      From our conversations with estimators over the years, it is clear that the construction supply chain can become messy. It can often feel like a jigsaw puzzle. From gaining quotes to syncing service lines with the main contractor it is like trying to find that last puzzle piece that didn’t make the box. That’s where online tendering platforms come in—simplifying everything, and giving you one place to handle bids, quotes, and communications, making it smoother for everyone. 

      Here are some top tips for ensuring your supply chain operates smoothly:

      Broaden your reach 

      As skilled labour continues to be scarce, main contractors must look beyond their usual network for new suppliers. Effective collaboration throughout the project is essential for these new partnerships to thrive. But how? 

      Digital tendering platforms, like E1, help mitigate construction delays and disruptions by streamlining project execution. These platforms enable contractors to broadly advertise opportunities and invite new subcontractors to submit quotes, reducing the need for extensive back-and-forth communication.

      Keeping your network up-to-date is key to staying ahead. By broadening your list of suppliers, main contractors can enhance their resilience and avoid over-relying on just a few subbies. Additionally, expanding your network will boost your competitiveness. With a wider range of quotes, contractors can offer more competitive pricing, improving your chances of securing the project.

      Automate, Centralise, and Collaborate

      A centralised digital platform could significantly aid the industry in navigating changes and avoiding disruptions. However, Hackett’s Golden Thread Guidance reveals that over 90% of product manufacturers don’t view digitalisation as a major concern. Too often investments in digital technology are misguided due to a lack of understanding of its potential and implications. This view is likely widespread across our industry.

      Effective tendering relies on building strong connections rather than getting bogged down by paperwork. Traditional methods of managing tenders can result in missed opportunities and outdated quotes. 

      Collaborative networks provided by digital platforms simplify document management, facilitate seamless teamwork, and enable real-time tracking of quotes. This allows estimators to focus on evaluating actual quotes rather than managing paperwork.

      I should clarify that automation doesn’t mean replacing human effort with robots; it means speeding up processes by eliminating repetitive tasks, allowing for estimators to focus on building connections in the industry, as opposed to admin crunching. Automated addenda management reduces the risk of document errors, and digital audit trails offer a clear overview of document distribution, minimising disputes.

      Looking Ahead

      The ongoing challenges we see within the supply chain sector show it is time for the construction industry to get on board with automation and update how we handle tenders. Similar to other industries, such as law and healthcare, automation cuts out the admin hassle and lets contractors focus on the job at hand. When both subcontractors and main contractors see these benefits, it leads to more accurate quotes. 

      We’re not looking for a complete overhaul but rather a gradual move toward smoother, more efficient processes that strengthen relationships. Our goal is to keep the UK and Ireland competitive; and we believe the answer lies in improving teamwork and making project execution smoother by refining our essential supply chains, creating a better industry for everyone.

      • Digital Supply Chain
      • Risk & Resilience

      Richard Gilliard, CEO of Renovotec started in the IT world back in 1996, but his entrepreneurial career started from very…

      Richard Gilliard, CEO of Renovotec started in the IT world back in 1996, but his entrepreneurial career started from very humble beginnings as early as age 13.

      Richard’s money-making activities from a young age included weekly and Sunday paper rounds and a very profitable scheme of making framed posters with images of popstars in Smash Hit Magazines to sell to girls at school. 

      Later in his teens, Richard set up his first official company ‘Log Cabin Hamsters Inc’. Within a year he had pretty much captured the market for breeding hamsters in West Yorkshire. From this young age, Richard quickly learned that the most successful way to make money is by offering something that customers want but can’t get elsewhere. And it was this wisdom that led Richard to set up Renovotec in 2009, which today is the UK’s fastest-growing technology solutions integrators organisation operating in warehousing, retail, and throughout the supply chain. 

      The road to Renovotec

      Gilliard reflects on his entrepreneurial path to Renovotec: “Before Renovotec I had been working in the software industry, but I quickly identified a gap in the market when it came to hardware. Software companies were not keen on getting involved in hardware, because it was a low-margin area. This meant you had a situation where customers struggled to buy hardware from their software supplier, which presented me with an opportunity for a business. To pick up that side of the industry and offer customers what they need and get elsewhere.”

       “When I started in the IT world, I gained my knowledge by working with warehouse management solutions and being very hands-on with the reality of warehouse operations. Within just a few years, I’d acquired a small warehouse management company with a very talented team of staff. We grew significantly until the financial crisis hit back in 2008/2009. Although we were financially stable, we didn’t have enough work to keep our team happy. This allowed me to utilise available resources to start Renovotec. The subsequent sale of the software house provided the funding to acquire several specialist providers in our industry so that we could cover a comprehensive range of solutions that would help meet our customer’s needs. This was how Renovotec was born.”

      Building an acquisition advantage

      In the fast-paced competitive world of IT growing a business through acquisitions has become more popular. But in 2009 when Renovotec launched onto the scene, this was not the case. Organic growth was the safer route to expansion. Renovotec in this respect could be considered a game changer.

      Gilliard describes how the acquisition route came into fruition: “Renovotec did not set out to acquire companies for growth, but over the years when the opportunities have arisen, we have been quick to grasp them when we can. For the first few years from 2009 – 2012, Renovotec achieved steady growth but in 2012 we came across a competitor, a company named Sandpiper that appeared to offer very similar solutions. At a partner conference in 2013, that we were both attending I took the opportunity to talk to the Managing Director of Sandpiper about an exit strategy proposition whereby we were not duplicating efforts.

      By the end of that evening, Renovotec had agreed in principle to buy Sandpiper. It was perhaps one of the quickest acquisitions you can imagine. We completed the due diligence and the legal processes in a matter of months, and it served as a really good platform for Renovotec to grow from. It gave us a taste for acquisitions despite not having considered them before.”

      Agressive growth

      Since then and over the last decade Renovotec has pursued an aggressive growth strategy, acquiring a series of companies with complementary technologies that allow Renovotec to claim a new or an enhanced stake in the market. The acquisition of industrial print specialist Datatrade in 2017 was hugely significant. This made Renovotec the market leader in industrial print support in the UK.  Recent acquisitions include DigitalAir, claiming Renovotec’s stake in the next wave of Wi-Fi innovation, and Jade Solutions, expanding high-growth contactless retail dominance. 

      Gilliard concludes: “Our acquisition strategy has one clear objective of meeting our supply chain customers’ business needs with best-in-class technology. This is definitely paying off.”

      One step ahead of customers 

      Putting the needs of customers above anything else and at the centre has been core to Renovotec’s strategy from the outset. Gilliard believes you cannot possibly understand or assess what the customer needs if you aren’t investing and involved in their operation. “From the outset and today I am always trying to be a step ahead of our customers, assessing and evaluating what they may need to help their business thrive, especially when macroeconomic influences are out of balance, and ideal conditions are disrupted.”

      “In recent years organisations operating in warehousing, retail, and throughout the supply chain have come under extreme pressure with the combined forces of the COVID pandemic, subsequent lockdowns, and changing consumer habits across the world.”

      “On top of this, we have Brexit which brought additional problems for many UK manufacturers and retailers. We too felt the impact all too intensely, experienced substantial delays, and even lost opportunities because of this move.”

      “However, like our customers, we’ve had to refocus and see these problems as opportunities and have been able to position ourselves better so that we can deliver the level of service that our clients need.”

      Welcoming Autonomous Mobile Robots (AMRs)

      The transformative impact of robotics is creating a buzz across the logistics sector. But Renovotec was quick and one of the first to identify the competitive advantage of robots and automation to help rejuvenate a drained supply chain industry desperate to achieve ROI. Of particular interest to Renovotec were Autonomous Mobile Robots (AMRs) with their ability to operate without human oversight and roam free of a set path making them fit for an impressive array of tasks.

      Gilliard outlines the array of benefits these intelligent machines bring to the supply chain and warehouse operations. “Automated robots never get tired, can work 24/7, and have no aversion to taking on the laborious, hazardous, and heavy-lifting work that can tire humans. Using a combination of advanced sensors, cameras, and software algorithms, they can understand their surroundings, navigate around permanent and temporary obstructions, plot the most efficient path, and carry out tasks independently.”

      “Any kind of added efficiency and saved cost is important in a supply chain industry still recovering from the impact of COVID-19. Since the UK’s National Living Wage increase of 9.8% to £11.44/hour in April 2024, an already overburdened industry has found itself under even greater pressure given the high volume of employees needed in a typical distribution centre and the challenge of high staff turnover. Robots can and have quite literally, stepped in and saved the day.”

      Challenges to overcome

      Let’s be clear that this is not about taking the human workforce out of the equation. Gilliard presents just one example of the harmonious superpower of robots: “If we take the example of Order Picking, humans, and robots can work together as a team, further enhanced with the integration of other complementary technologies such as voice-directed technology and machine vision. The cost-saving benefits can be huge when you consider that a robot combined with voice technology can halve the number of steps taken by a typical picker in one day. When integrated into the warehouse in harmony with human workers and with other technologies, robots can deliver massive ROI and help humans do their jobs better and more efficiently.”

      There are challenges of course, as Gilliard acknowledges: “The job of choosing the right AMR for your warehouse can be challenging. There are many different AMR solutions on offer, including those from traditional automation providers seeking to jump on the AMR bandwagon. Getting the right AMR solution from the outset and prioritising smooth integration with your WMS (Warehouse Management Systems) and other complementary technologies can make all the difference.”

      Despite the challenges, Richard urges any warehouse operation of any size to start thinking about introducing robots into your warehouse: AMRs can be easily and quickly integrated into existing systems and workflows to help support faster deployment without unnecessary disruption. Businesses don’t need to modify an existing environment or waste time implementing this technology but instead can benefit almost immediately. Where possible start small to learn how the solution will impact the unique elements of an operation. We have customers who have introduced robots just to manage waste, and that alone has taken one person out of the cost.”

      You can’t do it alone

      Renovotec is backed by an ecosystem of trusted technology partners, including Honeywell, Zebra Technologies, Ruckus Networks, and Datalogic.

      Gilliard highlights that partnership and collaboration are key to providing customers with an end-to-end service: “The supply chain is interconnected and ever-changing. Adjusting to supply and demand fluctuations is complex. One vendor alone can’t offer customers working in the supply chain the full spectrum of the most cutting-edge technological tools and know-how, to ensure that they reach their revenue goals and remain competitive despite the current pressures of the industry.”

      “Collaborating with partners enables us to offer everything from wireless and networking to robotics and voice picking. We can take care of the software and hardware side of things, offering slick, user-friendly devices that help businesses exceed their client’s expectations and help them grow or scale up their businesses.”

      “It is essential to work closely with clients to deliver every aspect of the solutions they need. So, there is no requirement for them to go elsewhere, which takes away the stress, pressure, and wasted resources that comes with sourcing technology and services from multiple sources and suppliers.”

      • Collaboration & Optimization

      Ian Cairns, Sales Director at TalkTalk Business discusses why a resilient network is essential for supply chains to mitigate the risks of disruption.

      When a faulty software update led to a global IT outage on the 19th July, it acted as a light on our world-wide dependence on digital applications. Affecting 8.5 million computers worldwide, according to the BBC, the CrowdStrike update saw significant disruption to day-to-day operations, in particular across banks, travel providers and healthcare practices worldwide. 

      In today’s world, having reliable access to online systems and data is critical for the successful day-to-day running of most businesses. Taking learnings from this most recent incident is key, to reduce the likelihood of future disruptions on a much larger scale.

      Supply chain vulnerability 

      Businesses across the supply chain are embracing new, innovative technologies every day. From robotics and AI to cloud storage systems, this digital transformation is providing new opportunities for growth and transformation. However, it also opens new opportunities for faults and unforeseen disruptions to compromise operations. 

      One significant point of vulnerability for supply chain operations is the increasing risk of cyber attacks. Vast amounts of data, including banking and payment data, move through the average logistics business daily. This wealth of sensitive information about both the logistics business itself and its clients makes them particularly tempting targets for hackers. 

      Whilst the CrowdStrike outage was the result of an unintended error rather than a malicious attack, it acted as a stark demonstration of why our intricately connected world needs to mitigate against such risks. If a comparatively small glitch can cost the top 500 US companies up to £4.1 billion in financial losses, we can’t afford to underestimate the potential ramifications of a larger threat. 

      The best way for businesses to mitigate the risks of such disruption is through preparation. It’s vital that companies invest in the right foundations, including secure and reliable network solutions. This can help to make sure any data stored or processed by this technology is accessible to those who need it and kept safe from the hands of cyber criminals. 

      Implementing robust network solutions 

      There are several ways that companies can invest in their network to help keep their data safe as they invest in new and innovative technologies.  

      For example, cloud computing is becoming an increasingly integral part of many supply-chain operations. Remote data storage has many benefits, allowing employees and customers alike to access important business data from all over the world. But this also means that a fault or disruption which interrupts this access can have a significant impact on operations.

      Investing in Security Service Edge (SSE) technologies, for instance, can provide businesses with secure remote access to data, applications and tools and monitor and track user behaviour. These SSE technologies includes Cloud Access Security Brokers (CASB). A CASB identifies cloud applications, providing reputation, compliance, and risk scores. They also block inappropriate apps and malware. Data Loss Prevention (DLP) also protects against data exfiltration, and cloud malware detection eliminates infected files which might put sensitive data at risk.

      Security teams can also combine SSE technologies with SD-WAN to form a converged network and security solution. Referred to as Secure Access Service Edge (SASE) this cloud architecture model combines security monitoring and policy enforcement with integrated network controls. SASE allows network and security to act as a single service, providing authentication and access to data as and when it is needed. It ensures that all endpoints are secure and are managed with the same security and networking policies as their on-premise infrastructure, regardless of their location.

      This enables anyone, anywhere to utilise company apps or data when needed, with only the right people having access to critical business data.

      Getting ready for resilience

      Today’s world of digital reliance demands businesses to prepare as much as possible for any disruption risks. As the logistics sector continues to embrace new and innovative technologies, having network solutions which provide centralised control and built-in security at scale is now a necessity for successful operations. 

      By adopting network solutions which enable safe and reliable data access, logistics managers will be able to mitigate the risks of disruption to supply-chain operations, allowing businesses to continue running smoothly. 

      Is your business prepared for disruption? Start evaluating your network infrastructure today to mitigate the risks of operational standstill. 

      • Risk & Resilience

      Internet of Things technology has the potential to solve key pain points in the supply chain. Here are 5 ways IoT is solving supply chain problems.

      The global supply chain landscape has become increasingly fraught over the past few years. 

      In the wake of the COVID-19 pandemic, supply chains have contineud to face near-constant disruption. These pain points have ranged from climate-crisis-fueled droughts to geopolitical conflict. Rising prices and economic instability have conspired to destabilise the sourcing and movement of goods around the world. As a result, a greater focus on resilience over cost has crept closer to the top of the CSCO’s agenda. 

      However, it’s hard to identify how to protect a supply chain from disruption — let alone leverage that supply chain to create new value — without strong visibility into that network. This is where Internet of Things (IoT) technology is supporting supply chain managers and CSCOs. The technology provides new levels of visibility, resilience, and control over their operations. Defined as a network of physical devices and sensors interconnected digitally and used to gather information, the IoT is making supply chains smarter, easier to track, and better prepared for the unexpected. 

      Here are five of the ways that IoT technology is transforming the supply chain. 

      Tracking shipments 

      One of the most obvious and straightforward applications for IoT in the supply chain is digitising the tracking process. Traditionally, updates on goods moving through the supply chain have been sporadic, or nonexistent until the final delivery. 

      IoT sensors enabled with GPS are changing that, however. For high value items, IoT technology like GPS trackers, RFID tags, wireless temperature sensors, and other devices can ensure that goods can be monitored at every stage of their journey. Customers using something like FedEx’s SenseAware or SAP IOT Logistics can track cargo for changes in environmental conditions, location, delays, and even alterations to routes. 

      Cold chain management 

      The cold chain is a temperature-controlled supply chain that moves, stores, and distributes sensitive and perishable goods. This can include vaccines, chemicals, sea-food, meats and dairy products. 

      As any deviation from the ideal temperature range can affect the freshness of food and the efficacy of medicines, proper monitoring of the cold chain is essential. IoT sensors that issue an alert if the cold chain is broken are a critical piece of the puzzle for supply chain managers attempting to gain visibility into these complex and critical systems. 

      Sourcing authentication 

      Whether it’s specialty coffee that needs to be traced from a single point of origin to the small batch roaster, or a multi-million dollar shipment of lithium that needs to reach an EV battery manufacturer without touching a Chinese-owned processing plant, regulations are making it increasingly important to have verifiable visibility into every step of the sourcing and supply chain process. 

      However, some industry experts have argued that basic IoT-based supply chain management systems fail to provide confidentiality and security. In combination with blockchain technology, IoT devices can more reliably authenticate the origin and subsequent steps in the journey of a product or material. This allows organisations to avoid ptential goods seizure or tariffs when entering new markets, and comply with ESG commitments. 

      Warehouse automation 

      Artificial intelligence and machine learning have been applied to great effect by logistics teams. The technology has significant potential to help pick, arrange, and otherwise move goods through warehouses. Amazon has been using an increasingly sophisticated variety of robots in its warehouses since 2017. The global market for warehouse automation was valued at $16.23 billion in 2022. It is expected to hit around $71.03 billion by 2032.

      However, AI tools and automation platforms need a bridge between the digital and physical worlds in order to work. IoT forms that bridge, allowing digital tools to gather accurate data in real time about the physical world. The information gathered from these IoT sensors can then be used to pilot fleets of robots. It could also direct human pickers, control the ambient temperature, schedule deliveries, and oversee numerous other warehouse management tasks.  

      Predictive analytics 

      IoT can not only provide critical insights into what’s happening in the supply chain right now. The technology can also use the data it gathers, in combination with AI, to make educated guesses about the future. IoT creates huge amounts of information constantly. Sensors placed throughout the supply chain, from warehouse operations to transportation and delivery are continually reporting on location, temperature, time-to-process, and other useful information. 

      With the application of digital tools, this data can be used to forecast trends, pain points, and demand patterns. At a time when supply chain managers are overwhelmingly preparing for a future where disruption is the norm, rather than the exception, predictive analytics using IoT-derived data are a vital tool. 

      • Digital Supply Chain

      Daniel Usifoh, one of the co-founders of Axiom Sustainability Software, explores the power of collaboration in the modern supply chain.

      In today’s rapidly evolving business landscape, companies are under increasing pressure to improve the sustainability of their supply chains, driven by regulatory demands, stakeholder expectations and the urgent need to combat climate change. 

      One of the most significant trends in addressing these challenges is the integration of advanced technologies. These include AI, machine learning, and ESG (Environmental, Social, and Governance) reporting tools. 

      These technologies are instrumental in tracking carbon emissions, water usage and other vital sustainability metrics. Doing so allows companies to meet regulatory compliance and gain the insights they need to achieve Net Zero targets. However, achieving true sustainability requires more than just technology. It demands real collaboration across the entire supply chain.  

      Why Collaboration Matters 

      Effective supply chain sustainability hinges on collaboration among all stakeholders, including suppliers, manufacturers, logistics providers and customers. To make a meaningful change to your supply chain sustainability, each part of the supply chain needs to be onboard and aligned with the overall business strategy. 

      Scope 3 (supply chain)emissions, which can account for 80% or more of a typical company’s total emissions, are indirect and span a wide range of activities, from purchased goods and services to employee commuting and business travel. The indirect nature of Scope 3 emissions makes them difficult to monitor and manage, requiring extensive data collection and analysis. 

      One of the biggest obstacles companies face in meeting their sustainability targets is the complexity of tracking and measuring Scope 3 emissions. This is where collaboration becomes crucial! 

      ESG Reporting Tools and Centralised Platforms

      For large companies with complex supply chains, gathering and managing Scope 3 data is a huge undertaking! Having dedicated software platforms that can calculate all a company’s emissions, and a centralised place where suppliers can provide their data makes everything much easier.

      ESG reporting tools play a crucial role in streamlining the collection and analysis of sustainability data. These tools provide a central platform for monitoring, analysing and improving sustainability performance over time. By using these tools, companies can gain insights into high-impact areas, such as energy consumption and waste management practices and track the sustainability efforts of their suppliers.

      AI, Automation and Machine Learning

      AI and machine learning technologies can significantly enhance supply chain sustainability. These technologies can predict equipment failures, optimise energy consumption and identify patterns and trends in large datasets. AI-powered sustainability platforms automate the tracking of Scope 1, 2, and 3 emissions, providing real-time actionable insights that help companies optimise resource use and reduce waste.

      Automation further contributes to sustainability by streamlining operations, reducing human error and increasing efficiency. Automated systems can manage inventory control, order fulfilment and transportation logistics, leading to lower energy consumption and reduced emissions. These improvements enhance sustainability and contribute to cost savings and operational efficiency.

      Building Trust Through Transparency

      Transparency is a cornerstone of sustainable supply chain management. Companies that are transparent about their sustainability practices build trust with stakeholders, investors and customers.

      Transparent sustainability reporting demonstrates a company’s commitment to environmental stewardship and social responsibility, enhancing its reputation and competitive advantage.

      Delivering on supply chain transparency requires accountability and data. Again, having a centralised platform for managing this helps to reduce the administrative burden and risk of errors.

      Overcoming Regulatory Challenges

      Compliance with evolving sustainability legislation across the UK and Europe adds another layer of complexity. Companies must navigate a constantly changing regulatory landscape, which requires up-to-date and comprehensive data. Collaboration with legal experts, industry bodies, and sustainability consultants is essential to stay compliant and avoid potential penalties. 

      Conclusion

      Improving supply chain sustainability is a complex but essential task. Getting it right requires advanced technologies and, more importantly, robust collaboration between all stakeholders. By using tools such as ESG reporting platforms, AI, machine learning and automation, companies can overcome the challenges of tracking and measuring emissions, comply with evolving regulations and build trust through transparency.

      • Collaboration & Optimization

      InXpress Co-Founder and CRO, Adam Thompson, traces the 25 year transformation of short haul logistics.

      Over the past 25 years, the courier industry and e-commerce have undergone profound transformations driven by technological advancements, changing consumer behaviours, and evolving business models. With next-day delivery now being a norm, courier companies had to rapidly adapt to changing industry standards to keep up. 

      Since being founded in 1999, leading shipping and courier specialist InXpress has made significant strides to transform the courier industry through its customer-centric approach and by leveraging technology, partnerships, and innovative business practices. 

      With over 20,000 customers worldwide, and 12,000 customers in the UK, InXpress’s USP is its dedicated personalised customer service. There are not many companies that will do everything that a customer needs with one phone call or through one portal. Here are some of the ways InXpress has made a significant mark in the industry since its launch. 

      Established partnerships

      Over the past 25 years, InXpress has established loyal partnerships with leading courier companies like DHL, UPS, and FedEx, providing customers with access to a variety of shipping options. These partnerships enable InXpress to offer competitive shipping rates to small and medium-sized businesses, who might not have access to bulk shipping discounts otherwise.

      Continuous technology integration

      InXpress has significantly advanced courier technology through its innovative booking system webship+, creating a more streamlined and efficient process for customers to book the largest of shipments. webship+ is a robust online shipping platform that integrates multiple carriers, allowing customers to compare rates, book shipments, and track packages in one place.

      The platform embraces scalability and automation and automates many shipping processes, reducing manual work and errors, and improving efficiency. By handling the logistics and carrier negotiations through a wide array of leading courier partnerships, the platform allows businesses to focus on their core operations.

      A unique franchisee model

      InXpress widely encourages entrepreneurship, and has even developed a unique franchise model that empowers franchisees to invest in and grow their own logistics businesses. This model allows for localised, personalised customer service while maintaining the advantages of a global network, and benefiting from the organisation’s established brand and systems.

      Moreover, the company provides comprehensive training and support to its franchisees. This ensures they can provide high-quality service. Ongoing support and training are also offered to help businesses and their team members stay updated on industry trends and technological advancements and ensure continuous development. 

      Personalised customer focus 

      At InXpress, we understand how frustrating it can be for our customers to fight with automated chatbots who may not understand a unique issue. That’s why we have established close relationships with carriers and have dedicated customer service lines and personal account managers to provide tailored care and customer support.

      The team is available to listen to unique customer issues and problems at the second ring of the phone. The company also provides timely updates and monitors each case until the franchise successfully delivers the goods.

      An ambitious global reach 

      InXpress provides extensive international shipping services, making it easier for businesses to reach global markets. The company offers Customs Expertise and support with customs documentation and compliance, reducing delays in international shipping. The company continues to expand into new markets, increasing its global footprint and providing more businesses with access to its services.

      What’s next?

      InXpress has transformed the courier industry by providing accessible, efficient, and cost-effective shipping solutions through strategic partnerships, advanced technology, and a strong franchise network. This approach has not only enhanced the logistics capabilities of small and medium-sized businesses but also contributed to the overall efficiency and sustainability of the courier industry. 

      InXpress plans to continue the path of innovation with its customer-centric approach, introducing new services and technologies to stay ahead in the competitive courier industry.

      • Collaboration & Optimization
      • Sourcing & Procurement

      Shannon Kirk, Global Director of Legal Industry Solutions at Icertis, explores how supply chain disruption can be mitigated with contract intelligence.

      The spring and summer months mark a time of high alert around the world. In the U.S., East coast states have just entered the dreaded hurricane season, while the West Coast is deep into fire season (currently, there are over 70 active wildfires across the U.S.). Not even Europe can escape the weather; with record high temperatures wreaking havoc, experts estimate the economic impact to be upwards of $10 billion. 

      Weather-related events have lasting impacts on all aspects of our day-to-day lives, whether it be school closures, power outages, insurance claims, or even supply chain disruptions. In fact, early predictions expect supply chain disruptions to cost companies as much as $100 billion globally this year alone.

      Each year, these events serve as a stark reminder of the critical role supply chains play in modern business and how far-reaching these disruptions can be on a global level. 

      Despite best efforts, supply chain disruptions happen all the time; whether through natural disasters, geopolitics, shifting regulations, or economic instability, the supply chain is sensitive to change. Therefore, businesses must have a modernised contracting solution in place to help mitigate risk

      Managing supply chain disruption begins with contracts

      Every supplier relationship is governed by a contract, making contracts one of the most powerful data sources to gain visibility and insights into potential supply chain weaknesses. 

      When disruptions occur, the impact can vary across industries. Airlines may experience grounded flights; retail might face disruptions at the point of sale; and manufacturing could see production lines come to a halt due to delayed delivery of critical components, resulting in costly downtime and potential revenue loss.

      So, who actually bears the cost of lost revenue when a disruption occurs? Well, the answer should be found in the contract. 

      Contracts are the foundation of commerce, governing every dollar flowing in and out of an enterprise and acting as the single source of truth for business relationships. No matter what side of the transaction, sellers need to know what they’re entitled to, and buyers need to know what to expect. That’s why ensuring contract language, such as required terms and clauses that respond to supply chain disruption, is critical. 

      The complexity of modern supply chains

      Modern supply chains consist of hundreds of suppliers across a range of geographies. This complexity results in the management of hundreds of thousands of contracts, likely written in different languages, adhering to local regulations, and stored in clunky and disjointed systems as PDFs. 

      The sheer volume of these contracts makes it increasingly challenging for businesses to map the full ecosystem of relationships and ensure that the intent of their commercial agreements is fully realised. 

      Poor contract management can cost companies nearly 9% of their bottom line. This is a significant loss that AI-powered contract management solutions can help prevent. In a recent survey, 44% of CPOs reported leading AI adoption efforts, recognizing the increasing importance of AI in the procurement function.

      The power of contract intelligence 

      Contract Lifecycle Management (CLM) is one key area where CPOs see the value of AI. Traditionally, procurement teams managed contracts manually in disparate, disconnected systems, hindering agility and quick responses to disruption. However, by digitising these data goldmines and applying AI, automation, and machine learning, organisations can enhance visibility, standardise processes, and unlock insights across their hundreds of suppliers.

      Contract intelligence, a modern approach to CLM, not only helps businesses respond to crises but can also enable proactive measures within contracts to help maintain continuity. For example, if a particular supply chain route is at risk due to a natural disaster, AI can help quickly detect potential supply chain failures and identify tertiary suppliers as alternatives, ultimately mitigating potential delays. 

      For example, the semiconductor shortage attributed to the pandemic and exacerbated by extreme weather and the Russian invasion of Ukraine highlights the vulnerabilities within complex global supply chains. Although the chip supply chain has largely stabilised, the lingering effects underscore the challenges inherent in relying on specialised suppliers. 

      This situation emphasises the need for businesses to diversify their suppliers and turn to contracts as critical sources to manage risks effectively. Implementing AI-powered contract intelligence can provide better visibility into their supply chain dependencies, proactively secure alternative sources, and help maintain business continuity.

      The future of CLM

      As recently as a decade ago, CLM was nothing more than a repository of scanned documents. Today, AI has completely revolutionised the CLM space, transforming contracts into dynamic resources that guide how businesses operate with their suppliers. Gone are the days of signing a contract and just forgetting about it. Now, contracts serve as a living data source to mitigate risk and manage compliance. 

      By connecting millions of contracts and infusing their data into core operations, businesses can create rich pools of AI-powered insights to inform better decision-making, increasing the pace of business, and positioning the company to thrive despite supply chain challenges.

      • Risk & Resilience

      Neerav Shah, VP EMEA at commercetools, discusses how supply chain managers can make their eCommerce operations more resilient and agile.

      Delayed, in transit, more delays, and finally, delivered! Logistics resource shortages, advancing cyber threats, geopolitical tensions, and economic uncertainties — whether you’re a retail chain or a B2B manufacturer, as a leading multinational organisation — these unforeseen challenges can and will inevitably affect your supply chain. Precision, timeliness, and resilience are paramount in the supply chain industry today, as any delay can have cascading effects on distribution and production processes, which impact consumers and, ultimately, businesses.

      However, while risks in the supply chain can’t be avoided, they can be managed. With heightened awareness surrounding these disruptions, and the inevitability that a crisis can strike at a moment’s notice, organisations are proactively looking for new strategies to prepare for upcoming challenges. 

      As we explore the topic further, we interviewed Neerav Shah, VP for EMEA at commercetools, a leading provider of composable commerce solutions, to discuss the current challenges faced by the supply chain industry and how to fix them. 

      Today’s eCommerce supply chain challenges

      Some supply chain issues are beyond any organisation’s control. To mitigate the overall impact and build critical resilience in today’s market, companies could focus on tackling the challenges that are within their power.

      Inventory management 

      A particular struggle I’ve noticed organisations often grapple with is walking the tightrope of inventory management. 

      According to a 2024 Gitnux report, businesses lose a collective $1.1 trillion annually due to inventory distortion, with retail operators maintaining 63% inventory accuracy. Inaccurate predictions can result in understocking, leading to missed sales opportunities, or overstocking, which ties up capital and risks losses on perishable goods. 

      We advocate for the use of composability, using independent services to integrate with any inventory system, while also offering the flexibility to scale and enhance the inventory service independently as your business grows.

      Outdated technology 

      Another crucial factor that I’ve seen organisations overlook is their legacy systems. All too often, companies cling to their ‘tried and true’ tech, thinking it will continue to serve them as it once did. However, times have drastically changed… relying on older systems to manage shipping and returns won’t prove efficient. 

      Persisting with ‘old’ technology can soon create inefficiencies in inventory tracking, order processing, and customer service as more features become redundant, leading to fragmented processes and error-prone operations. With more consumers turning to online shopping to take advantage of cheaper buying opportunities, these gaps in operational efficiency are sore spots for eCommerce businesses. Customers expect a seamless, swift, and sophisticated service from online providers, so these companies can’t afford to fall short. 

      The secret to harnessing supply chain resilience

      Fast-fashion giant Shein recently took a bold step in the world of eCommerce, announcing its new business model — ‘supply chain as a service’. 

      As a company that possesses the unique ability to manufacture, ship and deliver exceptionally more than its direct competitors, this unique offering plays to its strengths and allows external brands and designers to tap into Shein’s sophisticated infrastructure and facilitate greater innovation and efficiency across the global fashion market.

      How did they achieve this in the current climate? 

      It’s simple. They digitised their entire supply chain from top to bottom, providing real-time visibility into capacity, inventory levels, and demand signals to facilitate data-driven decision-making and rapid response to market trends and potential setbacks.

      So, how can organisations optimise their operations to handle the unexpected? The answer lies in addressing the following pain points:

      End-to-end visibility 

      With a comprehensive view of the supply chain from start to finish, organisations can pinpoint potential bottlenecks and mitigate them. 

      New technologies such as cloud-native and cloud-agnostic platforms can give businesses access to a centralised repository of supply chain data, enabling them to standardise data formats and protocols across systems. These solutions can also provide the real-time capabilities that legacy systems lack, offering essential visibility and advanced analytics to alert companies of potential supply chain issues and provide actionable insights for timely decision-making. 

      Flexibility in innovation

      Tech is the driving force behind eCommerce. It’s always changing and shows no sign of stopping any time soon. 

      From the rise of generative AI to machine learning, automation, the Internet of Things (IoT), and more, the supply chain has never been ‘smarter’, and businesses must demonstrate a willingness to innovate and upgrade in order to keep up with modern systems and operate more efficiently. A composable architecture can support these initiatives by enabling businesses to swap out, adopt, and drop technologies as and when needed. The outcome? Greater scalability, innovation agility, and system connectivity.

      Conquering eCommerce fulfilment

      Nobody can predict the future. But what we can do is ensure we’re prepared for sudden disturbances and have the flexibility to adapt to whatever may arise.

      Siloed systems should be coming to an end. By embracing new, innovative technologies and infrastructures, organisations can not only unlock more agility for rapid scaling but also focus on optimising resilience to better handle unexpected disruptions. 

      In an era defined by digital connectivity, companies that keep their finger on the pulse of cutting-edge tech solutions will be best poised to stay ahead of the curve and thrive against competition.

      • Collaboration & Optimization
      • Risk & Resilience

      Pepe Aaviksoo, SVP of Operations at Starship Technologies, explores emerging methods for reducing the environmental impact of last mile logistics.

      Last-mile delivery continues to face a number of long-standing challenges. Not least among these challenges is the reality that last mile logistics are notoriously inefficient, cost intensive and damaging from an environmental perspective due to increasing traffic congestion and pollution. 

      Indeed, the final leg of a delivery accounts for more than half of a product’s total  shipping costs. Urban freight causes approximately a quarter of CO2 emissions and 30%-50% of other transport related pollutants.

      At the same time, the exponential rise of e-commerce in recent times is only increasing the demand for same-day, fast delivery services within the last mile. This, along with the legacy impact of the COVID-19 pandemic which undoubtedly fast-tracked wider awareness of delivery services, is driving companies to seek ways to optimise the last mile and make it more efficient.

      Revolutionising the last mile 

      In many ways the above has created a jumpstart for changes in the last mile to take hold. Companies increasingly want to bring storage and fulfilment closer to the end recipients. Doing so alleviates efficiency, cost-related and environmental challenges. 

      For consumers living in urban environments in particular, the end result is an increase in the number of on-demand delivery services available to them. This will include battery-powered robots, delivery drivers on e-bikes, e-scooters, or even drones. All these solutions have the overarching aims of increasing convenience, reducing costs and lessening environmental impact.

      It is the latter in particular that perhaps is garnering most focus currently. There is increasing pressure at a government level worldwide to accelerate action towards achieving the goals and targets outlined in the Paris Agreement and the UN Framework Convention on Climate Change at a societal level. 

      In the last mile, that means finding ways of getting goods to consumers with as little environmental impact as possible, while still providing a convenient, hassle free and cost-effective service. This is where the impact of what PwC has previously described as the ‘Uberisation’ of last mile delivery and the gig economy needs to be explored.

      There is no silver bullet for the last mile monster

      Ultimately, we can expect to see last-mile delivery continue to evolve and be multi-modal; there is not one type of delivery mode that will be able to meet all needs all of the time. Cars, robots, scooters, e-bikes, drones and other types of delivery methods will inevitably be the right solution at different points depending on each type of different delivery situation.

      However, zero-emission vehicles or other delivery solutions carry a lower upfront cost compared to diesel or fuel powered lorries, vans and cars, with running costs typically much lower too as well as less outlay for associated costs including maintenance and insurance.

      Additionally, it is practically much easier and cheaper to get a rapid delivery to a customer in a 1-3 mile radius in under an hour by using the pavement rather than by road or air where the safety requirements and regulations are much more complex.

      The role of delivery drones

      Drones in contrast play a role in more specific conditions, such as more remote areas where road infrastructure less developed. This also includes the transportation of more specific and less consumer facing cargo such as medical supplies; although it’s true that the Royal Mail is also trialling drone delivery for mail in remote parts of Scotland currently. 

      However, there is also an argument that fast, short distance and low basket value deliveries over the last mile can’t be done by humans and remain economical or sustainable. 

      It’s a well-known facet of the rapidly growing gig economy. In the more traditional, ‘human powered’ delivery industry, workers face systemic challenges. They are at risk of being overworked, poorly paid, and don’t have access to longer term contracts that protect their rights. Using autonomous delivery methods for low basket value deliveries over the last mile is one way of ensuring that people are left to work in better conditions and potentially different roles within the wider industry.

      Courtesy of Startship Technologies.
      Courtesy of Startship Technologies.

      Where to next? 

      Ultimately, consumer behaviour will continue to drive the innovations and changes we can expect to see in the last mile moving forward. The demand for same day or instant delivery is only likely to increase as alternative and autonomous delivery services become more mainstream.

      In turn, this further incentivises the business case for such solutions. In time, this will enable new delivery services in the last mile, deployed at less cost to and with less hassle for consumers.

      While technology advancement is key, the end goal is not to embrace technology for its own sake. Rather, it’s to make last mile delivery as smooth, easy and hassle free for consumers as it is for businesses to provide, while also being kind to the planet.

      Camilla Engbrink, Chief Technology Officer at Envirotainer, lays out the case for transitioning the pharmaceutical industry away from its dependence on single-use packaging.

      For decades, the pharmaceutical logistics industry has relied on single-use and multi-use packaging. However, as environmental concerns and economic pressures mount, there’s a growing demand for ‘forever-use’ packaging. This new approach promises to cut down on waste, reduce carbon footprints and achieve long-term cost savings.

      Imagine a world where pharmaceutical packaging isn’t just discarded after a single use but is designed to last, repairable and resilient enough to withstand the rigors of global transportation for years. This is quickly becoming a reality, driven by the urgent need for more sustainable logistics practices.

      Pathways to forever-use packaging

      The COVID-19 pandemic completely reshaped global pharmaceutical logistics. The urgent need to distribute vaccines safely, quickly and globally led to massive investments in cold chain and pharmaceutical logistics infrastructure. 

      These investments and the extraordinary demand for reliable distribution methods spurred the development and adoption of robust, repairable solutions designed to last for decades. This shift from single-use containers aimed to make sure that vaccines and other temperature-sensitive medicines could be transported safely, efficiently and sustainably, during the pandemic and beyond.

      To understand what forever-use containers entail, it’s crucial to look at their design and functionality. These containers are not just durable. They are built for long-term use over many years. Made from high-grade materials, they can withstand extreme conditions, from freezing cold to intense heat, without compromising their contents. Advanced insulation technologies and strong external shells provide reliable protection against adverse physical and environmental conditions.

      Forever vs.multi-use containers

      Unlike multi-use containers, which can be used only for a limited number of shipments before needing replacement, forever-use containers are designed for continuous, indefinite use. They can be repaired and maintained, which significantly extends their lifespan and minimises environmental impact. This sustainability aspect is vital as it reduces the volume of waste generated and the frequency of new container production.

      The key to these durable containers lies in their sophisticated internal systems. Equipped with high-performance cooling units, they maintain precise temperature control, essential for sensitive pharmaceuticals. These units are designed to run efficiently over extended periods with minimal energy consumption. Integrated sensors and IoT connectivity monitor internal conditions real-time. This makes sure that operators and manufacturers can detect and address any deviation immediately.

      Digitalisation has a role to play

      Digitalisation plays a key role in the transition to forever-use containers. Real-time monitoring and predictive analytics are essential for maintenance, helping to identify and resolve potential issues before they become problems. 

      For instance, if data analysis shows that a compressor in a container is working harder than usual, it can indicate an impending failure. Maintenance can be scheduled proactively to replace or repair the compressor before it fails during a critical shipment.

      The containers also include modular components that can be easily repaired or replaced, extending their operational life. If a  unit begins to show signs of wear, it can be swapped out without needing to discard the entire container. This modularity improves the sustainability of the containers, reduces long-term operational costs and keeps the products inside protected.

      However, there are still scenarios where these solutions might not be the ideal solution. 

      Meeting infrastructure challenges

      Despite advancements, less developed regions still face significant challenges in building permanent, sustainable logistics infrastructure. In these areas, the lack of reliable roads, limited access to electricity and inadequate storage facilities complicate the deployment of robust packaging solutions. 

      For example, a regional distribution centre in sub-Saharan Africa might not have the infrastructure to support the maintenance and repair of advanced, reusable containers. This means that even if medical organisations can deploy these solutions for initial transport, the lack of necessary support systems diminishes their potential benefits.

      Equitable access to pharmaceuticals hinges on developing these infrastructures. Without robust logistics networks, the distribution of medicines can be slow and unreliable. Therefore, building permanent, sustainable logistics infrastructure is critical to make sure that all regions can fully benefit from advancements in pharmaceutical packaging technology.

      Practical considerations

      While reusable containers are ideal for sustainability, single-use solutions may still be necessary in certain scenarios. Humanitarian crises, route disruptions, or manufacturer shortages can create unpredictable logistical challenges. For instance, during an emergency response to a natural disaster, medicial organisations need to be able to deploy medicines rapidly. While reusable solutions are quick to use, medical staff encounter issues when the time comes to return them. The process of transporting empty containers back can be logistically complex and certainly less sustainable.

      Similarly, supply chain disruptions caused by geopolitical conflicts or sudden shortages of pharmaceutical supplies can make the return of reusable containers impractical. In such cases, the flexibility of single-use containers can be crucial to make sure that essential medicines reach all patients. Balancing environmental impact with practical needs remains a challenge for the industry.

      Diverse pharmaceutical needs

      The pharmaceutical industry is rapidly developing a wide range of products, each with specific storage and transportation requirements. This progress is great news for patients, but it presents challenges for logistics. Shipping solutions must now adapt to accommodate smaller shipments and the need for lower temperatures. Cell and gene therapies, vaccines, and other sensitive drugs require precise temperature ranges and meticulous handling protocols to maintain their efficacy. 

      Logistics providers must offer various packaging solutions to cater to these diverse needs. This diversity complicates efforts to standardise processes and achieve sustainability goals. Each type of pharmaceutical product might need a different type of solution, insulation material, or cooling technology. Accomodating for these differences would necessarily add layers of complexity to the logistics chain. The challenge is in meeting the need for specialised care while also pushing towards more sustainable practices.

      Future outlook

      Looking ahead, the future of pharmaceutical logistics is bright with continued innovation and technological integration. Artificial intelligence and machine learning are set to play crucial roles in predictive maintenance and risk assessment, enhancing the reliability and efficiency of forever-use packaging solutions.

      Innovation in packaging materials and technologies will further support the transition towards sustainability. Expanding global infrastructure is necessary to support these sustainable logistics solutions, especially in underdeveloped regions.

      Regulatory frameworks will likely evolve to encourage the adoption of sustainable packaging solutions, providing guidelines and incentives for industry players to make the switch.

      The shift from single-use to forever-use containers in pharma logistics is essential for a sustainable future. This journey is challenging, from building infrastructure in less developed regions to meeting diverse pharmaceutical needs. However, the potential rewards of sustainability are immense.

      By embracing long-lasting packaging solutions, the pharmaceutical logistics sector can meet today’s needs and pave the way for a greener, more efficient future where life-saving medicines reach everyone, everywhere. The urgency to transition is clear. With the right investments and innovations, this transformation is not only feasible but necessary for the health of our planet and people.

      • Collaboration & Optimization
      • Sustainability

      Theresa Macdonald, Business Development Manager at Element Logic, explores five trends changing the face of warehouse automation in 2024.

      The past few years have been transformational for logistics and supply chain operations, with warehouses at the epicentre of this change. Economic volatility, global political shifts, and the lingering effects of COVID-19 have made the landscape increasingly complex, further intensified by constantly evolving consumer behaviours. 

      Instead of waiting for an elusive return to “normalcy,” now is the time for businesses to proactively future-proof their warehouse operations. Here’s a closer look at four technology trends that are not only navigating but also shaping this unpredictable future.

      1. The rise of warehouse automation and robotics

      Technological advancements are rapidly transforming the logistics sector, with automation emerging as a key driver of competitive advantage. 

      Automation significantly enhances storage density, reduces overhead costs, and extends operational hours, meeting the demands of rising order fulfilments. Take Automated Storage and Retrieval Systems (ASRS), for example. These advanced systems use goods-to-person technology to optimise space, improve order-picking accuracy, and cut labour costs. By seamlessly integrating with Warehouse Management Systems (WMS) and data-driven Warehouse Control Systems (WCS), ASRS provides continuous improvements through real-time feedback. 

      In addition, robotic piece-picking technologies, powered by machine learning and AI – achieve high picking rates while virtually eliminating human errors and reducing labour demands. Autonomous Mobile Robots (AMRs) further boost efficiency by navigating warehouse spaces with sensors and vision systems to manage tasks that are hazardous or impractical for humans. 

      Although the initial investment in automation technology can be steep, the return on investment usually manifests within 1-2 years, enabling around-the-clock operations and optimal asset utilisation.

      2. Data-driven decision making

      Harnessing real-time data through sophisticated AI and machine learning software unlocks vital insights that drive process efficiency, inventory management, and customer behaviour understanding. 

      Translating these insights into actionable strategies boosts performance. For instance, data-driven software streamlines capacity planning by alerting managers to potential constraints, ensuring timely resource redistribution. Digital twin simulations can stress-test various scenarios in a virtual model of the warehouse, offering enhanced planning capabilities. 

      Predictive maintenance further mitigates risk by flagging potential equipment issues before they escalate, preventing costly operational disruptions. 

      In transportation, analytics-driven software enhances supply chain efficiency, making logistics more resilient. Engaging staff through gamified tasks acknowledges their efforts and boosts morale, creating an efficient and enjoyable work environment.

      3. Accessible automation for smaller businesses

      Contrary to widespread belief, warehouse automation isn’t just for large enterprises. Smaller businesses can also benefit, particularly through models like Automation-as-a-Service (AaaS), which offer a cost-effective, low-risk entry into enhanced automated operations. 

      Small companies can leverage automation technologies to scale sustainably without the burden of operational complexities. AaaS ensures positive cash flow, allowing funds to be directed toward innovation and growth. 

      Warehouse automation solutions are highly adaptable, fitting into diverse spaces and scaling according to needs. Easily reconfigurable, these technologies meet the dynamic requirements of smaller businesses and third-party logistics providers (3PLs).

      4. The growth of Micro Fulfilment Centres

      Heightened consumer expectations for same-day or next-day delivery are compelling businesses to rethink their distribution models. 

      Micro fulfilment centres (MFCs) are emerging as a formidable solution, especially among European grocery retailers. These localised, small-scale warehouses expedite deliveries, enhance inventory control, and streamline returns. Strategically located close to consumers — in retail stores, nearby buildings, or dedicated ‘dark’ warehouses — MFCs reduce last-mile delivery times, cut transportation costs, and lower emissions. 

      Although manual labour in MFCs can limit efficiency and stock volume, investing in flexible, modular automated systems can significantly enhance both storage density and operational efficacy.

      5. Embracing smart warehousing

      The future of warehousing holds immense promise. Staying abreast with emerging trends and technological innovations is crucial for businesses aiming to excel in this ever-changing commercial landscape. 

      By integrating automation, robotics, AI, and data analytics, companies can improve operational efficiency and deliver exceptional customer service. 

      The key is to embrace change and stay ahead of the curve, creating a resilient and adaptive warehousing strategy. By recognising and acting upon these trends, businesses are well-positioned to navigate future uncertainties, ensuring both operational resilience and sustained growth.

      • AI in Supply Chain
      • Digital Supply Chain

      Holly Clarke, Product Manager, Inventory AI, at Peak, examines the role of AI in creating stock transparency for supply chain managers.

      For as long as commerce has existed, from ancient merchants to today’s multinational conglomerates, knowing the optimal amount of stock to hold across complex networks of warehouses and stores has been a persistent challenge. Now, in an increasingly digital age, supply chain managers are having to adapt even quicker. 

      Research last year predicted inventory distortion – the combined cost of loss of sales from out-of-stocks and excess stock – would cost retailers $1.77 trillion in 2023. With so much value at stake, failure to adapt to modern day challenges would be catastrophic for businesses and consumers alike. The seamless adoption of new solutions is critical to business development. 

      This is where AI has and continues to play a pivotal role. However, only a third of executives have a strategic vision for integrating AI into supply chain functions, with just 29% saying it’s pinpointed for “heavy investment” over the next three years. This lack of planning and investment could prove a business’s undoing if others take the lead on adoption. 

      For supply chain managers untuned to the world of AI, how can the technology optimise their processes? And what advantages can they expect? 

      Same problem, far greater variance

      Economic downturns, geopolitical tensions, extreme weather events and changing consumer habits have always played their part in global challenges faced by supply chain managers. What’s more, a reliance on historically manual processes and spreadsheets has made it incredibly challenging to gauge what optimal inventory levels look like and how best to balance costs.

      Today, unprecedented modern events have laid bare supply chains’ vulnerabilities, meaning solutions need to be found at pace. Not only caused by political or economic levers, even superstars impact global supply chains. Last year, Google search data showed a notable spike in the search term ‘metallic cowboy boots’ as Beyoncé’s Renaissance world tour kicked off and fans grappled to purchase their own show outfits. If you also consider vastly changing customer needs driven by economic uncertainty, supply chain managers are dealing with a host of obstacles; demand can change at the flick of a switch. 

      Disruption and uncertainty can always be expected, but striving for near-perfect inventory levels – including more SKUs and faster delivery – is almost impossible without AI.

      Overstock vs out of stock: A balancing act

      The key challenge for any supply chain manager is finding the balance between holding too much stock (especially when demand is low) and too little (especially when demand is high). 

      The former means they risk obsolescence, needing more warehouse space to house additional stock and potentially wasting vast amounts of products that go past their ‘sellability’. It can result in the business having to shift that stock at discounted rates and puts pressure on nailing every single sale. The latter of course means a host of missed sales opportunities, not only impacting revenue and operational costs but also brand reputation. The consequences can be critical to a business.

      Forward-thinking companies are looking to AI to optimise their inventories. The more they can optimise, the less sales lost and the less capital tied up in excess stock. For example, by using AI, they can assess inventory levels in real time and instantly make decisions to balance factors like product availability and life cycles with operational costs, a process that used to take days or even weeks. 

      And for the early adopters, the proof is already in the pudding. Using AI, McKinsey research showed these adopters lowered their logistics costs by 15% and improved service levels by 65% “compared with slower moving competitors”. But if the results are attractive, why are more companies not jumping aboard the AI train? 

      Optimising team processes

      It’s the unfortunate truth that supply chain teams are struggling for resource. In fact, a recent survey found that 76% of supply chain and logistics leaders are experiencing significant shortages in their supply chain workforce.

      Part of this is due to recruitment challenges, which plague the industry. Enticing tech companies and roles attract talented tech workers. Supply chain is missing out on key talent. Organisations need to shine a light on these supply chain roles and companies to ensure there is a healthy flow of talent into the sector.

      On top of recruitment challenges, to combat these pesky supply chain resource shortages, organisations need to optimise their team processes. But, what does this look like?

      When AI is introduced into the fray, teams can regain time in both the short- and long-term, giving them much-needed time back to plan and strategise. AI-powered insights also elevate this strategic planning, empowering supply chain teams with a quantity and quality of data they might not have accessed previously.

      An approach fit for the modern world

      You can never truly predict future customer demand. But if you know how much variance there usually is between forecasted demand and the true level, you can implement a supply chain strategy and inventory level best suited to deal with this fluctuation. 

      It’s not an exaggeration to say that without using AI in the coming years, companies could be losing millions in margin compared to their AI-powered competitors. But if they can start to embed AI into their supply chain operations now, they can form a flexible and modern approach to tackle a problem as old as commerce.

      Holly Clarke is Product Manager for Inventory AI at Peak, a UK-based artificial intelligence company building unique AI solutions for companies of all sizes in every market and vertical.

      • AI in Supply Chain
      • Risk & Resilience

      Kavita Jain, VP of Supply Chain Global Emerging Markets at Mars Wrigley, unpacks the food and beverage giant’s sustainable supply chain strategy.

      In today’s increasingly interconnected world, the sustainability of supply chains is crucial for the long-term viability of businesses and the planet. 

      If we at Mars Wrigley, or any other business, are to achieve our net zero ambitions, developing a sustainable supply chain is an absolute prerequisite. 

      Doing so for what we term Global Emerging Markets – over 140 markets across Latin America, South and Southeast Asia, the Middle East & Africa, and Oceania and accounting for 65% of the world’s population – presents its own unique challenges and solutions from which others can learn.

      Enhancing transparency through ethical practices and advanced technology

      Transparency is essential to sustainability, as it builds trust and ensures that operations are ethical, sustainable, and accountable. Clear communication of goals and practices, along with strict adherence to ethical standards, are fundamental to this process. For instance, our Supplier Code of Conduct, guided by international human rights standards, sets out expectations for our first-tier suppliers and strictly prohibits all forms of forced labour, including modern slavery. This code enforces that suppliers share a principles-based approach to business.

      Another key facet of this is using technology to make supply chains more transparent. For example, polygon mapping using GPS data is helping to foster a deforestation-free cocoa supply chain. Cocoa is mainly grown by smallholders on plots of less than four hectares and is sourced across multiple markets, making accurate traceability challenging. However, advanced GPS polygon mapping can trace the entire perimeter of farms, ensuring that cocoa is sourced from deforestation-free areas that do not encroach on natural ecosystems. This technology is supporting our sustainable practices, aligning with our overall goal of a deforestation-free supply chain by 2025 and enhancing transparency in cocoa sourcing.

      Transparency in partnerships, goals, and progress is vital for businesses aiming to enhance accountability and trust. By openly sharing information about their collaborations and the steps they are taking towards their sustainability objectives, businesses demonstrate a commitment to ethical practices and decision-making. This openness allows stakeholders to better understand the efforts being made and assess the effectiveness of these initiatives. It also fosters a culture of accountability. It holds businesses responsible for their promises and actions. Such transparency can lead to continuous improvements in sustainable supply chain practices, as it encourages ongoing dialogue and feedback, ultimately contributing to more informed and responsible decision-making.

      Advancing water stewardship: innovative approaches to efficient water management

      Water stewardship is critical to supply chain and manufacturing operations across the world, as changes in climate and increasing demands from growing populations put extra strain on fresh water supplies. Across the markets in which we operate, these challenges can be even more acute, putting extra importance on our need to innovate to preserve water wherever we can.

      A key challenge that we have had to address is how we recycle water. In our Taipei factory, we have devised a process which allows us to recycle and resell waste sugar water as fertiliser binder. Not only does this reduce pressure on fresh water supplies, but it also saves 2,550 trees annually and removes 18,000 kilos of carbon emissions each year, directly supporting our goal of reducing greenhouse gases. From a business standpoint, the water recycling in Taipei also has an impact on the bottom line, helping Mars Wrigley save $693,000 annually. We have implemented similar recycling initiatives at factories such as Bengaluru and Pune, ranked as some of the most water scarce cities in the world, and in Egypt where we have used waste and grey water recycling methods to reduce the amount of water needed to produce snacks such as Twix and Snickers by 20%.

      Adopting advanced water management and recycling techniques can greatly enhance sustainability. These practices not only benefit the environment but also provide practical economic advantages, highlighting that effective water stewardship is essential for creating a sustainable future for communities and businesses alike.

      Reducing carbon emissions: Combining renewable energy and innovative technologies 

      It is clearly impossible to talk about sustainability in supply chains without addressing carbon emissions. Recognising that many of the markets we operate in are on the frontline of climate change, we have implemented various initiatives under our Net Zero Roadmap, to cut our greenhouse gases by 50% by 2030 and be net zero by 2050. 

      For example, in Mexico, we have reduced carbon emissions by 8,000 tons annually by switching to 100% renewable energy in our factories. Moreover, a team of engineers across GEM has developed a cost-effective, 3D-printed solar-powered chiller. The chiller keeps chocolate products safe in high temperatures, doesn’t require electric power as it uses solar power, and is low-cost and durable, requiring minimal maintenance for retailers. At a cost to produce of just $50, this scalable solution not only reduces emissions but makes sustainability accessible, helping small retailers to keep products cool without relying on electric power.

      The work that we are doing to switch to renewable energy and the development of the solar chiller demonstrate perfectly how it will be innovations both large and small that will be key to reducing emissions across our supply chain. Making it possible for small businesses to take action on sustainability is key not only to reducing emissions, but it also helps them demonstrate to increasingly climate conscious consumers that it is important to them too. 

      For large businesses, clearly these small innovations cannot replace the large and complex task of energy transition and decarbonisation in the supply chain, but they should nonetheless be part of how we think about supporting our partners. Working across emerging markets around the world, we see how important this is not only for our business but also for the communities that we serve to create a better future for us all.

      • Sustainability

      Siddharth Rajagopal, Chief Architect, EMEA at Informatica, explores the need for effective data management to ensure the UK’s food security.

      After one of the wettest winters on record, farming leaders  are warning that flooded fields and massively delayed sowing will likely lead to shortages and price rises on crops like wheat, oilseed rape, potatoes, and barley later this year. 

      That’s not just an ‘industry problem’: warnings of wet weather washing out domestic food supplies will be a major headache for families with dietary restrictions or those on tight budgets.   

      But despite farmers’ best efforts, you simply can’t put seeds into a field that resembles a lake. 

      The UK’s food needs aren’t going anywhere, so the food will have to come from somewhere. And that means the burden of feeding the nation significantly falls to the food industry’s importers, shippers, and distributors. Locating, securing, purchasing, and moving food on this kind of scale is no small feat – not least because accessing and managing all the information involved is a tall order in itself.

      Stepping into the breach

      The initial response to the weather crisis will likely focus on protecting this year’s food stock. 

      This will mean either stretching out tight supplies, or careful planning to make up any shortfalls by importing more from abroad. Both will require retailers and distributors to have a single, 360-degree view of supplier profiles if they’re to get the right volume of products to the right place at the right time.

      That in turn means they need the right technology approach for the job. In particular, the ability to maintain accurate data on supplier status, pricing, and stock levels, as well as the location of current shipments and information on any potential delays. The more the industry knows about the wider situation, the more agility and accuracy it can bring to purchasing decisions and shipping plans. 

      With the right data strategy in place, it will be possible to source and import the staple supplies the UK needs, albeit at a higher price and with little benefit to the farmers whose annual income will have been significantly impacted thanks to the heavy rain. 

      Future-proofing the UK’s food supply

      Unfortunately, this type of disruption is highly likely to become more commonplace in the future. As the effects of climate change take hold, the UK is set to have longer, wetter winters that will impact annual food supplies and severely challenge the whole food production and distribution ecosystem. 

      To protect food security, farmers, retailers, and distributors will need to work closely together to build greater resilience into food supply chains

      A clear approach to data management and governance can provide visibility over potential sources of disruption, ensuring companies can respond promptly and do their best to mitigate against costly delays. An example of what this looks like in practice is having a common terminology of food supply related glossaries, processes and policies.

      Not only do supply chain stoppages cause added logistical costs – with many crops, they can be the difference between a usable product and a totally spoiled cargo. Given that demand is likely to be high during periods of weather-related disruption, strong data management will also help retailers navigate a crowded market, securing products and shipping windows efficiently.

      As artificial intelligence applications become more available to wider sections of the industry, they can also help to offer a clear view of strategic supplier relationships. As a result, organisations will be better able to manage supply chain challenges, plan ahead, and mitigate the effects of any potential food shortages. 

      Creating a comprehensive view of the market

      These kinds of advanced data management solutions and data-driven applications not only enable companies to get a more comprehensive overview of the market situation – they also free up staff time to ensure people can focus on value-add tasks rather than the manual work of compiling, cleaning, and storing ever-growing datasets. 

      Organisations already waste too many man-hours on repetitive tasks. The more this kind of work is streamlined through the use of automated solutions, the greater the opportunities will be for organisations to develop innovative responses to the growing pressure of unpredictable weather.

      Winters like the one we’ve just endured are only the tip of the iceberg (so to speak). Logistics professionals across a whole range of industries are going to face a raft of new challenges in the coming decades. Increasingly they will have to grapple with more dramatic weather patterns, work to decarbonise their supply chain and comply with global sustainability reporting requirements. 

      As the old proverb goes, knowledge is power. 

      Companies need to equip themselves with advanced data management capabilities to ensure they can make intelligent, data-driven decisions when crises hit – and emerge stronger on the other side.

      • Digital Supply Chain
      • Risk & Resilience

      Companies across industries are increasingly under scrutiny for alleged greenwashing. It’s estimated that 40% of businesses’ green claims could be…

      Companies across industries are increasingly under scrutiny for alleged greenwashing. It’s estimated that 40% of businesses’ green claims could be classed as unsubstantiated or misleading. In Britain alone, 70% of British consumers dismiss green claims as false or deceptive. 

      While enterprises are most commonly the target of greenwashing claims, we’re seeing that even the most iconic events are finding themselves in the hot seat. The 2024 Olympics is currently facing criticism for inflating its sustainability efforts

      The consequences of greenwashing can have far-reaching impacts on an organisation, including loss of customer trust, declining sales, and even litigation. Beyond these direct impacts, companies are now facing the threat of severed business relationships, deterring investors, and limiting potential partnerships due to the risk of reputational damage by association.

      Commenters have deemed the new Sustainability Disclosure Requirements, introduced by The Financial Conduct Authority (FCA) earlier this year, to be the “most significant single piece of UK sustainable finance regulation to date.” It mandates that all regulated firms stop greenwashing or making climate-friendly false claims. As a result, smart businesses are re-evaluating how they track ESG activities to ensure their claims are truthful, transparent, and compliant with FCA requirements. 

      Responding to the New Regulatory Landscape through Contracts

      Contracts are foundational to commerce governing every dollar in and out of an enterprise. They act as a single source of truth for business relationships to ensure that the company and its suppliers are following ESG regulations and delivering on promises like net zero pledges. According to a recent survey that studied what defines trust in business relationships and what companies can do to build the necessary trust to achieve their goals, 70% of executives said they view contract language as an effective tool to enforce ESG standards and commitments. These contract clauses are wide-ranging and could include provisions aimed at promoting biodiversity, net-zero targets, and the prevention of land contamination

      Despite the rise in demand for more standardised ESG clauses, only 30% of organisations are actively embedding ESG language into their contracts. When business leaders begin to develop ESG contract language, they often find they have limited visibility into existing contracts and the current requirements for global suppliers. Add on the challenge of traditional contract management systems that consist of manually stored PDF documents, and you’ve now created a black hole with no clear path forward. Contract mismanagement can mean these ESG clauses are not properly tracked or enforced. This results in potential legal risk and reputational damage that could harm an organisation’s bottom line.

      The Role of AI in Formulating ESG Clauses

      AI has enabled organisations to overcome these challenges by providing visibility into existing contracts, promoting standardisation, and ensuring accountability. 

      Contract data presents one of the most valuable untapped assets in the enterprise and a prime resource to fuel innovation with AI. While contract intelligence equips companies with the visibility, automation, and insights to efficiently track and report on ESG obligations, AI enhances efficiency to empower customers to unlock the full potential of their commercial agreements – for example, determining whether ESG obligations are included and adhered to. Essentially, AI-powered contracting serves as a partner for legal teams, alleviating the burden of managing large volumes of contracts. This is critical because it helps avoid compliance threats, reputational risk, financial penalties, and sanctions, or even the inability to quickly respond to regulatory changes. 

      ESG Regulations and Supply Chain Compliance

      AI-powered contract intelligence is empowering organisations to more accurately monitor ESG compliance within supply chains. Take, for example, the war in Ukraine. 

      At the time of Russia’s invasion, government regulations around the world halted any business conducted with Russian-based companies. Supply chains around the world needed to respond immediately. However, not everyone had the infrastructure in place to quickly identify at-risk suppliers. The result was a month-long supply chain disruption. 

      By harnessing AI-powered contract intelligence, businesses are able to understand their risk profile concerning sanctions and implement changes that would ensure compliance.

      This is just one example of how AI-powered contract intelligence can enable enterprises to thrive despite macroeconomic challenges. The same holds true for organisations looking to track their supplier’s environmental impacts or even identify areas where there’s an opportunity to reduce their carbon footprint. 

      By connecting millions of contracts and infusing their data into core enterprise systems, enterprises can create rich pools of AI-powered insights to inform better decision-making around ESG commitments and complex regulations.

      The Future of Company Contracts and ESG Practices

      In the eye of public opinion, ESG commitments are not optional. Gone are the days when ESG commitments were a ‘nice-to-have;’ they’re now an absolute imperative for any organisation that conducts business. 

      Businesses will need to digitally transform their contracting systems to ensure they adhere to FCA greenwashing regulations, as well as to avoid the loss of shareholder, investor, and customer trust.

      Investment in AI will play an increasingly important role in guaranteeing standardisation and visibility. This ensures that organisations throughout the supply chain adhere to the ESG clauses in their contracts. This, in turn, will combat the challenges that prevent organisations from meeting their sustainability goals.

      By deploying the right software, businesses can not only address these specific challenges, but also increase revenue, reduce costs, and mitigate risks – outcomes that are vital in the current business environment. It’s all about structuring and connecting contract data across the enterprise to deliver speed and scale, and applying AI to ensure the intent of every business relationship is correctly captured and fully realised.

      • AI in Supply Chain
      • Sustainability

      Sustainable apparel startup Unspan claims its 3D weaving can reduce waste, making the fashion industry less environmentally harmful.

      The problems endemic to the global fashion supply chain are well known. The production of fabrics like denim and cotton are highly resource intensive. Not only that, but the rise of fast fashion has made supply chains move faster. As a result, designers prioritise speed over sustainability, amplifying the wastefulness of the industrial scale clothing manufacturing. 

      Unspun, a startup founded by three Stanford graduates, is developing a new manufacturing technique. They hope the new method, 3D weaving, will cut down waste in apparel manufacturing. The end goal: to shorten supply chains, reduce waste, and help make fashion more sustainable.   

      Waste lots, want lots — the fast fashion supply chain 

      The fashion industry’s manufacturing practices and supply chains have a famously tenuous relationship with many brands’ sustainability rhetoric.  Many major clothing retailers have sourcing practices that are at least somewhat damaging to the climate. And this problem gets worse the faster and more affordable the items being sold become. The fashion industry produces approximately 2-3% annual carbon emissions worldwide, putting it in similar territory to commercial aviation (2-3%) and data centres (2.5% to 3.7%)

      Apparel manufacturing is a wasteful enterprise. Making a single cotton shirt consumes approximately 2,700 litres of water. Approximately 20% of the world’s industrial wastewater pollution comes from the fashion industry. Of all the clothing thrown away across the world, 57% is sent to landfill. Another 25% is incinerated.

      Not only are fabrics like denim and cotton water-intensive to produce, but turning them into clothes also creates inefficiencies. “Business as usual in fashion is a massive waste. It means squandering scraps of fabric when making garments,” Unspun’s webpage argues, discussing the company’s impact. Unspun also highlights that the fast fashion industrial manufacturing process also means “making too many of those garments and disposing of what isn’t sold. It even means making garments to be disposable, thrown in the bin at the end of their use. All while burning fossil fuels to power a labyrinthine global supply chain.” 

      Unspun and 3D weaving — a different way  

      Unspun is an interesting new startup — one which is often misrepresented in the media thanks to confusion over its two similar, but separate, business models. Co-founded by Stanford graduates Walden Lam, Kevin Martin, and Beth Esponnette, Unspun is bringing multiple new manufacturing techniques to the fashion business.  The first utilises 3D scanning technology to manufacture custom jeans. 

      The second, 3D weaving, combines the textile weaving process with the making of the garment itself. This makes the process significantly more efficient, according to Unspun co-founder Walden Lam, who explains that 3D weaving conserves materials, consumes less energy and emits fewer greenhouse gases. “Our mission is to reduce the global human carbon footprint by 1%,” Lam told the South China Morning Post earlier this year. “Depending on which information source you trust, that would mean influencing a pretty significant portion of the industry – about a quarter to a third, and we need to do it quickly.” 

      • Sourcing & Procurement
      • Sustainability

      Laure Collin, SVP of Human Resources, Global Supply Chain, at Schneider Electric, discusses the value of human capital in supply chain management.

      The benefits of Fourth Industrial Revolution technologies for supply chains are clear – greater operational efficiency, sustainability outcomes, and resilience. 

      As companies are deploying these digital solutions throughout their organisations, they are faced with a challenge – how to ensure their people develop the skills needed in this new, more digital supply chain. Here are four aspects any supply chain leader should consider.

      Digital Supply Chains must be Human-centric

      The manufacturing industry is facing a huge labour shortage. According to the World Economic Forum, more than 10 million manufacturing positions are open today. 

      Ther’es no denying AI and machine learning have made significant advancements in recent years. However, people remain the backbone of any successful supply chain. Why this labour gap? One significant cause is the higher demand for tech skills.

      As companies go through digital transformation, ensuring people remain at the heart of their supply chain strategy is critical. It’s a simple equation: training current industrial talent for the digital world while also investing in the new generation builds a more vibrant, efficient, and future-ready operation. It’s unlikely we will see a sudden surge of digital supply chain talents on the market soon. Therefore, the most obvious step for organisations to take is ensuring their workforce is upskilling and reskilling for the future.

      Between 2021 and 2023, Schneider Electric increased digital talents across our supply chain organisation by 67%. This upskilling took place from the shopfloor to senior management. Here’s how we did it.

      Reskill, upskill: connecting and nurturing digital skills in shopfloor employees

      No matter how advanced technology becomes, it is the people at the ground level who are its primary users. Employee skills can make or break the success of implemented technology. Any digital skills strategy must be inclusive and include your employees working in your factories and distribution centres.

      At Schneider Electric, we are equipping our shopfloor employees to become data-driven wizards and automation gurus. One critical step is ensuring they are digitally connected. 

      We have connected approximately 40,000 employees across 175 factories and distribution centres to a digital communication tool, enabling them to receive and send communication in real-time. 

      This breaks down traditional barriers and connects the shopfloor teams to managers and remote experts. It also ensures the team has greater access to knowledge and problem-solving, sharing best practices and troubleshooting tips across sites. This helps us scale best practices, including digital solutions, across the organisation.

      You can’t change what you don’t measure. That’s why we have mapped digital competency across the supply chain organisation – from individuals at the site level to leadership. This transparency has tangible benefits: personalised learning paths for talents across the organisation, skill-gap analysis that empowers managers to drive development of their teams, and executive visibility so we can make informed decisions on where to invest.

      We have also created a dedicated program to develop and engage shopfloor employees in automation manufacturing, focusing on three critical domains: programing and automation, digital and technological proficiency, and data analysis interpretation. This ensures these employees can develop the skills and expertise they need for today and tomorrow.

      Fostering a Growth Culture: A Collaboration of Learning and Adaptability

      The volatility and uncertainty we have seen over the last few years has revealed the new skills, capabilities, and mindset needed for success. Our new world requires new ways of working, and it’s crucial to create a culture that values continuous learning, creative problem-solving, and innovation.

      It’s important for leaders to encourage curiosity and open-mindedness, recognize and reward behaviours that demonstrate learning and innovation, and offer flexible learning opportunities that accommodate individual needs. This way, both organisations and their employees can adapt to new technologies and changes in business operations at their own pace, ensuring a smooth digital transformation. 

      Our Catalyst Leadership program gives our people managers the skills to be more agile leaders and support their teams in their development.

      But there are digital tools that can shape the culture too. Open Talent Market is an AI-driven technology that has helped Schneider Electric match our internal supply and demand of talent in a transparent, borderless, and unbiased way. Employees use it to develop, grow, and shape their futures. Now, they can select a mentor, contribute to a project, or even apply for a new role.

      Navigating Towards the Future

      As we navigate towards an exciting yet ambiguous digital future, it’s crucial to remember that people make technology work. The key is to create a digitally competent and operationally effective workforce that can navigate the stormy waters of digital transformation.

      Building digital expertise and instilling a culture of continuous learning within your supply chain organisation is not easy. However, those willing to invest time, effort and resources will find that they are better prepared to tackle future challenges, seize opportunities, and effectively drive their organisation’s digital transformation journey.

      • Collaboration & Optimization
      • People & Culture

      Oana Jinga, Chief Commercial and Product Officer and Co-Founder at Dexory, on how to increase supply chain resilience and visibility.

      Markets today are rapidly evolving, bringing a change and unpredictability which has proven the fragility of supply chains across the world. It’s a challenge not even the biggest companies are able to prevent, with Airbus having recently lowered its annual forecast due to ‘persistent specific supply chain issues’.

      The impact of such is that we need to ensure our global supply chains are more resilient than ever. With the challenge of doing so high on the c-suite agenda, just how can organisations ensure their supply chains are not only high performing, but also highly adaptable?

      The crucial role of visibility

      Positively, supply chain resilience is something organisations are looking to improve. Capgemini’s ‘Fast Forward’ report found that more than 57% of organisations are increasing their investments to enhance the resiliency of their supply chains, and that, for many organisations (62%), increasing their supply chain resiliency is a key priority.

      But where should companies start on their journey? For me, the first place is visibility.

      We already know high quality supply chains thrive on a deep understanding of the flow of raw materials and goods. Visibility is at the core of this concept. Despite this, only 6% of logistics companies claim full visibility over their operations.

      Change here is vital but business leaders must first understand the key aspects of visibility in the journey to more resilient supply chains. These include:

      • The early detection of issues and effective risk management: Visibility allows organisations to promptly identify potential disruptions or issues at various points in the supply chain. This means that they can take proactive measures to mitigate against them.
      • Improved decision making and optimisation: Decisions informed on accurate and timely data enable true business agility. While visibility, by definition, increases the quality and volume of data and insights.
      • Customer satisfaction: Trust between suppliers and customers are damaged when supply chain issues are present. Visibility allows organisations to be more transparent with their customers and gives them data-driven insights to share.

      Visibility is a foundational element of the modern, resilient and efficient supply chain. And while, yes, it can enable better performance, it’s potential is much broader with quality insights driving better decision making as well as better partnerships with customers and stakeholders.

      The power of real-time data

      We know data is an incredibly powerful asset for business leaders and teams when it comes to decision making. Timely, accurate data is a competitive advantage in the world of business. Therefore, it needs to be used within the complex, fast-paced world of supply chains, too.

      When coupled with innovative technologies, this data can transcend traditional boundaries and expectations. For example, inventory levels can be adjusted dynamically to re-route shipments into unforeseen events like weather or traffic. The impact of securing these insights also extends far beyond operational efficiency. When thinking about this use case alone, not only does real-time data mean unexpected disruptions can be avoided, but it also means workforce time doesn’t have to be wasted due to more accurate and effective schedules.

      It’s important to note here real-time data can also help organisations ensure compliance with regulatory requirements throughout the supply chain. For example, export and import requirements, environmental regulations and even those surrounding worker safety. By understanding exactly what is going on in your supply chain at all times, compliance issues can be fixed before they become an issue.

      Fixing the visibility gap

      The absence of end-to-end visibility, or the ‘visibility gap’, is masking significant economic costs for businesses and not allowing them to squeeze tight margins by improving inefficiency and reducing the cost of disruption. Yet, organisations no longer need to grapple with the visibility gap in their supply chains. Innovative solutions to address strategic gaps in data, technology and visibility exist. However, organisations need to make the most of them.

      There are still challenges standing in the way. These include determining the types of data to collect, grappling with the multitude of elements in play, and translating insights into actionable steps. Thankfully, advanced robots can help with this complex puzzle by offering a solution to improve accuracy.

      Final thoughts

      There is still a lot of work to be done to remove the visibility gap and ensure resilient supply chains. Actioning this has never been so important as right now. The world we live in remains unpredictable and businesses continue to fail as a result. Only by improving visibility through real-time data can organisations get a firm grip of their supply chains.

      • Collaboration & Optimization
      • Risk & Resilience

      Stig Martin Fiska, Global Head of Cognizant Ocean, explores the role of data and artificial intelligence in making international logistics more sustainable.

      The international transportation of commercial goods and equipment is heavily dependent on shipping; over 80% of the journey is through water. However, the shipping industry faces countless disruptions every day, whether its severe weather, geopolitical troubles or industrial strikes. Recently, disruptions in the Red Sea rerouted 586 container vessels in first half of February 2024 alone. Meanwhile, container tonnage crossing the canal fell by 82%. Meanwhile, the bridge collapse catastrophe that occurred in Baltimore has seen the port – one of America’s largest – being closed as a result for over a month, costing the US economy an estimated $15 million a day.  

      To mitigate these challenges, the shipping industry should look towards using innovative technologies such as artificial intelligence (AI). AI has the potential to reimagine the way that the shipping industry can predict and circumvent disruption, ensuring different parts of the supply chain run seamlessly, whether this is the task of navigating the ship, or managing activity at a port.   

      At the same time, as climate change soars, the shipping industry, akin to most sectors, is experiencing increasing pressure to become more sustainable. To ensure long-term success, efforts to become more sustainable need to go hand in hand with encouraging business growth. By implementing innovative technologies, shipping companies can improve their bottom line through increased efficiencies, while at the same time working to decarbonise our oceans. 

      Navigating unpredictability  

      Potential disruptions in the shipping journey can make predictability a challenge to achieve. However, companies can deploy generative AI technologies to minimise the need to play the guessing game. For example, a singular port only has so much capacity, and if too many ships arrive at once, waiting times may skyrocket, while the extra fuel used by stagnant ships creates a large carbon footprint. Here, shipping companies can use generative AI tools to analyse past arrival information and predict when ships should arrive at the port to minimise disruption.  

      Often, companies own a lot of data in silos, but lack the knowledge or resources to be able to analyse and make use of this data. For example, take the task of fuel management. Human employees still often do this manually, basing their decisions on past experience. The opportunity arises to combine the power of generative AI with large language models (LLMs) to document and therefore automate these processes, saving shipping crews time. With these new technologically powered processes in place, shipping companies can make use of the wealth of data they own to make informed decisions. 

      As another example, generative AI can be deployed with LLMs to identify factors that impact disruption, such as severe weather and geopolitical ongoings, and alert staff to take steps to mitigate this. 

      Preserving our oceans  

      As environmental damage to our oceans accelerates, subsequently so is regulatory pressure on the shipping industry to mitigate sustained damage. In fact, in December 2023, the United Nations General Assembly adopted two resolutions that highlighted the rising threats that our oceans are facing, a crucial step towards its goal to conserve at least 30% of marine and coastal areas by 2030. 

      For the shipping industry, the priority concern is how ships can avoid causing damage to the oceans and its biodiversity. Generative AI and LLM tools can be used to create an effective environmental impact monitoring system. For example, port congestion is a large contributor to local air pollution, but a tech-enabled system can forecast and therefore reduce congestion to decrease air pollution. Meanwhile, the risk of bringing invasive species to local ecosystems is a concern, but an AI-powered system can track vessels to provide advanced warning of invasive species risks. 

      The trust factor  

      Despite the buzz around AI technologies, these tools are still rapidly advancing, so it’s no surprise many in the shipping industry are reluctant to put their utmost trust in what a generative AI tool suggests over their own years of human experience. 

      However, these technologies would be used as part of a holistic decision-making process; a human will always need to validate the results, but these technologies can offer more reassurance that the most appropriate action is being taken on the shipping journey based on thousands of pieces of real-time data, all analysed at once.  

      This can offer workers in the industry the chance to upskill and use exciting modern technologies within their work, while helping reduce costly and time-consuming disruptions. Meanwhile, greater efficiency will help organisations meet their environmental goals while attracting customers and investors – all of whom are becoming increasingly sustainably minded

      Better together  

      However, human scepticism isn’t the only problem looming over the implementation of AI tools. There are many stakeholders throughout the shipping ecosystem, from the ship itself, to the delivery company, to the port.   

      To make the most of AI technologies, the shipping industry must work together to break down information silos and in turn improve the quality of operational insights. However, coordinating all the data involved is difficult, especially when many often lack the resources – whether personnel-wise or financially – to focus on innovating digitally.  

      Rather than seeing implementing AI as a huge project that needs everyone’s buy in, shipping companies should take it step by step. Even a small attempt at becoming more sustainable can reduce carbon emissions greatly. 

      Looking forward, making operations as efficient as possible while working to decarbonise our oceans is paramount as the world becomes more geopolitically, environmentally and financially unpredictable.   

      The container industry faces plateauing demand, easing congestion, and lower rates for freight shipment, but for how long?

      Conditions in the global shipping container market are improving. In recent weeks, demand has plateaued, congestion has eased, and available capacity has increased. Shipping rates have fallen as a result, easing cost tensions for supply chain managers around the world. 

      This comes as welcome news, given the fact that rates reached “unsustainable levels” earlier this year, according to Maersk CEO Vincent Clerk

      Not all sunshine 

      However, some industry experts note that disruption could be having a greater effect on freight rates than changing demand. Alvin Fuh, VP of Ocean Freight at forwarder Dimerco Express Group, told Seatrade Maritime News that freight prices rising over the past few months was more closely tied to Houthi attacks in the red sea, and that “Freight rates could deteriorate as quickly as they have increased recently.” 

      Nevertheless, geopolitical tensions between the apartheid state of Israel, Iran, and Houthi rebels in Yemen (who have been targeting Israeli shipping in the Red Sea) appear at risk of escalating further in the wake of the assassination of Hamas leader Ismail Haniyeh on Iranian soil. Escalation of armed conflict across the region could further throw off balance logistics chains that have weathered almost a year of disruption around the Suez canal. 

      … and now the good news

      Nevertheless, it seems as though a combination of factors around the world are conspiring to lower container freight rates. Total freight capacity will likely rise by around 5% in August, compared to July, mainly due to a 35% reduction in blank sailings. Carriers are reportedly reducing cancellations from 70 to 52 sailings.

      According to Drewry Shipping Consultant’s Principal Consultant Hind Chitty, “The recent decline [in freight rates] is likely due to carriers expanding capacity on transpacific and Asia-Europe services (as demand and spot rates surged over the last two months). This drop may indicate that peak rate pressure is easing.”

      A recent Drewry report also noted that the majority of major container terminals in Asia are now congestion free. In particular, Singapore recently opened up new capacity (a previously shuttered cargo handling facility) to ease congestion. In the US, Los Angeles and Long Beach have some congestion, and major North European ports are still struggling to manage overflow. Nevertheless, the trend is moving towards cleared backlogs and fewer delays. 

      • Collaboration & Optimization
      • Risk & Resilience

      The GCC procures 85% of its food requirements from overseas, making food security a key challenge in a time of worsening climate disasters.

      Three quarters of a billion people struggle with food insecurity and hunger. A grim new report from the United Nations on the State of Food Security and Nutrition in the World argues that the global fight against hunger and malnutrition has stagnated in recent years. Malnutrition rates are worse than they were 15 years ago. One in 11 people faced a situation last year when they could afford or access food. In Africa, that figure becomes one in five. 

      The production, procurement, and distribution of food is a global, humanist issue. And some parts of the world are better prepared to face it than others. 

      A newly released new report from CZ Advise lays out the challenges facing food procurement in the Gulf. It also presents some potential ways forward for GCC states in a world where supply chain disruption is increasingly the norm, rather than the exception.  

      Food (in)security in the Gulf 

      Thanks to vast reserves of oil wealth, Gulf Cooperation Council countries (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates) are generally counted among the more food-secure nations by the Global Food Security Index. The index creates its ranking based on the availability, affordability, quality, and safety of food supplies in a country. 

      However, the region lacks control over its food production, remaining highly dependent on imported foods from beyond its borders.

      Approximately 85% of GCC countries’ food is imported. This proportion rises to 90% for cereals, and almost 100% of rice is imported. This overdependence on foreign production creates significant vulnerabilities in the CGG nations’ food supply chains. The vulnerability of these systems was conveniently demonstrated during the COVID-19 pandemic just a few years ago. 

      Food security in the GCC is largely an artificial construct. This is especially pertinent considering the populations of GCC nations largely comprise migrant workers. The dramatic social and economic inequality that permeates many Gulf states means that disruptions to food supply chains can and will impact the GCC’s most vulnerable populations, who exist with few rights and little semblance of a social safety net. 

      The GCC’s most vulnerable populations are the most at risk 

      Supply chain disruptions, price fluctuations, and geopolitical tensions in exporting nations all have the potential to hurt the Gulf and its most vulnerable. 

      While CZ’s report is quick to note that “There is no such thing as a country which is entirely food secure,” some nations, like those in the GCC are more at risk than others. More poignantly, that risk is only going to increase over the decades ahead, as the worsening climate crisis disrupts agricultural yields, threatens biodiversity, and throws supply chains into disarray. 

      Ironically, the crisis has been exacerbated by the burning of fossil fuels largely extracted from the GCC states. But, again, it won’t be the wealthy native citizens of the GCC that suffer; in the UAE specifically, Human Rights Watch notes that migrant workers make up 88% of the country’s population — a subset of UAE residents who face systemic exploitation and abuse. These abuses of UAE-based migrant workers have also been linked more broadly by Human Rights Watch to climate-related harm.

      In recent years, the GCC nations have made decent strides towards enhancing their food security. This has been achieved through a combination of factors. They include augmenting port operational capacities, bolstering food storage, and beneficial government subsidies for food enterprises. However, CZ notes that “Achieving food security domestic production is improbable for the GCC. Therefore, the GCC countries must undoubtedly continue to rely on diversified global food import strategies to ensure food security.” 

      Looking to Southeast Asia and Brazil to meet food needs 

      CZ argues that food imports from Southeast Asia and Brazil will play a crucial role in GCC food security. Shifting where the GCC’s food comes from, they argue, will diversify the region’s food supply chains away from single-supplier systems. For example, the overwhelming majority of rice imported by GCC states is grown in India. That nation is currently battling its own agricultural woes as a result of climate change. 

      Southeast Asia, CZ’s report points out, “is a significant producer of various agricultural products such as rice, fruits, vegetables, and seafood.” The proximity of Southeast Asia to the GCC, coupled with established trade routes, allows for timely and cost-effective transportation of fresh and processed food products.

      The report adds that Brazil, “as one of the world’s largest agricultural exporters, is another vital partner. Brazil’s vast and productive farmlands yield substantial quantities of grains, meat, poultry, and sugar.”

      • Risk & Resilience

      Jayson Humphrey, Global Commercial Lead, Marketplaces at Tradeshift, explores the transition away from traditional trading networks.

      The world doesn’t just feel more frightening in the wake of Covid-19: it really is, at least for the majority. Almost overnight, businesses went from robust confidence in the strength of their supply chains to worrying about an increasingly tangled web of risk – from Acts of God like pandemics,  to rising geopolitical tension, cyber attacks, economic uncertainty, and the impact of new tariffs and regulations such as Environmental, Social, and Governance (ESG) standards.

      Supply chain leaders once struggled to get an audience with the C-Suite. Now they’re being hauled into boardrooms and asked what they are going to do about the 25% tariff that’s suddenly been slapped onto a key component. 

      It’s a tough question, but a necessary one: how can supply chains designed for speed and cost pivot towards resilience while remaining nimble enough to adapt to new regulations worldwide? Equally important, how can they turn today’s uncertainty and risk into a competitive advantage?

      Bonfire of the Paper Processes

      A recent report by EY suggests an answer: Businesses are beginning to transition from linear models towards networked supply chains that promote visibility and agility through end-to-end digitalization.

      And not before time. Global trade continues to be incredibly reliant on slow, ‘dumb’, and error-strewn manual processes. Many of these are still heavily paper-based, with an estimated four billion physical documents moving through the supply chain every day. 

      Identifying potential issues and improving processes is only half the battle, however. Before COVID, many supply chains were either single-sourced or heavily sourced in one region or one country. The lack of a plan B and even a plan C forced businesses to ask some pretty hard ‘what if…’ questions. 

      Research by Cap Gemini found 68% of organisations are actively investing in diversifying their supplier base. Companies like Apple are moving production from China to more politically neutral countries such as Vietnam, Mexico, India, and the Philippines.

      Reconfiguring supply chains on this scale is complex, requiring rapid identification, vetting, and onboarding of new suppliers. Shifting demand patterns necessitate digital connectivity that allows real-time collaboration between buyers and suppliers.

      Diversification efforts will fail if underlying systems remain outdated. Failure to digitise and automate these processes denies businesses the insight, agility, and speed needed to respond to changing social, economic, and geopolitical landscapes. 

      Getting on board with digital

      People have been predicting the “paperless office” for decades, and some will say that digital supply chain initiatives will see the same lack of success as other predicted “bonfires”. This time, it’s easy to prove the cynics wrong, simply by pointing to how businesses are already building robustness and agility into their supply chains by moving to all-digital platforms. 

      Consider the traditionally paper-intensive supplier onboarding process. Digitalization speeds up and simplifies this process and lays the foundation for greater agility and end-to-end visibility.

      Analyst firm IDC highlights how cloud-based B2B marketplaces eliminate outdated processes, allowing businesses to reorient their supply chains towards resilience. Historically, these digital marketplaces have focused on goods rather than the more difficult services. 

      However, this landscape is also changing as highly complex transactions are now becoming possible through emerging service-oriented marketplace solutions. These marketplaces provide access to a large selection of pre-vetted suppliers in multiple locations. They offer buyers choice, transparency, and competitive pricing.

       Revolutionising Supply Chains with Digital Marketplaces

      Access to a networked marketplace environment gives buyers choice, transparency, and competitive pricing. If a buyer is in the automotive sector, for example, they will benefit from group buying on a dedicated marketplace for direct materials. They can also access other marketplaces for indirect spend, such as office supplies. 

      Crucially, this can all take place on a single platform and through a single user interface. The ability to navigate such networked marketplaces via a single platform is still an emerging development. It could be good news for all, thanks to industry evolution at just the right time.

      Marketplaces are much more than vast online emporia, though. In addition to supporting the move from linear to networked supply chain models, the B2B marketplace model provides a ready-made environment for the automation of business processes. This has significant implications in key areas of the traditional source-to-pay process, where supplier identification and onboarding remain significant hurdles.  

      In fact, it’s impossible to conceive these new, more robust, more agile global trading networks without digital platforms. 

      As businesses’ supplier ecosystems become more geographically diverse, the range of regulatory and compliance demands they encounter becomes much wider. Under the old paper-reliant regime, that would put enormous strain on legal and compliance teams just to manage on-boarding, let alone the almost daily work of ensuring they are compliant with new regulations and mandates across every territory. This is yet another area where the all-digital approach shows its mettle.

      Streamlined Compliance

      The benefits of having access to a large number of pre-vetted suppliers don’t end at the on-boarding process. Access to pre-vetted suppliers enhances negotiation, contract management, and compliance checks. In many cases, buyers can effectively outsource due diligence requirements to the marketplace operator. The operator is then responsible for serving up suppliers that tick the right boxes. 

      Checks can be tailored to individual businesses’ requirements. For example, to meet local regulations, or in the service of corporate values, focusing on key areas of risk such as forced labour, cybersecurity, and environmental practices.

      B2B marketplaces dramatically improve compliance efficiency, supporting automated transactions at scale, including straight-through processing. 

      They enable businesses to confidently navigate compliance concerns and the fast-changing geopolitical and economic environment. Importantly, they ensure that their future is in their own hands.

      • Collaboration & Optimization
      • Procurement Strategy
      • Sourcing & Procurement

      Kevin O’Marah, Co-Founder and Chief Research Officer at Zero100, tracks the trajectory of today’s supply chain leaders headed for the CEO role.

      When choosing a new leader to sit at the helm of a major multinational company, there’s no such thing as a low-risk appointment. So, it’s no surprise that more than three-quarters of current Fortune 500 CEOs are internal appointments. Sure, outsiders can bring valuable new perspectives and approaches but, when it comes to the crunch, it’s a lot safer to give the top job to someone who already knows the business inside and out. 

      Looking inside the company for a new CEO

      No one knows the day-to-day details better than the Chief Operating Officer (COO). Just ask Tim Cook, who spent half a decade as COO at Apple prior to becoming CEO of what is today one of the most valuable companies in the world. 

      Apple’s share price has risen 4x over the past five years alone, and much of this success can be traced back to decisions Cook made while he was COO, such as paring back the number of supply chain vendors, adapting advanced manufacturing models and forming critical deals with manufacturers on flash memory.

      In an era defined, on the one hand, by the pursuit of global brand dominance and, on the other, by the relentless need to satisfy shareholder and market expectations, COOs aren’t always the most high-profile choice for the top job. But as Tim Cook’s journey shows, they’re more than capable of making the transition. However, the business world is ever-changing. The past few years have forced Fortune 500 firms to battle relentless macro headwinds, from COVID, geopolitics and trade wars, to inflation, talent shortages and heightened environmental and sustainability pressures. 

      Boards have been forced to relearn the time-honored truth that business success is ultimately defined by operational efficiency and resilience. In the vast, complex and interconnected global marketplace, this means focusing on supply chain supremacy.

      It’s why more and more Fortune 500 firms are adding dedicated supply chain roles to the C-suite. And it’s why today’s Chief Supply Chain Officers (CSCOs) could be in pole position to become tomorrow’s Fortune 500 leaders. 

      From COO to CSCO (to CEO)

      There’s already plenty of precedent here. From Mary Barra at General Motors to Gerry Smith at The ODP Corporation and Christophe Beck at Ecolab, a growing number of companies have appointed supply chain executives as CEOs in recent years.

      Supply chain leaders are on the hook to deliver top-line business value like never before. The mainstream media constantly scrutinises supply chain performance, as external shocks come thick and fast. Not only that, but quarterly calls with Wall Street analysts frequently focus on supply chain successes and failures. Supply chain performance underpins shareholder sentiment, influences stock prices, and could even determine a company’s future license to operate.

      It’s a tough gig, but it’s also giving supply chain leaders an unmatched opportunity to hone their approach, think strategically, and showcase their skills. The nature of the CSCO role lends itself to individuals who possess several key leadership qualities necessary for success at the very top level. 

      Winning CSCOs must immerse themselves in every facet of end-to-end operations to balance supply and demand. They’re comfortable with accountability – they have to be, as the buck always stops with them. They’re analytical and data-driven, well-versed in problem-solving (because the next problem is always around the corner), which means they’re able to stay calm and think clearly in a crisis.

      Not only that, but as seasoned practitioners who began their careers on the shop or factory floor, they’re empathetic and humble, commanding the respect of their subordinates as well as their boardroom peers. In short, CSCOs have the skills and the temperament required to assume the greatest corporate responsibility of all. 

      CSCOs are digital transformation champions

      And there’s another critical factor working in their favour: digitisation. 

      Right now, the entire corporate world is seeking to embrace AI and enter a new era of digitally driven productivity and profitability. There’s a growing convergence of supply chain and IT within many of the world’s largest organisations. It’s an accepted reality that the supply chain leaders are far better placed than the chief technologists and innovation officers to make digitisation an operational reality.

      Fortune 500 CSCOs are already leading the digital charge, figuring out which technologies to embrace and where to deploy them, as well as determining the future talent requirements and upskilling necessary to deliver AI-powered, 100% digitised supply chains. This immense task requires rethinking several decades of normalised business practices and embedded behaviours and convincing their board to back them at every stage in the journey.

      In this respect, the plight of the CSCO is synonymous with the race to embrace AI. The Fortune 500 firms that successfully reorient their businesses around AI will be the ones that win, and win big, in the long run. 

      Likewise, the CSCOs that succeed in their digitisation mission will have passed the ultimate litmus test – the requirement to lead.

      • People & Culture

      Nigel Pekenc, Partner at Kearney, examines the trends and challenges set to define the supply chain sector for the rest of 2024 and beyond.

      Supply chains are the backbone of the global economy, ensuring the seamless flow of goods and services across the world. However, recent disruptions caused by COVID-19 and geopolitical tensions have triggered a significant transformation. 

      Companies are diversifying their supplier bases and increasingly moving production closer to home to reduce dependence on distant suppliers and mitigate risks associated with global disruptions. There are five main trends shaping this transformation:

      1. Regionalisation

      A key component of this transformation is the shift from a global model to a network of interconnected local value chains. For supply chain leaders, this results in increased flexibility and resilience by relying on multiple local sources instead of fewer global suppliers to enhance supply chain visibility and control. Kearney’s 10th Annual Reshoring Index Report found that regionalisation is increasingly gaining momentum, with up to 96% of US CEOs committed to reshoring as a strategy to enhance supply chain resilience.  

      2. Artificial intelligence 

      The rapid emergence and adoption of AI is forcing supply chain leaders to rethink how they use technology, and how they incorporate it into the fabric of their businesses. These digital tools have a myriad of applications, such as predictive analytics and machine learning algorithms, the ability to improve efficiency, transparency, forecasting and much more. Moving forward, companies must integrate data and AI technologies to optimise their supply chains from end-to-end if they are to remain competitive. 

      3. Re-skilling 

      With new technology and new priorities, comes the need for new skills. With 60% of the global workforce in need of significant training to bridge the skills gap, supply chain leaders need to act now to make sure they have a workforce that enables growth and innovation. This could involve investing in new training programs, e-learning platforms, or outsourcing further work overseas.  

      4. Sustainability 

      Driven by the push of regulatory pressures, and the pull of growing consumer demand for greener practices, businesses are recognising the need to move beyond compliance and embracing more innovative sustainable practices. For example, Unilever has invested in sustainable sourcing, working closely with farmers and supply chains to ensure that raw materials are produced in an environmentally/socially responsible manner. Innovating around sustainability throughout a company’s operations will not only help with compliance, but also help create an ecological friendly value chain that is fit for the future.

      5. Customer value 

      There is a growing recognition amongst leaders of firms that operations should be driven by customer value, rather than cost alone. 80% of organisations plan to compete mainly based on customer experience, underscoring the increasing importance of a customer-centric approach. enhancing customer satisfaction and loyalty through value-centric supply chains has become a priority. This shift reflects a broader realisation that providing excellent customer service can be a crucial differentiator in today’s competitive market in terms of minimising the risk of losing market share.

      The gap between ambition and operational delivery 

      The case for transforming business operations is well understood, and many organisations have made good progress towards global value chain rewiring. However, we are still seeing a significant gap between strategic intent and operational delivery. 

      This is evident in the figures. For instance, while 92% of manufacturers say they are looking to regionalise their manufacturing footprint, only 28% aim to have nearly all in-region-for-region operations by 2030. 

      In terms of technology, 64% of supply chain leaders perceive AI as the key to driving supply chain improvements but only 1% have been able to eliminate Excel-like manual spreadsheets from their operations. A similar story plays out across all five trends, with only 14% of manufacturers redesigning their network to reduce Scope 3 emissions — but why is this? 

      Delivering on this ambition is easier said than done. The scale and complexity of value chains means that carrying out end-to-end transformation is no small task, and one that requires significant investment. Additionally, the very same factors that are driving transformation in the long-term are hindering it in the short-term, including macroeconomic, political and ecological disruptions. 

      Rewiring global supply chains

      To tackle these issues, companies should focus on phased implementation, prioritise high-impact areas, and look to develop partnerships to share costs and risks. In particular, partnerships and engagement between the public and private sector organisations are critical and enable a globally coordinated development of next-generational strategies. 

      Resistance to change can hinder transformation efforts, especially on this scale. As a result, clear communication of benefits, stakeholder involvement in decision-making, and comprehensive training can enable a smoother, and more efficient, transition. 

      On a nuanced level, supply chains can use the complexity of supply chains to their advantage. For example, by promoting stakeholder collaboration across the value chain, they can enable flexible nodes and real-time re-routings to avoid delays and increase efficiency.  

      To maximise the value they generate from AI, and new technology, organisations should integrate AI decision-making capabilities with digital twins of supply chain in order to model scenarios, and combine this with the real-time enterprise resource planning so they can act proactively in line with evolving priorities. 

      Real-time decisions made using scenario based data can also help organisations to upskill their workforce. Unlike implementing top-down directives, this approach can increase the agility of organisations to respond to their changing skill requirements, reflecting the dynamic nature of the skills gap. 

      In short, transforming supply chains to be more resilient, sustainable, and technologically advanced is no simple task, but the opportunities for those who do it successfully are vast. To guarantee the global economy’s resilience and sustainability in the future, industry leaders must focus on these issues. 

      • Digital Supply Chain
      • Risk & Resilience

      Tim Lawrence, Director of the Digital Supply Chain Hub at Digital Catapult, calls for a new digital approach to trade regulation.

      No region is close to being entirely self-sufficient when it comes to global trade. In fact, every part of the world relies on trade with others for over a quarter (25%) of at least one important type of good. 

      This tells us that global trade policies and processes are critical to the success of global supply chains, particularly in light of the fact that approximately 40% of global trade is “concentrated”, whereby importing economies rely on just three or fewer nations for their entire share of global trade. 

      As such, calls for a radical rethink of global trade are mounting in parity with increasing disruption to supply chains across key sectors. Public and private entities are racing to ensure that supply chains remain robust and ready to overcome unforeseen challenges, and advanced digital technologies will play an important role in this transformation. 

      Digital Catapult’s new international accelerator will look to play a critical role in transforming global import and export processes by leveraging advanced digital technologies, with a view to increasing the efficiency, sustainability and resiliency of global supply chains. 

      The growing importance of transforming global trade practices

      An uncertain geopolitical climate is prompting many businesses to reconsider their import and export processes. Global trade is critical for economies to grow, directly impacting a country’s gross domestic product (GDP). Maintaining equilibrium between imports and exports is also essential for achieving economic stability. 

      This is because fluctuations in trade can have economic implications including devaluing currency and leaving citizens worse off. This is where logistics and supply chain management will play a critical role in achieving the right balance between exports and imports, ensuring robust and resilient trade processes that drive economic growth in the long-term. 

      The need to transform import and export processes becomes even more important in light of research from KPMG, which found that poor logistics and supply chain management poses a critical threat to a country’s successful cross-border trade. Tracking orders, determining liabilities for in-transit goods, and meeting promised delivery time frames can be more challenging in cross-border trade due to multicarrier handoffs and border delays. 

      New solutions to transform global supply chains and logistics will therefore be critical to solving these challenges, and are even more important as the World Trade Organisation (WTO) expects to see global trade pick up this year following a contraction in 2023. 

      How advanced digital technologies may be the answer 

      Advanced digital technologies are set to serve as pivotal tools for optimisation and enhancement in the realm of supply chains and logistics. 

      The International Chamber of Commerce (ICC) affirms this, noting that the most effective way to boost trade across the G7 will be by digitalising the trade ecosystem, using new technologies and innovations. Doing so, the ICC claims, will boost trade by $9 trillion by 2026, and the acceleration of digitalisation in the sector is driven in large part by new legislation such as the Electronic Trade Documents Act (ETDA). 

      The ETDA is now in force in the UK, with similar legislation coming to Germany. This law aims to streamline cross-border trade by digitising commercial transactions, regulatory compliance information, and cargo logistics. 

      The ETDA’s benefits are immediately accessible, with a reported 80% reduction in border waiting times, 18% decrease in shipping costs, and a 30% improvement in profitability. These digital improvements also facilitate easier access to trade capital and help meet ESG compliance requirements, but require countries to embrace digital solutions to comply with the legislation and to yield the best benefits from it. 

      At Digital Catapult, we work with a range of advanced digital technologies including artificial intelligence (AI), quantum, machine learning, the internet of things (IoT), immersive and more to consider how these technologies might solve industry challenges including those that exist within the supply chain. 

      Using AI for example, business leaders can forecast demand, optimise inventory management, and streamline route planning, in addition to complying more with the ETDA by automating reporting processes and reporting their ESG activities more accurately. 

      What Digital Catapult is doing to transform global trade 

      In my role as Director of the Digital Supply Chain Hub, a national programme working to advance and accelerate the understanding and inclusion of digital technology in UK supply chains, I oversee projects that not only improve logistics and supply chains in the UK, but overseas too. 

      We recently launched our first international accelerator with BAE Systems and Leonardo UK  to enhance the efficiency of import and export trade processes.  As part of the programme, we will work with technology providers who can help to solve the challenges, providing funding of up to £85,000. 

      The programme titled International Supply Chain Accelerator: Seamless Trade Across Borders, will leverage advanced digital technologies such as AI, distributed ledger technology (DLT), and IoT to solve challenges set out by BAE Systems and Leonardo UK. 

      Sharing data for trade transformation 

      The first challenge will consider how participants at all stages of the supply chain can standardise and share high quality data effectively. The second challenge will focus on enhanced transparency and visibility of the export and import process steps in the supply chain. 

      This is something that technology provider Kavida has achieved, developing a new solution that aims to solve the lack of visibility and control that procurement and supply chain managers in UK SME manufacturing experience after placing an order. Using Kavida’s platform, advanced digital technologies can provide business leaders with the location, condition and expected arrival time of products, and offer further detail on orders that might be of risk. Kavida is an alumnus of the Digital Supply Chain Hub, going on to raise £900,000 in funding, and is testament to the innovation we develop for broader industry at Digital Catapult. 

      With approximately 40% of global trade concentrated among a few nations, the need for innovative solutions is paramount, and advanced digital technologies present a significant opportunity to revolutionise import and export processes. At Digital Catapult, we help organisations of all sizes to leverage technologies to address supply chain inefficiencies and enhance global trade, and this is why we have announced the international supply chain accelerator. 

      Any company interested in being part of the programme can apply here

      • Risk & Resilience

      Chantal Bisson-Krol, VP AI & ML Solutions at Kinaxis, lays out five ways to successfully augment your supply chain with artificial intelligence.

      Supply chains have never needed more help – from geopolitical conflicts to extreme weather, the challenges facing supply chains across every industry are becoming much more pronounced. As with almost every other industry, AI technology could be perfectly poised to support supply chain professionals to overcome these challenges – but how?

      AI technology isn’t simply a plug-and-play solution, however. To get the most out of AI, supply chain professionals need to abide by a few guiding principles.

      1. AI should augment humans

      First thing’s first: the achievements of AI in the past couple of years are nothing short of incredible, which is why it’s easy to forget the things that machines cannot provide, which I call the three C’s: context, collaboration and conscience. Models cannot derive meaning from context, critical in so many areas of the supply chain, nor can they work together to solve problems, including addressing issues like sustainability or human rights in supply chains.

      This is why AI should augment humans. The most powerful combination is for humans and AI to work together, a belief reflected in a Workday survey of decision-makers, 93% of whom believe in the importance of keeping the human in the loop when AI is making significant decisions.

      2. AI needs to fuse with heuristics and optimisation

      AI can model problems at scale to produce more precise recommendations, such as greater demand forecast accuracy or better predictions of on-time delivery. Precision is also a benefit of optimisation, a field of AI familiar to many in supply chains for its ability to make the best use of resources within constraints to specific objectives, such as cost minimisation. Scale, though, can be a challenge: optimising a supply network can involve 200 million interdependent variables, slowing down even the fastest optimisation solver. Instead, some turn to heuristics, a problem-solving model that utilises a practical solution, or best practice, to produce a quick and feasible course of action good enough for the situation.

      A fusion of the heuristics and AI can “warm start” an optimisation model, creatively combining the strengths of each approach to achieve an equilibrium of speed, precision and cost-effectiveness. Supply chain professionals should keep their hands on the wheel and remember that the most elegant solution is one that uses the right model for the right problem at the right time, no more, no less.

      3. Concurrency and AI can transform supply chain management

      Supply chains connect many functions across a company and beyond, which is why optimising one link doesn’t optimise the entire chain. For example, AI can greatly increase the accuracy of forecasts, but we want more than highly-efficient silos. The power of AI on its own is not enough.

      The real breakthrough is not from AI but with concurrency, which integrates AI in the workflow to align decision-making across the supply chain for faster response. We want AI for its ability to predict with greater precision, speed, and elegance, and we need concurrency to connect supply chains for better, faster response, no matter what the conditions are. The bottom line is that AI embedded in concurrency leverages predictions while absorbing the volatility we cannot predict from the inevitable disruptions our supply chains will always face.

      4. Democratise the power of AI

      For AI to realise its potential, everyone must be able to use it. We will always need experts to explore new ways to apply AI, but empowering supply chain practitioners to adopt it themselves is crucial to realising its true power within the supply chain industry. For this reason, the best solutions are the ones which don’t require technical proficiency in AI or data science in order to use in your day-to-day role.

      If solutions are designed for someone with supply chain context and business knowledge, they can “consume” the results of a model without knowing how to build it. Democratising AI in this way ensures its use, so choose to work with a provider who allows you to start from where you are and evolve.

      5. Build Trust in Your AI

      Many AI solutions come in a black box that even data scientists struggle to unpack. This is bad for visibility, but it can also be bad for adoption; supply chain professionals are ultimately responsible for their forecasts and, if they can’t explain how an AI platform is helping them to make their forecasts, they might think twice before trusting it. In fact, researchers have found that humans are more forgiving of what they perceive to be error on the part of fellow humans than they are from machines, a trait that can lead to them to develop “algorithm aversion.”

      One approach to overcoming this aversion is state-of-the-art techniques that make black box AI models more understandable. For example, explainability techniques such as feature attribution methods can be used in demand sensing to help a planner see how adding a signal like weather affects predictions. Creating AI solutions that we can understand goes hand in hand with democratisation and, ultimately, will help improve adoption across the supply chain industry.

      It’s clear that AI is transformative for the supply chain, and it’s fascinating to envision an industry augmented by this exciting technology. As we ramp up our use of AI, though, we need to remember that the trick to getting the most out of it is by adopting a human-centred approach. When AI is embedded across the end-to-end supply chain, expertly fusing the best techniques available, we can reimagine what is possible in our supply chains.

      • AI in Supply Chain

      Andrea Morgan Vandome, Chief Innovation Officer at Blue Yonder, explores the trends shaping the future of the supply chain industry in 2024.

      Blue Yonder’s 2024 Supply Chain Executive Survey reveals the many shared challenges and trends that continue to impact businesses worldwide. Once again, supply chain disruptions, rising costs and sustainability pressures proved top of mind for many. Unsurprisingly, the combined impact of all these issues has served to hit the bottom line, with almost half (46%) of global organisations confirming that profit margins are down.

      To address these challenges and regain a degree of control, supply chain leaders are turning to innovative technology solutions to elevate end-to-end capabilities and make their supply chains more resilient, sustainable and agile. 

      Let’s take a look at what they are doing, and why.

      The top twin challenges: disruptions and rising costs

      Dealing with disruptions remains the number-one challenge facing today’s supply chain teams. In addition to raw material shortages (48%), delivery lags from suppliers (47%), labour shortages (44%) and transportation capacity restrictions (41%), senior executives cited issues resulting from extreme weather conditions, shipping route changes and geopolitical unrest. 

      Asked to evaluate how these disruptions had impacted their business, senior decision makers identified a number of negative outcomes including delays for customers (42%), production stoppages (42%), regulatory compliance issues (39%), reputational or financial damage (38%) and an inability to meet customer demand (38%).

      In addition to managing frequent disruptions, supply chain organisations also confirm that soaring cost inflation is putting profitability under pressure. Globally, rising transportation costs (38%) and raw material costs (34%) were identified as the two most significant issues generating supply chain stress.

      These combined challenges have had a significant commercial impact, with almost half (46%) of organisations globally reporting a decline in profit margins. Firms operating in the US appear particularly hit by these ongoing supply chain vulnerabilities, with 60% reporting decreased margins.

      In response, many firms are doubling down on sustainability initiatives in a bid to reduce waste and excess and, by doing so, gain greater control of their cost base.

      Sustainability: a strategic investment

      Maximising sustainability across the supply chain is now a key focus for supply chain firms, with nearly half (44%) increasing their investment in sustainability initiatives last year. 

      Reducing waste and excess – including production, inventory and raw materials – was the top sustainability goal for 57% of senior executives. Meanwhile, 55% said their primary focus was increasing transportation efficiency, optimising fuel usage, redesigning network and transportation routes and creating greener fleets.

      In addition to the pursuit of initiatives that boost efficiency and reduce the consumption of resources, and thereby lower operational costs, supply chain organisations are also looking to improve supplier sustainability (46%), enhance the returns process (34%), and innovate product design for enhanced reuse/circularity (34%).

      To accelerate these sustainability initiatives, and optimise supply chain decision-making at scale, more and more organisations are increasing their investment in AI technologies. The reason – so they can improve supply chain efficiencies (53%), reduce disruptions (37%) and increase profitability (29%).

      AI and supply chains: navigating uncertainty with enhanced insight and agility

      The survey shows the extent to which supply chain organisations are already harnessing AI technologies to drive efficiencies, augment decision-making, and speed up how they pivot in the face of unexpected or disruptive events. 

      Over half of supply chain organisations have deployed AI and ML solutions to improve the performance of supply chain activities such as planning (56%), transportation (53%) and order management (50%). Furthermore, 80% currently have generative AI initiatives underway, having either fully (12%) or partially (33%) completed these implementations or are running pilot programmes (35%).

      Asked to evaluate the success of their generative AI programmes to date, 91% of firms stated these technologies are having a measurably positive impact when it comes to optimising supply chain processes and enabling improved decision-making.

      So much so, that 86% of all survey respondents confirm they plan to increase their investments in AI, ML and generative AI in the coming year. The top motivations for these investments include boosting supply chain visibility (43%), driving automation (40%), optimising supply chain planning (35%), elevating supplier and partner collaboration (27%) and improving last mile delivery (25%).

      Reimagining the future: digitalising the supply chain

      Persistent and ongoing challenges are spurring organisations to digitally transform their supply chains so they can synchronise decision making in near real time and leverage data to drive smarter end-to-end resource planning and utilisation.

      Changing how organisations execute their sustainability strategies, manage unexpected events and empower their personnel with insights – such as disruption predictions and course-correction recommendations – supply chain decision-makers are increasingly relying on AI technologies to power their organisation’s future success. 

      Looking ahead, supply chain executives have clear strategic investment objectives in their sights. In the coming year their top functional areas for targeted advanced technology adoption include transport management systems (49%), advanced warehouse management systems (41%), sales and operations planning (37%) and integrated demand and supply planning capabilities (34%).

      • AI in Supply Chain

      Our cover story this month features a fascinating discussion with Rebecca Howard, Head of Supplier Relationship Management at Coventry Building…

      Our cover story this month features a fascinating discussion with Rebecca Howard, Head of Supplier Relationship Management at Coventry Building Society who talks operational transformation, ESG, and procurement as a creator of social value and community engagement… 

      Social values

      The role of procurement has changed. Today, the function has become a driver of so much more than cost reduction and business continuity. In the past few years—especially since the pandemic—procurement’s potential to not only support sustainable practice, digital transformation, and supply chain resilience, but to champion the values of the business as a whole has become increasingly evident.  

      Coventry Building Society touches the lives of millions of people across the UK. We help them save and borrow to support their goals and livelihoods. “We’re owned by our members and our core belief is that we put our members first,” says Rebecca Howard, Coventry Building Society’s Head of Supplier Relationship Management. “Our members want us to keep their money safe and have an impact on people’s lives. That’s why our purpose is making people better off through life.”  

      Read the full story here! 

      Innovation

      Elsewhere, we also have an exclusive interview with Deputy Chief Procurement Officer of IDEMIA’s Smart Identity division, Mark Janssen who discusses his procurement journey with IDEMIA. It’s a role that’s putting trust at the heart of his approach to partnership, procurement, and innovation…

      For governments, trust in a company like IDEMIA to deliver reliable identity solutions is vital. Vital not only to the wellbeing of their citizens and institutions, but for national security. Mark Janssen, Deputy Chief Procurement Officer of IDEMIA’s Smart Identity division, emphasises this: “If a government runs out of identification documents, it triggers an immediate crisis.” Without valid forms of ID, he continues, citizens can’t travel, buy a house, or register a newborn child. 

      Read the full story here! 

      Plus, we have exclusive content from Amazon Business, Tonkean and much, much more! 

      Read the latest issue here! 

      Shelley Salomon, VP of Global Business, Amazon Business, discusses her company’s commitment to fostering gender diversity in procurement.

      Procurement’s gender imbalance isn’t new.

      Traditionally, the function was regarded as a male-dominated profession. But change is afoot, in more ways than one. While a digital transformation amidst technological innovation is well-publicised, another evolution is underway within the workforce.

      Gender diversity has become an important component of many company strategies globally. While progress to encourage more women into procurement has already started. There still remains an imbalance, particularly among those holding leadership positions. With current statistics suggesting around one in four leadership positions are held by women, there is still room for improvement.

      So, is progress happening quickly enough? Shelley Salomon, VP of Global Business at Amazon Business, discusses her organisation’s commitment to fostering gender diversity and how women can reach parity in procurement. 

      In your opinion, where is procurement today in terms of women’s representation in 2024?

      Shelley Salomon: “Women’s representation in procurement has seen progress these past few years, but there remains room for further improvement. Gartner’s data shows that women comprise 41% of the supply chain workforce. It’s encouraging to see greater gender diversity within the industry.

      “While these statistics are encouraging, they also highlight ongoing challenges. Particularly at the leadership level. Only 25% of leadership roles are held by women. This disparity underscores the need for sustained efforts to promote gender diversity and support women’s ascension to senior positions within procurement.

      “My perspective on this trend is one of cautious optimism. The progress we see is promising, reflecting a growing recognition of women’s unique contributions to procurement roles. Diverse perspectives and gender equity are vital for effective decision-making and problem-solving. Additionally, multiple credible studies show that companies with the greatest gender balance in the C-suite are likelier to achieve above average financial results. However, much work must be done to ensure these advancements translate into lasting change.”

      While progress to encourage more women into the workforce seems to be underway, there is still a major disparity in the number of women leaders in procurement. What is the best way to go about rectifying this? 

      Shelley Salomon: “I believe there’s a significant opportunity to welcome more women into procurement leadership roles. By establishing robust mentorship and sponsorship programmes, organisations can provide invaluable guidance, support, and networking opportunities. Thus empowering women to thrive in their careers and gain visibility within the organisation. Investing in inclusive leadership development programmes is essential. These initiatives focus on building inclusive skills and readiness for leadership roles, continuing to foster a more inclusive and dynamic workforce.

      “In my opinion, implementing inclusive hiring practices that actively promote gender diversity, such as using diverse hiring panels and conducting blind recruitment processes, is essential to minimising biases. 

      “Lastly, setting clear, measurable goals for increasing the number of women procurement leaders and regularly reporting on progress to hold leadership teams accountable can drive meaningful change. By taking these proactive steps, organisations can create a more equitable environment that supports the advancement of women into leadership roles within procurement.”

      Read the full story here!


      • AI in Procurement
      • Data in Procurement
      • Digital Procurement
      • Procurement Strategy
      • Sustainability Technology

      Jon Fielding, Managing Director, EMEA at Apricorn, explores the role of endpoint security in protecting the business from supply chain attacks.

      Cyber attacks involving the supply chain are on the increase, with Gartner warning that 45% of global organisations will have experienced an attack by 2025. This is partly due to software issues that see attackers take advantage of exploits to compromise digital supply chains. In fact, a recent report found 91% of organizations were subjected to a software supply chain attack in 2023.  

      Supplier ecosystems are becoming ever more complex, with suppliers of suppliers that run several chains deep, and dependencies are increasing as we saw in the MOVEit attack which is estimated to have compromised over 2,000 organisations and more than 94 million users. However, while these software attacks might grab the headlines, they can draw attention away from other threats to the supply chain.  

      More complexity, greater risk

      Organisations need to connect to their suppliers often using untrusted or unmanaged endpoints in order to share information but this then increases risk to their internal systems and data. To help mitigate this risk, organisations are advised to conduct third party risk assessments but few do so. The Cyber Security Breaches Survey 2023 found only 13% vet their immediate suppliers and only 8% the extended supply chain, primarily due to lack of resource, or because they were unable to get enough information from suppliers or not knowing what checks to perform.  

      Without any checks or balances in place, the organisation can’t verify if the supplier matches their security requirements, which not only increases their level of exposure but potentially places them in breach of any compliance regulations they may need to meet, including but not limited to GDPR. Article 5 stipulates that personally identifiable information (PII) must be identified and controls applied. So, even if the organisation is unable to obtain all the information requested from the supplier to verify their security, it’s in their interests to take the initiative.

      To do this, regular audits of all data that is shared with suppliers should be conducted to identify and protect the information being shared. This should document the data being shared, how and where it is stored and processed by the supplier, who has access to it, how it is secured at each stage of the process, and whether it is then passed to other suppliers further downstream. 

      Breach causes 

      Data breaches can result from a multitude of factors. There may be a lack of awareness over the value and sensitivity of data being shared with third parties, a lack of sufficient access and authentication procedures, or it could just come down to human error but irrespective of the cause, a third-party breach can prove highly damaging. For example, last year the Metropolitan Police saw a breach of PII relating to officers when hacker breached the IT systems of a contractor responsible for printing warrant cards and work passes putting over 47,000 staff at risk.  

      In fact, a quarter (21%) of all IT decision makers polled in a recent Apricorn survey reported third parties mishandling corporate information. Other issues included employees unintentionally putting data at risk (22%) and lost or misplaced devices containing sensitive corporate information (18%).  Almost half (48%) said their organisation’s mobile/remote workers were knowingly put corporate data at risk of a breach.  

      Effective endpoint security 

      These issues reveal how high instances of human error are, making it imperative that the organisation takes step to address such weaknesses.  Staff awareness training can help to mitigate the risk and this should be extended to include partners and contractors that work closely with or in the business. These programmes should seek to educate users on the value of specific data, the risks and threats, how it should be protected and their personal responsibilities as well as the broader data protection and security policies, such as acceptable use that details how data can be accessed over mobile devices and how those devices should be protected.  

      Should you rely on encryption?

      Encryption is a key means of protecting sensitive data as it ensures the data remains unintelligible even if it is compromised, with a hardware-based form of encryption proving more robust than a software-based solution downloaded on to the device. This is because such software can be susceptible to counter resets, software hacking, screen capture and keylogging. Moreover, if the device is held in a hardware crypto module, the encryption keys are protected from brute-force attacks and unauthorised access. Ideally, the organisation should compel employees to use FIPS certified, hardware-encrypted mobile devices across the organisation. 

      GDPR also expressly recommends encryption under Article 32 to protect PII and those that do encrypt data stand to benefit as the regulations state that organisations that have implemented encryption may be exempt from having to contact each individual in the event of a breach, reducing their obligations and any associated administrative costs.   

      Encryption security is falling out of use

      However, encryption is falling out of practice. The survey revealed that only 12% of organisations currently encrypt data on all laptops, compared with 68% in 2022, while 17% encrypt data on all desktop computers, down from 65% last year. It’s a similar story for mobile phones – with 13% encrypting on all, versus 55% in 2022; USB sticks – with 17% encrypting today, down from 54%; and portable hard drives – a drop to just 4% from 57%.  What’s more 17% of those questioned said a lack of encryption was directly responsible for a data breach within their business over the past year.  

      Keeping policies and procedures up to date and relevant is also vital and these can keep partners and suppliers in the loop. They should also form the basis of supplier contracts, with penalties for non-compliance. And these should also be enforced through controls, for example, by ensuring there is an auto-lock/self-destruct function on lost or stolen devices.

      By implementing the necessary policies and processes at an early stage, the organisation is more likely to be able to respond appropriately and efficiently if, and when, a breach should occur.  

      Jon Roberts, Director or Forterro, examines reshoring as a potential way to reintroduce resilience in the manufacturing sector.

      The pressure on global supply chains has increased enormously over the past few years. Many manufacturers have learned, to their cost, the dangers of losing control of their supply chains and being powerless to do anything about it. That’s why reshoring—the process of bringing back manufacturing to the country where the OEM is based—is becoming such a trend. It gives manufacturers back the supply chain control that is missing when they rely on suppliers further afield. A recent Retail Think Tank study revealed that its members believe a localised supply chain could help stimulate manufacturing.

      How can this happen in practice, though, and what should OEMs consider when approaching reshoring?

      Ongoing supply chain uncertainty

      Anyone who works in manufacturing will be only too aware of the deep-rooted supply chain issues that show no signs of subsiding any time soon. This applies just as much to retailing and distributors too. Make UK research has shown that 79% of companies believe supply chain vulnerability will be a risk to their business over the next two years. These issues can affect mid-market manufacturers more than larger global players that have the resources and infrastructure to absorb any impact.

      The emergence of COVID-19 was a major contributor to manufacturers’ loss of supply chain control. Relying on supplies from the Far East had been cost-effective, but when components cannot reach you or are hugely slowed down, those benefits are swiftly negated. Component and material shortages lead to fluctuating prices, making imports less cost-effective.

      That was a once-in-a-generation occurrence but highlighted that dependency on a handful of key suppliers or countries can lead to critical shortages. Following the pandemic came the conflict in Ukraine and other geopolitical turbulence, which increased shipping costs, lead times, returns, and import duties, making shipping to the UK prohibitive. 

      This supply chain uncertainty occurred alongside an increased need to reduce air and shipping miles to meet ESG requirements and a growing consumer preference to ‘buy local’. Local manufacturing offers improved quality, reduced environmental impact, and regional economic benefits, all of which are important to customers. It also enhances transparency, aligning with this consumer interest in product origin.

      How to approach reshoring

      Given all of the above, it’s little surprise that companies recognise the value of localised supply chains to drive up quality standards, develop skills, support their local economy, and reduce mileage and lead times. Reshoring can be done by moving operations back to the OEM’s country, building new local production facilities, or strategically building a network of local suppliers. But central to each is the use of technology.

      The right ERP solution can give mid-market manufacturers the control and understanding of their supply chain that they require to facilitate reshoring. Furthermore, the accessibility of productive ERP and automation solutions for smaller manufacturers is improving as local, focused providers improve their cloud offerings and make them easier to adopt.

      It’s also true that suppliers are embracing automation. The tight job market post-COVID and the demand for specialist skills have raised wages and created a skills gap, hampering reshoring efforts. Many SME manufacturers are automating routine processes to improve efficiency, provide business intelligence, address labour shortages, and cut costs. If suppliers adopt these strategies, a manufacturer can benefit from their efficiencies instead of seeking solutions from overseas.

      Future-proofing the business

      The last few years have clearly demonstrated that we live in an increasingly turbulent world. Manufacturers that rely on geographically dispersed suppliers are exposing themselves to a level of risk that’s hard to justify. 

      Reshoring is a way of gaining much greater control of your supply chain. It also supports local innovation and skills development, develops shared resources and expertise, and ensures products and components meet quality standards more closely. In short, it’s a way to improve supplier performance and relationships and to help future-proof the manufacturer itself. 

      In a time when control has never been more important for manufacturers, reshoring provides that control and much more.

      Jon Roberts is a Director at Orderwise, Forterro’s mid-market industrial ERP solution.

      Ralf Seifert, Professor of Operations Management at IMD Business School and co-author of new book, The Digital Supply Chain Challenge (2nd edition), and Supply Chain Management Professor at ESCP in Paris and Founding Partner at Innovobot, Richard Markoff, explore the competition betwen Tesco and Ocado as it unfolds throughout these organisations’ supply chains.

      Back in 2017, the world of retail was changing rapidly.

      Each year, increasing numbers of consumers were making purchases online, preferring to do their shopping via e-commerce rather than visiting bricks-and-mortar stores. Nowhere in Europe was this more true than in the United Kingdom. In 2017, online sales represented more than 17% of retail sales, making the British the leading adopters of e-commerce.

      This embrace of e-commerce extended to the grocery segment, but the online grocery channel presented challenges that other online retail segments did not. Grocery margins were much thinner and so did not allow much room to add services such as home delivery and still remain profitable. Similarly, the need to respect the chilled or frozen chains added cost and complexity to the delivery logistics and equipment. There was also the question of consumer preferences, as many shoppers were still reluctant to try online grocery delivery because they preferred to physically see and choose their own items.

      With this heightened sensitivity to price, grocery chains had to find a profitable positioning for their online grocery offering through operational efficiencies, and these issues led some analysts to be bearish on grocery home delivery.

      The UK grocery landscape

      While there e-commerce giants such as Amazon were making moves in the space in 2017, the UK already had a high level of retail supply chain sophistication, with major chains like Tesco, Sainsbury’s and Asda competing not just in bricks-and-mortar, but also online.

      The largest retailer in the UK was Tesco, with 28% of the total grocery market in 2017, and this dominance extended to online, where it was the channel leader with 39% market share.

      Far down the list of UK grocers, with just 1.3% of the total UK grocery market, was Ocado. But Ocado was very different from the top retailers like Tesco or Asda. It did not have any stores, it only sold groceries online. Furthermore, the way that it went about competing in the online grocery space was completely different.

      The evolution of Tesco.com and Ocado

      Tesco set up Tesco.com in 2006. Initially, the company fulfilled orders through its network of grocery stores. Employees travelled along the aisles, picking products with shopping carts, much like a consumer. This approach was simple, did not require any capital investment and allowed Tesco to scale up quickly and enter the online grocery market.

      In 2009 Tesco complemented this network by opening up “dark stores,” similar to regular grocery stores, but they were dedicated to online orders and not open to the public. Over time these dark stores evolved into “dotcom centers,” or small distribution centers equipped with automation to assist in order preparation. Over time, the company experimented with delivery fees and models for online shopping, including membership packages and click-and-collect models.

      Online vs brick and mortar

      In contrast, Ocado was a UK-only grocer with no stores. It offered home delivery of online grocery orders, so while Ocado claimed only about 1% of the total UK grocery market in 2015, it was the largest purely online player competing in the space and claimed over 13% of the online market. By 2017, Ocado was also catching up in terms of product variety, with a steadily growing count of 50,000 SKUs vs Tesco’s 60,000SKUs.

      Ocado serviced its delivery market through a hub-and-spoke distribution model. Orders were picked at three customer fulfilment centres (CFCs). About a third of the orders were shipped to local customers directly from the CFCs, while orders for outlying areas were shipped in full trucks to one of 17 spokes across England and delivered by vans from that point. In 2017, Ocado covered only 70% of the UK market.

      As the CFCs were dedicated to customer delivery, Ocado invested heavily in automation, in terms of both software and equipment. The automated systems in the CFCs, as well as the software packages that drove the supply chain – from customer interaction through to last-mile delivery – were developed in-house by Ocado. In fact, Ocado generated revenues by leveraging its technology to provide online fulfilment solutions for other retailers, including Morrisons in the UK, Groupe Casino in France and Sobeys, Canada’s second largest supermarket group.

      As with Tesco, the pricing model was complex. Orders had to be for a minimum of£40,with delivery charges ranging from£2.99 to£6.99;delivery for orders over £75 could be free. Similarly, for an annual fee of over £100, deliveries were free. Deliveries were generally next-day, but it could take two days for customers served from a spoke.

      Two fundamentally different approaches

      Ocado and Tesco approach the challenge of online grocery delivery from very different angles. Tesco is looking to leverage its existing store network as a ship-from-store fulfilment model. Its substantial store network is, in effect, its distribution network.

      Ocado does not have any stores and has chosen to invest substantially in state-of-the-art distribution that leverages Industry 4.0 and supply chain digitalization(SCD) to the fullest through a ship-from-warehouse model.

      Each model has its advantages and disadvantages. The first theme is that Ocado’s model is less expensive overall. Picking using Industry 4.0 technologies is faster than the pick-to-cart manual methods Tesco employs. And crucially, there is an entire link in the chain that Ocado manages to eliminate. It does not have to pick, pack and ship products to stores, unload them and place them on shelves. Eliminating this step provides labour savings and also leads to less damage, less residence time in the chain for a given product, and so a fresher supply chain overall with less waste.

      But Tesco’s approach offers faster delivery to customers. This is directly because there are hundreds of Tesco stores acting as distribution centres, and these stores are invariably closer to customers ordering online. Ocado is obliged to compensate for the much higher transportation costs of trying to service all of England from a handful of DCs by using overnight hubs. These hubs serve as way stations to receive full trucks of consolidated orders picked at Ocado DCs. It ships the individual orders to customers the next morning, as much as 24 hours later than Tesco.

      So, which model is better?

      From a supply chain perspective, this is very much up for debate, and the nature of the market matters a great deal. Overall, Ocado would seem to have a lower cost structure, while Tesco would seem to offer better perceived service.

      We would argue that the supply chain configuration is such an integral part of the business strategy that the proper framing of the question is to ask which company is “better.” One way to consider “better,” then, is to think about the shareholders. Even here there is no consensus, with some prominent investment banks considering Ocado’s ship-from-warehouse model a competitive advantage, while others argues the exact opposite.

      We would argue that wrestling with the question of which model is better is not the proper lens through which to look at online grocery in the context of supply chain digitalization. Instead, we should look at how British consumers view the performance of the different online grocery companies.

      Research from Which? shows Ocado is clearly the preferred online grocer in the UK, with a significantly higher customer score than Tesco, the largest player.

      Why is Ocado the winner?

      In particular, Ocado scores highest on its website experience. This does not appear to be an accident. The company has fostered a digital culture whereby the website, and the intelligence that drives it, are positioned as a competitive advantage. Because Ocado is an online-only retailer, it can focus its resources, attention and value proposition around the omnichannel experience in a way that a traditional retailer likely cannot.

      Ocado’s innate digital savvy has allowed it to drive Industry 4.0 and SCD innovations, deploy them at scale and create a new business model working with other partners. It offers proof beyond the promise that it is possible for companies to fully embrace digitalization, bring supply chain into the essential fabric of the company’s strategy and show a path for others to follow.

      Ralf Seifert is Professor of Operations Management at IMD Business School and co-author of new book, The Digital Supply Chain Challenge (2nd edition), with Supply Chain Management Professor at ESCP in Paris and Founding Partner at Innovobot, Richard Markoff.

      Rob King, CEO and founder of Zedify explores the growing demand for last mile logistics and how to sustainably manage future demand.

      The boom in e-commerce may have completely revolutionised shopping, making it more convenient than ever. But with retailers dispatching millions of deliveries directly to our doors – is there a hidden cost? 

      This surge in online shopping brings with it a hike in delivery vehicles on the roads. So much so that the UK is predicted to take a £7.9 billion hit to the economy from congestion. Not only that, but the country will also suffer a staggering 64,000 premature deaths from polluted air each year. The rise of same-day and next-day delivery options has only exacerbated these issues. The situation is worsening, leading to an inefficient and highly polluting supply chain. Urban last mile delivery emissions are expected to rise by 30% in the top 100 cities globally by 2030.

      This trajectory calls for a pretty radical overhaul of how we approach last mile delivery.

      Limitations of electric vehicles

      Electric vehicles (EVs) have been heralded as the silver bullet. They produce zero tailpipe emissions but do little to alleviate the issues of congestion in the urban last mile. And, because of their size, they still consume a significant amount of energy as they move around cities. The transition to EVs also involves substantial challenges. These include the need for a comprehensive charging infrastructure and the environmental impact of battery production and disposal.

      Even if these infrastructure issues are resolved, the shift to electric vehicles will only partially mitigate the environmental impact of last mile logistics. The problems of pollution, congestion- and the associated depleting quality in delivery experience- require a rethinking of the logistics infrastructure altogether. 

      Micro-hubs and modern pedal power

      Traditional logistics models rely on large central warehouses located far from urban centres. Parcels travel long distances to reach consumers, increasing emissions and traffic congestion. But, by establishing smaller, strategically located hubs closer to delivery points within cities, you can have efficient, consolidated deliveries. These deliveries can be made using smaller, more sustainable vehicles like cargo bikes. These bikes are super low-emission and specifically designed for urban environments. 

      By replacing vans or trucks with cargo bikes, Zedify’s research shows that businesses can reduce their emissions by more than 80% compared with electric vehicles and more than 90% on diesel vans. This not only reduces the carbon footprint of deliveries but also alleviates traffic congestion. 

      The result? Cities that are how we would wish them to be – safer, cleaner, quieter.

      Technological integration

      Technological integration and route optimisation are essential for creating a more efficient and sustainable last mile delivery sector. Development in this area is vital to the roll out of low-emission delivery vehicles like cargo bikes.

      Advanced algorithms and AI-powered systems are already becoming central in analysing multiple variables. These can include traffic conditions, weather, and delivery time windows, to determine the most efficient routes logistics companies use. This reduces the total distance travelled, the number of trips required and improves the accuracy of delivery windows. As a result, this can massively improve the customer experience too. 

      Advances in technology can also provide real-time guidance to drivers and riders. It can highlight the best routes and potential hazards, improving safety and efficiency, especially in busy urban areas.

      Machine learning will become more and more important in cargo bike-logistics, enhancing the local knowledge of riders, helping them access difficult addresses and making use of hybrid road and cycle infrastructure to reach delivery points as efficiently as possible. And AI can optimise battery usage and predict charging needs, ensuring bikes are always ready for use which helps in planning routes that maximise battery life and efficiency. 

      Embrace reverse logistics

      Sustainability in last mile logistics extends beyond forward logistics—the movement of goods to consumers—to include reverse logistics, which involves the return of goods. Given that up to 25% of returns end up in landfill, companies certainly need to invest in more robust reverse logistics infrastructure that minimises the environmental impact of returns and disposals, contributing to a more sustainable supply chain.

      Speed is crucial to getting returned products back on shelves in time to be resold.  Innovative collaborations between sustainable last mile delivery companies and locker networks will be key to speeding up the process of getting products returned and reduce their chances of ending up in landfill in future. 

      The future

      The urgency of the climate crisis demands innovative solutions across all sectors. 

      Reimagining last mile logistics is not just a minor adjustment but a transformative step towards healthier, more sustainable cities. By introducing micro hubs, embracing super low-carbon light electric vehicles such as cargo bikes, leveraging the right technology and building the right infrastructure for friction-free reverse logistics, we can significantly reduce the environmental impact of e-commerce deliveries and create greener, more livable cities in the process.

      • Collaboration & Optimization
      • Sustainability

      Donna Lyndsay, Strategic Market Leader at Ordnance Survey, explores how the Supply Chain Data Partnership can help tackle greenwashing.

      We all know that the planet is facing its most serious challenge yet – countering the devastating effects of climate change.

      One issue is ensuring the sustainability of the ingredients in our global food supply chain. Often there is a lack of information on origin, asset location and deforestation risk. And with EU deforestation regulations in place, and other governments shifting closer to legislation, regulators have stricter requirements for evidence that farmers are growing products responsibly, with negligible risk of deforestation and land conversion. 

      One example is palm oil, an essential ingredient used a lot in cooking, and also by many manufacturers to make chocolate and ready-made meals. However, experts estimate that palm oil is responsible for more than 5% of all deforestation in tropical forests to date.

      The Supply Chain Data Partnership 

      Ordnance Survey (OS) is the founding partner of an initiative called the Supply Chain Data Partnership (SCDP), formally established at COP27. 

      The partnership has been designed to develop and provide critical location insights for the assurance of global supply chains via a location register. It aims to provide enough confidence to certify the location of an asset, such as a farm, site or facility, so that buyers and investors can see that the asset owner is willing to be transparent and be monitored. 

      The SCDP will help tackle greenwashing by working to ensure efficient and trustworthy sustainability reporting, ensure public and private investors avoid high-risk investments and potential risks, while identifying plausible opportunities for green and sustainable investment. 

      So how does the SCDP work? 

      The SCDP seeks to provide a location dataset for global supply chains. These can inlcude palm oil, soy, cotton, rubber, mills, factories and wood-based packaging applications which the SCDP will add to a register. The register will allow the identification and verification of those assets, with follow-up monitoring over time. 

      Data and certificates associated with each verified asset owner will then sit on the new register, designed to meet global registry standards. Buyers and investors will then be able to access the tool, allowing them to make better decisions in their procurement, reducing risk and enabling assessment of impact and opportunity.  Global brands will be able to engage directly with responsible suppliers to help expand their own sustainability and responsibility goals. This will assist with reducing emissions, biodiversity loss and environmental impact of supply chains, reduce unsustainable agricultural practices and land degradation through more effective monitoring and smart procurement contracts.

      Last autumn, the SCDP passed its trial phase and reached a major milestone in developing a proof of concept for its location platform. This has shown how location data and technology can help sustainability initiatives succeed. 

      Next steps

      Next steps for the SCDP include adding new use cases and scaling up from proof of concept to a Minimum Viable Product with anchor customers.

      And while the SCDP continues its development, it has also been supporting a wider supply chain initiative with an even more inspirational, ambitious and influential goal. 

      Following COP28, Rewired Earth and Bankers for Net Zero announced ‘The Constellation’ . Over 40 entities supported the resolution, including OS. It is working at a higher level and aims to enable Government, financial services and companies to understand how to encourage, support and verify sustainable supply chains across the world. This forward-leaning organisation wants to transform financial markets into the most protective force on the planet, by driving transparency throughout global supply chains and investments by using the SDG framework. 

      As our climate changes we need to scale up our actions to decarbonise and protect valuable resources such as nature and water. 

      Whilst on that journey to net zero we also need to ensure we can create resilient supply chains, keep businesses functioning and support societal needs. We can only do that if we really know where things are happening on the planet and where things come from. Without that knowledge we can’t apply all that intelligence and action to ensure a sustainable future for nature and humanity. Fortunately, the SCDP and the Constellation are about getting us to that future and that better place, together.

      For more information about the SCDP, contact donna.lyndsay@os.uk. Alternately, go to Rewired Earth | Get Involved for more information on the Constellation.

      • Collaboration & Optimization
      • Sustainability

      Supply chain 4.0 – where preparedness and opportunity meet in the digital supply chain 

      Supply chains matter. One break in the link and manufacturers can be left with costly disruptions that bring the entire operation to a standstill – and the problem isn’t going away soon. According to McKinsey research, disruptions lasting a month or longer now happen every 3.7 years on average. Whether it is issues securing raw materials, a steep rise in shipping costs, labour shortages, geopolitical conflicts, or sustainability concerns, the pressure is mounting on manufacturers to diversify their supplier partnerships and introduce more flexible operations. For manufacturers determined to create more resilient supply chains, Andrew Newton, Business Central Consultant at Columbus UK, argues that a digital transformation of supply chains will be integral to the industry’s ongoing survival. 

      Industry 4.0 has been the main driving force behind recent supply chain transformation with the introduction of IoT technologies such as cloud, data analytics, and AI throughout the manufacturing ecosystem. This includes smart factories that enhance manufacturing with Industry 4.0 tech and smart products offering internet-based services. 

      It’s now time for the supply chain to step up to the 4.0 digital plate. Market leaders, particularly in the automotive and electronics sectors, have already launched digital transformation initiatives to establish flexible and high-performing supply chains. And manufacturers of all sizes can learn from their example on how to achieve sustainable change. 

      When disruption is constant, an organisation’s preparation for supply chain changes will provide a significant competitive advantage. From effective data connectivity to reshoring operations, operationalising AI, and implementing a long-term sustainability agenda – successful manufacturers must be able to incorporate these factors into supply chains to drive innovation and redefine how products are created, developed, and delivered to meet evolving consumer demands. 

      Unearth actionable findings within the data haystack 

      Many businesses now have extensive data archives spanning several years, including substantial sales orders and operational performance records but the ability to extract maximum value from this data remains a common challenge. Manufacturers want to establish robust connections with shop floor assets to unlock enhanced operational efficiency and make more informed decisions. However, many lack the data-related skills to successfully link their machinery or manage the influx of data streams from sensors. 

      This is where the introduction of business intelligence dashboards with Supply Chain 4.0 can offer real-time production insights to inform decisions, boost efficiency, cut costs, and refine product quality. 

      The convergence of operational technology (OT) and information technology (IT) adds to the data challenge, particularly where legacy equipment is still in use. It is important to recognise that the solutions being implemented require tailored approaches due to the unique demands of each manufacturing organisation. Developing applications within a business can be tricky, with not every business having the in-house data skills to do this. 

      Custom applications that don’t require extensive coding expertise can address this digital skills gap. Versatile solutions that combine low-code services, self-service analytics, and automation for instance, can make it easier for manufacturers to create applications that precisely align with their specific needs, boost efficiency, and innovate in the process. The establishment of a reliable data environment with Supply Chain 4.0 ensures that manufacturers can enhance decision-making and operational efficiency, all while reducing costly errors. 

      Operationalise AI to stay one step ahead 

      AI has left a mark on every industry and when it comes to the manufacturing landscape, the story is no different. Already many businesses are using AI tools to process real-time data from shop floor sensors to provide manufacturers with immediate insights and action, especially if quality measures breach thresholds. But the capabilities of AI don’t stop at detection. 

      Manufacturers must consider many factors in production and delivery, such as demand versus capacity and how much materials cost along the supply chain – and this is where unsupervised AI can be a useful tool for risk identification and market trend forecasting. 

      For instance, AI can suggest preferred suppliers to purchase from based on their supply chain history or issue alerts for impending weather events affecting supply chains. Social media analytics enabled by AI can also be used to project patterns to better understand where the market is heading but it can’t fully predict the future. Instead, the role of AI with Supply Chain 4.0 is to help manufacturers identify shifting consumer interests and trends, spot market trends relating to offerings or brand, and forecast waning or growing interest in product types. 

      I want it now! Proximity sourcing can help meet customers’ changing expectations 

      As supply chain disruptions become part of the new business environment, it’s time for manufacturers to end the reliance on disparate and siloed operations and instead look to nearshoring as the answer. 

      Customer expectations around delivery times are changing, with 62% of UK consumers now expecting next-day delivery when ordering online – an expectation that traditional offshoring business operational models now struggle to match. Yes, regional or local supply chains can be more expensive and add another level of complexity, but they do allow for greater inventory control and bring the product closer to the end customer, which reduces overall lead times. This reduction with Supply Chain 4.0 ensures that manufacturers can promote higher customer responsiveness and allows for constant improvement and innovation based on consumer feedback. 

      Nearshoring also provides an opportunity to clamp down on miles covered and will help manufacturers introduce a circular approach to operations. With over 4 in 5 UK adults recognising their role in lessening their environmental footprint, it is clear that the manufacturing industry needs to mirror this popular attitude – and technology will play a key role here. Automation techniques for instance can improve traceability and visibility over the entire product line, highlighting how businesses use and waste materials, along with how they can reuse products for better forecasting and reduce fossil fuel usage and pollution. 

      Particularly in the food industry, conscious consumers will base their buying behaviour on transport miles and the environmental impact of the product’s journey. If manufacturing businesses are able to clearly share this information with transparent supply chains, they will not only open themselves up to a larger customer pool but will also play a major role in tackling environmental challenges in the industry. 

      Long-term commitment to sustainability goals 

      Nearshoring is certainly one way that manufacturers can become more sustainable but with customer sustainability expectations rising, companies now have to show a long-term commitment to creating greener supply chains. 

      Many businesses are making efforts to report on internal sustainable efforts such as energy consumption but extending reporting down the supply chain poses challenges, such as effectively reporting on a supplier’s energy usage. To achieve a comprehensive sustainability profile, this reporting must span the entire supply chain. 

      Supply Chain 4.0 brings sustainability reporting tools that provide comprehensive tracking and analysis of environmental and social impacts, which will enable manufacturers to make informed decisions, ensure regulatory compliance, and communicate sustainable practices transparently. Manufacturers are looking to achieve this connectivity, particularly in linking shopfloor equipment usage with sustainability goals. 

      Leading organisations are pushing for data standardisation among their supply chain suppliers but this brings its own set of pros and cons. Increased standardisation can make the supply chain more efficient and easier to review, potentially reducing a company’s risk. However, there’s more work needed to establish this standardisation. 

      As public and regulatory interest grows, having a clear view of supply chain processes will become even more important. In the short-term, expect leading companies to keep investing time and effort to better organise their supply chain data. 

      Supply Chain 4.0 – where preparation and opportunity meet in the digital supply chain 

      Digital transformation is a long and complex journey but preparedness plays a key role in achieving optimal outcomes. Through the process of transformation, manufacturers can more effectively adapt to ever-shifting business conditions and evolving customer demands with Supply Chain 4.0, all while maintaining a competitive edge. 

      The issue remains that each manufacturer faces their own unique scaling challenges that require a calculated approach to processes, planning, and implementation to create a sustainable business model. Often companies have growth ideas but lack a clear path to achieve them. The identification of key supply chain trends will set apart the laggards from the market leaders

      Read the full issue of SCS here!

      • Procurement Strategy
      • Sustainable Procurement

      Businesses have been forced to navigate and adapt to these challenges to ensure continuity, limit interruption and reduce risk

      From Brexit to the pandemic and the current geopolitical conflict, the supply chain industry has faced a flood of challenges in recent years. This has caused disruption to supply chains. Businesses have been forced to navigate and adapt to these challenges to ensure continuity, limit interruption and reduce risk. 

      Alice Strevens, Director Human Rights and Social Impact, Mazars 

      As part of this, it’s increasingly important for businesses to ensure they have robust human rights due diligence processes in place. These processes support companies in their decision-making during crises, and help them identify risks in their supply chains. This ultimately protects them in both stable and unstable times. 

      Human rights and environmental due diligence provides a basis on which to address environmental, social and governance issues that impact supply chain resilience. Companies that respond to crises with an approach based on due diligence are more likely to protect their relationships with suppliers. Plus, they get to mitigate the impact on workers in their value chain. An example of this is during the Covid-19 pandemic. Many companies saw buyers abruptly cancel orders, request refunds in full and pause orders for months. With many suppliers facing reduced sales at the time, it led to questions as to whether businesses were working alongside suppliers. Or taking advantage of the circumstances to get reduced costs. 

      It’s important to learn from these lessons to build strong sustainable supply chain strategies. This will help businesses remain resilient both in stable times. And in the face of significant events. There isn’t a perfect formula. However, the concept of double materiality (i.e. considering sustainability matters from both the perspective of the impact on people and the environment, and the perspective of the financial risks and opportunities to the business) is helping businesses to assess sustainability-related risk strategically.  

      Supplier engagement will ensure long-term success 

      Building a sustainable supply chain for the long-term requires engagement and collaboration with supply chain partners. Long-term relationships can provide a basis to share challenging risks and impacts transparently. Human rights and environmental due diligence foregrounds the importance of engagement and collaboration to mitigate identified risks and build resilience. 

      The responsible supply chain strategy should be integrated into the overarching sourcing strategy and supplier engagement approach. Delivery against the strategy should be built into performance targets and incentives. Regular reviews of impacts, targets and KPIs should be conducted at board level. Making use of the latest technological developments, including assessing their risk for social/environmental concerns and measuring and tracking performance. This will help companies stay ahead and be prepared in their processes. 

      An evolving regulatory landscape calls for preparedness 

      Another important point to keep in mind is the legislative landscape. This is especially pertinent in the EU, as the rules will make previous voluntary standards now mandatory and will impact large companies. This includes those in their supply chain, including in the UK. 

      Companies should therefore look to base their strategies on the authoritative voluntary frameworks on conducting human rights and environmental due diligence. Primarily the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct. This will set them up for meeting legislative requirements down the line. For example, Mazars and Shift co-wrote the UNGP Reporting Framework, which provides a framework for companies to adopt responsible practices, and manage human rights risks. 

      The future of supply chain is now 

      Ultimately, companies and suppliers should work together to ensure collaboration and a robust strategy which takes all parties into consideration. Listening to feedback and promoting good communication between stakeholders will ensure smooth sailing during the business-as-usual times. And the more tumultuous periods. 

      Implementing long-lasting strategies and creating resilience to risks will increase business’ market access and promote their financial value. Thus ensuring that they deliver quality goods and gain loyalty among suppliers. 

      Read the full issue of SCS here!

      • Sustainability Technology
      • Sustainable Procurement

      Recent research conducted by InterSystems highlights a critical challenge within supply chain organisations in the UK and Ireland

      Recent research conducted by InterSystems highlights a critical challenge within supply chain organisations in the UK and Ireland: nearly half (47%) cite their dependency on manual processes for data collection and analysis as their primary technological hurdle. This reliance not only leads to inaccuracies and delays in accessing data but is also a significant barrier to the adoption of artificial intelligence (AI) and machine learning (ML), which almost one in five (19%) anticipate will be the trend that most impacts their supply chain. 

      Mark Holmes, Senior Advisor for Supply Chain, InterSystems 

      For AI and ML adoption to be successful, models must be fed healthy, unified data. This requires supply chain organisations to move away from manual data collection and analysis and adopt a robust data strategy to underpin their efforts. This data strategy will sit at the heart of AI and ML initiatives but will also play a bigger role in the business’ overall operational strategy. 

      Developing a smart data strategy 

      A smart data strategy should encapsulate three things: data collection, analysis, and integration into organisational operations. This is where technology like the smart data fabric comes in, helping supply chain businesses to do all three things and bring their data strategy to life. 

      Built on modern data platform technology, the smart data fabric creates a connective tissue by accessing, transforming, and harmonising data from multiple sources, on demand. In particular, smart data fabric technology allows supply chain businesses to leverage usable, trustworthy data to make faster, more accurate decisions. 

      With a wide range of analytics capabilities, including data exploration, business intelligence, and machine learning embedded directly into the platform, supply chain businesses will also gain new insights and power intelligent predictive and prescriptive services and applications faster and easier. 

      Once these solid data foundations are in place, supply chain organisations can begin to unlock the real potential of AI and ML to augment human decision-making. 

      Applying AI and ML across the supply chain 

      The use of AI and ML can deliver operational change across supply chain organisations, from improved demand sensing and forecasting, to optimised fulfilment. For instance, SPAR, the world’s largest food retailer consortium, has turned to ML to solve some of the difficulties it was experiencing in streamlining and optimising end-to-end fulfilment processes in stores across Austria. 

      Operating in the extremely fast moving food and beverage sector, and with more than 600 merchants in Austria, SPAR Austria required a better way to help managers of local stores control their inventory. It consequently deployed ML for real-time sensing of demand shifts to optimise replenishment and strengthen its supply chain network. This has significantly improved on shelf availability (OSA), demand forecasting, productivity, and time to decision. In turn, it also helped SPAR increase revenue and efficiencies. 

      ML can also be used for production planning optimisation, using different constraints including transportation cost, or component inventory allocation to improve fill rate and optimise product shelf-life, productivity, cost, and revenues. Additionally, with access to AI and ML-driven prescriptive and predictive insights, organisations will be able to reroute or resupply at the drop of a hat, helping to maintain operations, achieve on-time in-full (OTIF) metrics, and ensuring customer satisfaction. 

      The automation and optimisation of these different processes also has a material impact on those working in supply chain operations. It transforms their work from reactive to proactive efforts. With less time spent on processing, more time is freed up for strategic thinking to improve fill rates and lower transportation costs, for example, making their role more rewarding and value-adding. 

      A strategic approach to AI-driven transformation 

      The transformative potential of AI and ML in supply chain management hinges on a smart data strategy that moves beyond manual processes to a seamless integration of robust data collection, analysis, and usage. By adopting smart data fabric technology, supply chain organisations can resolve their primary technological hurdles, transitioning from reliance on inaccurate and delayed data to leveraging real-time, actionable insights that fuel AI and ML initiatives. This strategic shift not only enhances operational efficiency and decision-making but also paves the way for predictive and prescriptive capabilities that dramatically improve demand forecasting, inventory management, and overall supply chain responsiveness. 

      The success stories of companies like SPAR Austria demonstrate the profound impact of integrating AI and ML into supply chain operations. These technologies both optimise operational tasks and empower employees by shifting their roles from mundane, reactive tasks to strategic, proactive engagements that add significant value to their organisations. By adopting a smart data strategy and embracing these advanced technologies, supply chain businesses will realise benefits that extend beyond operational efficiencies to include improved customer satisfaction, increased revenue, and a stronger competitive edge. 

      Read the full issue of SCS here!

      Without a critical supplier, entire operations for an organisation can come to a halt.

      Most modern organisations rely heavily on their supply chain partners to deliver their products and services. In the case of critical suppliers, organisations might not be able to provide most of their products and services without them.  Resilience is key!

      In some cases, without a critical supplier, entire operations for an organisation can come to a halt. For example, if the point-of-sale (POS) service provider is down at a retailer, they cannot bill their customers. Disruptions can strike unexpectedly, causing significant financial losses, operational challenges, and reputational damage.

      Over the last few years, supply chain disruptions have gained much more executive attention due to Covid-19 and geopolitical conflicts, but they have been happening all the time even before.  

      In this article, Robin Agarwal, Head of Supply Chain and Operations Services at 4C Associates explores the importance of resilience in supply chains and practical strategies to enhance it. 

      Supply chain disruptions can happen due to many reasons, some of the most common are: 
       

      Financial disruption 

      A critical supplier suddenly going out of business is the biggest nightmare for senior supply chain executives. In most cases, the organisation should have alternate options, but it can take weeks, if not months, to ensure the return to business as usual. I have seen in many of my clients, procurement and supply chain executives spending weeks and weeks of dedicated time to resolve supplier bankruptcy issues while suffering significant disruption in their operations and financial losses.

      Even smaller cash flow problems can take a toll on supplier performance, where I have seen suppliers not being able to fulfil the orders as needed as they are not able to pay on time for their operations and supply chain. 

      Reputational damage 

      Organisations today face intense scrutiny from the media, customers, and increased ESG regulations. A negative ethical or social incident (child labour, environment violations etc.) within your supply chain, especially when it comes out in public, has a huge reputational impact on the organisation. Executives have to react quickly in such cases and make changes to ensure integrity in their supply chain. During the horsemeat scandal I saw significant resources at my food manufacturing client going into reviewing the supply chain and marketing money going into assuring the customers. 

      Geopolitical tensions and sanctions can impact suppliers’ ability to deliver goods or risk. Organisations operating with global supply chains need to assess and mitigate these risks. Complex manufacturing organisations saw massive disruptions in their supply chain in the aftermath of Ukraine-Russia war. A major area of focus for organisations today is scrutinising their supply chain for dependency on BRICS nations. 

      Natural disaster 

      We all know what happened during the Covid-19 pandemic and how it prompted organisations to review their supply chain strategy. However, this is not a new issue. For example I was part of a risk and resilience project for a major automotive original equipment manufacturer (OEM) that was commissioned in the aftermath of Floods in Thailand paralysing their supply chain. 

      Tier N supplier disruption 

      Most of the big suppliers have complex supply chains. Any impact on these Tier 2, 3 suppliers can create a significant impact as well, depending on how mature is your supplier resilience. This is the most common issue I come across. While most organisations consider these as their supplier problem, when happen, they need to bear the impact as well. 

      The list above is not exhaustive and there are many other complex issues, ranging from cyber disruptions to boats carrying goods stuck in the Suez Canal. 

      The false sense of security 

      Many organisations operate under the assumption that supply chain disruptions won’t happen to them. They focus on cost efficiency and day-to-day operations, neglecting proactive risk and resilience management. However, this reactive approach can be detrimental when disruptions occur as there is no framework to deal with such disruptions. In these cases, senior management has to spend a significant amount of their time while incurring higher costs. And longer time to recover than their competition. 

      Risk monitoring tools: Necessary but insufficient 

      There are many tools available to supply chain professionals today from getting financial assessments of their suppliers, sanctions watch, to supplier ESG ratings. These risk monitoring tools help identify potential issues, but they often lack real-time predictive capabilities. Organisations receive retrospective alerts, leaving them scrambling to respond. Additionally, false alarms can lead to decision paralysis.

      At the time of Carillion’s bankruptcy, none of these tools were able to give any actionable warning to the companies. Also, most organisations have an extensive risk framework for onboarding a new supplier, but they don’t have an effective risk framework once the supplier is in operation. And dependency increases over time with warning signs, if any, ignored. 

      The case for resilience 

      Resilience is the antidote to vulnerability. While organisations cannot predict every risk event or control how the events unfold, it is in their gift to build adaptive capacity to withstand shocks and recover swiftly. Here are some of the basics for how organisations can enhance supply chain resilience: 
       

      1. Supply market resilience 

      Overreliance on a single supplier or a geographic location affects resilience. Organisations should consciously diversify their supplier base, even if it means higher short-term costs. Also, they should know the alternate suppliers that operate in the market and have relationships with them even if they have no immediate plans to change suppliers. It would not only enhance resilience, but also help improve cost. 

      1. Know your supplier 

      Understand the key dependencies with your supplier including within their supply chain. A mature organisation should know the key people to reach out to in case of disruption. And who they should even bring on board if the supplier goes bust. 

      1. Contingency Planning 

      Develop clear contingency plans for various disruption scenarios. These plans should outline roles, responsibilities, and escalation procedures. Ask your suppliers about their contingency plans and how they will ensure business continuity when various risk scenario unfolds. 

      1. Operational Resilience 

      Have Contingency-SOP instructions in place. Capture the specifications and know-how on what suppliers are delivering so alternate options can be switched on swiftly if needed.  

      However, just having contingency plans written is not enough. Contingency plans must be stress-tested for viability and supply chain and business stakeholders ‘fire-drilled’ through those plans, so they are aligned on key steps when disruption happens, and precious time is not wasted arguing about the next steps. True resilience is an organisational culture and employees at all levels should understand their roles during disruptions. 

      An ongoing process

      As concluded by Christopher Jones, Procurement Director at Alstom, “Resilience planning needs to be an ongoing process, your supply base and requirements are constantly evolving.  Having stress tested plans means that when disruption lands your teams are ready to act and deal with the issues.”  

      Supply chain disruptions are inevitable, but organisations can minimise their impact through resilience. By embracing proactive risk management practices and fostering a resilient culture, organisations can navigate disruptions with confidence and stay ahead of the competition. 

      Read the full issue of SCS here!

      While environmental and climate change used to be the main topic of discussion, human rights and supply chains have taken over

      In recent years, supply chains gained momentum as the leading social issue for companies to address. While environmental and climate change used to be the main topic of discussion, human rights and supply chains have taken over. This is partly due to the scandals and allegations of exploitative labour practices from multinational companies. But also due to the increased public awareness of the role companies play in determining the management of their own supply chains.

      Social sustainability

      The shift to focus on social issues acknowledges the profound impact that supply chains can have on our communities, labour rights, and societal well-being. Progress has been made in greening supply chains, but addressing social sustainability is a complex challenge yet to be achieved. A holistic approach that integrates social responsibility in a meaningful way into every aspect of the supply chain is the way to go. Then businesses can make a difference in the long-term.  

      Understanding the social issues in supply chains 

      First and foremost, we need to understand what the risks and impacts are in supply chains. These largely depend on the industry and the part of the world where a given company works. Social sustainability in supply chains encompasses fair labour practices, human rights protection, community engagement, diversity and inclusion, and ethical sourcing. Building social sustainability requires a more thorough look at these issues: 

      • Labour exploitation 

      Supply chains often involve complex networks of subcontractors and suppliers. This can lead to challenges in monitoring and ensuring fair labour practices. Exploitative conditions such as low wages, long hours and unsafe working conditions can be prevalent, especially in industries like manufacturing and agriculture.  

      • Worker welfare 

      Ensuring the well-being of workers throughout the supply chain is essential. This includes addressing issues around child labour, forced labour, discrimination, lack of access to essential benefits like healthcare. Issues around exploitation and worker welfare are especially troubling in the gig economy or in sectors with seasonally contracted workforce.  

      • Labour rights violations 

      Encompassing the restriction on freedom of association and collective bargaining. I have had several clients whose subcontractors employed workers without employment contracts, completely violating local labour laws.  

      • Human rights risks  
      • Ethical sourcing 

      Companies face challenges in ensuring that their supply chains are free from human rights abuses, modern slavery, human trafficking and exploitation. Ethical sourcing policies and enhanced due diligence can screen out suppliers who can’t comply with legislation.  

      • Conflict minerals 

      Sourcing minerals from conflict-affected regions can contribute to human rights abuses and armed conflict. Companies can implement measures to trace the origin of minerals and avoid financing conflict or further contribute to human rights violations.  

      • Indigenous rights 

      Many supply chains involve land acquisition for resource extraction in areas inhabited by indigenous communities. Respecting Indigenous rights, including land rights and cultural heritage is crucial to avoid access restrictions to natural resources.  

      • Community and land-related aspects  
      • Land displacement 

      Though, we previously mentioned land issues in relation to indigenous people, supply chains might lead to land grabs from other communities. Proper consultation, compensation and resettlement plans are necessary to mitigate the negative impacts on affected communities.  

      • Community engagement and development 

      Enterprises have the responsibility to contribute positively to the communities where they operate. In certain developing countries, these manufacturing facilities provide the only ‘good’ jobs and communities rely on them economically. Engaging with the communities and supporting local development through CSR programs is a popular way for companies to build lasting relationships.  

      Strategies and Tools for Enhancing Social Sustainability  

      Achieving social sustainability in supply chains requires a multifaceted approach that integrates social considerations into every stage of the supply chain lifecycle. When I work with my clients, I always look at three key pillars: legal requirements, voluntary standards, and management systems.  

      The EU’s adoption of the new directives specifically targeting human rights and environmental impacts in supply chains adds to the long list of legal requirements companies need to follow to address modern slavery risks and practice corporate responsibility globally. Most of the legislation is not prescriptive in terms of what needs to be done exactly. But they do require companies to enforce corporate level standards on suppliers. Some companies have started including standard contractual clauses that require suppliers to follow legislation and adhere to the company’s policy on social topics.  

        Voluntary standards and certifications 

        There is a wide variety of voluntary standards and certifications that companies can explore on their social sustainability journey beyond legal compliance. Plus, there are certifications on Fair Trade, SA8000, Ethical Trading Initiative (ETI) Base Code and decent work. There are also some more sector specific standards and certifications such as ethical fishing for food producers. It is up to companies to decide if they want to improve their practices by updating systems in line with best practices.

          Supplier collaboration

          Supplier collaboration through the provision of capacity building and training are great tools to raise awareness on labour rights, health and safety, diversity and inclusion and support suppliers to establish their own traceability systems. Typically, the supplier code of conduct is a legal requirement, but it could be extended to include more detailed expectation. These might include labour standards, human rights, environmental practices and ethical business conduct.  

          I would consider community investment through CSR programs as a voluntary initiative that allocates resources towards community development. It is ideally driven by the needs of locals and might include a combination of paying for services and providing training or education.  

          Management systems  

          Company management systems include the collection of policies, processes and management plans. Most of the policies are legal requirements as per my previous points. However, there can be additional policies focusing on areas where the company is exposed to risks in the supply chain. For example, HR policies typically include minimum age requirements.

            Although, if the risk of child labour is relevant to the company, they might decide to have a separate policy on the prohibition of child labour. Following on from this example, a management plan would identify the risk of child labour. Whether it is for direct employees, contractors or subcontractors. This will describe a process to verify, record, audit and report on the age of workers. Supply chain specific management plans might include traceability and mapping, a supplier management plan, a supply chain risk assessment plan etc.  

            Stakeholder enagagement

            The other important aspect of a company’s management system is stakeholder engagement and complaints management. Effective stakeholder engagement can facilitate the feedback mechanism from communities and workers in the supply chain.  

            Creating socially sustainable supply chains is not just a moral imperative. It is also a strategic business imperative in today’s interconnected world. If we prioritise social responsibility by embedding it into the operations, businesses can mitigate risks, enhance reputation and create value for society. Ultimately, building social sustainability requires a collective effort involving businesses, governments, civil society and other stakeholders.

            We need to work together towards common goals to create supply chains. Not only to deliver economic value but also promote social justice, equity and dignity for all.  

            Ildiko Almasi Simsic is a social development specialist and Founder of E&S solutions which has developed the world’s first E&S specific research assistant – myESRA™.  

            Martin Davies, Audit Alliance Manager at Drata, unpacks the impact of the EU’s Digital Operational Resilience Act (DORA) on managing third party supply chain risk.

            The European Union’s Digital Operational Resilience Act (DORA) takes third-party risk management very seriously. Upcoming regulatory compliance requirements under DORA will require financial institutions to have a thorough understanding of the end-to-end supply chain and enhance the way they conduct Third Party Risk Management (TPRM) by January 2025.

            Many financial services firms risk having insufficient operational resilience intelligence on their core ICT suppliers and will need to ramp up their efforts to become compliant or face significant penalties for non-compliance. 

            Here are some key pointers to help you and your partners meet regulatory requirements painlessly.

            Visually map out key functions within your business

            Begin by identifying each vital part of the organisation and then break it down into: the PEOPLE who are responsible for managing the function; the PROCESSES that underpin its daily operation; the TECHNOLOGY (systems, data, information) which enables the processes and management; and THIRD PARTIES, who supply you with the necessary systems and solutions.

            As a first step, this will provide a clear overview of how the business operates and how functions overlap and interconnect. It lays the stage for the next critical step, and to build operational resilience across the supply chain.

            Mapping third party risks  

            Every moving part within the organisation will have some level of operational risk attached. For example, could be ‘key-person’ risks. These occur when just one or two people in a function have access to critical system knowledge. This leaves them and the function highly exposed. Or perhaps there are functions that rely on third-party systems to the extent that there are no viable manual or internal workarounds in the event of outage. Such third-party risks are particularly important, because exercising control over them is less straightforward than risks arising from in-house activities.

            Successfully mapping such risks will depend on collaboration between vendor owners and subject matter experts across the organisation: professionals who are close to the coal face and have a detailed understanding of potential risks and associated impacts and can prioritise accordingly.

            Identify well-governed risk treatment plans  

            Having identified risks in each functional area, and the potential impact they might have on the business’s resilience posture, it’s time to develop well-governed risk treatment plans. Begin by securing sign off on remedial actions from the board; senior buy-in is essential to underline the importance of implementing the plans.

            Each plan should summarise the impact of the risk to resilience, specify mitigation methods, identify who is responsible for implementation, and set deadlines for action. Ongoing monitoring and reporting will assess the effectiveness of implemented measures so they can be adjusted as necessary.

            Ensure that staff are trained on DORA  

            With the January 2025 deadline looming, now is the time to begin training employees on DORA and how it will affect their roles and responsibilities. The sooner people are made aware of the implications, what is required of them and how it will impact their day to day activities, the more time there will be to strengthen these practices and really bed them in before DORA is live.

            There are a range of DORA training courses that provide the know-how and confidence to navigate the route to DORA compliance, as well as e-learning courses that cover essential compliance knowledge.

            Develop an Operational Resilience testing framework

            It is vital to regularly test threat-led testing on specific components and systems across all essential functions to calibrate assumptions made about their resilience. By integrating the outcomes of test exercises into a continuous risk assessment, organisations can enhance their resilience posture, even as external and internal threats continue to evolve.

            Remember that operational resilience is an ongoing process. Regularly review and update your framework to adapt to changing circumstances and emerging risks.

            Implement Governance Risk and Compliance (GRC) Tools

            Third Party Risk Management is of the utmost importance to operational resilience. These tools act as a single source of truth for all vendor relationships, as well as highlighting the associated risks and mitigating controls in place. Nominate vendor ‘owners’ within the business who can use GRC tools to oversee the relationship and mitigate risk for each supplier.

            At the same time, create and maintain a vendor directory, which provides complete visibility of your vendor ecosystem and the associated risks so you can make informed decisions. With all the relevant information in one central repository, you can streamline the risk management process and reduce the potential for human error.

            Finally, instead of random manual checks, implement an automated Third Party Risk Management (TPRM) platform to manage the ongoing assessment of risk. This will take on the hassle of repetitive tasks and continuous verification, ensuring a consistent approach to vendor-related risk. 

            For example, in the case of a vendor questionnaire, it begins with automation, but then enables individuals to thoroughly review and evaluate the provided responses, as well as the findings from any compliance audit report. Leveraging pre-mapped controls can save organisations significant time compared to carrying out manual assessments of third parties. Features like flagging and risk scores measure supplier performance, and reports provide real-time visibility into how third parties are impacting the risk and security posture of an organisation.   

            By deploying such GRC tools, organisations can minimise vendor risks and the residual operational impact of any outages.

            As the clock continues to tick down to January 2025, the sooner you begin addressing DORA, the better. By following these simple steps, you can ensure that you’ll be well placed to meet compliance standards and build operational resilience measures across the entire supply chain. 

            • Risk & Resilience
            • Sourcing & Procurement

            Ralf Seifert, Professor of Operations Management at IMD Business School, explores the impact of AI on the supply chain sector.

            A few years ago, Harvard Business Review published a provocative article entitled ‘The Death of Supply Chain Management’. It became as viral as an article on Supply Chain Management can be, circulating widely on Twitter and LinkedIn.

            The authors posited that the advent of Industry 4.0 technologies, the digitalization of data, and the growth of advanced analytics, machine learning and AI would mean that “within 5-10 years, the supply chain function may be obsolete, replaced by a smoothly running, self-regulating utility that … requires very little human intervention.”

            That’s not how things have turned out so far. It seems that more than ever, the supply chain manager is a critical contributor to the performance of their company.

            The pandemic changed everything

            The obvious place to start considering why is the pandemic that upended supply chains around the world. With lockdowns changing consumer behaviour, some of the weaknesses of hyper-optimised supply chains were exposed. From toilet paper manufacturing that could not easily switch between industrial and residential formats to eggs and flour prepared and packaged in separate streams for consumers and commercial needs, many supply chains struggled to adapt.

            The ones that did, however, were because managers collaborated across business silos to remove complexity and focus on key SKUs at the intersection of manufacturing speed and high sales volume. Rather than being obsolete, one senior marketing executive at a major FMCG company told us “I knew my supply chain was a key strategic advantage, but I had not realised how much it could be a key tactical advantage as well.”

            Another impact of the pandemic was an explosion in e-commerce, leaving companies scrambling to adapt their order treatment and fulfilment activities to meet the demand. With stores closed in many markets, this became a matter of survival, with supply chain front and centre. Many companies are now trying to push their omni-channel strategies as a way to build in free supply chain resilience for the future.

            The next “big one”

            Of course, the pandemic was very much unchartered waters for all of us. But the next time might be an earthquake in Japan, an economic downturn due to a financial crisis, a volcano in Iceland, new trade tariff wars, or even a major global waterway closure. The days-long blockage of the Suez Canal also spurred some companies to rethink their global supply chain footprints, both internal and external. This will require careful consideration of the quantifiable cost of freight and customs duties, but also the more nuanced impacts of reactivity, agility and working capital that require a supply chain manager’s participation.

            The supply chain spotlight

            Even without pandemics and headline-grabbing logistics snafus, supply chains are front-of-mind more than ever. The waves of exciting capabilities brought by Industry 4.0 technologies have impacts beyond the world of supply chain management. Companies leading the way in digital transformation have understood that these technologies are opportunities to rethink their value proposition, for example through personalization, and not merely a way to automate away their supply chains.

            The potential impacts of industrial automation and AI have led to discussions about structural change to the economy, jobs and even to society at large. The entrance of supply chain management into the mainstream has gotten the attention of those looking for a promising career choice. Gartner, the supply chain advisory and research company, has seen the U.S. university masters programs in supply chain in its ranking grow 170% from 2016 to 2020.

            A seat at the table

            As much as we would like supply chains to be simple and predictable enough to run themselves, a more achievable goal would be for supply chain managers to leverage all of the exciting capabilities available to automate the routine, and to build visibility and agility for the next unforeseeable problem.

            A recent survey by IMD revealed that the highest priority for supply chain managers was to implement Sales and Operations Planning – a process that requires deep cross-functional collaboration – and integrate the supply chain strategy and the business strategy. Rather than looking to set up supply chain as an autonomous function, companies are looking more than ever to place it squarely in the boardroom.

            Supply chain opportunities

            Contributing to this spike is the growing interest of consumers, professionals and investors in sustainability and the circular economy. Many companies look to their supply chains to lead the way in finding solutions to these critical issues. To quote the Head of Strategy from a large multinational “We have spoken about end to end supply chain optimization for some years already but the scope, from which end to which end, has changed dramatically for today’s supply chains.”

            Supply chain executives today, have to navigate ever more complex regulatory (environmental) requirements, give input to IT on how to digitally enable their supply chains and leverage their supply chain, a key driver in ongoing business transformations. This way, far from facing death, supply chain managers need to focus on being at the table as an active contributor in shaping the company’s strategic vision. Or, to invoke common wisdom, it’s nice to have a strategy – its far better if you can execute on it and enact it operationally

            What does the future hold?

            We can think of AI in supply chain management a bit like self-driving cars. Many of us are already enjoying the benefits of functions such as assistant systems for parking and distance measurement, but to reach fully self-driving cars we must have many more systems working seamlessly together. The car industry has been promising us this kind of driving experience for decades, but in reality, it is the case for only a tiny percentage of cars on the road.

            Similarly for supply chains, AI will help supply chain planning, but to get to full touchless flows will take much more time. So, while it is vital for supply chain professionals to understand these technologies, the truth is there is a lot of work to do to get the basics right before we even consider entertaining significant added value from AI, so we should perhaps also moderate our expectations for just how fast AI will play a major role at scale.

            Ralf Seifert is Professor of Operations Management at IMD Business School and co-author of new book, The Digital Supply Chain Challenge (2nd edition), with Supply Chain Management Professor at ESCP in Paris and Founding Partner at Innovobot, Richard Markoff.

            The extreme weather event has shut down ports, disrupted shipping, and caused up to $32 billion in economic losses.

            Although the worst has now passed, the effects of Hurricane Beryl are still being felt across the Caribbean, Texas, and the rest of the Gulf of Mexico. In addition to the risk posed to human life by the passage of the Category 5 hurricane through the Atlantic — although the storm had calmed to a Category 1 by the time it made landfall in the US — supply chains across the southern US face serious disruption

            Hurricane Beryl made landfall near Houston, Texas on July 8th. Right now, AccuWeather estimates the total economic loss in the United States from Beryl is between $28 and 32 billion. Losses are proportionately much higher in Caribbean nations like Guadalupe, Barbados, and Mexico. 

            Research conducted by supply chain management platform operator project44 notes that Hurricane Beryl’s impact on Houston includes power outages affecting millions amid a heatwave, extensive flooding, and disruptions at the Port of Houston with terminals closed for repairs. Trucking operations have seen improved on-time performance post-storm but face reduced daily loads and potential service interruptions as recovery efforts continue. After dropping to zero for several days during the port’s closure, dwell times are expected to spike heavily in the coming week. 

            Courtesy of project44

            Shipping, rail, road, and air freight affected

            The majority of vessels affected by Hurricane Beryl are tankers. Texas is a major hub for the US’ gasoline production and refinement, meaning that a major disruption at one of the state’s largest ports will mean the industry is the first to feel impacts of service interruptions. 

            Houston’s port has also grown dramatically in size and traffic over the past few years, as shippers have used it as an alternative to congested West Coast ports and COVID-19 impacted East Coast ports. This comes at a particularly inopportune time as many retailers are currently in the process of importing holiday goods, marking the beginning of ocean shipping peak season.

            Authorities have downgraded Beryl to a tropical depression. However, the storm is nevertheless provoking storm surges, flash flooding, heavy rains, and power outages as it moves inland through Texas. The number of outages in the state on Wednesday morning were still above 1.7 million, according to PowerOutage.us.

            The storm cancelled 1,700 flights earlier this week at both George Bush Intercontinental Airport and William P. Hobby Airport, according to Supply Chain Dive. Later in the week, FedEx issued a statement that the storm had rendered Southeast Texas “hazardous”, particularly in the Houston metro area. The extreme weather has affected over 280 zip codes, throwing last mile delivery into chaos in a significant portion of the state.

            • Risk & Resilience

            Luke Dash, CEO at ISMS.online, explores the rising tide of supply chain cyber attacks on UK organisations and how companies can beat the odds.

            In an increasingly interconnected world, the importance of robust cybersecurity measures cannot be overstated. 

            At present, one of the pressing security concerns facing organisations is supply chain attacks. Supply chain attacks are a sophisticated, extremely harmful threat technique in which cybercriminals target organisations by infiltrating or compromising the least secure aspects of a company’s increasingly broad digital ecosystem.

            Critically, these attacks specifically exploit interdependencies between companies and their digital suppliers, service providers or other online third-party partners. This makes them particularly challenging to defend against.

            Several notable examples of supply chain attacks highlight their potentially devastating impacts, such as the recent attack on the NHS. Several hospitals were forced to cancel operations and blood transfusions following an attack on IT company Synnovis. The IT company was hit by a major ransomware attack. The consequences have affected thousands of patients. In response, the NHS has issued a major call for blood donors as it struggles to match patient’s blood quickly. 

            There was also the Okta supply chain breach disclosed in early 2022. Here, a third-party contractor’s systems were breached, subsequently impacting the leading identity and access management firm. Critically, hackers managed to extract information from Okta’s customer support system. This gave them access to sensitive data such as its clients’ names and email addresses. 

            Similarly, the MOVEit breach stands as another noteworthy example. Discovered in 2023, this incident involved the exploitation of a zero-day vulnerability in the MOVEit Transfer software—a widely used file transfer application developed by Progress Software. The breach led to the unauthorised access and theft of data from numerous organisations globally. The attack was so bad that the NCSC provided its own information, advice, and assistance to affected companies.

            Indeed, these two incidents, among many, highlight a crucial lesson for organisations: as supply chain threats become increasingly prevalent and complex, firms must recognise that their security is only as strong as the weakest link in their network of suppliers and partners. 

            Seeking to ascertain just how widespread the issue of supply chain attacks is at present, ISMS.online recently surveyed 1,526 security professionals globally to uncover their own experiences. 

            Our latest State of Information Security report details the seriousness of the situation facing UK companies. Critically, we discovered that 41% of UK businesses had been subject to partner data compromises in the last 12 months. Further, a staggering 79% reported having experienced security incidents originating from their supply chain or third-party vendors—up 22% versus the previous year.

            The message from this dramatic spike in statistics is clear. Supply chain vulnerabilities are not only becoming more prevalent but are also increasingly exploited by cybercriminals. This highlights the urgent need for comprehensive and collaborative cybersecurity measures across all levels of the supply chain.

            Indeed, companies must work to mitigate these threats and minimise their risk exposure by reassessing their cybersecurity strategies. But where and how exactly should they focus their efforts? At ISMS.online, we believe that there are four key areas that companies should prioritise when it comes to achieving best practices.

            1. Stronger vetting processes

            First, it is critical to implement rigorous security vetting processes when selecting partners and suppliers. This involves thorough due diligence, assessing potential partners’ security posture and cybersecurity measures, and reviewing past security incidents and responses. Companies should also evaluate compliance with relevant regulations and continually monitor their partners’ security practices where appropriate.

            2. Enhanced cybersecurity measures

            Of course, it’s not good to demand that partners have robust security measures without adopting best practices yourself. Therefore, bolstering internal cybersecurity measures and extending them to the supply chain is needed to significantly reduce risks. Here, strategies to consider include the regular auditing of internal systems, comprehensive employee training in cyber threat recognition and response, the adoption of advanced cybersecurity technologies like multi-factor authentication and encryption and keeping an updated and unique incident response plan in case of supply chain breaches.

            3. Robust partnership agreements

            Detailed and stringent partnership agreements will undoubtedly help establish clear cybersecurity expectations and responsibilities. Indeed, it is important to define security requirements, request regular security status reports, and define access controls to safeguard sensitive information.

            4. Alignment with essential standards

            Aligning with critical standards and asking that partners and clients do the same can be a highly effective way of ensuring consistent and high-security levels across the supply chain. Of course, there are a variety of standards to consider. However, for UK companies, some of the most important ones to align with include:

            • Cyber Essentials: A UK government-backed scheme designed to help organisations protect themselves against common cyber threats by providing clear guidance regarding basic security controls.
            • ISO 27001: An international standard for information security management systems that provides a systematic approach to managing sensitive company information, ensuring it remains secure.
            • NCSC Supply Chain Security Guidance: A comprehensive supply chain security guide providing recommendations about managing supply chain risks, implementing robust cybersecurity measures, and ensuring continuous monitoring and improvement.

            Given the growing threat of supply chain attacks, it is imperative to demand the adoption of cybersecurity best practices both internally and among suppliers, service providers, and partners. 

            From aligning with essential standards to developing new partnership agreements, it can feel like a daunting or challenging task. Indeed, the difficulty for many companies is knowing where to start. However, achieving best practices on each of these fronts doesn’t need to be as daunting or burdensome as the businesses might think.

            Indeed, with proper support and guidance, best practices can be adopted, followed internally, and advocated externally with relative ease.

            • Risk & Resilience

            John Santagate, SVP Robotics at Körber Business Area Supply Chain, looks at the impact of automation on the evolution of the supply chain.

            Over the past decade, the supply chain has gained significant visibility. The rise of e-commerce, coupled with the challenges posed by the pandemic, has brought supply chain and warehouse technology into the spotlight. 

            This increased visibility has helped individuals and businesses gain a deeper understanding of the crucial role played by warehouses and the supply chain in ensuring that products reach the shelves. In today’s world, people better understand the scale and scope of the industry and the need for a dedicated workforce to ensure timely delivery of goods.

            Robotics in the warehouse 

            Amazon is well known for its early adoption of robotics into their warehousing and distribution centres and subsequently the growth of the business that this technology no doubt played a role in. 

            More recently apparel industry leader, S&S Activewear, announced the expansion of its partnership with Körber Supply Chain Software and the deployment of Geekplus robotics solutions to increase warehouse efficiencies. 

            Intelligent robotics is a true game-changer in the supply chain industry if applied correctly. Since 2016, the global stock of industrial robots has grown by an average of 14% each year. However, it is important to note that while the figures reflect growth and strong demand, intelligent robotics need to act as holistically integrated solutions to maximise efficiency.

            With robotics becoming an increasing trend in the supply chain, how will it affect the workforce?

            Impact on the supply chain workforce

            At the core of the supply chain industry are the dedicated individuals driving its operations. In recent years, however, we have seen the adoption of technologies, such as robotics and voice, enabling individuals to work more efficiently in the warehouse. Voice-directed solutions help workers operate hands-free and eye-free in busy warehouse environments. Automation and robotics are being used to support and enhance the human workforce, rather than replacing it. 

            There is now a growing need for technology operating systems to integrate these various technologies. Tools like these are augmenting human capabilities, resulting in operational efficiency gains.

            Autonomous Mobile Robots (AMRs) are designed not only to boost productivity but also to enhance workplace satisfaction. By handling repetitive and labour-intensive tasks, AMRs free up human workers to focus on more strategic and fulfilling activities.

            The seamless integration of these technologies is becoming increasingly essential. Modern warehouses depend on complex systems that must operate harmoniously. Software orchestration is vital in ensuring that both new and legacy technologies work together efficiently, maintaining smooth and effective warehouse operations.

            Effects on human employees

            The supply chain industry is facing unprecedented workforce shortages, leaving technology to fill in the gaps. Robotics is one of the cutting-edge technologies transforming the workforce by augmenting, supporting and enabling workers to be more effective.

            Businesses that prioritise their workforce and use technology as a tool to enhance employee performance will see significant benefits. 

            Companies focusing on improving efficiencies, workforce safety and employee well-being are experiencing the most considerable improvements. Robotics positively impacts human employees by saving time, increasing accuracy and allowing them to focus on more strategic tasks.

            Not long ago, warehouse tasks were manual and mundane, leading to unfulfilling work. Today, robotics and technology have shifted this dynamic, allowing workers to focus on more important tasks and be more agile, dynamic and effective. Robotics also reduces repetitive strain injuries and fatigue-related accidents, making work more comfortable and less burdensome while aiding workflow productivity and scalability. In addition, working with robotics and other modern technologies is allowing workers to gain new skills that are more relevant to the market today and enabling businesses to evolve with the technology landscape. 

            The bottom line

            Technology is not replacing jobs; it is creating new opportunities. Innovations have introduced roles such as robotics and automation specialists that didn’t exist 20 years ago. Robotics in the supply chain represents progress and is essential for allowing the workforce to keep pace with market demands.

            A decade ago, experts predicted the supply chain industry would need three times more warehouses and a 300% increase in warehouse workers over the next few years. Thanks to advancements in technology, we have successfully met these demands, while competing with a contracting labour market

            This technological evolution underscores the importance of continued investment in robotics and automation to maintain a resilient and efficient supply chain, capable of adapting to future challenges and consumer demands.

            • Collaboration & Optimization
            • Digital Supply Chain

            John-David Klausner, SVP of Business Development & Strategic Alliances at Loop, explores remaining sustainable while growing a business overseas.

            Many growing brands list expanding internationally as a key driver of their growth in the years ahead. But, as any brand who has gone through this transformation can attest, becoming a truly “global” brand is no simple task. 

            What are the challenges for businesses when it comes to cross border expansions? How can brands overcome them?

            Brands looking to expand internationally face a number of challenges, from navigating unfamiliar markets to language gaps to dealing with complex logistics. 

            This is where Cross-Border commerce solutions like Global-E, Shopify Markets Pro, FlavorCloud, and others come into play. They seek to help brands streamline not only their cross-border logistics solutions (both outbound and returns), but also every other area where an international shopper may interact with their brand. 

            This includes key functionality like site translation, support for local currencies and payment methods, compliance with local tax and regulatory requirements, market insights and region-specific research, and support for local shipping providers and regional carriers. They can provide a full service that can help businesses navigate the complicated challenges that international expansion can bring.

            What impact are returns having on the environment?

            It’s no secret that retail returns are a big environmental problem. 23 million returned garments were sent to landfill or incinerated last year in the UK, which generates 750,000 tonnes of CO₂ emissions, according to a report from The British Fashion Council’s Institute of Positive Fashion (IPF) from March 2023. 

            All of that returned inventory has to go somewhere, and often, it simply cannot be restocked. Despite online retailers’ best efforts to convey size and colour, it’s still difficult to know if an item fits, so an unfortunate number of online clothes returns end up in the landfill. Not to mention the carbon footprint involved in shipping items back and forth, all over the world. 

            Returns of all kinds have a steep impact on the environment, but fashion brands in particular struggle with staying sustainable, in part thanks to consumer practices like bracketing (ordering more than one product with the intention of returning all but their favourite).

            Despite this, eco-friendly returns options matter to consumers. 

            According to internal data from Loop, the leading post-purchase platform,  consumers do pay very close attention to the sustainability of the brands they shop with. 88% of shoppers agree that eco-friendly return options make them more likely to shop again. 

            Sustainable returns policies?

            Providing sustainable return options taps into consumer values and builds brand loyalty, and should be a key priority for brands to stay relevant and increase customer acquisition and retention. 73% of shoppers also regularly review a retailer’s return policy to gauge their sustainability levels and more than half of consumers (56%) care about the environmental impact of returns “somewhat” or “a lot”. 

            Over a third (35%) of consumers have opted out of returning a product due to the potential environmental impact (I.E. the possibility of the returned product ending up in a landfill). 13% of shoppers will go as far as not purchasing from a retailer at all if they do not offer eco-friendly returns options.

            How can retailers respond to sustainability concerns?

            Luckily, there are plenty of ways that brands can address the environmental concerns around returns, particularly clothes retailers who are dealing with large scale returns. Retailers that automate their returns through a returns management platform like Loop, allow brands to offer more eco-friendly options like consolidated return shipping and resale options for example.

            • Consolidating return shipments helps shipping providers take fewer trips, which reduces pollution (and costs). By partnering with shipping services like ReBound, you can gain access to a global logistics network, securing competitive shipping rates and a return consolidation engine to further cut down reverse logistics costs.  
            • Offering the option to keep an item rather than returning it remains popular as brands look to increase their sustainability efforts and cut down on shipping costs. Many brands leverage this option when an item value is worth less than the cost of a shipping label, or if the item is simply not something that can be refurbished or restocked. The ‘Keep Item’ feature allows merchants to forego return shipping costs and provide the shopper with a pleasant return experience. The savings depend on how often the merchant chooses to use Keep Item, but on average it saves our merchants about $10K on shipping per year. 
            • Brands can also choose to route items to a different (closer) destination if returned items don’t need to go back to the warehouse. Not only does this help cut down on shipping time (and the related environmental impact), it also helps brands save on shipping costs, too. 
            • Collaboration & Optimization
            • Sustainability

            The evolution of supply chains in 2024 will, according to Gartner, be defined by the integration of human and robotic workforces.

            It’s an interesting time to be in the supply chain business. Not only are supply chains under increasing pressure to unlock greater value for the business, but executives find themselves operating in a landscape that might be even more challenging than that of the pandemic just a few years ago. 

            Geopolitical tensions are rising, disrupting global trade routes. The spectre of economic downturn looms over Europe and the US, intermingling with growing unrest over the cost of living, wage stagnation, and the broken promises of 21st century capitalism. And, over everything, the worsening climate crisis throws a long shadow. Crop failures, extreme weather events, and disrupted ecosystems are conspiring to create a world where, for supply chains, disruption is the norm. 

            Many organisations are turning to technology as a way to improve their efficiency, cost-containment, and resilience. Supply chain operators are being driven by the need to “ensure their foundation can support both past and future investments, while also looking ahead for new differentiation opportunities,” noted Christian Titze, VP analyst in Gartner’s Supply Chain Practice

            A key theme emerging for Titze is the role that emerging technologies like artificial intelligence (AI) and maturing technologies like robotics will play for supply chains. However, Gartner’s report stresses that the success of adoption when it comes to these technologies is tied to “ the complementary integration of humans and machines.” 

            Humans and machines in the supply chain

            Gartner’s report identifies a number of trends connecting the broader theme of humans and machines in collaboration. 

            “These technology trends are not isolated, but rather interconnected and mutually reinforcing,” said Dwight Klappich, VP Analyst and Fellow in the Gartner Supply Chain practice. 

            Composite AI, AI-enabled vision systems, augmented connected workforce initiatives, next generation humanoid robots, and machine customers are all contributing to the increasingly collaborative relationship between humans and machines in the supply chain.

            AI-Enabled Vision Systems

            AI-enabled vision systems combine industrial 3D cameras, computer vision software and advanced AI pattern recognition technologies to autonomously capture, interpret, and make inferences based on unstructured images in real time.

            Augmented Connected Workforce (ACWF)

            ACWF initiatives aim to reduce onboarding time for employees to achieve full productivity and enhance decision-making. 

            Augmented connected forkforce is a strategy that combines the value of intelligent technology, workforce analytics, and skills augmentation to accelerate talent growth and optimisation.

            Composite AI

            Individual AI applications are impressive, but it’s in aggregate that the technology really begins to shine. Composite AI uses multiple AI techniques together to increase the efficiency and accuracy with which these models learn. Composite AI also broadens the level of knowledge representations, and could ultimately solve business problems in a way that drives supply chain performance improvements.

            Next-Generation Humanoid Working Robots

            Robotics have been an established part of the supply chain for over a decade at this point. Signalling the next phase in the technology’s journey towards maturity, humanoid working robots combine sensory awareness, mobile manipulation, and dynamic locomotion to perform tasks previously done by humans. 

            They typically feature sensor-equipped heads, power and mechanical bodies, manipulative arms/hands, and legs that allow for more dynamic movement than previously seen.

            Machine Customers

            Machine customers are nonhuman entities capable of selling or purchasing goods or services autonomously. 

            Examples include IoT devices placing independent orders, intelligent replenishment algorithms maintaining product availability, and automated assistants suggesting new deals to consumers.

            • Digital Supply Chain

            Dr Atanu Chaudhuri, Professor in Technology & Operations Management at Durham University, explores 3D printing’s impact on sustainable supply chains.

            Imagine you’re a customer waiting on a replacement for a broken part for your washing machine, or the operator of an aircraft fleet forced to ground a plane due to a lack of parts when faults occur. Or, even more critically, a doctor in a hospital working with a shortage of equipment, as machines in need of repair lie idle.

            Such situations are far too common. Often, they occur because of hold-ups in, or a lack of production within a supply chain.

            For example, when an airline changes the layout of the cabin, it needs to plug the gaps between old and new components using spacer panels. Producing these by injection moulding will first require the design and production of a mould, which takes multiple weeks to produce. One false step grounds an aircraft for weeks. In the meantime, manufactures must get both the requirements right and make enough of the parts they need to complete the job. Such delays are inconvenient at best, costly at worst.

            Delays versus inventory in manufacturing 

            Now imagine yourself as the manufacturer. One of the big challenges faced by industrial product manufacturers is to deliver spare parts to their customers – whether other companies or individual customers – on time when needed, as per their contracts. After all, to fail to serve the customer is to lose business.

            To fulfil such obligations, manufacturers need to keep large numbers of spare parts, covering all eventualities in their inventory – even if their customers may only need a few every year. This means manufacturers spend time and money producing parts that customers never use. These parts also incur an additional cost when it comes to secure storage. 

            And then, if available spare parts are no longer fit for use, it leaves manufacturers with a great deal of waste to dispose of. Increasingly, the pressure is on to do this in an environmentally friendly way, incurring yet more cost.

            Cutting corners to keep costs low is also not worth the risk to reputation when it comes to customer safety and satisfaction. The parts may not be of appropriate quality. 

            And then there are elements outside of the control of the supply chain itself  – a disruption in transportation links which delays the delivery of parts, items broken or going missing en-route. Finding or manufacturing a replacement can take several more weeks.

            It’s clear that traditional manufacturing methods and the impact they have on the operation and sustainability of a supply chain are no longer fit for purpose. As many companies face pressure to tighten their belts as well as operating in a greener fashion new technology, like in many other industries, is bringing new solutions.

            Where traditional manufacturing falls short, 3D Printing can pave a new path to build a resilient and sustainable supply chain.

            3D printing a more sustainable supply chain 

            Conventional manufacturing typically removes materials from a larger block to achieve the desired shape and finish. By contrast, 3D Printing, or additive manufacturing (AM), is the process of producing parts layer by layer to a near final shape from a digital design. AM can produce parts with complex shapes – often which cannot be produced by conventional manufacturing – in a wide range of materials, both metal and polymer. AM gives engineers freedom in their designs beyond the limitations of traditional manufacturing processes.

            Initially, engineers used AM to swiftly develop prototypes during product development process. The technology has quickly grown in popularity for producing finished parts for products destined for market. Today organisations across industries such as aerospace and defence, automotive, medical and others are using AM for producing tools, jigs and fixtures and, of course, spare parts and for serial production of parts.

            3D printing vs traditional methods

            There are a number of reasons why 3D printing, or AM, is proving to be more effective than traditional methods for manufacturing spare parts are wasteful. First is the ability for low-cost customisation. Producing a part with a specific shape usually requires something called a die, or tool, made of steel which can be very costly. Also, a machine has to be set-up specifically for this purpose, which requires additional time. Making a single part at a time can come with a large bill – often larger than the value of the eventual part produced. Producing multiple parts the same die or tool reduces the cost of course, but also limits design possibilities. 

            AM doesn’t require a die. It can produce parts with complex shapes more swiftly. Manufacturers can also produce these parts in low quantities, enabling manufacturers to respond to individual supply demands – keeping customers happy and reducing the need to create excess, typically unused and wasted, stock of parts to cover “just in case” scenarios. 

            AM can also help to build supply chain resilience. Making parts within 2-3 days helps supply chains to be responsive and avoid supply disruptions by providing an “on demand” service. For example, Daimler Bus has authorised its coach operator customers to produce specific spare parts on-demand using a certified and validated process so that they do not have wait for the parts.  

            Small scale manufacturing means more orders for small businesses 

            Such practices also work well at the local level. This brings more business to SMEs and allows those which need the parts to more swiftly serve their customers as the chain becomes shorter. A case in point is small injection moulding manufacturers, whose business models are based on high volume and low cost hence severe competition from low cost manufacturers overseas. But, if organisations can produce these moulds using AM, it will not only reduce cost and lead time, it will also enable injection moulders to produce customised parts in low volume, enhancing their business model. Companies like Nexa3D provides such free-form injection moulding technology.

            Moreover, parts produced using AM can have a lower overall carbon footprint than those made using traditional methods. This is due to a number of factors. AM parts use or waste less material thanks to the method of part production and avoiding surplus stock, as well as shorter transport routes due to more localised production.  

            Airbus found exactly this in using AM parts which weighed 55% less and used 90% less materials. Others can be recycled or produced by recycling other materials such as fishing nets. My own research shows how UK based Filamentive and Fishy Filaments are proudly showcasing the circularity potential of AM. 

            Limitations of 3D printing 

            But there are limitations. Only a few parts in a portfolio of a company can be produced by AM. Companies need to identify those parts systematically using both design and supply chain data or expert knowledge and consider redesigning to make parts feasible to be produced by AM. 

            The companies also need to choose the appropriate AM technology, the equipment and materials. For different AM technologies, parts need to undergo post-processing, require quality assurance and adherence to standards. Other challenges exist in terms of ensuring the security of the design files and product authenticity. Companies like Autentica are trying to address the above problem by using a non-fungible token enabled system of identification to help avoid counterfeiting. 

            AM has potential to improve resilience and sustainability of supply chains, but it requires a concerted effort by manufacturers to systematically adopt the technology, develop in-house capabilities over time and use the AM service providers to address some of the capabilities they may lack. The investment in doing so will far outweigh the costs over the long-term, but missteps in choosing wrong parts to print or using inappropriate technologies or missing some of the hidden costs in post-processing and quality assurance can prove to be costly and deter companies. It is not to be considered to be a fancy toy which will address multiple problems but instead  a friendly set of technologies to develop a well-functioning supply chain – provided the companies do the essential background work to understand it first.        

            Dr Atanu Chaudhuri is an Associate Professor in Technology & Operations Management at Durham University Business School.

            • Digital Supply Chain
            • Sustainability

            Supply chains need to be ready for disruption, but is AI the right tool to help them remain agile in the face of the unknown?

            The modern value chain is vast, complex, and can contain thousands of suppliers. 

            These supply chains have evolved over the past decade, setting aside simpler, more linear structures in favour of complex ecosystems spread across multiple continents. Putting a single product in a customer’s hands can rely on the movement of goods across disparate geographies, between hundreds of companies, along vulnerable trade routes. 

            Recent geopolitical and climate-related disruptions are driving a return to simpler, more regional supply chain models. However, organisations are nevertheless still managing highly complex, fast moving supply chains in an increasingly complicated and dangerous world. From the US-China trade war and COVID-19 pandemic, to the ongoing Houthi attacks in the Red Sea and increasingly common extreme weather events, supply chains face a landscape where disruption has become the norm rather than the exception. 

            More than ever, supply chain managers are looking for ways to make their operations more agile and resilient. Some believe that artificial intelligence (AI) is the answer

            Can AI deliver supply chain resilience and agility? 

            Many supply chains have undergone radical transformations driven by the intersection of AI, machine learning, and increasingly cheap computing resources. “The culmination of those three things have revolutionised how we look at supply chain processes, all the way from demand forecasting to understanding at a granular level what customer needs are,” said Parvez Musani, SVP of End-to-End Fulfilment as Walmart in an interview with PYMNTS. “The integration of AI, ML, and vast computing power, coupled with an abundance of data, has transformed our approach to demand forecasting, inventory flow, and cost optimisation.” 

            AI’s ability to analyse vast data sets makes the technology ideally suited to generating the kinds of insights supply chain managers need based on broad market data. Not only that, but the technology’s ability to examine large amounts of unstructured information makes it very good at flagging risks before they develop into full-fledged disruptions. 

            Accurately forecasting demand is critical for retailers like Walmart. By effectively managing inventory levels, supply chain and logistics managers can minimise the likelihood of stockouts or overstocking. AI algorithms’ ability to rapidly comb through weather events, local news, historical sales data, market trends, and other contextual effects in real time allows the technology to generate accurate demand forecasts. Both Walmart and Amazon use AI tools to estimate and predict product demand in order to maintain the right inventory levels. 

            • AI in Supply Chain
            • Digital Supply Chain

            Onyekachi Izukanne, CEO and Co-founder of TradeDepot explores the role of supply chain sustainability in supporting minority and ethnic communities.

            In the dynamic landscape of global commerce, automation and innovative regulatory management are transforming supply chains to be more efficient, sustainable, and responsive. This is particularly impactful for ethnic communities with strong cross-border demands. These advancements are crucial in ensuring access to culturally significant products, guaranteeing authenticity, and ultimately enhancing the overall consumer experience.

            Addressing Cross-Border Supply Chain Complexities

            Ethnic communities often face unique challenges in accessing products that connect them to their heritage. Automation helps us navigate these complexities, delivering better outcomes in several key areas:

            • Regulatory Navigation and Innovation: In a post-Brexit world, navigating the complex regulatory environments of cross-border trade is more crucial than ever. Innovative regulatory management, or “RegTech,” leverages advanced technologies to simplify and comply with evolving trade regulations, customs requirements, and tariffs. This ensures smoother transactions and reduces delays, allowing culturally significant products to reach consumers more efficiently.
            • Authenticity Assurance: For ethnic consumers, the authenticity of products is paramount. Automation enhances supply chain transparency through technologies like blockchain, which trace the origin and journey of each product. This traceability guarantees that products are sourced from authentic suppliers and adhere to traditional standards, preserving cultural integrity.
            • Cultural Nuance Adaptation: AI-powered systems analyse vast amounts of data to understand the specific preferences and needs of ethnic communities. This understanding allows companies like TradeDepot to tailor their offerings precisely, ensuring that the available products meet the nuanced tastes and requirements of different cultural groups. AI-driven insights enable a personalised shopping experience that respects and celebrates cultural diversity.
            • Logistics Optimization: Cross-border logistics can be unpredictable and costly. Automation optimises logistics by predicting potential disruptions, suggesting alternative routes, and managing real-time changes in transportation. AI plays a crucial role here, enhancing route efficiency and minimizing delays, ensuring that goods reach ethnic consumers swiftly and in optimal condition, and maintaining the freshness and quality of perishable items like food.
            • Community Connection: Beyond transactions, technology fosters a sense of community among ethnic consumers. By analysing purchasing patterns and social interactions, platforms help create connections among individuals with shared cultural backgrounds. These platforms can recommend cultural events, new products, and community stories, enriching the consumer’s connection to their heritage.

            TradeDepot’s Role in Empowering Ethnic Communities

            TradeDepot leverages automation and AI to support the unique needs of ethnic communities, ensuring that these technologies serve as a bridge in the global supply chain. By focusing on the specific challenges and preferences of these communities, the company’s innovative approach ensures a seamless supply chain experience.

            TradeDepot’s platforms monitor the intricate web of international supply chains, predicting and addressing potential issues before they arise. This proactive approach minimises disruptions and ensures a steady flow of authentic cultural products to ethnic consumers.

            Moreover, the company’s commitment to quality assurance through automated traceability guarantees that every product, from African spices to grains and oils from Asia, meets the high standards of authenticity that ethnic consumers demand. This dedication to excellence reinforces the cultural bonds that these products represent.

            The Role of Sustainable Practices in Supply Chain Management

            Automation also plays a pivotal role in enhancing the sustainability of supply chains. 

            By optimising routes, reducing waste, and ensuring efficient resource use, these technologies contribute to greener and more sustainable supply chains. This obviously benefits the environment. Not only that, but it also ensures that supply chains are resilient and capable of adapting to changing global conditions.

            The Future of Automated Supply Chain Management

            As technology continues to advance, the role of automation in supply chain management will grow even more critical. For ethnic communities, this means enhanced access to the products that connect them to their cultural heritage. Automated systems and AI will continue to evolve, offering smarter, more intuitive solutions that respect and celebrate cultural diversity.

            In conclusion, automation provides the tools and insights necessary to navigate the complexities of cross-border supply chains, ensuring that diverse consumer groups have reliable access to the products they require. TradeDepot’s innovative use of technology exemplifies how these advancements can empower and enhance the connection to cultural roots, ensuring that ethnic communities remain connected, vibrant, and culturally enriched.

            Oana Jinga, Chief Commercial and Product Officer and Co-Founder at Dexory, explores how to increase warehousing visibility.

            In the last four years, the supply chain and warehouse industry has gone through a remarkable transformation, showing how essential it is to everyday life. Everything in your room or office once passed through a warehouse. Warehousing’s role in linking supply with demand is pivotal. 

            Ensuring timely, problem free delivery to consumers hinges on effective warehousing, yet businesses risk high costs from inventory errors. In the US, retailers alone face an estimated annual loss of $2 trillion due to inventory inaccuracies

            The modern warehouse: a hub of constant activity

            Today’s warehouses are dynamic environments operating around the clock, with goods moving in and out at speed. In such a complex, fast moving environment, the wrong inventory levels rapidly lead to customer dissatisfaction and employee frustration. Addressing challenges in demand forecasting, supplier management, production efficiency, inventory control, and technology integration demands perfect collaboration across systems.

            The 2020 pandemic sped up the global shift towards eCommerce, raising consumer expectations of swift, hassle free deliveries in the process. Warehousing has become even more crucial in supply chain management and the global economy, driven by growing demands. 

            The role of visibility in supply chains

            Warehouse Management Systems (WMS) are considered the heart of warehouse operations. However, errors in stock counts and poor use of physical space can create visibility gaps. Accurate information is vital in today’s competitive market, making visibility a cornerstone of operational resilience. Visibility entails real time tracking and monitoring of goods, information, and resources at various stages, giving businesses a competitive edge. Yet only 6% of logistics companies achieve full operational visibility.

            Achieving full visibility involves real time tracking of goods at every stage. It also means generating insights to support proactive decision-making and collaboration among supply chain partners. A comprehensive view enables organisations to identify bottlenecks, improve processes, and enhance overall efficiency in the operation. Tracking inventory, monitoring shipments, and managing operations precisely demonstrates visibility’s transformative power. 

            Identifying blind spots

            Visibility gaps can disrupt the entire supply chain, and often centre on warehouses. These busy hubs can suffer from mistakes in inventory tracking and discrepancies between recorded and actual stock. Addressing these challenges requires knowing which data to collect and turning it into usable strategies.

            Acquiring data is only the first step. The true value lies in translating it into insights and actionable strategies that drive business forward. 

            Understanding the visibility gap in warehousing

            Modern logistics operations are complex, involving numerous stakeholders and often fragmented, legacy systems. Data silos hinder real-time tracking and monitoring. Achieving full visibility demands a seamless flow of data.

            The root cause of the visibility gap is related to data. Several factors cause the fragmentation of data, but three main reasons are:

            1. Fragmented systems: Disjointed systems create data silos that impede information flow.
            2. Inefficient communication and human error: Delays and inaccuracies in information sharing exacerbate visibility gaps.
            3. Legacy technologies: Outdated systems lack the capabilities for real time data exchange.

            Implications of the visibility gap for businesses

            A lack of visibility leads to several inefficiencies and risks:

            • Increased operating costs: Inefficiencies, excess inventory, and disruptions raise a business’ costs and affect its profits.
            • Customer dissatisfaction: Delayed orders and stockouts can damage a business’ reputation and lead to dissatisfied customers.
            • Risk exposure: Limited visibility hinders effective risk management, leaving businesses vulnerable to unforeseen challenges. 

            Closing the visibility gap

            Annually, 6,500 hours are spent on tasks like cycle counts and stock checking, yet data is only partially gathered, quickly becoming outdated. To close the visibility gap, businesses should:

            1. Real-time data: Invest in integrated systems for instant updates on inventory, order status, and shipment tracking.
            2. Advanced analytics and predictive monitoring: Use AI-powered analytics to anticipate demand, optimise inventory, and identify bottlenecks.
            3. Technology infrastructure: Upgrade and integrate technology within the warehouse, including WMS, IoT devices, and cloud-based solutions.
            4. Collaboration: Foster collaboration with supply chain partners through shared platforms and standardised data protocols.
            5. Employee training and change management: Train employees on new technologies and implement change management strategies.
            6. Continuous improvement: Cultivate a culture of continuous improvement, regularly refining processes based on data analytics and feedback.

            The visibility gap presents significant challenges in an increasingly complex environment. Supply chain professionals must adopt innovations that provide continuous real-time data. Deploying advanced technologies enhances operational efficiency and ensures end-to-end visibility and data accuracy, serving as a strategic tool for proactive decision-making.

            • Collaboration & Optimization

            Siddharth Rajagopal, Chief Architect, EMEA at Informatica, explores how to maintain and improve the quality of data throughout the supply chain.

            Businesses in all industries depend on the smooth operation of global supply chains. Yet as these vital systems and processes become more complex, they can also become more fragile – needing careful management to keep them running effectively.

            Data is an important enabler of modern supply chains, as long as it’s of the highest possible quality. When data is accurate and reliable, organisations can optimise their supply chain by streamlining operations, improving decision-making and reducing risk. However, poor quality data can have the opposite effect by adding pain points, reducing output, hindering inventory management and stopping companies’ ability to measure and assess risk factors. Improving both data quality and data traceability should therefore be a priority at every stage of the supply chain.

            The data puzzle

            With some companies managing upwards of 75,000 suppliers, tracking, reporting and analysing supply chain data is an arduous task. This is particularly true when it comes to fragmented data sets stored in multiple siloed systems distributed across geographies, business units and suppliers. 

            And when data is not reliable, accessible and up to date, it can impact many parts of the supply chain. For instance, successful inventory management requires companies to deliver just the right quantity of the right product to the right place at the right time. And the whole process heavily relies on accurate data from multiple places – customer service, suppliers, warehouses and shipping providers. 

             If this information is fragmented, incomplete or difficult to interpret, organisations will find it difficult to deliver products or services in line with customer expectations. But imagine if that data could be pulled into a single view giving users the ability to see – in one place –  not only all the data they needed, but information on the quality of that data and the processes associated with it.

            Yet gathering data is also just one part of the puzzle. This challenge will grow exponentially in the short to medium term with the proliferation of Internet of Things (IoT) devices, the increasing use of both public and private cloud services, and generative AI. Supple chains must account for the sheer volume and diversity of data. There is a heightened need to automate processes to ensure that data is well managed and catalogued throughout the supply chain. 

            Mastering supply chain data 

            To overcome data challenges, organisations need to focus on introducing the tools and processes to share data and collaborate with partners. In addition, trusted, relevant data on everything from bills of materials and supplier challenges, to shipping routes and customer demand, needs to be available on-demand and in near-real-time. 

            Achieving this approach relies on having a clear, end-to-end view of the entire supply chain, ensuring supply chain managers use data optimally. For example, a cloud-based platform approach to managing data can seamlessly integrate internal and external data, bringing together trusted, governed and relevant supplier information from across the entire business into a centrally managed system. 

            Ensuring data quality is crucial. Organisations must guarantee the accuracy of their own data as well as that of their partners or suppliers. To prevent issues from spreading through complex supply chains, it’s important to monitor data directly at its source. Implementing data observability practices enables proactive monitoring and early detection of data quality patterns, allowing for quick remediation and smooth operations.

            Finally, AI and machine learning (ML) can significantly enhance supply chain management by automating many aspects of data management. These technologies analyse vast amounts of information to provide useable insights. For instance, AI and ML can help detect and maintain data quality across large datasets, automatically classifying data to meet organisational standards. 

            Delivering on demands

            With a holistic, trusted, single view of suppliers, ML and AI can extract valuable insights from supply chain data. By connecting technical data with business metadata, these technologies enable organisations to gain a deeper understanding of their supply chain operations and make more informed decisions. This improved data comprehension can lead to more efficient inventory management, better demand forecasting, and enhanced supplier relationships.

            For example, we’ve recently seen supermarkets contending with supply chain disruptions – cold weather, high energy costs and transport disruption. A 360 view of all supplier profiles helps supermarkets navigate turbulence. The ability to visualise and understand strategic supplier relationships is crucial to identifying alternative suppliers and getting the right products to the right places fast.

            Ultimately, data is critical to maintaining a supply chain. As such, supply chain managers must organise and manage their data effectively. To do this, it’s fundamentally important to ensure data is of the highest possible quality and is traceable at every stage. With an accurate, holistic view of suppliers feeding applications, AI and analytics, companies can quickly understand macro demand trends, gain visibility of suppliers, improve collaboration and optimise supply chains to deliver their product or service more quickly. 

            • Digital Supply Chain

            Boeing and Airbus have cited supply chain disruptions as being responsible for severe production delays that could last years.

            The world’s largest aircraft manufacturers are continuing to experience a run of bad luck in their supply chains. 

            Airbus faces delays 

            This week, French manufacturer Airbus announced an adjustment to its year-end aircraft delivery. The adjustment also affected company’s earnings before interest and taxes (EBIT), and free cash flow (FCF). Currently major supply chain issues are affecting the manufacturer’s operations and ability to deliver aircraft on multiple fronts. 

            In the statement issued on June 24, Airbus blamed persistent supply chain issues for a shortage of engines, aerostructures, and cabin equipment. The shortages are forcing the company to reduce the number of aircraft it plans to deliver in 2024 to around 770 aircraft, compared to the 800 aircraft that it had previously expected to send to customers. 

            Additionally, Airbus was planning to ramp up production of its A320neo aircraft to 75 per month. Airbus’ supply chain disruption have also delayed this initiative, with completion expected in 2027 rather than 2026. 

            Strikes with no end in sight 

            Both Airbus and its main competitor Boein faced additional delays this week due to disruptions in their supply chains. Reuters reported on June 25 that, after a five week-long strike by workers at Montreal-area Safran SA, management and the Confederation des syndicats nationaux union are no closer to reaching an agreement. 

            Workers picketed on Tuesday outside the factory in Mirabel, Quebec, where Safran has been running operations using personnel non-striking, non-union workers, a company spokesperson told Reuters.

            Safran has told the union that it has made its final offer a 14.5% raise over three years, while workers represented by the union have said since the start of the strike that they need an estimated 22% salary hike. Safran manufactures landing-gear components used in both Boeing and Airbus jets.  The company reported €2.7 billion in profit last year. 

            EU deadlines extended 

            Due to the pervasive nature of the supply chain issues, the European Union this week also rolled back the deadline for the inclusion of new safety features on all newly-built aircraft. Commercial aircraft manufacturers will be granted a further 18 months to meet the new requirement, shifting the deadline back from 1 January 2025 to 1 July 2026.   

            The safety features are designed to use energy calculations during approach and landing to predict the point at which an aircraft will come to a halt, and compare this with the runway length, in order to identify any risk of overrun. 

            The European Union Aviation Safety Agency announced after its investigation that several type-certificate holders have faced “significant difficulties” due to supply chain disruption.

            • Risk & Resilience
            • Sourcing & Procurement

            John Forslund, Senior Director of Product Marketing at Scandit, looks closer at containing carbon emissions in the last mile of the supply chain.

            Last mile delivery and reverse logistics are typically the most expensive and environmentally damaging aspects of the ever expanding supply chain, with some even predicting that carbon emissions could rise by a further 32% if the status quo doesn’t change. The rising popularity of returns and the post-pandemic e-commerce boom, as well as heightened consumer demand for faster deliveries, threaten to push that figure ever higher if retailers hope to keep pace without rethinking their supply chains.  

            Luckily however, delivery and return strategies also present a prime opportunity for businesses to cut their carbon footprint. A 2023 survey found that 46% of shoppers had opted for sustainable delivery options in the last year, a figure which rose 3% from the year before. In short: consumers are willing to go green and businesses must follow suit.

            Whilst some may see fleet electrification as the solution, transforming underlying processes within the rest of the supply chain to make them more efficient can be equally effective, while streamlining operations at the same time.

            1.) Optimise inventory along the last mile

            Making sure vans are filled close-to-capacity and in a logical sense, as well as scheduling routes efficiently are crucial for logistics teams looking to achieve lowering costs and reduce the environmental impact of last mile deliveries. The same way retailers need to accurately forecast demand to avoid over- and under-stocking, last mile companies should mirror this approach. As it stands, delivery vehicles are on average only at 84% capacity when they hit the road. By designing routes more intentionally, however, logistics operators can ensure they don’t waste space and fuel on carrying air. In practice, this means grouping deliveries that are close together geographically, eliminating unnecessary stops. Loading vans thoughtfully would also minimise delivery times, ensuring drivers don’t have to rummage through packages at every address.

            2.) Embrace new – and more efficient – delivery methods

            Out-of-home (OOH) delivery methods – such as parcel lockers or pick up and drop off (PUDO) points – are growing in popularity among consumers, and businesses that bring them into their logistics mix can benefit from improved operational efficiency. By reducing the number of individual homes that drivers visit, companies can lower fuel consumption, decrease emissions and deliver more parcels within the same time frame.

            In the UK, Royal Mail has recently joined leading locker providers like Amazon and InPost. This makes it even easier for businesses to offer return options to customers. Acting now will give businesses an early-mover advantage that could soon disappear, too, with 80% of last-mile deliveries in Europe expected to be via lockers within a decade.

            3.) Don’t let returns derail your supply chain

            Getting reverse logistics right is critical from an environmental and operational standpoint. Experts estimate that as much as 10% of returned apparel isn’t resold. This negatively impacts the planet directly. Retailers typically send returned stock to landfill or truck it off to discount outlets or charities. On top of that, returned items pose additional costs for retailers derived from transporting, processing, inspecting, cleaning and repackaging, not to mention resale markdowns.

            Many companies are trialling new return policies to counter these issues. Nearly 80% of UK fashion brands now charge for returns while others have turned to offering store credit rather than cash refunds. It could also be worth considering a hybrid offering. For example, companies could charge a nominal fee for returns that don’t use the more sustainable option like a parcel locker or PUDO point. Improving item sorting processes across warehouses is another solution. Companies that effectively gather data from returned parcels will better understand the kinds of items being sent back, and why customers are doing it. This would then allow them to distribute stock accordingly to minimise future inefficiencies.

            4.) Don’t shy away from technology

            Advanced technologies, particularly artificial intelligence, are pivotal in conducting deep, analytical examinations of vast, complex datasets with unmatched accuracy and efficiency. This analytical power is crucial for uncovering evolving consumer trends that shape strategic distribution decisions.

            By embedding smart data capture into the supply chain, supply chain managers can record and track inventory in real-time as soon as it is scanned. This means data-led decision-making is based on the most accurate and up-to-date information possible. The technology can also guide warehouse workers and drivers with augmented reality overlays when placed on their devices, helping the former find specific items with visual indicators and assisting the latter with loading their vans efficiently.

            The intersection of sustainability and profitability

            New strategies coupled with advanced technologies can help companies streamline last mile deliveries and reverse logistics, reducing both greenhouse gas emissions and costs. Leaders should prioritise these core components to boost efficiency, increase profit margins, and satisfy consumer demand for eco-friendly operations – in 2024 and beyond.

            • Collaboration & Optimization
            • Sustainability

            With 80% of emissions occurring in the value chain, sourcing and procurement need radically rethinking in order to cut Scope 3 emissions.

            The pressure on companies to reform the processes driving their environmental impact is increasing. This growing demand for more sustainable activity throughout the value chain is originating from multiple sources, including customers, employees, and investors. However, more pressingly, the regulatory landscape is changing to support these shifting societal attitudes. 

            As noted by Nic Bosshard and Tom Van Herzele of EY consulting in their new report, “sustainability action has become a business imperative.” 

            Ambitious targets and underwhelming impact 

            Bosshard and Van Herzele note that, despite the ambitious targets set by many organisations, “value chains often still fall short in delivering real impact.” They argue that high level strategy dictation becomes so watered down by the time it reaches day to day decision making that it dilutes any real impact. This “reporting-dominated, backward-looking view of sustainability performance, coupled with an inability to project future environmental and social impacts, are currently causing a mismatch between intention and action,” they write. 

            It’s an established fact that the vast majority of an organisation’s environmental impact is not located inside its own walls. In fact, approximately 80% of all emissions occur in organisations’ value chains. These emissions, known as Scope 3, are the hardest to track and address, given the fact they fall outside an organisation’s direct control. 

            However, lack of direct control does not confer a lack of responsibility. Bosshard and Van Herzele argue that “a radical new approach is needed to deliver on commitments at the speed and scale required by the urgency of environmental and social issues the world is facing.” 

            A radical new approach to supply chain planning (one step at a time)

            The new, more sustainable approach to supply chain planning advocated by Bosshard and Van Herzele focuses on visibility over all physical and information flows at every stage of the value chain. 

            From transparency to action, they highlight four key steps that most organisations can follow to bridge the gap between intention and action. 

            First, leadership needs to clarify which data they need to steer their sustainability strategy. They should then make this data usable by translating it into “planning-relevant key figures”. Next, they should combine this ESG data with the supply chain planning process to “provide visibility over future impacts and start educating planners with these new insights.” 

            The third step is the most crucial and difficult. This is moving from insights to action, by embedding the ESG dimension into planning decisions. Bosshard and Van Herzele note that this requires an upgrade of the planners’ job descriptions as well as an enhanced collaboration with all functions both internally and externally. Lastly, the fourth step requires procurement leaders to enrich their optimisation algorithms and AI-enabled automation solutions with ESG parameters, allowing them to scale up the process. 

            “This is key to getting the green line and the bottom-line to work in harmony and for the benefit of all stakeholders,” they write. 

            • Sourcing & Procurement
            • Sustainability

            Food retailers across the UK are flocking to AI for its potential to reduce food waste, strengthen supply chains, and future proof their businesses.

            Throughout the UK’s food retail sector, organisations are turning to artificial intelligence (AI) as a way to meet the industry’s toughest challenges. 

            Supermarkets are embracing AI as a way to gain better visibility into their operations, supply chains, and customers. AI is ostensibly helping them create efficiencies, improve their quality of service and, most importantly, save money. The technology is even providing a glimpse into the changing diets of their customers. AI advocates believe the technology has the potential to transform multiple areas of the UK’s food retail sector—already the country’s biggest industrial sector. It employs 7.7m people with a total estimated Gross Value Added (GVA) of over £240bn

            AI for efficiency, cost-reduction, and customer experience 

            The first UK retailer to go “all in” on the technology is Sainsbury’s, which announced a five-year partnership with Microsoft last month. The partnership will see the food retailer use AI and machine learning capabilities to accelerate its strategy to become the UK’s “leading AI-enabled grocer.” 

            Reportedly, Sainsbury’s wants the tie-up to improve its store operations. With AI tools in the hands of its employees and managers, Sainbury’s expects to operate its stores with greater efficiency and provide shoppers with more efficient, higher quality service. 

            It plans to use generative AI to make its online shopping experience more interactive. Customers could potentially receive recommendations from an AI-powered personal-shopper-style chatbot, or recommendations for ingredients that pair well with ones already in their cart. Whatever it looks like, the goal is to improve customers’ search experience to make shopping more “efficient and engaging.”

            Sainsbury’s also wants to “empower” its in-store staff by providing them with real-time data and insights for key processes, including smarter shelf replenishment processes. AI tools will use data from cameras and stock information. It will then guide staff members to the shelves that need replenishing. This process will allegedly save valuable time and ensure sales opportunities aren’t missed due to missing stock. On the back end, Sainsbury’s plans to also integrate existing data with Microsoft 365 collaboration tools, generative AI and machine learning capabilities. 

            While added capabilities and customer experience is likely a part of Sainsbury’s two-footed leap into AI, the primary driver is most probably the company’s need to cut costs. Sainsbury’s is undergoing an ambitious cost-cutting initiative, which will see as much as £1 billion slashed from its expenditures over the next three years. For organisations looking to reduce labour costs, AI is quickly emerging as the number one justification for layoffs. 

            A-Eyes everywhere 

            Another retailer, Morrisons, has partnered with Focal Systems, a Seattle-based AI company, to use cameras for monitoring shelf availability in its supermarkets. 

            Focal Systems’ technology, trained on over two billion labelled images from more than 200,000 cameras can stock movement and spoiled produce hourly. It feeds this data to applications that identify restocking needs. If an item is out of stock but available in the backroom, the system lists it for restocking; if not, it orders more products. 

            More controversially, the cameras are also being paired with facial recognition technology to increase security surrounding alcohol isles. Focal Systems stresses in their literature  that no identifiable customer or employee data is retained. 

            AI that lets you read the future

            UK supermarket Waitrose and US AI firm Blue Yonder recently announced that they would extend their collaboration with Waitrose’s implementation of Blue Yonder’s AI-enabled forecasting solutions. The new move marks the first significant introduction of AI into Waitrose’s forecasting. The company hopes it can use the technology to improve stock availability across its stores. 

            Rather than relying on historical sales data and human intuition, the AI forecasting capability – part of Blue Yonder Demand Planning – reportedly focuses on customer behaviour, analysing “‘why’ customers bought what they did rather than just ‘what’ they bought.”  

            “Whether we are planning for a major sporting final or the first cold snap of the winter, there can be multiple factors affecting what our customers buy,” said Alison Maffin, Waitrose Supply Chain Director. She added that the ability for the Blue Yonder solution to learn from previous experience and help Waitrose predict demand shifts more accurately will help Waitrose be “confident we have the stock our customers want.” She notes that the AI-enabled forecasting will also allow Waitrose to “produce a much more accurate forecast” for the company’s suppliers and logistics partners, as well as resulting in less wastage. 

            Bug salad?

            The Co-op is leveraging AI for a more forward-looking purpose. The company recently released a report detailing their predictions for the ways food could change in the UK over the coming decades. Their data predicts that meals eaten in the UK in the next 30 years could include cricket salads, lab-grown steaks and azolla burgers. 

            The report used generative AI imagery that paints a not-wholly unappetising picture of bug salads and futuristic meat cubes. 

            Partnering with experts from FixOurFood and the University of York, the Co-Op’s report predicted that the nation’s food tastes could change radically by 2054. British classics, including the traditional Sunday roast, could allegedly look radically different. Or, they say, replaced entirely by more “adventurous options.”

            • AI in Supply Chain
            • Sourcing & Procurement

            Members of the UK’s food and drink supply chain have criticised the British government’s lack of engagement on supply chain resilience.

            In the lead up to the general election, British food and drink supply chain organisations have released an open letter to the country’s political parties, expressing their frustration with a perceived “lack of coverage” of the issue of food supply chain security. The letter was penned by the NFU, British Retail Consortium, UK Hospitality and Food and Drink Federation – representing the majority of the UK’s farmers, supermarkets, hospitality, catering and food companies. 

            The letter states that the UK’s food system has shown itself in recent years to be “efficient and resilient, maintaining UK food supply through a series of major challenges, including Covid-19, Russia’s invasion of Ukraine, and new trading arrangements by leaving the European Union.” Currently, the food and drink supply chain is the UK’s largest industrial sector. It employs 7.7m people with a total estimated Gross Value Added (GVA) of over £240bn.

            They warn, however, that past successes do not forestall future failures. 

            “Food security is national security” 

            The letter points out that these events have caused the UK’s food supply chains to come under “severe strain”. This strain has led to shortages, disruption, and increased prices “at all points of the chain from producer to consumer.”  

            “It would be foolhardy to assume that our food system will always withstand shocks,” they write. Continuing, the letter highlights the growing challenges of geo-political instability and the climate crisis. The problems faced in the past several years aren’t going away.

            Around the world, the climate crisis is already affecting food security at global, regional, and local levels. Changes in temperature, humidity, and soil chemistry can all disrupt food production and reduce access to food. Not only this, but the changing climate can also affect food quality and nutritional content. 

            The United States’ EPA noted in a recent report that extreme weather events exacerbate food insecurity. These events, from droughts to extreme rain, are also becoming more common as thecrisis worsens. The report also notes: “spikes in food prices after extreme events are expected to be more frequent in the future.” Lastly, they add that “increasing temperatures can contribute to spoilage and contamination.”   

            “The basic responsibility of any government is to ensure its citizens are safe and properly fed. But while we have heard much about defence and energy security in recent weeks, we have heard very little about food security,” argues the letter. The authors argue that they perceive a lack of focus on food in the political narrative as the country’s political parties campaign ahead of the July election. This, they argue, “demonstrates a worrying blind-spot for those that would govern us.”

            Six steps to food security for UK supply chains 

            The open letter sets out six key steps towards building a more resilient food supply chain for the UK. Its authors argue that, whichever party forms the next government, they must examine and take these priorities seriously. They stress it is vital that the government follow these steps to ensure British produce is available at all price points. 

            • A planning system that allows investment in modern buildings and infrastructure
            • Work with the sector to deliver a plan to achieve our net zero ambitions
            • A coherent industrial policy that includes a tax framework incentivising investment, fosters research and innovation in the UK, takes a joined-up approach to immigration, skills and employment policies that ensure the sector has access to the labour it needs
            • An agricultural budget that enables the delivery of environmental objectives, delivers targets for climate and biodiversity
            • An approach to trade that seeks to reduce non-tariff barriers with key trading partners
            • A long-term partnership with industry to tackle obesity and health inequalities in communities across the UK

            The letter has been signed by NFU President Tom Bradshaw, British Retail Consortium Chief Executive Helen Dickinson, Karen Betts, Chief Executive, Food and Drink Federation, and UK Hospitality Chief Executive Officer Kate Nicholls.

            • Risk & Resilience
            • Sustainability

            Modern software supply chains are emerging as a critical point of vulnerability to cyber attacks.

            Supply chain attacks have long been recognised as one of the most effective ways for hackers to gain access to their targets. Traditionally, these attacks involve compromising a partner or supplier in the target’s ecosystem in order to gain access to the target’s network. 

            Today, however, cyber attacks targeting software supply chains are proving even more effective. Concerningly, cybersecurity teams have even less recourse to prevent them. 

            The traditional supply chain cyber attack

            This occurred in 2013 when hackers gained access to the computer network of US retailer Target. The breach resulted in the theft of financial and personal information belonging to as many as 110 million Target customers. This information was then removed from Target’s network to a server in Eastern Europe. 

            The breach occurred when Target granted network access to a third-party HVAC company in Pennsylvania. The company, according to insiders, did not appear to follow broadly accepted information security practices. This allowed attackers to gain a foothold in Target’s network. Despite multiple alerts from anti-intrusion software, Target did not respond adequately. The attackers progressed from less sensitive to more critical parts of Target’s network. This escalation indicates that the company failed to isolate its most sensitive data. 

            The shape of this attack is one that became familiar to cyber security professionals in the subsequent decade. Network breaches affecting third party suppliers and partners could easily escalate into major intrusions by hackers into an organisation’s system. Cyber security practices have tightened as a result. By and large, zero trust policies and other measures have cut down on the severity of third party risk. 

            However, the greater concern today is an attack targeting the software supply chain. 

            Software supply chains are uniquely vulnerable 

            Rather than using a third party network in the supply chain to gain access, a software supply chain attack is embedded directly into the digital tools and applications. By doing so, hackers can affect all the users of a particular application or tool. This means that a successful attach could potentially compromise thousands of users and millions of individuals. 

            In 2021, 84% of security leaders said they believe software supply chain attacks could become one of the biggest cyber threats within the next three years. 

            This problem is being exacerbated, according to a report by Crowdstrike, by the fact that modern software is “not written from scratch,” but built piecemeal from “many off-the-shelf components, such as third-party APIs, open source code and proprietary code from software vendors.” 

            In 2020, the average piece of software had 203 dependencies. If a single dependency is compromised in an application, then every organisation using that app is compromised. Crowdstrike’s report notes that, if this occurs, “the number of victims can grow exponentially.” They also note that, because pieces of software are often reused throughout the enterprise, a compromised piece of software can remain dangerous beyond the original software’s lifecycle.

            Most concerningly, many organisations could be considered underprepared to mitigate the effects of a software supply chain cyber attack. Crowdstrike found that, in 2021, 59% of organisations that suffered their first software supply chain attack did not have a response strategy.

            • Digital Procurement
            • Risk & Resilience

            Political upheaval, genocide, and the climate crisis are driving a new era where “normality” might be forever out of reach for supply chain managers.

            It’s undoubtedly been a difficult few years for global supply chains. From the COVID-19 pandemic and disruptions to two of the world’s busiest shipping routes, to ongoing acts of genocide and over 60 countries heading to the polls this year alone, some experts believe the signs point to us entering a new age of perpetual supply chain instability. 

            “We’re in a new era. I don’t think that there is a normalisation anymore. I think that what companies are now facing is that supply chain disruption is the new norm,” said ,” Marissa Adams, head of global trade solutions at HSBC Americas, said to Yahoo Finance in a recent interview.

            Unprecedented disruption? 

            It’s easy to look at events unfolding in the present and struggle to view them with the same objectivity as the distant (or even not so distant) past. Disruption has been a thorn in the side of global trade networks since they first started developing almost half a millenia ago. 

            HSBC’s new report on supply chain resilience admits that “Supply chain disruption is not new: shipwrecks, piracy, and natural disasters have disrupted supply chains for centuries.”  

            In the past century, two world wars, severe financial collapse, the downfall of empires, and several plagues with higher mortality rates than COVID-19 all conspired to make the gyroscope of worldwide supply chains wobble. 

            Surely, the kinds of disruption caused by these cataclysmic events throw current supply chain woes into perspective? 

            According to HSBC’s report, “the supply chain disruption keeping procurement executives awake at night in 2024 is very different from the disruption that their predecessors worried about in 1924 or 1824.” Today, the report’s authors argue, trade flows today are orders of magnitude larger, more complex, and more vulnerable to disruption. Not only that, but some of the disruptions being faced by supply chains today are genuinely unprecedented. The fact that over a quarter of the world’s population will head to the polls in the biggest election year in human history could have massive consequences for global trade relations, especially since the report notes that “in many of those ballots, messages of protectionism, isolationism and nationalism feature strongly.” 

            Steven Carnovale, a professor at Florida Atlantic University, warns that “In many cases, [procurement organisations] are thinking over a five or 10-year timescale, and predicting likely stability over that period is becoming increasingly difficult.”

            • Risk & Resilience

            Our cover story this month…  Marriott International Inc: A more sustainable supply chain  With science-based targets approved, Marriott is accelerating…

            Our cover story this month… 

            Marriott International Inc: A more sustainable supply chain 

            With science-based targets approved, Marriott is accelerating work to help make its supply chain more sustainable. We speak to Stéphane Masson, Senior Vice President, Procurement, Marriott International, Inc. – for our exclusive cover story this month – to find out how… 

            “Like many global companies, Marriott recognises that serving our world helps the communities where we operate and is also good business,” Masson tells us. “This Earth Day, we announced the approval of our near-and-long-term science-based emissions reduction targets by the Science-Based Targets initiative (SBTi), with a goal to reach net-zero greenhouse gas (GHG) emissions by no later than 2050. Approval of these targets is bringing heightened focus on our work to embed sustainability in our operations.  

            Specifically, the company has committed to reduce absolute scope 1 and 2 GHG emissions 46.2% by 2030 from a 2019 base year. Marriott also commits to reduce absolute scope 3 GHG emissions from fuel and energy-related activities, waste generated in operations, employee commuting, and franchises 27.5% within the same timeframe.  

            Importantly for our team and the suppliers we work with across the globe, Marriott’s targets include 22% of our suppliers by emissions—covering purchased goods and services, capital goods, and upstream transportation and distribution—which will have science-based targets by 2028. 

            In the longer term, Marriott also aims to reduce absolute scope 1 and 2 GHG emissions 90% by 2050 from a 2019 base year and reduce absolute scope 3 GHG emissions 90% within the same timeframe.  

            Our Global Procurement organisation plays an important role in setting up Marriott as we work to achieve the targets within this timeline. And it will require an evolution in how we engage Marriott associates, our suppliers, and other members of the industry.” 

            Read the full story here! 

            Grupo Modelo: Procurement and sustainability in action! 

            We speak to Soqui Calderon, Regional Director of Sustainability for Grupo Modelo and the Middle Americas Zone, to see how the beverage giant is tackling sustainability from a procurement perspective… 

            Grupo Modelo is a giant. A leader in the production, distribution and sale of beer in Mexico, Grupo Modelo is part of the Middle America Region (of the AB InBev Group) and boasts 17 national brands, among which are Corona Extra, the most valuable brand in Latin America, as well as Modelo Especial, Victoria, Pacífico and Negra Modelo. The company also exports eight brands and has a presence in more than 180 countries while operating 11 brewing plants in Mexico. 

            Through more than nine decades, Grupo Modelo has invested and grown within – and with – Mexico, generating more than 30,000 direct jobs in its breweries and vertical operations, located throughout the country. 

            Grupo Modelo, like many forward-thinking companies, is currently focused on a drive towards establishing a truly sustainable business. This endeavour is best exemplified in the Middle Americas Zone (MAZ), where sustainability efforts have been led by for the past five years by Soqui Calderon Aranibar, Regional Sustainability and ESG Director. Ambitious targets have been established for the region, but some remarkable achievements have already been made. As Calderon says: “For our team, sustainability is not just part of our business, it IS our business.” 

            Read the full story here! 

            SDI International: Delivering tail spend excellence 

            SDI International’s Brendan Curran and Joaquín Morales discuss empowering procurement innovation, the importance of effective tail spend management, and how its Master Vendor programme transforms the function 

            In a world of greater complexity and risk, technology adoption and digitalisation, and an ever-evolving compliance and regulatory environment, procurement teams still grapple with a perennial challenge: cost reduction. Which is why tail spend management – often overlooked and unmanaged while procurement focuses its attention on strategic, high-spend categories – is so important. Indeed, for many organisations, taking effective control of costly, one-off buys and high-volume, low-value purchases involving numerous suppliers can deliver as much as 5% to 10% of cost savings, according to Boston Consulting Group. 

            But tail spend, by its nature, is complicated. It requires significant focus to effectively manage high volumes of data, often has a perceived lack of strategic importance within both procurement and the wider organisation, lacks visibility, involves vast numbers of transactions, many product categories, and a largely anonymous supplier base, and can bring potential compliance risks because of poor onboarding processes or inconsistent terms and conditions.  

            Tackling the problem can be daunting for procurement teams. But, according to SDI International, it doesn’t have to be. The organisation, one of the world’s largest diversity and woman-owned procurement outsourcing and technology providers, delivers industry-leading holistic tail management solutions based on a successful formula: simplify, digitalise, innovate. Its Master Vendor programme provides procurement teams looking to tackle their tail with a one-stop solution for tail spend that leverages the latest and most efficient technologies to handle supplier onboarding and on-time payment, and manage the entire tail supply chain, stakeholder servicing, and escalations. The result is a procurement department better able to drive cost saving, efficiencies, and more strategic outcomes.  

            Read the full story here! 

            • AI in Procurement
            • Data in Procurement
            • Digital Procurement
            • Procurement Strategy
            • Sustainable Procurement

            Carmel Giblin, CEO and President of the Ethical Supply Chain Program, dissects the complex process of achieving genuine supply chain transparency.

            Investors and shareholders are taking an increasingly keen interest in supply chains. In March, Zara was the latest major brand to find itself under pressure to make public a full list of its suppliers

            More and more investment houses are offering “active shareholding” as part of their service to clients, and ESG reporting on portfolios is now commonplace.

            Suppliers under the regulatory microscope

            Meanwhile, legislation is also placing greater scrutiny on larger companies. In April 2024 the European Parliament passed the Corporate Sustainability Due Diligence Directive (CSDDD), which will require larger companies to exercise far greater oversight of their supply chains. A survey from the Santander bank, published in the same month, reported that more than half of UK firms are now seeking greater transparency in their supply chains, with almost three quarters reporting growing pressure from customers to meet ESG requirements. 

            This is good news for organisations downstream from these major brands. However, in practice, ensuring quality all the way along a global supply chain is not easy. 

            Large multi-national organisations typically have chains that extend through numerous levels, with many different strands feeding into each. May’s revelation that L’Oreal subsidiary Lancôme and Estee Lauder subsidiary Aerin Beauty have been employing child labour in Egypt demonstrates that ticking the boxes of transparency is not enough. 

            L’Oreal’s website boasts “a responsive and responsible supply chain”. At the same time, Estee Lauder’s has a page on responsible sourcing. However, neither company knew how their suppliers harvested the jasmine in their products.

            Top down isn’t enough

            Achieving true transparency requires a lot of work. Brands need to establish a culture of collaboration and accountability between manufacturers, suppliers and retailers. It’s not enough simply to issue edicts from the top and to request completed questionnaires — to achieve real improvements, manufacturers need to be provided with an environment where they feel comfortable admitting their failings and supported. 

            If a culture of blame develops, suppliers will be reluctant to disclose problems, making it far harder to develop a safe and ethical workplace. 

            The process of sourcing responsibly begins with the selection of partners which already share a belief in high ethical standards. Trust is vital – to build the right relationship there has to be an experienced team on the ground which can deal with issues efficiently and impartially. Investment in training is likely to play a part in this, not only building capabilities but also developing teams that can manage the process of compliance with labour, environmental and health and safety standards.  

            It’s vital to establish communication channels that remain open year-round, not simply when an audit is due. It’s important that suppliers in different regions report issues as they happen, not only when problems arise. Changes in legislation, such as the CSDD, also demand open and honest conversations with suppliers to ensure that the implications are understood, and that support is provided where needed. 

            What’s next? 

            In reality, most brands require specialist help in their journey to supply chain transparency. Encouraging ethical working practices needs to be handled carefully so that required changes don’t come across as heavy-handed or overly bureaucratic. 

            Processes that may be taken for granted by a brand, for example, such as implementing a robust grievance procedure, may be daunting for a local if the rules are foreign to the in-house team. And there’s no point in imposing new processes unless they actually work. 

            Awareness of the implications of actions taken far down the supply chain is growing fast and the price of a failure to achieve full visibility is very high. A shocking revelation in the media can hit sales – and a brand’s share price – very hard. Supply chain transparency is not a new topic, but any brand which has been merely paying lip service to it will need to get to work fast to make it a reality. 

            • Sustainability

            Four out of five software supply chains in the UK faced at least one cyber attack within the last twelve months.

            Around the world, software supply chains are increasingly emerging as one of the most common vectors for cyber attacks. Now, newly released research from BlackBerry highlights the extent of the problem for UK software supply chain security. 

            What is a supply chain cyber attack? 

            A software supply chain attack exploits vulnerabilities in a supplier’s software. This turns them into an unsuspecting Trojan horse which then gives hackers access to the organisation. In recent years, awareness of cyber risk has grown. As a result, many enterprises have strengthened their cybersecurity defences. Direct attacks have become more challenging as a result. 

            However, software suppliers often have weaker security measures, making them easier targets for hackers. Once compromised, these suppliers’ software can be injected with malicious code, providing hackers with a way to breach their target from within.

            BlackBerry’s report highlighted the 2020 hacking campaign which targeted a vulnerability in SolarWinds software and managed to penetrate US government departments including the Department of Homeland Security and part of the Pentagon.

            UK firms battered by cybersecurity threats 

            BlackBerry’s study found that four out of five software supply chains have been either notified of a vulnerability or the target of cyber attacks in the past year. Out of those who experienced an attack, 59% were operationally compromised, 58% lost data, 55% lost intellectual property, 52% suffered a perceived loss to their reputation, and 49% were hurt financially. 

            Recovery times following an attack were also longer than ideal for many firms. Nine out of ten companies took up to a month for their operations to recover following a software supply chain attack. According to BlackBerry’s researchers, “the damage to reputation and brand lasts much longer.”

            This data not only identified an increase in attack frequency but also shows a greater financial impact compared to data from 2022.

            A challenging time for British cybersecurity

            The survey, which gathered responses from 200 IT decision-makers and cybersecurity leaders across the UK, comes at a time when the UK government is enhancing software security through its £2.6 billion National Cyber Strategy. 

            The findings highlight key vulnerabilities that need to be addressed to mitigate risks effectively.

            Transparency is severely lacking in software supply chains

            One alarming discovery from the report was the presence of hidden entities within software supply chains. According to BlackBerry, three in four businesses uncovered hidden entities in their supply chain, with over two-thirds (68%) of businesses only recently identified these unknown participants. 

            This vulnerability typically arises as the result of gaps in regulatory and compliance processes. Troublingly, fewer than 20% of UK companies request security compliance evidence from suppliers beyond the initial onboarding stage.

            Also, despite reporting high levels of confidence in their suppliers’ ability to identify and prevent vulnerabilities, few companies consistently verified compliance. This lack of verification and visibility, the report’s authors argue, leaves opportunities for cyber criminals to exploit.

            “It is the lack of granular detail that exposes vulnerabilities for cybercriminals to exploit,” commented Christine Gadbsy, VP of Product Security at BlackBerry. “Unknown components and a lack of visibility on the software supply chain introduce blind spots containing potential vulnerabilities that can wreak havoc across not just one enterprise, but several, through loss of data and intellectual property, operational downtime along with financial and reputational impact. How companies monitor and manage cybersecurity in their software supply chain has to rely on more than just trust.”

            • Risk & Resilience

            Louise Findlay-Wilson, Managing Director at Energy PR, explains how greenhushing rather than greenwashing is threatening supply chain innovation.

            It’s not surprising that companies are sensitive to the charge of greenwashing. After all, there has been a lot of public criticism of those caught selectively disclosing information regarding the environmental credentials of their products or upstream suppliers. And there have been some eye-watering fines for the biggest culprits. Volkswagen was fined $30bn in 2015 after being caught rigging its diesel engines to appear to release fewer emissions

            If such fines weren’t enough of a deterrent, the ‘conscious consumer’ has elevated risks of greenwashing still further. Companies are now highly sensitive to the barrage of negative publicity which a charge of greenwashing can generate. Businesses also have to contend with the scrutiny of new regulatory bodies and legislation. There’s the Competition & Markets Authority and the Advertising Standards Authority. Likewise, the EU’s Green Claims directive comes into effect in early 2026.

            While those of us wanting honest reporting of environmental practices feel it’s good that greenwashing is being so actively discouraged, there is a knock-on effect. In a bid to avoid being called out for greenwashing, many companies are now purposefully keeping quiet about their genuine sustainability efforts and goals. They are downplaying their eco-activities, even if they are well-intentioned or plausible.

            Stifling supply chain conversations

            Does this matter? I’d argue it does, because publishing green goals and actions has the power to inspire others. It shifts mindsets, and encourages players in the supply chain to improve their own record or spot opportunities for collaborative approaches. Back in 2016 McKinsey suggested that supply chain operations account for over 90% of an organisation’s greenhouse gas emissions. The importance of the supply chain hasn’t diminished since then. For instance, more recently, the 20,000 companies in the UN Global Compact ranked supply chain practices as the biggest barrier to improving their own sustainability performance.

            But if companies are too scared to discuss their green ambitions and the steps they are taking, those in their supply chains will misread the signals. They won’t see sustainability as a priority or identify how to play their part. And in businesses with complex supply chains, environmental innovation can’t be done in isolation. It is always going to be a joint effort.

            So, if the best response to greenwashing isn’t greenhushing, what is? The answer is honest, clear well thought-through communication. This falls into broadly seven areas:

            Be factual

            According to Kantar, 52% of people globally say they have seen, or heard, false or misleading information about sustainable actions taken by brands. So, to engender trust and therefore avoid charges of exaggeration, companies must improve their messaging. They should use tangible facts that are clear and easy to understand when talking about their environmental progress. The public is increasingly knowledgeable about the environment, so don’t dumb down at the expense of providing proper detail.

            Using clear imagery, examples or stories and charts to illustrate points will help with this. They will not only bring facts to life but make them much more relatable and memorable. Vague or needlessly technical jargon will sow seeds of doubt. 

            Be genuine

            The environmental statements and activity must chime with the rest of the business’ activities. People are deeply suspicious that organisations are adopting stances or causes as window dressing and purely in the name of profit. So, the green agenda needs to be visible and wholeheartedly being thought about – and acted on – throughout the business. 

            Consistent & trained

            It’s also important to ensure that this communication happens consistently. The internal team within an organisation needs to also understand where the company is on the route to sustainability, the targets that have been set and the time frame. 

            Beyond this, spokespeople need to be equipped to deal with questions. This is not the time for hyperbole. If a statement can’t be backed up by facts, avoid making it. Equally, the answers to tricky questions cannot be ducked or glossed over. The answers need to be clear, factual and honest. In my experience spokespeople will undoubtedly need some form of media training to master this. 

            Suppliers

            Often, as part of these communications, a company may report on its suppliers’ performance. So, it is crucial to be clear with them how the data they supply will be used, and the need for candour. What’s needed are unvarnished, rigorous facts. Now is not the moment for them to give their sales pitch. To encourage such honesty, it is vital that suppliers are not ‘beaten up’ over the data/answers they do provide. That’s not to say a company must be satisfied with a supplier making poor ESG progress, but encouraging a supplier to overstate its activities serves no one – least of all the environment. 

            Don’t overstate

            Whether a company is talking about its own activity or those of its supply chain people want to hear that it has genuine ambition and has set challenging targets, but do not overplay things. The public is often smarter and more nuanced than companies recognise; most people appreciate that environmental measures are often a work in progress and will understand everything can’t be addressed at once.

            Revisit 

            Given the transition to net zero is a continuous improvement process, clearly the messaging, data and statements will need to be regularly refreshed to communicate the latest state of play. Environmental messaging and statements written a year ago will become out of date. This must be factored in.

            Be brave

            Finally, organisations need to be brave. If a business firmly and clearly can back up what it’s doing with facts and figures, it shouldn’t be afraid to make those claims. For more advice on avoiding charges of greenwashing or handling ESG communications contact Energy PR.

            • Sustainability

            From Brexit to the Red Sea, Andrew Black, Director at Efficio Consulting, explores the biggest disruptions affecting global supply chains and how organisations can remain resilient.

            From the latest Brexit border rules to the Tawain earthquake and ongoing Red Sea attacks, recent events from across the globe have served as an undeniable reminder of the importance of resilience and agility within the supply chain.

            Over four years on from the UK’s official withdrawal from the EU, the aftershocks of Brexit are still being felt across industries such as food, agriculture, and pharmaceutical. In the last month alone, we have seen food and plant businesses thrown into chaos as compulsory inspections and complex paperwork requirements came into force at UK/EU borders. At the same time, Brexit-driven drug shortages in the pharmaceutical supply chain have now been deemed critical, with hundreds of different medicines becoming hard, and even impossible, to obtain. 

            Impacting other sectors, the recent Taiwan earthquake paused the production of chips at a company responsible for the supply of 90% of the world’s most advanced computer processors. Whilst only temporary, this was enough to spark serious concern within the tech industry, following several years of battling an ongoing global shortage. 

            Meanwhile, in the Red Sea, widespread container-shipping detours to avoid Houthi attacks are expected to extend to the second half of the year, and maybe even into 2025 – causing ongoing disruptions and delays for various organisations reliant on global trade. 

            Whilst each of these events may vary in specifics, the consequences are much the same for businesses – delayed or decreased supply, increased costs, and ultimately a damaging impact on profitability. So, how can business leaders navigate such scenarios whilst protecting their bottom line in a world where disruption has become the norm?  

            A new approach for a new supply chain era

            In today’s turbulent landscape, when the next event is likely just around the corner, organisations must adapt their business models to ensure resilience across the entire supply chain. This, for many, will require a change in mindset. Whilst a business model based on pursuing revenue and squeezing costs may have worked in a low-risk world, this approach no longer makes sense. Instead, organisations must focus on building in resilience where they can. This may require sourcing multiple contracts and diversifying suppliers or onshoring manufacturing operations to ensure production takes place closer to the customer. Whilst this may be more costly initially, this readiness can limit disruption when,  more of these events arise. Rather than pursuing revenue for its own sake, businesses would be wise to pursue good margins that factor in these additional costs and make way for a more resilient supply chain.

            A good starting point is identifying critical components and mapping out the supply chain tiers for these to pinpoint bottlenecks and prepare plans for when disruptions occur.

            Onshoring – more than just a trend

            Since the 1970s, the trend has been towards offshoring the manufacture of components and physical goods to low-cost countries. In recent years, however, this activity has slowed. Many organisations are now taking steps to nearshore or onshore manufacturing, either bringing operations back to the UK or closer to home to reduce supply chain vulnerability. The theory is that the less distance or number of journeys required to transport the goods, the less chance of disruption occurring.

            Bringing manufacturing back to the UK, however, comes with its own set of challenges. For example, around 50-60% of the gross value-added material in the automotive sector is sourced from Europe. Untangling these contracts and operations will be a complicated process. Plus, many sectors will face limited capacity in the UK, in terms of both numbers of suppliers and the volumes they can handle. Onshoring will require thorough tender exercises and patience to find credible suppliers, and often, a willingness to jointly invest in new capacity should this be lacking.

            Considering safety stocks

            For some industries, the investment in safety or buffer stocks is another strategy for reducing risk in the supply chain. However, this can be a double-edged sword. Whilst offering continuity should a disruptive event occur, this approach can be costly and even have a damaging knock-on effect for suppliers and their own planning. Therefore, supply chain managers should calculate their buffer stocks based on concrete need and calculated risk. 


            Take the current UK drug shortages. To weather this critical challenge in the long term, ongoing horizon scanning and building buffer stocks accordingly will be key. This could include managing markets, evaluating stock holding as part of tender submissions, and including adequate lead time in tenders to allow for often lengthy contracting cycles and stock onboarding. To ensure ongoing supply of medicines, there is a need for deliberate forward-planning across products, suppliers and markets bolstered by extended regulatory capacity to allow the system to be more agile, allowing for new entrants or substitutes where possible.

            Staying ahead in a high-risk world 

            Long gone are the so-called ‘golden years’ of procurement – the early 2000s, professionals are now finding themselves in the ‘new normal’ which involves everything from global disruptions due to geopolitical conflicts to pandemics and environmental issues. Procurement leaders must now prepare for any possible scenario and be sure their processes have the resilience to weather a number of potential threats.

            Collaborative efforts with suppliers to ensure transparency and resilience in the face of disruptive events are paramount to navigating this new normal. Continuous monitoring of the landscape and any developments is also crucial to be able to make informed decisions in real-time. Taking a proactive approach to uncertainty will better position and prepare businesses for potential disruptions and ensure the robustness of their procurement processes.

            • Risk & Resilience

            A crippling ransomware attack has disrupted operations at multiple hospitals and thrown the NHS’ delicate blood supply chain into chaos.

            The UK’s National Health Service (NHS) has been left reeling in the wake of a devastating ransomware attack. The attack took place last week on June 3rd. A vulnerability in the health service’s supply chain led to a successful cyber attack against medical diagnostics company Synnovis. 

            The breach caused huge disruption to pathology and testing, essential services that hospitals rely on for routine diagnostics. Multiple hospitals across London were forced to suspend services. This lead to postponed operations, as well as other critical delays to lifesaving care. In particular, healthcare providers have struggled to match blood to patients, as attackers made vital patient data unavailable.    

            Now, disruptions are expected to persist for days, or even weeks. As a result, the NHS’ delicate, complex, and absolutely mission critical blood supply chain is at risk. The attack is believed to be the work of Russian group Qilin.

            Devastated patient data

            Reportedly, the disruption has resulted in the cancellation of more than 200 emergency and life-saving operations. In addition, hundreds of urgently referred appointments for suspected cancer patients were delayed and rescheduled.

            Professor John Clark, Professor of Computer and Information Security at the University of Sheffield, commented:  “Patient safety is of paramount concern and the accuracy of results is essential, so it is important to stress that unless it is known what has happened to the system, the accuracy of any stored data cannot be ensured. Determining whether stored data has been manipulated may simply not be possible and tests may have to be rerun and results re-recorded.”

            In the wake of the successful cyber attack, multiple London hospitals experienced the knock-on effects of disruption to pathology service provider Synnovis, including King’s College hospital—a major trauma centre that treats over 450 patients per day—and Guy’s and St Thomas’. 

            As a result, critical decisions on patient care are currently being made by doctors without access to crucial lab results. 

            Bad blood (supply chain)

            The attack has had a profound impact on blood transfusions and test results, leading the NHS to launch an appeal for O blood-type donations.

            King’s College hospital is a major trauma centre that treats over 450 patients per day. Credit: Yau Ming Low, iStock.

            The blood supply chain is a particularly precarious and fast moving operation. The process obviously starts with the blood donor and ends with it being administered to the patient. However both supply and demand are inherently unpredictable. Not only this, but harvested blood only remains medically viable for about 35 days. These factors together limit the resilience of the blood supply chain, making it especially vulnerable to these types of disruptions.

            Various external factors affect the blood supply chain, according to the International Society of Blood Transfusion. The “number of donors who are willing to donate regularly, seasonal factors affecting donation e.g. public holidays, the blood services ability to adequately predict the number of units of blood required throughout the year and to ensure that they do not overstock and therefore increase wastage, the clinicians’ awareness of appropriate blood ordering and transfusion and the hospital laboratories ability to ensure sufficient stock yet have minimal wastage” all play a role. 

            Particularly relevant to the current NHS crisis is the fact that the country is coming out of two bank holidays and a school half term holiday—all events which deplete the supply of blood through increased demand and disrupted collection. 

            The first of many?

            The attack on the NHS’ supply chain partner is unlikely to be the last this year, according to experts. 

            Dr Christian Schroeder de Witt, Postdoctoral Research Assistant in Artificial Intelligence, University of Oxford, warned of the “possibility of such incidents occurring increasingly frequently ahead of the elections. While we do not yet seem to know who is behind these specific attacks, we do know that ransomware attacks on critical infrastructure such as hospitals are part of the playbook of hybrid warfare.” 

            “It is still early days, and we are trying to understand exactly what has happened,” it said in a statement. “We take cybersecurity very seriously at Synnovis and have invested heavily in ensuring our IT arrangements are as safe as they possibly can be. This is a harsh reminder that this sort of attack can happen to anyone at any time and that, dispiritingly, the individuals behind it have no scruples about who their actions might affect.”

            Only a few weeks earlier, the Italian subsidiary of Synlab was badly affected by a ransomware attack. Credit for the attack was later claimed by an affiliate operating on the Black Basta ransomware-as-a-service (RaaS) platform.

            RaaS is a cybercrime business model in which a ransomware group sells code or malware to other groups of hackers. These hackers then deploy it against targets like the NHS. According to IBM’s X-Force Threat Intelligence Index, ransomware was the second most common type of cyber attack in 2022. Many experts believe the rise of RaaS has played a role in keeping ransomware so prevalent. 

            • Risk & Resilience

            Supply chains are large, complex systems, which makes measuring success and identifying areas for improvement a complex task.

            Supply chain management priorities are changing. Geopolitical tensions, economic pressures, and the worsening effects of the climate crisis are conspiring to increase the risk of disruption globally. As a result supply chains are restructuring in order to increase resilience while preserving cost containment. 

            From nearshoring and supplier diversification to automation and digital transformation, all supply chain restructuring starts with visibility. Increasing visibility into the supply chain is key to allowing supply chain managers to identify strengths, and analyse inefficiencies to enable data-supported goals. 

            Finding the right metrics to measure can be challenging, however. Here are five supply chain metrics that can help quantify supply chain performance. 

            1. Supply chain cycle time 

            The supply chain cycle time is a good metric for holistically gauging the overall efficiency of a supply chain. At a glance, a shorter supply chain cycle is more efficient than a longer one. A cycle that averages longer than expected could indicate a bottleneck, external disruption, or inefficiencies to address. 

            To calculate the supply chain cycle supply chain managers need to accurately measure how long each step of the supply chain takes. By combining time from sourcing suppliers and order placement to customer delivery and final payment, the total supply chain cycle time can be calculated and weighed against expectations. 

            2. Inventory-to-sales ratio 

            This KPI measures the amount of inventory available for sale compared to how much is sold and helps avoid over-stocking items, which ties up capital and incurs storage costs. It also prevents understocking items, which prevents delays and back ordering. 

            Calculating the inventory-sales ratio requires dividing total available inventory by the amount sold and then multiplying that result by 100 for a percentage. In a market where resilience is key, organisations may want to increase their ratio of inventory-to-sales in order to account for unpredictable demand. However, more inventory carries its own cost, so finding the right balance is essential. The right ratio of inventory to sales is always changing based on internal and external factors, so regular reevaluation is key. 

            3. Inventory accuracy 

            Transparency in inventory management is critical to ensuring that the decisions being made at a strategic level align with reality. Inventory accuracy measures whether an organisation’s recorded inventory data and actual physical stock align. Enhancing inventory accuracy is crucial as it reduces carrying costs and minimises the likelihood of stock shortages.

            To determine inventory accuracy, divide the inventory count in the supply chain database by the physical inventory count.  A company looking for a healthy inventory accuracy should strive for an inventory accuracy rate somewhere between 95% and 99%. Improvements in inventory accuracy can be achieved by improving naming and labelling standards. Additionally, the use of advanced warehouse and inventory management systems can reduce manual data entry and decrease the likelihood of human error.

            4. Perfect Order Rate 

            Another useful way to measure the holistic health of a supply chain. A perfect order rate measures a supply chain’s ability to deliver orders to customers error-free. Only orders that are delivered to the customer in full, containing the correct goods, on time, and without any breaches in compliance or contract count as perfect. 

            A company’s perfect order rate has a significant effect on the bottom line. If a perfect order rate is too low, it can negatively affect customer satisfaction and retention, as well as company reputation. Also, the time, effort, and forfeited revenue spent correcting order errors has a negative ripple effect across the whole supply chain.  

            In order to be considered a perfect order, a delivery must arrive complete, on-time, undamaged, and with proper documentation. Calculating a company’s perfect order rate requires multiplying (Percent of orders delivered on time) x (Percent of orders complete) x (Percent of orders damage free) x (Percent of orders with accurate documentation) x 100. On average, organisations in the US have a perfect order index of 90%. This figure varies across industries and markets, however. 

            5. Warehousing costs 

            The cost of storing physical goods in a physical space is a significant overhead. Picking, organising, and handling those goods compounds this potential pain point. Warehouse operations can represent one of the biggest labour and/or technology costs for a business, and keeping track of these costs is essential. 

            Costs associated with running a warehouse, such as labour, rent, utilities, equipment, and systems for handling materials and information, not to mention expenses incurred from ordering and storing goods, can significantly vary between facilities. It’s crucial to constantly and accurately measure and evaluate these costs. Successfully doing so can help pinpoint opportunities for reducing costs and improving efficiency.

            • Collaboration & Optimization

            New research shows 81% of companies investing in supply chain technologies saw the benefits within 24 months.

            Supply chain leaders have traditionally been slower off the mark than other business stakeholders when it comes to technological adoption. However, when it comes to artificial intelligence and automation, few areas of the business see more consistently positive effects as the supply chain. 

            Supply chain leaders are what Noha Tohamy, distinguished VP analyst in Gartner’s supply chain practice, calls “fast followers”. As other functions in the enterprise see success, supply chains are set to follow suit rapidly. 

            Supply chain investment into AI, automation, etc. gathers momentum 

            Generative AI investment has been embraced by the supply chain sector with particular enthusiasm. A Gartner survey found that top performing supply chain organisations are investing in artificial intelligence and machine learning in order to optimise their processes at more than twice the rate of their lower performing peers. 

            Ken Chadwick, another VP Analyst in Gartner’s supply chain practice, noted that, rather than efficiency or cost saving, “enhancing productivity is the key factor that will drive future success” for supply chains. The key to unlocking that productivity lies in “leveraging intangible assets,” he explains. “We see this divide especially in the digital domain where the best organisations are far ahead in optimising their supply chain data with AI/ML applications to unlock value.” 

            However, investment into digital transformation and actually reaping the rewards of that investment are two very different things. Data gathered by McKinsey suggests that 70% of digital transformation projects fail to meet their stated goals. 

            Simply investing into AI, machine learning, and automation will not automatically create value in the supply chain. Thankfully, this is a lesson that supply chain leaders seem to have learned. 

            Digital adoption drives supply chain resilience

            A new report from supply chain solutions provider Cleo paints a hopeful picture for the sector’s ongoing digital adoption. 

            According to their report, technology investments are increasing organisations’ ability to deliver on their supply chain commitments. This, they found, “resulted in accelerating profitability, revenue growth, competitive differentiation, and supply chain efficiency.” Perhaps most interestingly, the benefits of investment into technologies like AI and ML were observed very quickly. 

            Last year, 97% of organisations surveyed by Cleo invested into “supply chain technologies.” Cleo’s research lacks specifics on which technologies exactly were invested into the most. It also fails to denote which ones saw the most impactful return. However, holistically, 81% of companies observed that their supply chain investment delivered business improvement in less than 24 months. An impressive 35% said they felt the benefits within a year. 

            This year, more than half of the enterprises surveyed are planning to invest $1 million or more into further supply chain technology adoption. 

            At a time when disruptions are more the norm than the exception in the supply chain, organisations are prizing resilience more highly. “By leveraging technology to build greater resilience to supply chain disruptions, a company is better able to take control of its supply chain commitments and deliver on their promises – resulting in stronger relationships and trust with their ecosystem,” says Tushar Patel, CMO at Cleo. He added that, in order to uphold their commitments, supply chain operators “need to consistently invest in their supply chain technology, otherwise they stand to take a hit to their relationships – impacting their bottom line.”

            • AI in Supply Chain
            • Digital Supply Chain

            A new industry report has identified “accelerated regionalisation” in global supply chains as companies increasingly embrace local suppliers.

            For over two decades, supply chains and trade networks have skewed consistently in the direction of globalisation

            It was cheaper to farm, harvest, manufacture, and ship goods from overseas than it was to make them close to home. In countries with developed economies, higher wages and material costs, as well as stricter regulations, have been pushing corporations to look farther afield since the 1990s. 

            Now, however, the tide appears to have turned for this decades-long trend. According to a new report by the Dubai Multi Commodities Centre (DMCC), the future of global trade looks a lot less globalised and a lot more local. 

            From COVID-19 to Carbon Reductions—What’s driving deglobalisation? 

            “We are entering a new, digital-driven era of globalisation,” wrote Peter Vanham, former Deputy Head of Media at the World Economic Forum and Executive Editor at Fortune. Writing in January of 2019, Vanham couldn’t have known at the time that the clock was already ticking down for globalisation’s dominance as an economic ideology. 

            The COVID-19 pandemic threw global supply chains into a state of system shock. Now, the effects of the pandemic are finally fading, and global supply chains are sitting in a relatively good place. Global trade is expected to recover from last year’s minor contraction to grow 2.6% in 2024. 

            However, some bells can’t be unrung. We are living in an age of more frequent disruptions, geopolitical tension, and a worsening climate. According to the DMCC, supply chains are still facing multiple headwinds stemming from geopolitical and macroeconomic risks. These include economic slowdowns in China and Europe, persistent inflation and higher-for-longer interest rates, and continued commodity price volatility.

            As a result, the report predicts supply chain managers will respond with an accelerated shift towards regionalisation defined by deeper bilateral and multilateral partnerships.

            “The world order is causing supply shortages, rerouting cargo, and adding costs to consumers,” commented Feryal Ahmadi, Chief Operating Officer at DMCC. “Businesses and economies are prioritising resilience in the years ahead given the pressures they face today. This is also creating new regional blocs and trade corridors that are heavily indexing on technological prowess given the importance of semiconductors and AI development to businesses around the world. Trade hubs that get this piece right will find themselves at the nexus of global trade flows for the coming decades.”

            • Collaboration & Optimization
            • Risk & Resilience

            With carbon neutrality targets gaining momentum, finding a way to cut down on shipping emissions is critical to decarbonising supply chains.

            Commercial shipping accounts for the movement of more than 90% of traded goods around the world. Oceangoing vessels are critical to maintaining global supply chains. 

            However, while shipping produces 31 times fewer emissions than air freight, and 10 times less than a cargo truck, the industry is nevertheless a major source of global emissions. In 2018, global shipping accounted for around 3% of total worldwide emissions. By 2050, that figure could increase significantly, driven in particular by rising e-commerce volumes.  

            If this continues as predicted, data gathered by the European Commission projects growth in shipping “will undermine the objectives of the Paris Agreement”. Regulators and shipping companies need to take “effective measures” at a global scale, the Commission adds, noting that “EU action to make sure maritime transport plays its part in achieving climate neutrality in Europe by 2050 is an essential step in incentivising the necessary reductions.” 

            Could international shipping be net-zero by 2050?

            Last year, the International Maritime Organisation (IMO) revised its sustainability targets, setting a more ambitious goal than its 2018 resolution. Now, the UN-backed shipping agency is targeting “net-zero GHG emissions from international shipping by or around, i.e. close to, 2050, a commitment to ensure an uptake of alternative zero and near-zero GHG fuels by 2030.” 

            The EU, which typically leads the world in terms of sustainability reform, extended the EU’s Emissions Trading System (EU ETS) recently. The legislation now covers CO2 emissions from all large ships (of 5,000 gross tonnage and above) entering EU ports, regardless of the flag they fly. 

            The EU ETS is a mandatory ‘cap and trade’ system that previously applied to emissions from power stations, industrial plants and aircraft in the EU. Participants must acquire and surrender ‘emissions allowances’, representing quantities of regulated emitted GHGs on an annual basis.

            Emissions regulations are only part of the puzzle, however. If regulators and companies are going to decarbonise global shipping, the industry needs new ways of cutting emissions from cargo ships

            A new age of sail? 

            There are several ways in which shipping companies are aiming to cut down on their carbon emissions, from manufacturing new, cleaner fuels, to atavistically exploring a return to an age of sail. 

            Pulling from methods used by Japanese shipping companies during the 1980s oil crisis, shipping companies have been exploring the use of rigid sails as a way to reduce fuel consumption in oceangoing vessels. Swiss shipping firm Cargill revealed in March the results of a six-month test period of the Pyxis Ocean—a cargo freighter retrofitted with large sails made from the same material as wind turbines. 

            The ship, retrofitted with two WindWings built by BAR Technologies, saved an average of 3 tonnes of fuel per day. Jan Dieleman, president of Cargill’s Ocean Transportation business, reported finding the results encouraging.

            Earlier this year, French company Grain de Sail celebrated the christening ceremony for Grain de Sail II, the world’s largest modern cargo sailboat.

            However, savings per cargo vessel that would amount to the equivalent of removing 480 cars from the roads each year isn’t enough to get the industry to its net zero target. Ships’ propeller systems limit the potential of wind to power cargo ships, which supply only up to 30% of the energy required for navigation – even less in adverse weather conditions. While wind propellers and sails are a valuable piece of the puzzle that is making cargo ships less reliant on its engines, they’re unlikely to entirely replace fuel engines. The shipping industry is unlikely to ever fully return to an age of sail. To achieve sustainability, the shipping industry must also transition from oil to alternative green fuels to support renewable options like solar and sail. 

            Green fuel manufacturing at a global scale

            To determine the true environmental impact of a fuel, it is crucial to consider not just the emissions from burning it in a ship’s engine, but also the emissions from its entire lifecycle – including extraction, production, transportation, and storage, called “well-to-wake.”

            An electric car isn’t truly zero-carbon if its electricity comes from fossil fuels. Likewise, a ship isn’t green if its ammonia or methanol was produced using natural gas. 

            Green hydrogen is created by splitting water into hydrogen and oxygen. To do it sustainably, the process uses electricity from renewable sources such as wind or solar power. Another fuel, green ammonia is produced by combining nitrogen from the air with green hydrogen. This uses the Haber-Bosch process. Lastly, green methanol comes from heating plant or organic waste. The resulting gas is then forms the basis of bio-methanol.

            Renewable energy for greener fuels 

            These fuels need to be generated exclusively using renewables if they are to be considered legitimately green. Right now, there isn’t enough of that renewable energy to go around. As a result, there isn’t enough new fuel. Shipping companies are turning to stopgap measures as a result, or just continuing to burn fossil fuels and eat new taxes as they arise .  

            According to a 2022 study by the International Chamber of Shipping, the shipping industry will need up to 3,000 terawatt-hours (TWh) of renewable electricity annually if it wants to generate alternate fuels using exclusively renewable energy.. That’s nearly the current global output of wind and solar power, (about 3,444 TWh). 

            “Despite increasing willingness in the shipping industry to pay a premium for green fuels, the lack of availability of those fuels is frustrating,” Julien Boulland from Bureau Veritas Marine & Offshore, wrote recently. “A hard truth is that the timelines required to scale up new fuel production capacity will not meet the significant emissions reductions needed this decade, in line with the IMO’s revised strategy, adopted in 2023. Therefore, shipping should use all levers that are already available to reduce its energy needs in the short term, through operational efficiency and clean technology.”

            • Sourcing & Procurement
            • Sustainability

            Supply chains that primarily focus on customer experience, rather than efficiency, will create better overall outcomes.

            To most people, supply chains are invisible. They don’t think about the long and winding path that turned raw materials into a brand new pair of sneakers. They don’t think about the complicated, intercontinental logistics efforts that unfolded to not only get that pair of shoes made, but to have them waiting on the customer’s doorstep less than 48 hours after they clicked “Buy Now”. 

            Like a sheet of perfectly clean glass, they don’t notice the supply chain. They’re looking at the shiny products and services behind the windowpane. Unless, of course, the glass cracks.

            Supply chain challenges directly affect CX 

            This is already shaping up to be a complex year for supply chains. Even in contrast to the past four years being overshadowed by the COVID-19 pandemic, 2024 is presenting new challenges. Gartner analysts argue that, “mounting backorders, low inventory, increased prices and delayed shipments plague supply chains and threaten customer loss.” 

            Whether delivering sneakers, software, or specialised aerospace parts, Supply chains are all enablers of customer experience. 

            According to Gartner, a drop over time in the quality of supply chain performance is nearly three times as likely to harm customer loyalty than a rise in price. Supply chain performance can make or break customer experience (CX) and can undermine customer loyalty.

            Traditionally, supply chain operators have had an undersized awareness of their impact on the end customer experience. “Supply chain performance plays a key role in whether a customer is likely to repurchase, and services and offerings should be designed around customer enablement,” Gartner notes. 

            Taking a customer-centric approach to supply chain management 

            One of the core reasons why supply chains feel more disconnected from customer experience than they actually are is because supply chain decision makers frequently aren’t included in the CX conversations that take place in other parts of the business. 

            Supply chain leaders need to “improve their connection with other functions and use technology to solidify and scale the interactions required to deliver the designed CX,” argues Michael Dominy, a Research VP in Gartner’s CSCO Strategies and Planning team. Supply chain leaders need to leverage a combination of empathy backed by soft skills and technology. Successfully implementing this can create increased utility and ease for the customer. No only that, but supply chain leaders can meaningfully place CX at the core of their operational model, rather than approaching it as an afterthought or additional benefit of a job well done. 

            This is done by putting the customer at the centre of each relationship stage, harnessing customer insights to govern the two-way relationship between customer and company, and then harnessing those insights to deliver improved CX across the organisation.

            By identifying the stages where the supply chain has the most impact on customer experience—including commitment to a purchase and recovery from disruption—supply chain leaders can iterate and improve the processes that improve customer experience. Most importantly, they can do this with customer experience at the top of their mind. 

            Dominy observes that “getting the right product to the right place at the right time isn’t enough. The customer’s experience with your company is more involved than taking and fulfilling orders. And supply chain’s role is larger than most think.”

            • Collaboration & Optimization
            • Risk & Resilience

            By integrating and streamlining logistics, intermodal transportation increases the efficiency of the supply chain.

            Supply chains are under increasing pressure to deliver efficiency and resilience. Economic, geopolitical, and environmental pressures are increasing risk of disruption, creating delays, and driving up prices. At the same time, labour shortages are hitting the logistics sector especially hard, creating serious pain points for organisations relying on road freight, rail, and shipping alike. 

            This is leading more supply chain operators to streamline their supply chains in order to maximise efficiency using intermodal transportation. 

            What is intermodal transportation? 

            Intermodal transportation is any logistical journey that uses two or more types of transportation to move goods through a supply chain. The most common type of intermodal transportation utilises road, rail, and ship transport to move goods over long distances. Intermodal transportation is especially common in the “last mile” of delivery, where goods might be transferred from a plane or train to trucks on their way to a final destination.  

            The benefits of intermodal transportation

            Intermodality in the logistics chain helps organisations balance cost, speed, and resilience in their supply chains. Recently, intermodality has been used as a key driver of improved sustainability in logistics chains as well.  

            The technique is nothing new; organisations have been using multiple methods of transportation to shift goods throughout supply chains for centuries. Just because stagecoaches and sailing ships have been replaced by HGVs and cargo planes (and might still be replaced by self-driving robo-trucks and, uh, we’re going back to sailing ships again?) doesn’t mean that the process isn’t useful. It also doesn’t mean it hasn’t been improved. 

            Modern intermodal shipping is powered by standardisation across the logistics chain. Goods are transported using specialised, standardised steel containers. This makes them both easier to handle and able to be quickly transferred from one mode of transportation to another without unpacking and repacking the goods inside. 

            Intermodality isn’t always the best option. It’s up to supply chain managers to balance environmental impact, speed, cost, and reliability. Shorter journeys, for example, can be made using just one mode of transport. Using intermodality in a case like this would only increase time to delivery. However, road transport is typically a more polluting option than using a freight train. Even over short distances, an intermodal approach can be useful if sustainability is your highest priority. 

            Harnessed correctly, intermodal transportation can be a key enabler of logistics excellence. This is especially important at a time when these systems are feeling increased pressure from multiple angles.

            • Collaboration & Optimization
            • Sourcing & Procurement

            Supply chain visibility is at a low ebb, prompting leaders to explore machine learning as a way to regain critical insight into future threats.

            Supply chain managers in 2024 are faced with an increasingly thorny environment. From shipping disruptions in the Red Sea and Panama (and now in Baltimore), to a rise in extreme weather events, disruption seems less like the exception than the rule. 

            This ongoing disruption has highlighted the need for businesses to develop coping strategies. Increasingly, supply chain managers are looking to adopt technologies that let them predict and outmanoeuvre these disruptions. Agility and resilience are cardinal virtues for supply chains in 2024, almost as much as cost containment. 

            However, despite the goal being clear, many companies struggle to increase the resilience and agility of their supply chains. According to a recent article in the Harvard Business Review, a lack of accurate forecasting is to blame. As authors Narendra Agrawal et al posit, “how can inventory and production decisions be made effectively when demand forecasts are widely off?” 

            Machine learning and demand forecasting

            Machine learning and artificial intelligence (AI) have tremendous potential to increase supply chain visibility. 

            The growth of IoT devices and oversight platforms is also generating a wealth of unstructured data across the supply chain. This makes machine learning an especially useful tool for tracking and predicting trends or disruptive events. Essentially, the technology is very good at finding complex patterns and relationships within historical data. As a result, machine learning can significantly enhance accuracy when predicting demand.

            To use a simple example, let’s imagine a snack company. Using machine learning algorithms, this company could analyse historical and broader contextual data to pick up a pattern where sales of certain snacks tend to spike during specific seasons. During allergy seasons, the demand for grain-free snack foods might increase. Likewise, promotional events, like Veganuary, could cut demand for some products and drastically increase demand for others. Likewise, sourcing disruptions like a crop failure due to extreme weather conditions can be taken into account. 

            From a high level, these aren’t decisions that are beyond the scope of an experienced human supply chain professional to notice. However, it’s the ability for a machine learning algorithm to not only pull these insights from vast oceans of seemingly disconnected data, but to translate them into strategic recommendations for action (based on previous successes and failures) that makes the technology truly transformative. It’s doing what (not all) humans can do at speed and scale and, theoretically, with less propensity for error. 

            By continuously learning from these data points and recognizing the complex relationships between them, machine learning algorithms can generate highly accurate demand forecasts. As a result, companies can ensure they are stocking the right levels of inventory and ordering the right products at the right times. 

            • AI in Supply Chain
            • Digital Supply Chain

            Mike McGuire, senior software manager at the Synopsys Software Integrity Group, examines the threat posed to software supply chains by open source software.

            Open-source software (OSS) holds a pivotal and significant position in modern application development, serving as a cornerstone of the software supply chain. However, its widespread integration into commercial applications poses challenges in tracking and managing potential risks. 

            Naturally, the screening and vetting of OSS emerge as essential components of any software supply chain security initiative. But what is the current state of software supply chain security?

            Software supply chain security 

            Firstly, OSS has emerged as a primary target for cyberattacks. In fact, 9 out of 10 companies have detected software supply chain threats, with 70% admitting that their current solutions are inadequate. While open source attacks are the “path of least resistance” for many threat actors, attacks on commercial and proprietary software are also on the rise.

            Threat actors exploit the challenge organisations face in keeping track of their OSS, leading to persistent supply chain attacks that affect software providers, businesses and consumers. These attacks, whether through exploiting OSS vulnerabilities or injecting malicious code, result in compromised user data and strained business relationships. The 2024 Open Source Security and Risk Analysis Report highlights the extent of this issue, revealing that 84% of scanned codebases in 2024 contained an OSS vulnerability, with 74% posing high-risk vulnerabilities. Despite the prevalence of these vulnerabilities, organisations often fail to adequately address or overlook them entirely. 

            Rising threat levels 

            Recent years have witnessed prominent vulnerabilities like Log4J, Curl, Apache Struts, and OpenSSL which have all led to a variety of operational damage. These highlight the severe impact posed to organisations when a single weakness within the software supply chain is exploited.

            The most prolific supply chain attack was SolarWinds. Due to lax security practices, a former intern inadvertently exposed a critical internal password. By exploiting this vulnerability, hackers gained access to SolarWinds’s systems which were responsible for assembling updates to one of its core products called Orion. The attackers implanted malicious code into a legitimate software update, allowing them to clandestinely monitor and identify running processes involved in Orion’s compilation. They then manipulated source files to include the SUNBURST malware which compromised Orion’s updates and impacted 18,000 SolarWinds customers. As a result, the attackers obtained sensitive information while locating further targets to spread the malware. The ultimate targets were multiple steps removed from the initial breach. This underscores this vulnerability incident as a prime example of the serious impact of modern software supply chain attacks. 

            Presently, more sophisticated supply chain attacks involve the insertion of malware and malicious packages into the software development life cycle (SDLC), effectively transferring risks to end users. These attacks succeed due to the implicit trust placed in third-party software during organisational software development.

            Organisations must broaden their approach to addressing software supply chain security, gaining comprehensive visibility into all application dependencies and enhancing their capability to identify modern risks beyond OSS vulnerabilities. While historically challenging, addressing these concerns is now more feasible than ever before.

            Comprehensive open-source discovery

            With the majority of software supply chain made up of open source software, failure to properly track and manage it equates to a glaring gap in any risk management strategy. Additionally, any required Software Bill of Materials (SBOM) will mandate that all OSS dependencies be listed. 

            Therefore, security teams within organisations should adopt tools that can easily identify all open source components using a combination of dependency, snippet, binary and container analysis to surface these all, regardless of language or package manager because this will provide the most comprehensive view of the OSS available. 

            Most commercial and enterprise software teams use third-party code from an outside vendor. Although security teams can perform their analysis of these third-party artefacts, it is much easier if the software vendor provides their own SBOM. There are tools available that will assist security teams in importing external SBOMs and automatically catalogue the open source, commercial, and custom components contained within them. This helps expand software supply chain visibility beyond just open source dependencies and analyse all dependencies for risk.

            Attackers are getting more devious, injecting malicious packages and malware into open source ecosystems, and even directly into applications, making it possible to compromise build environments. 

            Catching this type of malware requires a specialised form of analysis that modern tools incorporate. Moreover, having continuous risk identification and monitoring capabilities are essential because even though something is secure when it enters the SDLC does not mean it will remain secure further down the development pipeline. Having the capability to analyse dependencies in both generated and imported SBOMs is vital to monitor for open-source vulnerabilities, secrets, malware and malicious packages.

            “Comprehensive” supply chain security 

            Achieving comprehensive security across the software supply chain necessitates a deep understanding of its entirety and the establishment of a robust system for continuous monitoring, vulnerability testing and prompt remediation. 

            Open-source software, while offering numerous benefits such as enhancing critical software applications and enriching customer experiences, also poses inherent risks. 

            Safeguarding your organisation against these risks demands a coordinated approach, facilitating the identification, monitoring, and analysis of code content. Leveraging appropriate tools and technologies will dramatically reduce the risk of your organisation suffering a software supply chain attack.

            • Digital Supply Chain
            • Risk & Resilience

            Trimble’s Kate Legnola explores how dedicated commercial route mapping technology can address the very specific demands of transportation fleets.

            Route optimisation has become ever more important in recent years. The rise in ecommerce has created new routing pressures, especially in the last mile. At the same time, rising fuel costs, the push towards net zero, and load theft have placed the spotlight on using preferred refuelling locations and the need for safe, comfortable parking, especially overnight. 

            Layering these demands over the traditional goals of controlling costs while meeting tight deadlines has highlighted the limitations of generic mapping and routing solutions. 

            From large HGVs stuck down tiny rural lanes to the damage – and cost – incurred when a HGV hits a low bridge, or the risk of compliance breach associated with taking a hazardous load through a tunnel without permission, many transportation companies have learnt the painful lesson of relying on a phone’s satnav.

            Consumer mapping technologies may be ubiquitous but they lack the depth of insight required to manage the complexity associated with the commercial movement of goods. As Kate Legnola, Sr. Product Manager, Map Data, at Trimble explains, dedicated commercial route mapping technology has the potential to address the very specific demands of transportation fleets. These demands range from height and weight restrictions and hazardous materials transport designations to improving driver well-being and safety.

            Meeting operational goals

            Reliance on online maps has become standard for most drivers but effective commercial route optimisation requires far more depth and breadth of insight than the basic, ubiquitous directions that cannot differentiate between a driver in a heavy goods vehicle or a two-seater sports car. Commercial mapping intelligence has evolved beyond simple visualisation on a map to offer a wide range of insights on business and driver behaviour that can significantly enhance fleet management.

            Complex routing algorithms determine the most efficient routes for delivery or service vehicles by considering factors such as traffic patterns, road permissions, congestion and clean air zones, low bridges, narrow lanes and fuel consumption. Data, including not only construction of new infrastructure, but also any changes in existing restrictions accounts for routine bridge and tunnel inspections undertaken by highways authorities to give planners confidence in the safety and legality of the designated route in real time. 

            Making transportation more sustainable

            Transportation companies can leverage this depth of information to plan based on different priorities, comparing routes based on sustainability, cost and time objectives.

            The ability to offer clients different routing models provides a competitive advantage by enabling a transport business to demonstrate how it is supporting a client’s sustainability reputation, for example. It is also assisting fleets in future-proofing their operations so they can better serve and meet their sustainability goals. Among them are a better ability to adhere to environmental rules and guidelines, a better understanding of vehicle carbon footprint, a reduction in operating costs with the efficient allocation of vehicles based on electric vehicles thus achieving long-term, sustainable cost reduction.

            Boosting fleet efficiency

            Complex algorithms are used to determine the most efficient routes for delivery or service vehicles by considering factors such as traffic patterns, road permissions, congestion and clean air zones and  low bridges.

            Route intelligence software can also track dwell time, a perennial problem for all transportation companies. Using precise polygonal geofencing to improve the accuracy of arrival and departure notifications, the overall journey time, including both travel and stop time, is more precise. It is also enabling companies to better understand the overall efficiency and performance of the fleet, information that can help to reduce empty miles, cutting costs and reducing emissions whilst adding revenue. 

            Keeping drivers safe

            Indeed, by investing in smart mapping technology, elements such as planning processes will automatically consider drivers’ hours of service (HOS) and can include specific locations for resting and parking to avoid the risk of drivers being compelled to park up on the roadside which is both uncomfortable and unsafe. 

            Further, using intelligent route mapping, transportation companies can optimise loyalty programs and discounts around specific brands of fuel to optimise routes, understand freight spend, and plan routes more efficiently. The routes can be designed around the use of rest stops preferred by drivers wherever possible to ensure they have access to good quality food and showers.

            Driver safety can be further enhanced with vehicle specific information throughout the journey especially regarding the trickier problems that can arise during the last mile. Commercial mapping intelligence solutions pinpoint the actual final locations, such as the delivery entrance to the shopping centre rather than the consumer entrance used by the generic mapping solutions. In addition, transportation companies can opt to customise the mapping, overlaying a preferred approach path for specific locations to ensure every driver, however new to the business, has the optimal, safe route to each location, whether that is a store, warehouse or distribution centre. 

            Conclusion

            For transportation companies wrestling daily with the need to mitigate disruption, reduce costs and meet escalating customer demands, intelligent route mapping and routing is becoming a strategic imperative. 

            Companies can no longer afford to rely on traditional manual route planning processes or allow drivers to rely on their own generic mapping systems. The risks of delays, damage and missed opportunities are simply too high.

            Intelligent route mapping helps businesses improve day to day planning and optimise routes for each vehicle by accounting for the essential features of weight, size and hazardous materials. It gives the chance to focus on both driver performance and well-being, enabling companies to prioritise access to safe overnight parking and rest stops. 

            Finally, it also delivers vital insight into the intricate interplay of suppliers, processes, and partners that allows transportation companies to optimise operations, intelligently consider innovations in areas such as EVs, and confidently navigate today’s complex marketplace.

            • Collaboration & Optimization
            • Digital Supply Chain

            Despite positive steps in other areas, Microsoft’s Scope 3 emissions have risen by more than 30% since 2020.

            Corporate sustainability reports are usually something of a victory lap. Whether it’s Apple lauding the halving of its greenhouse gas emissions or (laughably) Shell’s CEO claiming the company made “good progress in our goal of creating more value with less emissions,” these reports tend to focus on the upsides. 

            That’s why it’s refreshing to see a major corporation taking a (still pretty positive but arguably) more honest look at its ESG journey. 

            In a joint letter ahead of the company’s 2024 sustainability report, Brad Smith, Vice Chair and President; and Melanie Nakagawa, Chief Sustainability Officer of Microsoft, highlighted some of the ways in which the company is on track to achieve its sustainability commitments. Four years ago, Microsoft committed to becoming carbon negative, water positive, zero waste, and protecting more land than the company uses by 2030. 

            Smith and Nakagawa stress that, despite radical, industry-disrupting changes, Microsoft remains “resolute in our commitment to meet our climate goals and to empower others with the technology needed to build a more sustainable future.” They highlighted the progress made by Microsoft over the past four years, particularly in light of the “sobering” results of the Dubai COP28. “During the past four years, we have overcome multiple bottlenecks and have accelerated progress in meaningful ways,” they write. 

            However, despite being “on track in several areas” to meet the company’s 2030 commitments, Microsoft is also falling short in others. 

            Specifically, Smith and Nakagawa draw attention to the need for Microsoft to reduce Scope 3 emissions in its supply chain, as well as cut down on water usage in its data centres. 

            Carbon reduction and Scope 3 emissions 

            Carbon reduction, especially related to Scope 3 emissions, is a major area of concern for Microsoft’s sustainability goals. Despite cutting Scope 1 and 2 emissions by 6.3% in 2023 (compared to a 2020 baseline), the company’s Scope 3 emissions ballooned. Microsoft’s indirect emissions increased by 30.9% between 2020 and last year. As a result, the company’s emissions in aggregate rose by over 29% during the same period. A potentially sour note for a company that tends to pride itself on leading the pack for sustainable tech. 

            Microsoft’s report attributes the rise in its Scope 3 emissions to the building of more datacenters and the associated embodied carbon in building materials, as well as hardware components such as semiconductors, servers, and racks. 

            AI drives carbon emissions in the supply chain 

            Mass adoption of generative artificial intelligence (AI) tools is fueling a data centre boom to rival that of the cloud revolution. Growth in AI and machine learning investment is expected (somewhat conservatively) to drive more than 300% growth in global data centre capacity over the next decade. Already this year OpenAI and Microsoft were rumoured to be planning a 5GW, $100 billion data centre—the largest in history—to support the next generation of AI. 

            In response to the need to continue growing its data centre footprint while also developing greener concrete, steel, fuels, and chips, Microsoft has launched “a company-wide initiative to identify and develop the added measures we’ll need to reduce our Scope 3 emissions.” 

            Smith and Nakagawa add that: “Leaders in every area of the company have stepped up to sponsor and drive this work. This led to the development of more than 80 discrete and significant measures that will help us reduce these emissions – including a new requirement for select scale, high-volume suppliers to use 100% carbon-free electricity for Microsoft delivered goods and services by 2030.”

            The five pillars of this initiative will be: 

            1. Improving measurement by harnessing the power of digital technology to garner better insight and action
            2. Increasing efficiency by applying datacenter innovations that improve efficiency as quickly as possible
            3. Forging partnerships to accelerate technology breakthroughs through our investments and AI capabilities, including for greener steel, concrete, and fuels
            4. Building markets by using our purchasing power to accelerate market demand for these types of breakthroughs
            5. Advocating for public policy changes that will accelerate climate advances
            • Sourcing & Procurement
            • Sustainability

            Shelley Pierre, IPP’s commercial director, argues for fresh thinking on post-Brexit fresh produce checks.

            New post-Brexit rules governing the biosecurity of fresh produce entering the UK will not only see disagreements over increased costs and operational viability kicking off. The consequential delays could see fruit and veg literally going off while waiting for an ‘all-clear’ certificate.

            Challenges posed by the BTOM

            The new Border Target Operating Model (BTOM) classifies all plant and animal products coming from the EU and puts them into three risk groups: high, medium and low.

            In its wisdom, the UK government has placed many fruit and vegetable imports into the medium risk category, meaning multi-page documentation must be provided confirming its provenance and safety at the new border points, which opened at the end of April.

            With most fresh produce arriving in the UK in mixed loads, questions have been raised about potential delays and how to unpick the consignments in a timely fashion, particularly as there are question marks over the numbers of inspectors mandated to issue phytosanitary certificates at the border.

            Import costs could pass down the supply chain to consumers

            The Fresh Produce Consortium (FPC) argues that the process will add £200 million in additional import costs across the fresh produce supply chain, calling it “a crippling blow to a sector already grappling with unprecedented challenges.” It’s likely fees that will negatively impact small fruit and veg enterprises. Ultimately, organisations will end up passing on those costs to consumers.

            Supporters of the legislation argue that the restrictions empower businesses to manage the integrity of the product through the supply chain. Regular checks from UK border controls would potentially cut down on the paperwork and maintain the steady flow of fresh produce from the EU. However, every time a product is stopped or touched, it adds cost and delay. Neither are affordable when it comes to perishable produce.

            When we talk about ‘farm to fork,’ fresh produce ceases to be so when it does not arrive in a just grown or picked fashion.

            BTOM may prove to be good news for British growers, but what about non-native fruit and veg? And what about choice for British consumers who will have to go without or pay more for the privilege of having not-so-fresh produce on their plates?

            Either way, these post-Brexit fruit and veg rules need fresh consideration rather than unnecessary composting. 

            Shelley Pierre is commercial director at leading European pallet pooler IPP. The IPP pool is a leading rental provider of pallets and boxes in fast moving consumer goods and industrial supply chains.

            • Risk & Resilience
            • Sourcing & Procurement

            Philipp Pfister, CCEO at Transporeon, explores how supply chain managers need to not merely adapt to but anticipate disruption in an increasingly volatile world.

            After disruptions at two of the world’s most crucial trade corridors – the Panama Canal and the Suez Canal, it’s fair to assume political tensions will likely play a more prominent role in sourcing and distribution as supply chains continue into 2024. Wars in Ukraine and in the Middle East are threatening flows of grain, oil and consumer goods. Climate change and mass migration are destabilising trade lanes from the Panama Canal to the U.S. Mexico border. The result? A potential migration of trade from once secure and stable trade routes. The map is being redrawn.

            It’s clear, growing geopolitical tensions are making international supply chains ever more complex. A disruption in a supply chain is not just a logistical challenge, but also a sign of a broader shift in the global trade ecosystem, which calls for a new approach to traditional supply chain models, making sure that they provide resilience and innovation. However, global supply chain disruption can be transformed into a pathway for building stronger, more adaptable supply chains that can weather future storms with the right tools and a forward looking approach. As explained by Gartner, “Supply chain disruption is no longer an ‘if,’ nor is it really a ‘when,’ since it’s both omnipresent and unpredictable at the same time. The question you must answer is: Are we able to mitigate the next global supply chain disruption that comes our way?”

            Unlocking Technology Benefits 

            Organisations can no longer rely on reactive measures and outdated manual processes to manage these disruptions. Supply chain managers need to proactively transform their operations using automation technology. Effectively deployed, automation increases efficiency, reduces risk, and allows managers to better anticipate and mitigate disruptions as they occur. 

            In the meantime, companies have taken vastly different digitalisation trajectories over the past decade due to the lack of universal standards for digital solutions. As a result, technology stacks are often siloed and can’t communicate with one another. In addition to other challenges, it can make it harder for companies to understand their order and capacity situation accurately and to verify whether processes are flowing smoothly.

            A standardised approach to digitalisation based on a collaborative network, rather than companies working in isolation is the solution. A collaborative ‘platform approach’ facilitates a phygital (the seamless integration of physical and digital systems) future by enabling the creation of a transportation network spanning the entire industry. Connecting shippers, carriers, logistics service providers and other stakeholders simplifies communication, gathers real-time insights, reducing administrative costs and improving efficiency.

            Furthermore, a platform approach facilitates better decision-making and problem-solving. Real-time data allows stakeholders to identify and visualise tracking the load in transit to minimise the impact of issues on product delivery or customer satisfaction.

            A collaborative approach also enables data-driven decision-making, with companies benefiting from a vast pool of insights that helps all parties get ahead. With the help of this data (and a high degree of automation), companies can reduce dwell times, optimise yard operations, and more. On a long-term basis, AI models can learn to create tools for autonomous procurement or quotation, real-time ETA and everything in between.  

            A new reality 

            In the transport and logistics industry, there is no such thing as a once in a lifetime event like a global pandemic that can create costly supply chain disruptions, especially as eighty percent of industry executives reported major issues in their operations over the past 12-18 months, highlighting the importance of flexible and resilient supply chains.

            A fundamental requirement for progress in 2024 and beyond is being able to adapt to the new reality, with companies across many industries recognising resilience is not just a competitive advantage. For this reason, digital and technology solutions have become essential to creating stronger, more healthy supply chains. As such, organisations should harness technology and a smart network approach to predict, mitigate, and swiftly recover from disruptions to reinforce the quality of their operations and competitive edge. 

            Conclusion 

            In the pursuit of a resilient future, businesses should not merely adapt but anticipate. Digital tools empower supply chain managers and leaders to proactively address disruptions, respond with agility, and thrive in a changing environment. In order to maintain a resilient supply chain that is robust and ready for new challenges and opportunities, organisations need to develop the right strategies and commit to continuous innovation. 

            As companies navigate an increasingly complex and volatile global landscape, digital transformation becomes a strategic imperative. In order to build agile, tech savvy teams, integrate sustainability measures, and foster supply chain collaboration, companies need to recognize challenges of a changing landscape and seize technologies that empower supply chain visibility. 

            Data-driven decision making and scenario-based resilience plans enable organisations to create a durable supply chain that can weather any storm and sustain growth.

            • Digital Supply Chain
            • Risk & Resilience

            From sustainability to talent retention, here are the 6 supply chain best practices with the biggest potential to benefit the business.

            Supply chain managers are increasingly required to balance traditional goals like cost containment with the need to increase their supply chains’ operations and deliver new strategic wins for the business as a whole. Predicting disruption, managing risk, and constantly improving efficiency are all essential aspects of overseeing a modern supply chain. So too are collaboration, sustainability reform, and learning to see value as more than a dollar amount. 

            Knowing where to begin, and then how to continue, is challenging. Therefore, we’ve identified the 7 supply chain management best practices that will have the biggest impact on a supply chain.

            1. Ensure supply chain and business are aligned 

            Aligning the goals and practices of supply chain with the rest of the business is paramount to operating a successful supply chain. It’s all too common that the supply chain is siloed from the parts of the business that it serves. The result is often multiple discrete business units with varying priorities. This creates disparities in time and resources, leading to information gaps, poor communication, unnecessary errors and inconsistent processes.

            Creating new lines of communication between the supply chain function and the wider business is a good place to start. New roles focused on liaising between siloed parts of the business, digital tools that promote collaboration, and new processes can play a pivotal role in facilitating collaboration. At all times, establishing and remaining focused on high level business objectives is vital. Without this focus, it can be difficult to ensure all parties are pulling in the same direction.   

            2. Foster genuine collaboration with the supplier ecosystem 

            Just as collaboration within the business is essential for a functional supply chain, fostering genuine collaboration with the organisations outside the business is essential. While many organisations are happy to highlight the importance of partnerships in their rhetoric, far fewer are taking a genuine partnership approach. 

            Finding suppliers with similar values to your organisation is a good start. Implementing a robust supplier relationship management platform can help keep lines of communication open. Effective communication in service of a shared goal supported by aligned values is essential to ensuring that products received from suppliers are of consistently high quality, procured at the right price, and delivered on time—every time.

            3. Take sustainability seriously 

            Environment, social, and governance (ESG) strategies are about more than ethical behaviour. Increasingly, sustainable business decisions are critical to maintaining supply chain resilience and trust in a brand. Investors, stakeholders, suppliers, and customers are all prioritising ESG, and supply chains have some of the most significant impact on organisations’ environmental footprint. 

            By strategically sourcing from sustainability conscious suppliers and setting clear environmental standards for your suppliers, to purchasing renewable energy and exploring more eco-friendly alternatives for packing materials, you can ensure your supply chain is having a positive impact on the business’ sustainability efforts. 

            4. Prioritise value over price 

            Traditional supply chain management strategies focused on reducing cost to the exclusion of other goals. Today, prioritising the delivery of a valuable service over solely cost-containment will benefit long-term business objectives. 

            Convincing company leadership to prioritise value over cost might be challenging, but this approach will result in higher levels of customer satisfaction. It will also help ensure steady business operations, and establish your reputation as a dependable supply chain partner. Ultimately, the long-term benefits of added value will outweigh the short-term savings from cost-cutting.

            5. Track the right metrics 

            Visibility is the first step towards making strategic, effective changes to your supply chain. In order to gain the accurate, granular understanding necessary to support strategic supply chain transformation, you need to track the right metrics. 

            From high level, top-down metrics like supply chain cycle time, down to more granular analysis like warehousing costs and inventory accuracy, the right metrics are key to enabling supply chain managers to identify strengths, and analyse inefficiencies to enable data-supported goals. 

            6. Recruit, develop, and retain talent 

            The increasing sophistication and availability of automation and machine learning technologies is reducing the amount of repetitive manual work required to operate supply chains. However, these new technologies are creating new demand for skilled workers. According to Deloitte, just 38% of supply chain leaders remain confident in their supply chain team’s ability to remain competitive in the current market.

            Supply chain managers looking to embrace new technologies while closing the skills shortage gap will need to invest in acquiring new talent. Simultaneously, existing employees will need to be retrained and upskilled. Providing career and skill development opportunities for existing employees also aids retention. It’s vitally important for supply chain leaders to create clear, actionable paths to promotions that are both vertical and horizontal. 

            • Collaboration & Optimization
            • Digital Supply Chain

            Geopolitical and economic pain points must be met with cooperation if critical mineral supply chains are to be built and maintained successfully.

            The world is in the process of a seismic economic and organisational shift towards sustainable decarbonisation. Fossil fuels need to be replaced by sustainable alternatives, including solar, wind, and nuclear; the combustion engine is being replaced by the electric motor. It’s a new kind of industrial revolution. As such, the raw materials that are necessary to drive this green transition are different from those that came before. Already, this shift in the location and nature of raw materials procurement is creating challenges and complexities.

            Specifically, graphite, cobalt, lithium, and copper (among others) are increasingly essential resources. Graphite and lithium, in particular, are essential to the electric vehicle supply chain. As the EV market grows rapidly, so too does demand for these metals. “Global demand for lithium and graphite, two of the most important materials for EV batteries, is estimated to grow by more than 4000 percent by 2040 in a scenario where the world achieves its climate goals,” notes an IEA report

            Critical mineral supply chains are vulnerable to change 

            However, geopolitical and environmental pressures threaten to destabilise the supply chains that rely on critical minerals like lithium. From the war in Ukraine to the drought in Panama, securing access to critical materials is an increasingly fraught process. 

            It doesn’t help that many of these minerals are geographically scattered. Many of them are located in countries outside of traditional manufacturing supply chains. For example, South Africa controls the vast majority of manganese production. Manganese is used to make wind and solar power generation equipment, as well as EV batteries. Speaking of EV batteries, Chile claims the world’s largest lithium reserves, closely followed by Australia, Argentina, and China. Turkey and China have the richest reserves of graphite. And lastly, the Democratic Republic of the Congo possesses the world’s largest cobalt reserves and the seventh-largest copper reserves.  

            These countries’ position at the root of critical mineral supply chains could “lead the world in both technology and clean energy into the next century,” argues an ORF report. In much the same way that oil reserves have generated massive wealth for individuals, corporations, and nation states over the last century, access to the necessary minerals for building electric cars, solar farms, and other green tech could see similar shifts in economic fortune. 

            The report adds: “There is no doubt that access to critical raw minerals is a top-of-mind agenda for countries around the world. What is less clear, however, is where global cooperation goes from here.”

            Reevaluating the West’s relationship to Africa 

            Some experts argue for a “strengthening of transatlantic partnerships with Africa.” The Chinese government’s strategy over the past several decades has raced ahead of Europe and North America in this goal. Chinese developers offer “infrastructure projects and no-strings-attached investments that are attractive to leaders who want to build their own economies.” 

            Europe and the US could aim to replicate this strategy. However, the ORF caution that “if countries want to truly prioritise the green transition, it means not only increasing policy dialogue with Africa, but also coming to the table with worthwhile partnerships.” 

            Both the US and Europe must “fundamentally change” their relationships with Africa. ORF report author Rachel Rizzo argues that, “if the West wants to build better relationships with Africa, it must offer something of value in exchange.” She argues for genuine industrial partnerships that allow African states to “move up the value chain,” from simply extractive roles to refining and manufacturing. 

            • Collaboration & Optimization
            • Sustainability

            Supply chain disruptions continue to force SCMs to adapt. Here are our top 4 areas for supply chain managers to focus on that produce the best results.

            Supply chain managers are facing an increasingly complex and challenging landscape. While the spectre of the pandemic is fading, new challenges and pain points have arisen. Geopolitical tensions, economic pressures, and the looming climate crisis all conspire to make effective supply chain management more essential to organisations than ever. 

            For supply chain managers, the current landscape can feel overwhelming. Increasingly, SCMs are asked to react to complex and intractable problems while also increasing efficiencies and creating strategic wins for the business. 

            Here are four key areas where SCMs can focus on creating efficiencies and unlocking new capabilities for their supply chains. 

            1. Visibility 

            Visibility is critical for supply chain leaders looking to improve their operations’ efficiency or productivity. 

            AI and machine learning can quickly and accurately ingest large amounts of data. As a result, successfully adopting these technologies can generate useful insights that can improve supply chain forecasting, inventory management, and customer service. IoT enabled real-time tracking systems can help follow the movement of goods through the supply chain, helping identify potential inefficiencies and bottlenecks. Lastly, using enterprise resource planning (ERP) software to orchestrate and oversee multiple elements of a supply chain is becoming essential as supply chains become more complex. 

            2. Sustainability 

            Decarbonising the supply chain is becoming an increasingly non-negotiable goal for SCMs. However, sustainability reform is often the first thing to take a back seat when supply chains face pressure to improve reliability or cut costs. Nevertheless, pursuing more sustainable supply chain operations is an increasingly essential way to mitigate risks, such as regulatory penalties or reputational damage. 

            Engaging in ethical and sustainable sourcing can not only ensure compliance and create reputational benefits. Sustainable supply chain practices can also improve supply chain continuity, create new partnerships, and attract new business.  

            3. Automation 

            From warehouse automation and robotics to RPA and back-office automation, figuring out which elements of a supply chain to automate can be a challenge. Nevertheless, identifying which pain points can be alleviated by automation is a worthwhile pursuit for SCMs

            For example, supply chain teams handle a wide variety of documents, including delivery orders, dock receipts, bills of lading, and sea waybills. Processing these manually is time-consuming and prone to errors which can delay and disrupt operations. Artificial intelligence (AI) and optical character recognition (OCR) enable document automation from one end of the supply chain to the other. 

            4. Demand planning 

            Accurate demand forecasting—using historical sales data, research, and analysis of market trends—enables supply chains to ensure they aren’t overstocking (or going to run out of) inventory. For example, a clothing retailer could use sales data from the previous ten seasons, along with current fashion trends to predict the demand for specific clothing items next season.

            Big data and predictive analytics enhance forecasting accuracy, better enabling businesses to adapt to changing customer needs. Advanced software tools automate parts of the forecasting process, offering real-time updates and alerts on inventory levels to optimise stock management.

            • Collaboration & Optimization

            Fast fashion brands are embracing blockchain to better trace the sustainability impact of their supply chains, but can it really help clean up their operations?

            The fast fashion industry has faced mounting criticism over its environmental impact and human rights record. Now, regulators and the general public are increasingly pressuring fashion brands to increase transparency and improve their ESG practices. Thanks to legislation like the EU’s Circular Economy Action Plan, or the US’ Uyghur Forced Labour Prevention Act, fast fashion brands are being forced to invest more heavily in supply chain transparency. 

            Unfortunately, pinpointing exactly how and where clothes were made, by whom, and under what conditions is a major challenge. Increasingly, fast fashion manufacturers are turning to blockchain as a potential solution. 

            Blockchain technology has been around since 2009 when the technology emerged as a way to underpin digital currencies like Bitcoin. The purpose in that case was to provide a distributed ledger to record and notarise transactions without the need for a centralised authorising agency. 

            Since then, blockchain’s potential for creating a verifiable, tamper-proof record of events has raised the technology’s profile as a method of creating visibility in the supply chain. The technology has seen relatively widespread adoption in the finance and food production sectors. 

            More recently, fashion manufacturers have embraced blockchain for its potential to trace clothing along the value chain. 

            Blockchain in vogue this season 

            The first instance of blockchain used to authenticate the supply chain journey of a piece of clothing comes from 2017. London-based designer Martine Jarlgaard launched a project which tracked the passage of raw material through the supply chain all the way to the finished garment. 

            More recently, UK fashion retailer New Look announced plans in November to integrate blockchain based tracking into its operations. “The platform will integrate with retailer, manufacturer and supplier systems, as well as other third-parties, such as certification agencies, lifecycle datasets and other sustainability solution providers, to provide granular insight into New Look’s supply chain,” said Shameek Ghosh, CEO of TrusTrace, who provided the blockchain solution to New Look. 

            Clare Woodford, global director of impact and engagement at Alpine Group, stressed in a recent interview that blockchain is more than embracing a trend. “It’s future-proofing the fashion industry by creating a supply chain that is not only efficient and secure but also accountable and responsible,” she explained. 

            Blockchain adoption is certainly moving forward. The technology, however, is still in the process of transitioning from the experimental PR stunt stage to widespread implementation. “As with the broader trend in enterprise blockchain adoption, the apparel and textile industry’s initial foray into blockchain was characterised more by experimentation than by widespread implementation,” said Nicklas Nilsson, a consultant for GlobalData. “It’s only in the past couple of years that we’ve seen a meaningful shift towards practical applications, particularly in enhancing supply chain transparency.” 

            Criticism of blockchain in fast fashion 

            There’s no denying the excitement surrounding blockchain as a potential guarantor of supply chain sustainability. Reports of human rights violations and unsustainable practices consistently plague the fashion industry. For many brands, a blockchain-based authentication of their ESG bonafides could represent the reputational (and legal) armour they desperately need. 

            However, the idea that by informing consumers, blockchain will push brands towards embracing genuine stability has its critics. Relying on a technology, effective or not, to alter practices that are core to an industry’s business model can never be effective, argues Nayla Ajaltouni of Éthique sur l’étiquette. “The business model of fast fashion is based on the break-up of the value chain, poor quality, pressure on wages, and low production costs,” she explains. “If brands do not respect human rights, it is not because they lack a technological tool; if they want it, they can already do so all along their supply chain. It’s not blockchain that’s going to change things”.

            • Digital Supply Chain
            • Sustainability

            DHL Group’s Erik-Jan Ossewaarde discusses the power of partnerships in the transition towards a green supply base, and how proactively fostering supplier relationships contributes to a more sustainable ecosystem…

            It’s hard to believe we’ve reached the 50-issue landmark. It’s been such an incredible journey and thank you to every single person who has helped us along the way! And our 50th issue has a suitably fitting cover story with which to mark this moment.  

            Read the latest issue here!

            DHL: The power of sustainable partnerships 

            DHL Group’s Erik-Jan Ossewaarde discusses the power of partnerships in the transition towards a green supply base. And how proactively fostering supplier relationships contributes to a more sustainable ecosystem 

            Procurement has an important role to play in applying supplier sustainability initiatives in most organisations. We all know that. But, if you want to understand what that looks like in practice and how you transform the function to deliver on that promise, you could do a lot worse than spending time with Erik-Jan Ossewaarde and his strategy, sourcing, and procurement colleagues in his global cluster, as we were lucky enough to. Their job is to play a crucial role in delivering on the near-unmatched sustainability commitments set out by world-leading logistics company DHL Group to reach its goal of net-zero carbon emissions by 2050.  

            DHL: how proactively fostering supplier relationships contributes to a more sustainable ecosystem 

            Read the full story here!

            Aquila Group: Purposeful procurement in mind 

            We speak to Özer Ergül, Group Head of Procurement at Aquila Group, about the way the business is leveraging its position to influence suppliers and improve ESG across the board 

            Investment and asset development company, Aquila Group, is one that takes sustainability seriously. It invests in and develops clean energy and sustainable infrastructure assets, meaning a focus on ESG is baked into the business with more than 15 years’ experience focused on climate change. And for Özer Ergül, Group Head of Procurement at Aquila Group, it’s the perfect canvas for his passions and expertise to come together. 

            Ergül’s background is a mixture of aerospace, automotive, and for the last two decades, energy. He started off his career as an Air Force officer and moved into the automotive world in the 1990s, just as the sector was undergoing huge and exciting changes. “Those early roles shaped my way of working, my way of thinking,” Ergül explains. “They showed me how to solve problems collaboratively, and I still use those tools and that knowledge to this day.” 

            Read the full story here!

            Plus, we have fascinating exclusives with procurement leaders at Amazon Business Services, HICX and many, many more. Plus, all the latest news and events affecting procurement and its practitioners. 

            Here’s to the next 50 issues! 

            The next generation of smart, connected packaging is giving supply chain leaders new levels of insight into their logistics operations.

            More than 161 billion parcels were shipped around the world in 2022. In less than six years, growth in e-commerce is expected to drive global parcel volume sky high. The number of parcles shipped workdwide is predicted to reach 256 billion in 2027

            As a result of the booming e-commerce sector, supply chain managers find themselves facing an increasingly demanding landscape. At the same time, the need for sustainability is changing the way that supply chain operators approach packaging. 

            Packaging is getting smarter

            Smart packaging refers to a broad category of developments to the ways in which parcels are shipped. Some smart packaging focuses on tracking, whereas others can sense and react to environmental changes or changes in their contents. 

            Smart packaging also refers to the trend of increasingly sustainable packaging.

            The use of bio-based, recyclable, reusable, and biodegradable materials in packaging has proven to be a key area of sustainability gains for the logistics sector. This is especially important as organisations face growing regulatory pressure and simultaneously rising demand. 

            It’s a varied, sometimes contradictory field of innovation with myriad developments taking place at the same time. Examples include antimicrobial packaging that extends the shelf life of produce, or sensors on cartons that change colour to indicate milk has spoiled. In the food and pharmaceutical sectors, smart packaging is used to maintain and ensure the cold chain hasn’t been broken between the factory and the pharmacy. 

            Connected packages can now more cheaply be fitted with RFID or NFC transmitters. These chips enable direct communication with consumers via smartphones. QR codes are also gaining popularity outside of APAC. This, along with the new development of digital watermarks printed covertly on packs, known as digital passports, is greatly increasingly the ability to track and authenticate packages along the entire supply chain. These watermarks can not only carry useful information throughout the packaging’s journey to the customer, but material recovery facilities can scan these digital watermarks to instantly identify the material composition of discarded packages, improving sorting and recycling processes.

            Challenges to smart packaging adoption 

            As with any highly varied technological trend, smart packaging’s growth sometimes pulls in opposite directions. 

            A lot of smart packaging that focuses on tracing the progress of a parcel throughout the supply chain contains components such as batteries, sensors, displays, and circuits which are challenging to recycle. Additionally, multiple types of components mean that manufacturing and buying smart packaging incurs new regulatory complexities. 

            Lastly, smart packaging that includes real-time tracking and monitoring can lead to data privacy issues. If poorly secured, smart packaging could expose sensitive personal information like user location, identity, and preferences. Cryptography and blockchain technology have been highlighted as potentially useful ways to address these concerns. However, using them also greatly raises the cost and resources needed to create a fully secure solution. 

            • Digital Supply Chain
            • Sourcing & Procurement

            Critics of the newly-passed CSDDD argue that it could inadvertently harm developing economies, potentially wiping billions of dollars from national GDPs.

            Long, complex, and opaque supply chains are a well-established breeding ground for human rights abuses. All too frequently, investigators and regulators find forced labour, unsafe conditions, and environmentally harmful practices in global value chains of organisations professing their ESG bonafides. 

            On April 24, 2024 the European Parliament approved its new “due diligence” directive. The Corporate Sustainability Due Diligence Directive (CSDDD) aims to mitigate human rights violations and environmental issues propagated within the global supply chain. 

            What is the Corporate Sustainability Due Diligence Directive?

            The scope of the CSDDD will eventually apply to any EU company or parent company with an international turnover higher than 450 million euros and over 1000 employees. It will also affect companies with franchising or licensing agreements in the EU. The latter will be subject to the new rules if their worldwide turnover is higher than 80 million euro (if at least 22.5 million euro was generated by royalties). 

            Organisations found to have human rights or environmental violations within their supply chain could face heavy fines. Responses to the directive have been mixed, as evidenced in the vote itself. The CSDDD was ratified, with 374 votes cast in its favour, and 235 in opposition. A further 19 MEPs abstained. 

            Supporters of the CSDDD see the new regulations as instrumental to ensuring ethical business practices throughout global supply chains. The date of the vote held specific significance as it was the 11th anniversary of the collapse of the Rana Plaza factory in Bangladesh. The event claimed over 1,000 lives and highlighted crucial issues surrounding the European fashion supply chain.

            It is clear that scrutiny of global supply chains is required when the cost is human lives and the welfare of the planet. Nevertheless, critics for the CSDDD have raised questions as to whether the new directive addresses these issues effectively.

            Potential corporate difficulties 

            The coming years as the directive gets underway will prove challenging, as the CSDDD goes beyond Tier I suppliers, taking into account the entire supply chain. Companies will need to alter their operations alongside the new framework. This will not only require businesses reshaping their own practices, but also to address their suppliers’ operations. 

            The directive will also bump up against the different strata that make up compliance in the ESG (Environmental, Social and Governance) field. Depending on national supply chain regulations, companies could have to wait for guidance from their governments on how to navigate existing laws, whilst still responding to the EU ruling.

            Impacts on vulnerable economies

            Another major stumbling block for the well-intentioned regulations is the prospective impact it will have on weaker economies attached to the EU’s supply chain. 

            Jodie Keane, a Senior Research Fellow with the International Economic Development Group at ODI, is one of a group of researchers who have modelled the economic data that highlights the  prospect of a “green squeeze” heralded by the CSDDD. 

            Keane asserts that countries like Ethiopia could face GDP reductions of up to $1.13 billion as an upshot of the directive’s effects upon the supply chain. She also expresses concerns that these repercussions could echo across the global economic landscape. “Ethiopia isn’t unique: a similar situation is playing out in other poorer countries exporting goods into the EU,” she adds. 

            Last week, researchers from the Complexity Science Hub (CSH) published a study examining the impact countries with high GDPs have upon those with medium-to-low GDPs by way of the global supply chain. The study calculated different countries’ exposure to economic losses caused by companies based in other countries, using firm-level data sourced from the global supply network. The parallels with Keane’s assertions regarding how rich countries expose poor countries to economic risk through the global supply chain are evident.

            “We discovered that high-income countries create significant exposures beyond their regions and thus export systemic risk,” stated Stefan Thurner, senior author of the study. Comparatively, these high exposure values disproportionately affect low-income countries.

            Next steps

            The EU will gradually expand the new regulations’ effects between now and the end of the decade, with the directive broadening its scope over the next 5 years or so

            Its goal is to enact positive change in relation to human rights and environmental issues, however, the impact upon costs to businesses is already perceptible and the potential for harming developing nations looms heavily on the horizon.

            • Risk & Resilience
            • Sustainability

            A proliferation of data is creating bigger siloes and pain points than ever before throughout unprepared supply chains.

            Supply chain management is an increasingly data-driven field. This trend is being accelerated by a confluence of factors. First the increasing complexity of global supply chains and the growing risk of more frequent disruption. Secondly, more responsibility is being placed on functions like supply chain and procurement. Once more tactical and functional, these functions are now expected to deliver strategic wins and cost reductions for the business. 

            As a result, supply chain leaders are investing heavily into data collection and analysis tools. Their hope is that, with the application of machine learning and artificial intelligence (AI) analytics, vast quantities of data can be leveraged into full organisational visibility and strategic insights. 

            “Capturing, protecting and then leveraging an organisation’s data through the use of AI and Machine Learning is an example of how organisations are increasingly turning towards intangible assets to extract new sources of value,” noted Ken Chadwick, VP Analyst at Gartner’s Supply Chain Practice, in a report from October. Spurred by the need to generate more valuable insights, supply chain organisations are collecting as much data as possible, from ERP platforms, advances tracking systems and, increasingly, from the Internet of Things (IoT). 

            However, making effective use of data is another matter entirely. Experts at KPMG argue that, despite massive investment, data remains “one of the core challenges facing supply chain management.” 

            The data management challenge 

            Every day, “millions and millions of date records are generated across the supply chain from multiple systems,” notes KPMG’s 2024 Supply Chain trends report. The problem is that supply chain operators are failing to successfully manage this growing wealth of data. The resulting deluge has “given rise to greater silos of data within the organisation.” In turn, this has led to disconnected data sets, among other issues.  

            They add: “Duplication and misinterpretation will become increasingly problematic, too. Critically, the fragmentation of data impedes the creation of a holistic view of the organisation’s supply chain.” 

            Addressing the data problem 

            Supply chain operators must abandon the “more is more” approach to data analytics that is currently creating pain points throughout the sector. If they intend to make strategic, informed decisions, these data management complexities need to be addressed. 

            Focusing on data availability, quality, reliability, cadence, and consistency enables supply chain managers to get better control over their data. By doing this, they will be significantly better positioned to eliminate pain points. By focusing on specific data use cases, organisations can take a more intentional and proactive approach to applying their data. In time, establishing data management standards will improve the overall quality of the data that is kept, handled, and used for decision making. 

            • Digital Supply Chain
            • Risk & Resilience

            Shorter supply chains cut carbon costs and increase resilience, but do so at the expense of year-round convenience.

            Food supply chains around the world are facing an array of challenges, even as the legacy of COVID-19 fades. Geopolitical disruptions are creating delays and increased shipping costs. At the same time, inflation and the rising cost of living have put pressures on supply chains to combat cost. 

            Above all, of course, the worsening effects of the climate crisis continue to create supply chain instability. Nowehre is this happening more so than in the food and agriculture sector. According to the EPA, “climate change is very likely to affect food security at the global, regional, and local level. Climate change can disrupt food availability, reduce access to food, and affect food quality.” Changes in rainfall, humidity, temperature, and other cyclical weather patterns (as well as the increasing regularity of extreme weather events) have the potential to “result in reduced agricultural productivity.” 

            Global food supply chains are under threat 

            This increasing instability in global crop yields is already threatening the availability of crops around the world. 

            Last year, in India, tomato prices surged by over 300%. This is thanks to climate change-related flooding in major tomato-producing Indian states like Andhra Pradesh, Maharashtra, and Karnataka.

            2023 was also the worst year for grapes in over 30 years. Droughts and wildfires in South America and an overabundance of rain in Europe slashed yields in some of the world’s largest grape-producing mountries, according to estimates by the International Organization of Vine and Wine (OIV). 

            Potatoes are also severely threatened by climate change if we continue at our current trajectory. Data suggests that global potato yields could fall by between 18% and 32% within the next 45 years.

            Food insecurity in Europe could be closer than we think

            In their current configurations, European and UK food supply chains are vulnerable to the worsening effects of the climate crisis. A little less than half of the food on plates in the UK is produced domestically, according to the British Government’s 2021 food security report. Despite relatively strong domestic production, the report stresses that the UK is reliant upon “diverse and longstanding trade links” in order to “meet consumer demand for a range of products at all times of the year.” 

            Other countries in Europe also rely on imported goods to guarantee year-round supplies of fruit and vegetable produce. These supply chain links are especially vulnerable to climate change disruption. For example, just under 40% of Germany’s fresh fruit and vegetable imports come from developing countries. These are areas of the world being disproportionately affected by climate change and experiencing much more severe food insecurity. Climate change-related food insecurity could cause civil unrest in countries like the UK within the next few decades. Other nations in Europe are likely to be similarly affected, unless the region reevaluates its approach to agricultural procurement. 

            Interestingly, not only is the process already underway somewhat organically, but a widespread shift in the way that Europe sources its produce could remove some strain on other regions whose food insecurity is at least partially linked to exports, like India. 

            Pressures on global supply chains were expected to abate along with the effects of the pandemic. However, it seems as though the year (and decade) ahead will be defined by a near-constant state of disruption. The climate crisis is only expected to exacerbate this increasingly unstable state of affairs. 

            As a result, many governments and companies (across multiple industries) began the process in late 2023 of nearshoring (or friend-shoring, in more political cases) their supply chains. 

            Shorter supply chains and a return to seasonal food 

            By moving closer to home, organisations reduce the risk of disruption to their procurement process. This is the case whether the goods moving through the value chain are silicon semiconductor chips or corn tortilla chips. 

            This phenomenon was already present in Europe pre-pandemic. A report released in 2016 by the European Parliament found that shorter food supply chains where “farmers sell their produce directly to consumers or with a minimum of intermediaries,” were flourishing across the EU, both in rural and urban areas. These shorter, localised food supply chains, the report’s authors hoped, could “represent an alternative to conventional longer food chains.” 

            Now, this trend is expected to accelerate further under pressure of mounting supply chain disruptions. This shift away from extended, complex supply chains “where any one of a multitude of moving parts could give retailers a pricing headache” has a price, however. According to Carlos Cordon, a professor of strategy and supply chain management at the IMD, this shift “militates against all-year-round availability.” 

            Cordon believes that 2024 could be the first year when European consumers “find themselves transported back to a time when out-of-season goods were not available from their local stores.” Retailers throughout Europe may not be able (or willing) to source goods from the other side of the world. 

            As a result, Europe’s food supply chains could get significantly shorter. This would increase their stability, but at the expense of the availability of out-of-season produce.

            There could also be major benefits from a sustainability perspecive. Food transport has been estimated to account for one-third of the sector’s greenhouse gas emissions. As an added bonus, this reemphasis on seasonality could be the key to reducing carbon emissions and food waste while addressing food insecurity. 

            • Risk & Resilience
            • Sourcing & Procurement

            Supply chains face an increasingly complicated threat landscape. Catching hidden risks before they disrupt operations is essential to supply chain management success.

            Risk management is a critical aspect of supply chain management. In 2024, supply chain leaders find themselves facing an increasingly hostile supply chain landscape. Geopolitical conflict, economic pressure, and the worsening effects of the climate crisis all conspire to disrupt trade, increase costs, and destabilise supply chains. 

            However, not every supply chain risk is as easily identifiable as a war in Ukraine or a drought in Panama. There are hidden risks to every supply chain. The supply chain leaders who can identify these risks are the ones with the best chance of avoiding disruption and capitalising on new opportunities. Here are 5 hidden risks you should be watching for in your supply chain. 

            1.  Tier 2 suppliers and beyond 

            The biggest risk to your supply chain often lies beyond your tier 1 suppliers. These are organisations who you can vet, and are probably required to adopt certain business practices, as well as demonstrate their overall financial and operational health to you. However, your supplier’s suppliers, and their suppliers (and theirs) present a much greater risk. Suppliers from lower tiers can pose risks that echo throughout the supply chain if they fail or go bankrupt.

            There is a lot less control you can exert beyond tier 1 suppliers, so ensuring tier 2, 3, and 4 suppliers aren’t a threat to your supply chain can be complicated. To address this issue, start by focusing on your top 20 suppliers. Identify their sub-suppliers and check their financial health, business practices, and overall stability. 

            2. Supplier financial instability 

            Suppliers at any point in the supply chain could go bankrupt. Most companies at risk of bankruptcy will likely try to hide this fact until the last possible moment. Asking a supplier for an assurance of their financial stability isn’t enough. 

            Any supplier relationship whose failure has the potential to seriously harm your operations should start with a thorough assessment of public documents, research, and references. This is especially important if the supplier is located in another country where your organisation may have less legal recourse to recover funds in the case of bankruptcy.   

            3. Supplier unethical behaviour and compliance breaches 

            A significant failure by a supplier to uphold ethical standards or meet compliance guidelines can not only damage your company’s reputation but also disrupt your supply chain, erode customer trust, and lead to legal consequences for your organisation. 

            It’s crucial to ensure that all associated partners maintain high ethical conduct to safeguard your company’s image and avoid potential legal issues. 

            A wildfire that closes a sea port or an earthquake that destroys a factory is obvious. However, there are subtler, harder-to-identify effects of the climate crisis that can be just as devastating to your supply chain. Heatwaves can lead to an unusually poor harvest, leading to a spike in the price of biofuels and raising logistics costs on the other side of the world. Unseasonal snow cracks and degrades concrete, which leads to landslides and more logistics disruptions next spring. 

            The repercussions of our worsening climate aren’t always predictable or avoidable, but monitoring the ways in which extreme weather events affect supply chains in both the short and long term is an increasingly critical part of supply chain management. 

            5. Third party cyber attacks 

            Whether it’s AI deepfakes or good old fashioned ransomware, cyberattacks are on the rise. As supply chains become increasingly interconnected with their ecosystem (and each organisation becomes increasingly digitised and saturated with IoT) hackers have more attack vectors at their disposal than ever. 

            According to Gartner’s 2022 Thriving Amid Heightened Complexities Supply Chain survey, 31% of respondents reported experiencing a cyberattack in the last 24 months that impacted supply chain operations. Third party supply chain attacks are on the rise, and it’s not just large scale enterprises being affected.

            • Risk & Resilience

            Rising water levels in one of the world’s busiest freight corridors could see the end of one of the most severe pain points affecting global shipping.

            The months-long drought affecting the Panama Canal may be coming to a close. The return of annual rains are predicted to raise water levels throughout the 51 mile-long stretch. With the end of the drought, optimistic predictions could see shipping volumes return to their normal levels. If that happens, it would ease one of the most severe pain points faced by supply chains in recent years. 

            Since Summer 2023, a brutal drought caused water levels in one of the world’s busiest waterways to drop to historic lows. 

            The reduced water levels have cut the rate at which ships can traverse the Canal in half. By December, long queues developed. According to reports, some captains paid as much as $4 million to jump to the front of the line. Those unwilling or unable to pay inflated rates have been forced to make a difficult choice between weeks spent waiting in line and long, inefficient journeys around the southern tips of either Africa or South America. The drought has also coincided with Houthi attacks in the Red Sea, further disrupting global shipping. As a result the cost of container shipping nearly double year-on-year in Q4 2023.

            The end of the drought in the panama canal

            Now, however, the start of Panama’s rainy season could see the trade chokepoint resolve itself. The news has been welcomed as global supply chains brace for the busiest months of the year. 

            According to IMF PortWatch, the number of vessels traversing the Canal averaged 25 per day in April. That’s a significant jump from the record low of 21 in January. However, it’s still a long way below the pre-drought average of 35 ships. 

            The upward trend is expected to continue, however. The canal’s governing authority recently announced plans to lift the number of daily transits through the canal to 31 in the second half of May. Then, in June, the figure will rise again to 32.  

            A report by S&P Global Market Intelligence noted that this rise in water levels “should steadily lift the restrictions to global trade resulting from canal disruptions since last year, which is particularly important ahead of the peak shipping season.

            “By the end of April, rain is going to begin and we’re going to have a lot,” Argelis Moreno Lopez said earlier this month at a conference at the University of Houston, Bloomberg reports. “That will reverse the situation and go back to normal at the end of the year or next year.”

            • Risk & Resilience
            • Sourcing & Procurement

            “T-shaped” supply chain professionals combine deep specialisation backed up by broad industry knowledge.

            Around the world, supply chains are increasingly under pressure. 

            Geopolitical and environmental pressures like conflict in Ukraine or the intensification of the climate crisis aren’t entirely to blame. For many supply chain and procurement teams, the inherent complexity and volume of their roles is increasing. Most allarmingly, workloads are growing without the additional headcount needed to support them. 

            “Skills shortages are now seen across all points of the supply-chain continuum, from sourcing to production, logistics, and delivery of goods and services,” author and researcher Joe McKenrick wrote for the Harvard Business Review in September 2023. While McKendrick admits that technology has advanced sufficiently in recent years to “fill in many of the gaps resulting from skills shortages,” he stresses that technology alone cannot solve this problem.    

            The future of procurement and supply chain is T-shaped 

            One of the issues contributing to the skills shortage in the supply chain sector is an increased trend towards hyperspecialisation. 

            Driven by increasingly rapid tech advancement cycles, the as-a-service economy, and a rise in third-party consulting, disciplines have become increasingly refined

            Organisations today are often comprise expert professionals with high levels of competency in a single specific area. These employees work in silos that lack connectivity with other branches of the larger business. This specialisation not only makes organisations less agile, but slows the process of replacing, retraining, and upskilling workers.  

            These specialised workers, with a narrow knowledge base, are known as “I-shaped.” Increasingly, supply chain leaders are feeling the need for workers with a more holistic understanding of the discipline. However, generalists lack the deep, specialised knowledge that can translate into strategic wins and competitive advantage for an organisation. 

            The answer is the T-shaped professional. T-shaped professionals or procurement teams are individuals or groups with deep specialisations in a mixture of fields. However, unlike “I-shaped” workers, T-shaped procurement and supply chain professionals also have a broad, generalised knowledge base. This type of employee is more capable of acting outside their area of advanced specialisation. Not only this, however, but their skill makeup make sthem significantly better at collaborating with other professionals. 

            This is an age of procurement and supply chain staff shortages. For organisations looking to overcome these pain points, focusing on hiring people with a mixture of deep, specialised knowledge and generalist skills will allow teams to do more with less.

            • People & Culture
            • Sourcing & Procurement

            Pressures on supply chain organisational processes are increasing. AI might be part of the solution with low and no-touch planning solutions.

            Supply chain teams in 2024 are under an increasing amount of pressure from multiple, often conflicting, directions. 

            Continued focus on sustainability and other ESG criteria is clashing with rising logistics costs, shipping delays, and pressure to cut costs. At the same time, the skills shortage continues to reduce employee headcounts while workloads are on the rise. 

            As a result, supply chain management capabilities across many organisations are starting to show signs of the strain. 

            “Existing planning capabilities have been unable to meet the demands of a more complex, multi-tiered, more nuanced world,” note KPMG analysts in a recent report. As a result, they argue that “few companies” with large, complex supply chains have enough visibility into the consequences of their actions. Without the ability to “run effective scenario analysis to determine the financial consequences of important decisions,” supply chain leaders are increasingly working in the dark. 

            However, a new crop of solutions powered by artificial intelligence (AI) may offer a solution to a shortage of supply chain hands: low and no-touch supply chain planning. 

            Low and no-touch supply chain planning enabled by AI 

            AI-powered apps are increasingly being used to automate both sales and operational planning and integrated business planning. These applications KPMG notes, could be the answer to the question of how to bridge the “gap between supply chain planning and execution.” 

            Low-touch planning can streamline processes and harness advanced analytics to tackle complex issues with minimal human input, taking “large swaths of manual work out of the end-to-end planning process.” 

            AI’s ability to analyse large, disorganised data sets at scale is pivotal here. The technology is especially good at spotting anomalies and patterns that could indicate future disruptions, and offering potential solutions quickly. 

            Successfully implementing a no-touch supply chain planning model requires a combination of detailed analytics, transparent tracking via an application or dashboard, granular and trustworthy data, and standardised procedures across the supply chain. The process also requires a degree of trust and cultural transformation. Experienced teams may initially resist relinquishing many activities traditionally seen as core to supply chain management to digital tools. 

            McKinsey advises that the best way to manage this shift is to implement a “two-speed IT architecture.” The first is a fast-paced ‘test-and-learn’ environment suitable for rapid prototyping and iterative development. The company then buillds this on top of their existing technology stack. 

            Users can then develop rapidly, test, and refine new approaches before implementing them in the existing stack. Once new solutions are proven effective, they are migrated to the main technology stack. 

            If successfully implemented, a low or no-touch method can help supply chains manage industry pain points, optimise processes, and create lasting resilience.  

            • AI in Supply Chain
            • Collaboration & Optimization

            Smart inventory management increases supply chain resilience, cuts costs, and minimises waste.

            Inventory management is an essential element of supply chain operations. Excess inventory ties up profits and incurs storage costs. Stockouts deprive the company of revenue and cause long-lasting reputational damage. 

            Finding the right balance of inventory is a complex and challenging prospect for supply chain managers. This is especially true as stock levels can fluctuate in response to market risk, unpredictable customer demand, and logistics disruptions on the other side of the world. Managed correctly, however, and a right-sized inventory is a source of cost-containment, resilience, and agility. 

            Here are our top five best practices when managing inventory in the supply chain. 

            1. Leverage data to forecast demand 

            A key element of making sure you have enough raw materials, goods, and finished products when and where you need them is predicting end-user demand. Consumer demand is especially difficult to predict in 2024, as economic pressures and the waning effects of the pandemic push and pull companies and individuals in conflicting directions. 

            Traditional inventory management and ERP systems don’t provide the necessary flexibility and digital tools to simulate options and test forecasting models. Investing in next generation tools will allow you to match inventory with a nuanced, detailed understanding of customer demand. 

            2. “Lean” into the just-in-time model 

            While resilience has increased in importance over the last few years, there is still a place for just-in-time methodology in the modern supply chain. Procuring late stage components later in the production stage, for example, can reduce the amount of time (and money) spend holding materials in warehouses. 

            Just-in-time may be able to reduce costs and smooth operations, but it still carries risk. Accurate demand forecasting and risk assessment are key to reducing the safety margins on your inventory management process.  

            3. Accurately assess macro and micro risk

            Being able to identify, assess, and predict disruptions to your supply chain is key to inventory management. Both macro-risks stemming from large scale disruptions (like the COVID-19 pandemic, or the war in Ukraine, for example), and micro-risks like regional weather events, single-supplier issues, and other more localised disruptions need to be tracked, anticipated, and predicted as best as possible. 

            4. Use tiered inventory management analysis

             By dividing your inventory into different tiers, you can approach managing different classes of inventory differently. Your highest tier items represent the 20% highest value items your organisation handles. Prioritise their availability and maintain a stock buffer in case of disruption that interrupts your ability to procure more. 

            Next, your middle tier items (representing about 40% of your stock) should be managed regularly, but may require less safety stock. This is an area where just-in-time methodology can net the biggest rewards with the least risk. Lastly, your bottom 40% of stock should only require semi-regular evaluation. These materials move less frequently and a disruption in supply won’t immediately create serious pain points for the organisation. 

            By using a tiered inventory management approach, you can more effectively prioritise your procurement process, as well as reduce time and resources spent monitoring low-value stock.  

            5. Standardise your processes  

            Lastly, a high degree of standardisation across your inventory management processes is an important way to create the necessary predictability and visibility throughout your organisation. 

            Introducing processes like cycle counting, day of sale inventory, economic order quantity, and a reorder point can significantly optimise usage, minimise waste, reduce costs, and prevent disruption.

            • Collaboration & Optimization
            • Digital Supply Chain

            Goods manufactured using forced labour are set to be banned from EU supply chains following a move said to target China.

            In a move that echoes US legislation passed in 2021, the European Union voted this week on a new bill. The legislation, which is expected to come into effect within the next three years, bans products made with forced labour. The bill is expected to target the presence of forced labour in Chinese supply chains. In theory, it will prevent such products from reaching the EU. 

            Forced labour in Xinjiang

            Today it’s estimated that around a million people are currently performing forced labour in the Xinjiang region. The people forced to work in the Chinese government’s “labour transfer programs” are largely ethnic Uyghurs and other Turkic Muslims. According to Human Rights Watch, the Chinese government forces these people to take jobs away from their homes. Once separated from their families, the transported people work long hours in unsafe factories and warehouses. 

            If estimates are correct, approximately one in four people trapped in forced labour live in Xinjiang. Many of the industries in Xinjiang form the basis of supply chains that supply Western nations. From textiles and mining to consumer goods manufacturing, forced labour casts a long shadow over global supply chains. 

            “It is simply unacceptable for our Union, which should be a global champion in promoting values, to continue importing and selling in our shops products that were made with blood and tears at some step along their supply chain,” MEP Maria Manuel Leitao Marques said in a statement to the press earlier this week. Leitao Marques is one of the lawmakers who pushed the latest anti forced labour bill through the EU parliament. 

            Forced out of the EU 

            This week, the EU Parliament voted through new regulations banning the presence of forced labour in its supply chains. The EU will no longer allow products made with forced labour to be sold, imported, or exported within its borders. 

            Shipments deemed to contain banned products will be intercepted and destroyed at the EU border. If found in violation of the law, manufacturers of banned goods will have to withdraw their products from the EU single market and donate, recycle or destroy them.

            “Today, worldwide, 28 million people are trapped in the hands of human traffickers and states who force them to work for little or no pay. Europe cannot export its values while importing products made with forced labour,” Leitao Marques said in a statement. She hailed the ruling as “a victory for progressive forces.” 

            However, critics of the bill have argued that the law does not go as far as the one implemented by the US government. Washington’s 2021 bill bans the importation of products from Xinjiang unless businesses can prove their production did not involve forced labour. In particular, the Biden administration has used it as a way to force China out of the US’ electric vehicle manufacturing supply chain.

            The EU bill passed with 555 votes in favour, 6 votes against and 45 abstentions. Now that the bill has been approved, the text must pass a final formal approval from the EU Council. EU lawmakers will then publish the bill in the Official Journal. Once it takes effect, EU countries will have to start applying it in 3 years.

            • Procurement Strategy
            • Sustainability

            Supply chains that successfully deploy digital technologies like machine learning and generative AI will be better positioned to succeed in our uncertain climate.

            Whenever the global supply chain sector appears to have weathered the latest headwind, another one starts blowing. From shipping disruptions in Panama and the Red Sea to unpredictable consumer behaviour and extreme weather events, supply chains are increasingly under threat. 

            Far from being an unlucky string of coincidences, the disruptions affecting supply chains today are largely part of larger trends—none of which are harbingers of a more forgiving supply chain outlook in the years ahead. Geopolitical tensions, stoked by economic downturns and growing dissatisfaction with the conditions of modern capitalism are increasing. 

            Countries and populations in the more vulnerable Global South are alrady feeling the effects of the climate crisis, often with lethal consequences. In the years to come, drought, crop failure, biodiversity collapse, and growing food insecurity threaten to place supply chains under even greater pressure. This is not to mention the increasing scrutiny supply chain operators will face as environmental regulations tighten. 

            Throughout 2024 and beyond, the supply chains that survive and potentially even thrive will be the ones that can adapt to disruption with agility, turning catastrophe into opportunity as challenges facing them mount. 

            A new kind of digital transformation 

            Increasingly digital transformation is the tool being used by supply chain leaders, not just to gain competitive advantage, but to survive in an increasingly hostile world. Additionally, the nature of these digital solutions is shifting, from specialised, standalone systems towards integrated end-to-end solutions. 

            Diego Pantoja-Navajas, Vice President of New Products at AWS Business Applications observes that “traditional approaches, once the backbone of supply chain management, are now giving way to more integrated and technologically advanced solutions.” 

            He notes that this shift is “not just a trend but a necessary evolution” now that supply chain leaders face the growing pain points of climate change, geopolitical dynamics, macroeconomic issues, and changing customer behaviour.

            What is a digital supply chain? 

            Digital supply chains represent sets of processes supported by advanced digital technologies like artificial intelligence (AI) and data analytics. These processes, in conjunction with digital tools help businesses make smarter sourcing decisions, predict demand, manage logistics, and handle the relationships between each step in the chain.

            Organisationally, traditional supply chains are linear, moving raw materials from one step to another until it reaches the end user or consumer. By contrast, it’s easier to visualise digital supply chains as networks. Unlike traditional supply chains, which are plagued by visibility issues, digital supply chains make it easier to obtain real-time visibility into the performance of each step along the chain. 

            Digital supply chains increase agility and resistance to disruption

            Digital supply chains, enabled by new technologies like generative AI, will allow for much greater visibility into supply chain operations. Not only this, Pantoja-Navajas explains, but it will facilitate the “simulation of supply chain scenarios that illustrate the impact of different supply chain decisions.” 

            If “environmental, economic, and geopolitical issues, instability can happen at any time and anywhere” then the ability to move with greater speed and agility is critical. Pantoja-Navajas adds: “organisations that utilise a digital supply chain are more likely to increase their resiliency against these disruptions – regardless of when they occur.” Generative AI’s ability to run “hundreds of thousands” of scenarios will make digitally testing supply chains for risk-exposure a much more productive activity. 

            He concludes that “organisations can use the digital supply chain to make the right decision and then use the physical supply chain to act on that knowledge with speed and certainty.” 

            • AI in Supply Chain
            • Digital Supply Chain

            Supply chain resilience is essential to meeting the challenges of the green transition, as raw material supplies struggle to meet demand.

            The global green transition is well underway. The results of the reshaping of our economic and logistical systems will be profound and long-lasting. “The transition to net zero will be turbulent,” observes Mattieu Favas for the Economist. According to him, the reconfiguration of energy-consumption patterns and resulting shifts in global supply chains will “both crown new winners and create new losers.”

            The shift is already taking place, and nowhere is it more visible than in the supply chains tied to electric vehicle manufacturing. 

            EV demand soars worldwide

            From battery components like lithium and nickel to copper cabling and rare earth elements, the materials used to build the decarbonised future are different to the ones used to support humanity for the last hundred years. 

            These materials are supposedly essential to the green transition, but manufacturers’ already ravenous appetite for these finite resources is already straining global supplies. 

            Worldwide electric vehicle sales in 2021 surpassed more than fourfold compared to their market share in 2019. China, the world’s largest electric vehicle market, tripled its sales year-on-year in 2020. Sales in Europe and the US continue to accelerate. Just over 3 million passenger plug-in electric cars have been registered in Europe, a 16% increase over the year before. 

            Going forward, 7% of the global automotive industry will be electric vehicles by 2030, up from 0.2% in 2023.  

            According to the International Energy Agency, manufacturing and maintaining solar energy, wind power, electricity networks and (especially) electric vehicles will account for almost 90% of lithium demand by 2040. The process will also account for 60-70% of nickel and cobalt demand, and more than 40% of copper and rare earth element (in particular, neodymium) demand. 

            Supply chains headed into the unknown

            In a new report from Roland Berger, author Wolfgang Bernhart notes that “raw material supply chains will have to remain stable while becoming more flexible to prepare for the unknown.” 

            Nevertheless rising demand for these resources will almost certainly test supplies as they currently stand. Supply chain managers will have a pivotal role to play in ensuring continuity, as raw materials shortages have the potential to throw supply chains into complete disarray.  

            The solution, Bernhart writes, is to increase the resilience of green transition-related supply chains. “Making supply chains resilient is the key to dealing with uncertainties. They must be designed to maintain stability while also being flexible and able to mitigate risk,” he says. “They must stabilise by minimising the impact of disruptions; increase flexibility to adapt to changing market conditions; improve visibility; enhance collaboration between all parties; and find the sweet spot between acceptable risks and costs.” 

            • Risk & Resilience
            • Sustainability

            Apple commits to 95% of its supply chain using 100% renewable energy by 2023, amid other sustainability measures.

            Apple recently announced plans to dramatically expand its efforts to curb Scope 3 emissions. 

            Apple slashes scope 3 emmissions

            While Scope 1 and 2 emissions refer to greenhouse gas emissions resulting from a company’s own operations (buildings, vehicles, and other sources of pollution that a company like Apple owns and operates itself), Scope 3 emissions cover the environmental impact of all the companies within a company’s supply chain—up or downstream. It’s thought that Scope 3 emissions could account for more than 70% of most businesses’ environmental impact. 

            According to Apple, its plans to reduce scope 3 emissions will see more than 320 of its suppliers commit to using 100% renewable energy for Apple production by 2030. This is an increase from around 250 suppliers last year, and represents 95% of the company’s direct manufacturing spend. 

            Apple’s efforts to clean up its supply chain have already had a marked impact. Between 2022 and 2023, the company’s total carbon dioxide emissions dropped from 20.6 million metric tons to 16.1 million metric tons, a 22% reduction. Most of that progress, Apple’s latest sustainability report reveals, is due to its suppliers’ sustainability efforts. 

            The company urged its suppliers to decarbonise the Scope 1 and Scope 2 aspects of their supply chains related to Apple in 2022. Suppliers were reportedly notified that progress towards these goals would be a  key criteria considered when awarding business. Considering Apple earned $383 billion in 2023, it should come as no surprise that it can set pretty much whatever standards it wants for its suppliers. 

            It’s why the world’s largest manufacturers have so much impact on global sustainability efforts; they have the power to dictate environmental practices for entire upstream industries throughout their supply chains. It’s similar to the way California, as the US’ largest auto market, has dictated environmental standards for vehicles even though many other states don’t have such stringent regulations.  

            Water, wind, and solar—going beyond power purchasing agreements

            Apple is doing more than demand that its suppliers decarbonise, however. Apple is continuing to invest in solar power infrastructure in the U.S. and Europe, reportedly to help offset the electricity used by customers charging their Apple devices. 

            The company is also making progress toward another environmental goal. By 2023, Apple has pledged to replenish 100% of the fresh water used in corporate operations in “high-stress locations.” 

            The plan involves working with various partners to deliver nearly 7 billion gallons in water benefits over the next two decades. These benefits will range from restoring aquifers and rivers, to funding access to drinking water. 

            “As with clean energy, Apple has extended its commitment to clean water across the entire supply chain: Together, Apple suppliers saved over 12 billion gallons of fresh water last year, for a total of 76 billion gallons in water savings since the company launched its Supplier Clean Water Program in 2013,” Apple wrote in a statement to the press.

            “Clean energy and water are foundational to healthy communities and essential building blocks for a responsible business,” said Lisa Jackson, Vice President of Environment, Policy, and Social Initiatives at Apple. “We’re racing toward our ambitious Apple 2030 climate goal while taking on the long-term work to transform electrical grids and restore watersheds to build a cleaner future for all.” 

            For companies with the economic power to create change in their supplier ecosystems, Apple’s sustainability efforts could serve as an effective blueprint for decarbonising their supply chains in a meaningful, beneficial way. 

            • Collaboration & Optimization
            • Sustainability

            Building a resilient and reliable partner ecosystem is key to a successful sourcing and procurement strategy.

            The supplier ecosystem is increasingly the organisational structure that creates the most benefits for the procurement process. Supply chain and procurement leaders that recognise and embrace their organisations’ interconnectedness within the larger value chain will be much better positioned to reap its rewards. 

            However, supply chain leaders and CPOs with a more traditional outlook might baulk at the idea of blurring the lines between their own organisation and multiple outsiders. It’s an understandable fear. Gartner’s list of cybersecurity trends for 2024 identified the “inevitability of third parties experiencing cybersecurity incidents” as a major contributor to security teams reassessing their approach to threat management. 

            Nevertheless, some experts argue that trying to draw clear lines around the edge of something as porous as a supplier ecosystem is futile. “Whether we realise it or not, we are already operating in interconnected ecosystems,” explains Simon Bailey, a VP Analyst for Gartner Supply Chain. He adds that, for supply chain leaders, “recognising the interconnectedness of their partners is the key to ecosystem enlightenment.”  

            Therefore, the necessity of developing a more interconnected ecosystem approach to supplier management means that trust is a vital resource to be managed, cultivated, and closely scrutinised within the modern supply chain.

            Cultivating trust in the ecosystem with data 

            “All ecosystems depend on trust. Trust is the key to unlocking the sharing of resources and, most especially, data,” argues Bailey. A Gartner survey of more than 300 business leaders found that, when rating criteria used for selecting a partner, having “partners we can trust” was the number one response. 87% of respondents stated that trust was “very or extremely important.” 

            One of the biggest obstacles to trust is an unwillingness to share data. “trust is difficult to build,” Jan Simons, Head of Industry at Ordina, said in a recent interview. “Many organisations are reluctant to share data because they consider it too sensitive or simply don’t want competitors or even partners to know too [many] details.”

            However, while building trust takes time, it’s vital that all the partners involved see eye to eye and collaborate on data quality, privacy, usage and sharing. It’s a difficult and complex process, especially among organisations with different internal operating models, but finding ways to document and demonstrate your own trustworthiness will go a long way, as will effectively evaluating a partner’s own methodologies. 

            Building trust is necessary because trusting partnerships have the potential to “elevate the scope of the ecosystem beyond individual partner goals and, instead, build a sense of collective ownership and alignment among otherwise independent entities,” Bailey adds. “Trust drives up the level of value that an ecosystem can generate. It can also reduce risks, such as the likelihood of failure of technology initiatives.”  

            • Collaboration & Optimization
            • Sourcing & Procurement

            A lack of availability of key renewables components stemming from supply chain hardships could delay the UK’s green energy transition.

            The UK’s transition to renewable energy could be under threat, according to a new report commissioned by the government. The report, conducted by consultancy Baringa, highlights worsening supply chain constraints as a major obstacle to the country’s green energy goals. 

            Britain’s Energy Security Strategy under threat 

            Baringa’s report examines the state of the UK’s efforts to build renewables infrastructure in accordance with the British Energy Security Strategy. Announced in 2022, the Strategy lays out the UK government’s plan to balance fossil fuels extracted from the North Sea with nuclear and renewables. In addition to hydrogen—described by Boris Johnson as “a low carbon superfuel of the future”—as well as “Britain’s inexhaustible resources of wind”. 

            The Energy Security strategy aims to work in tandem with the government’s Net Zero strategy to reduce the UK’s dependence on oil and gas (especially imports). However, the Strategy admits that “accelerating the transition away from oil and gas then depends critically on how quickly we can roll out new renewables.” 

            Now, the Baringa report is calling attention to the supply chain challenges that could delay and disrupt efforts to build renewable energy infrastructure in the UK. 

            Supply chain challenges delaying the green transition 

            Baringa partner and report co-author Rob Gilbert, observes that achieving the government’s ambitions will “be very challenging without significant coordination across industry and Government to resolve supply chain constraints.” 

            These supply chain challenges take the form of shortages of both material and the skilled labour needed to build and install it. In particular, turbine foundations and high-voltage electricity cables, as well as ships to install them, are in short supply. Production capacity has reportedly lagged as a result of a lack of clarity from the government over turbine sizes. Gilbert notes that “while many turbine suppliers have announced investments in new factories, they face significant financial challenges across their offshore and onshore portfolios as a result of aggressive pricing, increasing input costs, and the shorter product lifecycles and reliability issues driven by market competition.” 

            Currently, the government is aiming to triple the UK’s offshore wind capacity to 50 gigawatts by 2030 and quadruple solar capacity to 75GW by 2035. 

            Solar power is reportedly under less threat of supply chain threat, although the report highlighted the fact that securing planning consent and grid connections presented challenges of their own. 

            All sectors, however, face significant skill constraints. Gilbert calls shortages of design and commissioning engineers, project managers, and installation technicians, “particularly acute.” He adds that “there is intense national and international competition for new and experienced hires with these skillsets.” 

            • Infrastructure & Cloud
            • Sustainability

            From extreme weather to skill shortages, here are the biggest pain points procurement teams face in 2024.

            Around the world, supply chains are under mounting pressure, both internally and externally. Geopolitical conflict, economic pressures, and the climate-crisis are creating an environment where the risk of disruption is almost constant. 

            At the same time, staffing shortages are exacerbating the fact that the demands placed on supply chain and procurement teams are significantly increasing. A report by McKinsey found that, in 2023 alone, the workload of a typical procurement function increased by 10%. As procurement leaders and supply chain managers fight to drive efficiency and strategic wins for the business amid turbulent times, here are the top 5 pain points we see creating headwinds for the sector. 

            1. Geopolitical disruption 

            Shipping in the Panama and Suez canals is at a historic low, as a climate change driven drought and Houthi military action, respectively harm the flow of shipping. Transits along major shipping lanes have increased by an average of 1-2 weeks, with more than 600 vessels chose instead to travel around the Cape of Good Hope to avoid the Red Sea in March alone, according to project44 research. 

            The war in Ukraine, US and Chinese posturing over Taiwan, and the ongoing genocide in Gaza can all be expected to ratchet up political tensions around the world this year, further raising prices of raw materials, oil, and other freight. 

            Friend-shoring is becoming increasingly common, as supply chains are relocated to parts of the world that are less diplomatically contentious. However, this process takes time. For example, the US is in the process of divesting its semiconductor supply chain from China by investing in building up the Filipino and Malaysian manufacturing sectors. Nevertheless, this is not an overnight process. 

            2. Extreme weather 

            The effects of the climate crisis are only going to get worse. Droughts (like the one in Panama), wildfires, flash flooding, hurricanes, and other extreme weather events are going to not only disrupt global trade routes but interfere with the procurement of raw materials and crops. 

            Predicting and avoiding extreme weather disruption is a major priority for sourcing teams in 2024. Widespread nearshoring efforts in Europe and North America are seeking to increase procurement resilience by shifting supplier ecosystems closer to home. However, much like the process of friend-shoring to avoid geopolitical tensions, this is not an overnight process. Experts believe it could take between two and three years before moving supply chains closer to home starts to positively shore up procurement resilience. By then, who knows what kind of climate we will be dealing with. 

            3. Poor quality data 

            Procurement is an increasingly data-driven field. Increasingly complex supply chains, growing risk of disruption, and greater expectations on procurement teams to be strategic value creators are all intensifying the demand for data. 

            “Capturing, protecting and then leveraging an organisation’s data through the use of AI and Machine Learning is an example of how organisations are increasingly turning towards intangible assets to extract new sources of value,” noted Ken Chadwick, VP Analyst at Gartner’s Supply Chain Practice, in a report from October.

            However, many procurement teams struggle to organise and utilise the massive amounts of data they collect. The massive deluge of data gathered by thousands of IoT sensors, smart platforms, and analytics tools is giving rise to data silos within organisations and poor quality data as a result. Procurement teams must abandon the “more is more” approach to data analytics. Instead, they must prioritise quality over quantity, and successfully tackle their data complexity issues in order to successfully make smarter, more informed decisions. 

            4. Skill shortages 

            Labour and skill shortages are hitting every industry. While much of the conversation is focused on the crisis-level disruption caused by a deficit in warehouse and trucking workers for the logistics sector, procurement is feeling the pinch as well. According to a recent Gartner survey, fewer than a fifth of procurement directors and executives believe that their teams contain “adequate talent” to meet the future needs of their organisations’ procurement functions. 

            Shifting talent requirements driven by the increasingly digitalised and strategic nature of procurement are adding to the problem. Just 4% of procurement leaders told Gartner that no gap existed between their current capabilities and their need for technology and data skills.

            5. Maverick spending 

            If unauthorised spending is unregulated throughout the procurement function, it can throw off budget forecasts. These disruptions are difficult to manage for procurement as they typically originate outside the function itself, typically originating from employees or departments operating beyond procurement’s jurisdiction. This maverick spending, or “dark procurement” is difficult to track and even more complex to reign in. 

            Creating standardised procurement processes across the organisation is a vital first step. Procurement leaders should enforce  strict purchasing guidelines and approval systems. It’s also important to prioritise working with trusted people and companies, both within the organisation and in the supplier ecosystem to avoid corruption.

            However, eliminating maverick spend is less an issue of regulation and more deeply rooted in an organisation’s broader culture. Using training, effective communication, and collaboration with other elements of the business, procurement can cultivate good purchasing behaviours within other departments that eliminate maverick spend without turning the whole procurement department into a watchdog. 

            • Risk & Resilience
            • Sourcing & Procurement

            Do falling buffer stock levels mean supply chain confidence in lower risk of disruption, or are we already forgetting the lessons of COVID-19?

            When the COVID-19 pandemic hit, worldwide trade was thrown into a state of extreme disarray. 

            Delays, staff shortages, quarantine regulations, and other headwinds combined with a meteoric rise in e-commerce traffic, placing intense stress on global supply chains. Overnight, waiting lists for container space, along with logistics costs, spiralled out of control. A report by the US International Trade Commission found that container shipping costs “roughly tripled” in 2020 while “experiencing significant volatility.” Worldwide disruption created “bottlenecks in the global trade system” which immediately created shortages across multiple industries and threatened global supply chains.

            Just-in-time to just-in-case 

            One of the reasons the pandemic hit global supply lines so hard was the prevalence of “just-in-time” methodology. The approach was initially pioneered by the Toyota Motor Company. “Just-in-time aims to anticipate demand accurately enough that inventory stocks can be kept low at every stage of the supply chain. Each unit of material or product arrives “just-in-time” for it to be needed by the next point in the chain. This continues from procurement all the way to the end customer. Stockpiles of inventory are kept low, which increases capital liquidity and reduces expenditure on storage. 

            However, combine this approach with the complex and fragile nature of a sprawling global supply chain, and you have an organisational structure that’s highly vulnerable to disruption. Taking a just-in-time approach to inventory management was suddenly asking for delays, price hikes, and potentially disastrous uncertainty. 

            A recent McKinsey report notes that, following COVID-19’s disruption of global supply chains, “companies began to ramp up their inventories in response to pandemic-era supply chain disruptions.” Stock levels and inventory buffers were increased to stave off instability, a move which McKinsey notes “led some observers to declare the death of the just-in-time supply chain.” 

            Dealing with post-pandemic disruption 

            Four years later, the effects of the pandemic are waning. However, global supply chains are by no means free from disruption. 

            From geopolitical conflict and economic uncertainty to the worsening effects of the climate crisis, supply chains are increasingly under threat. Resilience is still being touted as a key virtue of today’s supply chains. McKinsey’s data suggests, however, that larger inventories may be falling out of favour.  

            “We built buffer stocks everywhere during COVID-19. Inventory was the only way we could build resilience at the time,” a surveyed supply chain executive told McKinsey. “Now we are back to competing on cost and capital. Nobody remembers why we had those buffer stocks.”

            McKinsey found that a quarter of supply chain leaders have “particularly aggressive inventory reduction goals” for the year ahead. This is especially true in the automotive, aerospace, and defence industries. Here, 32% of supply chain leaders had plans to reduce inventory levels to below pre-pandemic levels. Across all industries, the number of supply chains planning to return to pre-pandemic inventory levels was approximately 50%. 

            What about the next pandemic? 

            There’s no denying it. The next big disruption is out there. It could take the form of another pandemic, conflict between nation states, or large scale environmental disaster. Even if another singular event doesn’t occur in the near future, the world faces multiple sources of pressure. Growing ppain points range from the climate crisis to looming civil unrest in multiple countries. 

            These headwinds threaten to throw unprepared supply chains into disarray in much the same way COVID-19 did if organisations aren’t ready. McKinsey’s report reflects that, four years after the pandemic struck, the question of whether global buffer stocks will rise, fall, or stay constant is “still open.” 

            “Our survey suggests that inventories remain high, but respondents are divided about their future direction,” they write. The question for supply chain leaders need to answer is: are the short term benefits of returning to a just-in-time model enough to outweigh the consequences when the next worldwide disruption impacts the global supply chain?

            • Collaboration & Optimization
            • Risk & Resilience

            Generative artificial intelligence is helping General Mills transition its supply chain model from episodic to dynamic and “always-on”.

            Cereal manufacturer General Mills is embracing generative artificial intelligence (AI) at multiple levels throughout its organisation. In addition to rolling out generative AI chatbots in the form of MillsChat in February, the company is leaning into using the technology to transform its supply chain and procurement functions. 

            The company has been an especially enthusiastic adopter of the technology. In many ways, this isn’t very surprising. General Mills and companies like it are reliant on far-flung agricultural supply chains. First, the years-long war in Ukraine has destabilised one of the world’s biggest bread baskets. The war is conspiring with the consistently worsening effects of the climate crisis to make life especially challenging. 

            As a result, General Mills is throwing itself headfirst into an AI-centric transformation, pursuing efficiencies and added visibility. 

            From episodic to dynamic procurement 

            By combining enhanced data sets within General Mills’ procurement function, Paul Gallagher, General Mills’ chief supply chain officer said in a recent episode of The Gartner Supply Chain Podcast that a pilot program managed to realise more than 30% waste reduction in areas where the data has been implemented. As a result, the program is being rolled out across more areas of General Mills’ procurement and supply chain process.   

            “Historically, we would have rotated through cycles of category should-cost productivity models with potentially missing or delaying savings,” said Gallagher. “Our new reality is that we see this always-on approach driving incremental value, and the ability to react faster [when] we get supplier disruptions or market dynamics change.”

            The technology—an AI solution called ELF developed partially by controversial data analytics company Palantir—was initially deployed in General Mills’ U.S. human foods business. The division experimenting with ELF reportedly handles approximately 3,000 orders each day. Over the course of the six month trial, ELF made roughly 400 suggestions to the human foods team. According to Gahhagher, 70% of these suggestions were accepted automatically. The resulting efficiency and productivity gains are, he claims, leading to daily benefits worth tens of thousands of dollars.

            “What we’re seeing is that we’re moving from a world where people make those decisions supported by machines to one where the machines make most of the decisions that are guided by people,” Gallagher enthuses. He adds that “this intelligent execution at scale is where we’re seeing the benefits come through to our supply chain.” 

            Generative AI taking a bite out of the world’s biggest FMCG supply chains

            General Mills isn’t the only organisation turning to generative AI in the hope of radically enhancing their supply chain. 

            Last year, Mars announced plans to explore a wide variety of generative AI applications. “Artificial intelligence has enormous potential to help companies become more efficient and productive and to work at unprecedented scales and speed,’’ a company spokesperson said in an interview with CGT. Mars is already using AI to predict whether cats and dogs could develop chronic kidney disease. It’s also using the technology to help sequence pet genomes to provide individualised nutrition and care. And, of course, AI is helping unlock efficiencies in Mars’ manufacturing operations through digital twin technology. 

            Colgate-Palmolive is using generative AI as a way to generate internal e-learning documents and automate marketing content creation. Nestle is just one of several large FMCG companies leveraging a generative AI platform called Tastewise. Along with Mars and Campbell’s, among others, it’s using the platform to provide consumer feedback insights and generate recommendations on everything from procurement to product development. 

            • AI in Supply Chain
            • Sourcing & Procurement

            Researchers from the NREL demonstrate the possibility of a zero-tailpipe emissions supply chain built using currently available technology.

            The decarbonisation of global supply chains is a critical step towards holding back the worst effects of the climate crisis. A company’s supply chain typically accounts for between 65% and 95% of its carbon emissions

            Researchers at the National Renewable Energy Laboratory (NREL) have completed a pilot project. The project could provide a glimpse into what a carbon free supply chain might look like. 

            In collaboration with several industry partners, the NREL has demonstrated a working version of a zero operating emissions supply chain. The project’s has spent the past year moving goods from some of the US’ busiest ports to their final destinations. This was done without producing vehicle emissions—all while using today’s technology.

            A zero-tailpipe emissions supply chain 

            The NREL’s project used battery-electric cargo handling equipment, heavy-duty hydrogen-powered trucks, and hydrogen refuelling stations to move goods from ports in Southern California to brick-and-mortar storefronts. 

            The program’s organissers hailed the project as providing one of the largest real-world demonstrations of clean goods movement to date.

            “The Shore to Store project showed that clean goods movement is not a distant dream,” said NREL’s Jason Lustbader. Lustbader leads NREL’s advanced vehicles and charging infrastructure team and served as the project lead. “It is possible today, using today’s technologies.”

            Step-by-step

            Establishing an emissions-free supply chain is a complex process. The NREL pilot prgoram started with the point where goods are unloaded from overseas. The project’s scope began at a major port in Southern California. Here, the project operators integrated two electric-hybrid harbour cranes into the process. The addition of battery-electric yard tractors with new charging infrastructure for zero-emissions cargo handling complemented the loading cranes. These tractors worked alongside electric forklifts at a nearby Toyota Logistics Services warehouse, exemplifying emissions-free cargo movement.

            The Shore to Store project featured a cutting edge fleet of 10 Class 8 hydrogen fuel cell-powered electric trucks. Kenworth Truck Company and Toyota Motor North America worked together to deliver the fleet. UPS, Toyota Logistics Services, Total Transportation Services Inc., and Southern Counties Express shared the running of the vehicles. 

            Refuelling took place at two new high-capacity hydrogen stations in Wilmington and Ontario, California, built by Shell, along with an existing station at Toyota Logistics Services at the Port of Long Beach. This trio of stations forms an integrated heavy-duty hydrogen fueling network in the Los Angeles Basin.

            Barriers to decarbonisation aren’t insurmountable

            The project aimed to highlight and overcome barriers that exist to operating zero emissions technology in the real world and address infrastructure challenges.

            With the successful implementation of zero-emission vehicles and supporting infrastructure, the initiative supports carbon neutrality goals for participating entities. Jared Leventhal, Shell’s senior project manager for hydrogen mobility, emphasised Shell’s role as an infrastructure developer in realising this hydrogen mobility supply chain project.

            Gene Seroka, executive director of the Port of Los Angeles, said that “the Shore to Store project provided invaluable lessons as we move toward decarbonizing the end-to-end supply chain. It’s clear that there is much more work to do in the areas of accelerating technology and making it commercially available at scale. But as we look forward, we’re grateful to our project partners for their efforts and to the NREL scientists who quantified its impact.”

            • Digital Supply Chain
            • Sustainability

            Nearshoring and domestic support is transforming Mexico into one of the most attractive global logistics hubs.

            Supply chain leaders around the world are increasingly looking to nearshoring as a viable strategy to increase resilience. This trend it emerging in the face of a particularly disruptive logistics landscape and rising demand, especially from the e-commerce and manufacturing sectors. Highly globalised sourcing and logistics networks are moving closer to home. 

            In the US, a 2023 report found that companies are aiming to reduce exposure to the Chinese economy by 40%. Chinese exports to the US dropped by 20% last year, compared with 2022. 

            As US companies aim to reduce their dependence on Chinese supply chains, Mexico is rapidly emerging as a new potential hub of the global supply chain. By comparison with China, the US imported more goods and services from Mexico than any other market in 2023, displacing China as its top supplier, according to data collected by the US Census Bureau. Mexican exports totalled $475.606 billion in 2023, a 4.6% increase over 2022. 

            Overseas investment “surges” in Mexican logistics

            Investment in Mexico increased dramatically during the first three months of 2024. More US companies are reportedly looking to establish supply chain and manufacturing hubs south of the border. 

            “Mexico has become the greatest attraction in the world for investments,” Mexican Secretary of Economy Raquel Buenrostro said, addressing the country’s Business Coordinating Council. “[Nearshoring] is here to stay and that is not going away,” Buenrostro said. “We have to see how we integrate and how we take advantage of these opportunities at this moment.”

            Last year, DHL invested a $120 million lump sum to expand its domestic air hub in Santiago de Queretaro, Mexico, by 30,000m². In November, the logistics giant opened a second logistics centre in Ciénega de Flores, Nuevo León, as part of a $500 million euro investment for Latin America as a whole. 

            However, some critics have highlighted the challenges of nearshoring logistics and manufacturing to Mexico. Jose Cobos, Global Sales Director at freight forwarder Nowports, criticised the country’s infrastructure, as well as highlighting the fact that the logistics networks behind the transport of locally manufactured goods are struggling.

            “We are seeing a lot of bottlenecks, especially in ports, for example, because our infrastructure is not prepared to handle such volumes,” Cobos told Investment Monitor. “So one of the things that the government has to do is develop the infrastructure – not just ports, but roads as well.”

            • Collaboration & Optimization
            • Sourcing & Procurement

            Growth of urban populations and e-commerce require the electrification of last mile logistics in order to tackle the growing need for widespread decarbonisation.

            As urban populations increase, along with the need for decarbonised supply chains, the electrification of last mile logistics is emerging as an essential step towards a sustainable economic future. 

            Around the world, the momentum of last mile electrification is growing. However, questions still remain connected to overcoming barriers to adoption and implementing a fully electrified last mile supply chain. Finding answers is becoming more and more urgent as the climate crisis worsens while global urban populations swell. 

            E-commerce in the age of the megacity

            Cities will account for well over 50% of global consumption by the end of 2025. Urban populations are growing faster than rural ones. Migration into urban spaces is predicted to result 6.419 billion people living in cities by 2050

            Research by Frost & Sullivan projects that, by next year, the world will be home to 35 megacities—defined as urban areas with a population of 10 million people or more.

            The largest megacity in the world is sometimes identified the Pearl River Delta in the Guangdong-Hong Kong-Macau Greater Bay Area region. Guangzhou, representing the Pearl River Delta, is estimated to have around 65,100,000 inhabitants. That’s roughly equal to the population of the UK. 

            Urban populations are growing. This trend is overlapping with the growth in e-commerce to place profound strain on the logistics networks serving urban centres. This is especially pronounced in megacities, where population size and density compounds the issue. 

            These megacities are witnessing a dramatic growth in the frequency of parcel movement owing to ongoing e-commerce growth. Analysis by Civitas, a network of European cities, calculated that there are between 300 and 400 goods transports per 1,000 people per day in some of Western Europe’s larger cities. 

            Megacities see at least 3 million deliveries being made daily. 

            E-commerce supply chains in an increasingly urbanised world  

            The global e-commerce logistics sector is predicted to experience more than 20% growth over the next decade. 

            “In this e-commerce boom, the volume of packages is only going up,” says Josh Garnham, co-founder at Packfleet, an all-electric last mile delivery company that operates in London. Packfleet, along with other supply chain operators (large and small) are faced with an increasingly complicated proposition. 

            E-commerce and urban growth are driving up demand for logistics services covering last mile delivery. However, at the same time, the need to reduce the environmental impact of supply chains is becoming increasingly urgent.  

            As noted in a report by last mile delivery platform company Stuart in 2022, companies in the logistic sector are “part of a value chain that must remain profitable while urgently decreasing its negative impact on the environment and the people supporting it.”

            Garnham adds: “A sustainability revolution in e-commerce is needed in 2024.” He adds that petrol and diesel delivery fleets “negatively impact us and the environment” noting their contribution to congestion, “as well as noise and air pollution.”   

            Electric vehicles are key to decarbonising the last mile 

            Tackling decarbonisation at a time when logistics volumes are only going up is a challenging prospect. Garnham admits that “the pressure is on to make more sustainable changes,” adding that “if parcel volume isn’t going to decrease, then we need to make sure that the environmental impact of delivery does.”  

            Electric vehicle adoption is a compelling fit for last mile delivery for a few reasons. Firstly, electric vehicle ranges and efficiency capabilities are particularly suited to driving for shorter distances with frequent stops and starts. Secondly, as noted by Deloitte researchers, “as urbanisation and e-commerce surge, last mile delivery has become a critical and dynamic sector, where the implications, advantages, and challenges of EV adoption are particularly pronounced.”

            What will an electrified last mile supply chain look like? 

            There are three primary characteristics that a successfully electrified last mile logistics sector will display. First, the transformation will be technologically enabled. Secondly, upfront capital barriers to entry will see traditional ownership models evolve. And, lastly, widespread transformation in the industry will require significant infrastructural and regulatory support from governments. 

            Technology enabled

            Primarily, the decarbonisation of the logistics sector will need to be underpinned by technology—specifically data and AI. Packfleet, for example, maximises the capabilities of its EV fleet by using technology to deploy that fleet more intelligently.  

            “Building our tech stack from the ground up, we’re able to be agile, reactive and drive the industry towards a more efficient and sustainable delivery alternative,” Garnham explains. “Routing is incredibly hard – roadworks, traffic, changes to the delivery time or location, they all impact it – but technology is allowing us to navigate all of these things in a few seconds.” 

            Stuart takes a similar approach with its platform. The company orchestrates its network of EVs, couriers, and other logistics vehicles in a way that reduces emissions and increases efficiency through smart routing, stacking deliveries, and reducing missed deliveries by means of on-demand features and omnichannel communication. 

            Similarly, Garnham adds that Packfleet uses “AI-enhanced technology to empower a fleet of zero-emission vehicles to provide hassle-free deliveries. Customers can pick delivery windows and redirect parcels in real-time.” As a result online purchases become “close to frictionless,” whilst also reducing emissions. 

            New ownership models 

            Investment in logistics fleets is a cap-ex heavy proposition. Reinvestment into the electrification of entire fleets may be beyond the scope of many organisations. This is especially true of those that aren’t operating as dedicated logistics companies. 

            As a result, traditional ownership models could evolve to encompass leasing or subscription services. Such an arrangement would increase flexibility in the short and medium term especially. Additionally, this shift would enable companies to take advantage of emerging EV technology and services without crippling upfront costs. 

            Supported by the public sector

            Lastly, the public sector also has a role to play in creating the necessary regulatory, financial, and infrastructural conditions for an EV revolution. 

            John Gillan, UK general manager at Stuart, argues that governments “must step up for small businesses struggling with inflation, supply chain issues, and rising running costs to ease the burden and encourage more sustainable delivery practices.” He advocates for governments offering tax breaks or subsidies for EV adoption (like many have in the consumer space). 

            Whatever shape the process takes, it’s clear that the electrification of last mile logistics is complicated, challenging, and absolutely necessary. “Logistics is often the forgotten link in the e-commerce chain when it comes to sustainability, but it needs to be tackled if we’re to reach net zero goals,” Garnham reflects.

            • Collaboration & Optimization
            • Sustainability

            Fast fashion giant Shein’s new supply-chain-as-a-service product hints at a coming sea change for the state of retail supply chains.

            The supply chain sector is facing increasing pressure to be the saviour of global manufacturing and retail efforts. Major organisations, threatened by economic downturn and increasingly unpredictable customer demand, are looking to their supply chains as a source of resilience and agility. However, supply chains are having an equally complicated time, as geopolitical tensions, extreme weather events, and rising transportation costs threaten to disrupt the sector. 

            Four years ago, the pandemic clearly demonstrated what is now an often painful fact of life: an agile, resilient, and fast supply chain can make the difference between resounding success and thudding failure. This is especially true in the fashion industry. 

            While fashion retailers of all sizes have attempted to navigate the increasing complexities of supply chain management over the past four years, few have been as effective as industry success story Shein. 

            Chinese fast fashion giant Shein made more than $30 billion last year. It also doubled its profits year-on-year to more than $2 billion. A great deal of the company’s success, experts argue, stems from its supply chain. Now, as the supply chain woes of the pandemic are replaced by a new, comparably uncompromising landscape, Shein is looking to sell more than the estimated 1.2 million articles of clothing it makes every day. It wants to sell the success of its supply chain. 

            The Shein supply chain 

            Shein produces an average 314,877 new styles per year. By comparison, the more “traditional” fast fashion brand H&M creates an estimated 4,414 products per year. The company’s ability to manufacture and ship an order of magnitude more clothes than its competitors lies in its large supplier base and the digital transformation of those suppliers. 

            “We reimagined the supply chain, which is a daunting task, and we have done it by digitising the small-and medium-sized factories to give them visibility to see their own capacity, continued order flow and seamless efficiency,” Donald Tang, Shein’s executive chairman, said in a webinar last year

            This heightened digitalisation of its supplier management and sourcing process means that, with roughly 5,400 third-party contract manufacturers in China, Shein can deliver more than 10,000 new products per day. It also dramatically expedites the delivery cycle, with lead times measured in days, not weeks. As a result, it ships roughly 5,000 metric tons of goods via air freight per day

            Data analytics integrated throughout this process are what allows Shein to produce initially small batches of product, evaluate demand, and then rapidly scale production up or down accordingly.  

            Shein-as-a-service and the state of retail supply chains

            According to a recent letter to investors from Tang, Shein is planning to offer its small batch, on-demand manufacturing model as a service to other fashion retailers. The move marks a significant evolution of Shein’s business model. 

            Neil Saunders, managing director of retail consultancy GlobalData Retail, said in a recent interview: “Shein is moving beyond being a seller of low-price fashion to one that has many strings to its bow, including marketplaces, services for sellers and now services for designers and apparel brands.”

            Shein seems to be moving towards a similar spoke and hub organisation that allowed Amazon to disrupt multiple industries at once, as each independent business unit leverages the others to drive growth. For some experts, it highlights just how disruptive the Chinese company will be to global fashion in the next few years. 
            It’s “time to sound the alarm,” says Rick Watson, founder of RMW Commerce Consulting. “In terms of disruptive capability to retail, Shein’s innovation is much more disruptive and will force all other big players to develop a similar model or die — Amazon, Walmart, Target, everyone.”

            • Collaboration & Optimization
            • Digital Supply Chain

            Air freight volumes are increasing, as shipping disruptions and e-commerce growth fuel demand across APAC.

            Driven by shipping disruption and e-commerce growth, global air freight is on the rise, leading major carriers to expand operations and open new routes and services—specifically those focused on expediting delivery within APAC.  

            Global air freight volumes are on the rise

            According to a monthly state-of-the-industry report from DHL, increased shipping times and increased likelihood of disruption are major drivers of this trend. With shipping passing through both the Suez and Panama canals facing disruption, many organisations are turning to air freight as a pressure valve to relieve strain in their supply chains

            At the same time, however, strong e-commerce growth is increasing freight volumes, particularly in South China and Hong Kong. Meanwhile, air cargo demand remains high from Bangkok to Europe, boosted by road-air volumes trucked down from Vietnam and other regions impacted by conflicts in the Middle East.

            Niki Frank, CEO of DHL Global Forwarding Asia Pacific, commented: “We are seeing positive signs that demand for air freight will continue to grow in the coming months.”

            As a result, global air freight capacity was up by 9% year-on-year versus March 2023. Belly cargo—cargo that is carried in the lower deck of a passenger aircraft—has also increased by 12% year-on-year. This growth in capacity is expected by DHL’s report to relieve some of the strain placed on air freight networks by the increased demand. 

            “The situation in the Red Sea is seeing some ocean freight to air freight conversion, so we are helping customers with a range of hybrid sea-air solutions,” said Frank. “Looking further ahead, we see a positive outlook for airfreight services inbound and outbound Europe, and we expect uplift from Middle East hubs such as Dubai into Europe and the U.S. to continue to grow,” he added.

            New routes support growing e-commerce volumes

            This week, UPS announced that it is launching a new service offering next day delivery between logistics hubs in Asia and Australia. 

            As a result, UPS has confirmed that it can deliver shipments picked up from customers in mainland China, Japan, South Korea, Taiwan, Malaysia, the Philippines, Singapore, Thailand, Vietnam, Indonesia and Hong Kong to Australia as early as the next business day.  

            At the same time, UPS customers in Australia can also have deliveries across Asia Pacific and even to Europe completed as early as the next business day.

            Experts expect e-commerce as a whole to grow over the coming years.

            Sebastian Wouters, senior vice president, global head of e-commerce at Kuehne+Nagel (K+N) said in a recent interview that: “We believe e-commerce in general as a sector will continue to grow in the next few years, not just in established markets but we expect also growth from upcoming e-commerce markets.” He added: “We believe that cross-border deliveries will continue to be a substantial part of the e-commerce landscape and with that the need for air freight capacity on key lanes.”

            Richard Smith, president and chief executive, airline and international, at FedEx, was also confident about e-commerce growth. Earlier this year, he noted that FedEx is “optimistic about where e-commerce demand in the air cargo industry is heading.” He highlighted the fact that, with “online retail sales expected to reach more than $8 trillion by 2026,” global volumes of air freight have nowhere to go but up, even as the shipping sector overcomes its especially bad start to 2024.

            • Collaboration & Optimization

            The combination of machine learning with advanced analytics and AI are giving supply chain leaders the ability to proactively anticipate and mitigate disruption.

            The pressures mounting on large, complex global supply chains are immense. From geopolitical conflicts and economic downturn to the intensification of the climate crisis, disruptions are not only becoming more severe, but more common. 

            Increasingly, supply chain operators appear to be on the back foot. 

            Manufacturers with complex global supply chains should expect a months-long disruption at least once every 3.7 years, due to “more profound shocks such as financial crises, terrorism, extreme weather, and, yes, pandemics,” McKinsey analysts find. 

            At the same time, problems securing labour, a global chip shortage, and the rising complexity of the supply chain management process are conspiring to hamper executives’ efforts to meet these challenges. Furthermore, increasing levels of globalisation are creating challenges in monitoring supply networks in real time, obtaining delivery data, and generating actionable insights. 

            AI and machine learning to cut through the noise

            Digital tools look more and more like the solution to supply chain operator’s increasingly reactive approach to an increasingly hostile landscape. 

            Artificial intelligence (AI) and machine learning have the ability to analyse, organise, and generate insights from complex data sets. These capabilities make the technology especially appealing to supply chain operators. As a result, a recent IBM report found that 46% of supply

            chain executives anticipate AI cloud applications will be “their greatest areas of investment in digital operations over the next three years.” 

            Bob Stoffel, former Senior Vice President, Engineering, Strategy and Supply Chain at UPS, said, “When we talk about supply chain visibility, it does not simply mean visibility into your own supply chain. It means visibility among partners, which enables collaborative decision making closer to the customer.” 

            This deeper and broader visibility is key to making more effective decisions within the supply chain. Some analysts believe that AI and machine learning will be key to enabling supply chains to transition from a reactive approach to a proactive one. 

            The AI-powered proactive supply chain 

            Adopting a proactive approach to supply chain management requires the ability to anticipate and mitigate disruptions, delays, and bottlenecks before they impact the organisation. 

            AI applications like predictive modelling and real-time monitoring, can help companies optimise their supply chains and gain valuable insights into their own operation, as well as those in their supplier ecosystem and the market at large. This visibility is critical to the task of identifying potential risks or opportunities ahead of time.

            By shifting from a reactive stance to a more proactive outlook, organisations can implement more strategic measures to optimise business processes, enhance efficiency, and improve the overall resilience of supply chains

            Proactive supply chains not only ensure uninterrupted operations but also empower organisations to anticipate market fluctuations, customer demands, and emerging market trends. As a result, they are significantly better positioned with regard to their competition and ability to meet customer demands.

            • AI in Supply Chain
            • Digital Supply Chain

            Macroeconomic turbulence is making it harder to predict customer purchasing, which is in turn hurting supply chains.

            Supply chain issues will cost consumer goods brands more than $800 billion in top-line growth over the next five years. At the heart of it, the problem is unpredictability. However, some experts suggest that unpredictability in the supply chain can be a force for increased revenue and strategic opportunity. 

            A hostile supply chain landscape 

            During the pandemic, global supply chains were exposed for just how fragile they had become. Hyper-globalised just-in-time organisation buckled overnight under the pressures of the COVID-19 pandemic. Since then, the supply chain sector has repositioned itself. Increasingly, supply chain leaders are seen as sources of resilience as they capture value and deliver wins despite disruptions. 

            However, the current economic landscape may be—as strange as it seems—more hostile than the climate of 2021. Today, supply chains are being placed under unsustainable pressure. This pressure originates from increasingly unpredictable customer buying behaviour, in addition to ongoing material shortages, and macroeconomic turbulence. 

            Supply chain problems aren’t being solved 

            “To thrive in this uncertainty, businesses must take control of their supply chains and deliver value. But despite valiant efforts, supply chain problems aren’t being solved,” a report by Celonis found recently

            The ripples of geopolitical conflict and climate-crisis-driven disruption continue to disrupt global supply chains, with no signs of going away. At the same time, economic pressures are growing more severe. In addition to a global slowdown, multiple post-industrial nations are teetering on the brink of (or already sliding into) recessions. The result is widespread uncertainty as to customer and consumer behaviour. 

            Is uncertainty a supply chain killer?

            Traditionally, uncertainty is anathema to supply chain managers. In a 2023 Gartner survey of 164 supply chain executives, 63% predicted that supply chain uncertainty would lead to a loss. 

            Source: Gartner (November 2023)

            Strangely, 9% of CSCOs believes that uncertainty would result in an increase in revenue. This data challenges (in a very small way) the assumption that uncertainty in the supply chain is a bad thing. 

            “The inability to cope with uncertainty is driven by a misallocation of initiatives to the wrong strategy,” asserts Tim Payne, Vice President Analyst in Gartner’s Supply Chain Practice. In many supply chains, he argues, processes and systems are set up to “keep keep uncertainty outside the supply chain.” 

            However, this is a world where uncertainty is the only state of existence that supply chain managers can count on. Under these circumstances, this methodology comes badly apart at the seams. “This overinvestment in a barrier to keep uncertainty out actually stifles the ability to learn from it, keeping most supply chains today in a fragile state,” Payne says. 

            Antifragility in the supply chain

            The answer, according to Gartner’s experts, is cultivating an “anti-fragile” supply chain. 

            “Rather than trying to keep uncertainty out of the supply chain, antifragile supply chains embrace uncertainty with the objective of learning, evolving and adapting their capabilities based on their improved knowledge of it,” notes Payne. “An antifragile mindset changes how CSCOs approach and shape their capabilities, including in areas such as integrated planning, ROI calculations, supply chain redundancy and assessing uncertainty.” 

            According to Gartner’s research, several capabilities are useful in reducing the fragility of supply chains and increasing their potential to capitalise on uncertainty, rather than be disrupted by it. 

             The most impactful antifragile supply chain capabilities identified by Gartner include:

            • Decision Processes and Collaboration. Organisations that enable dynamic decision processes during uncertainty were 4.9 times more likely to have a positive revenue impact.
            • Calculating ROI for Supply Chain Investments. Those that accurately assess the value of investing at different times due to uncertainty saw a 4.5 times increase in positive revenue impact from uncertainty.
            • Managing the Assessment of Uncertainty. Organisations that performed a high degree of experimentation on their supply chains to stress test them saw revenues increase 3.7 times due to uncertainty.
            • Supply Chain Redundancy. Supply chain managers that viewed redundancy (whether from inventory, capacity, or multiple suppliers) as an investment opportunity rather than an inefficiency to be eliminated saw a 3.6 times revenue spike from uncertainty.
            • Supply Chain Planning. Organisations with a focus on end-to-end planning policies in the midterm and accurate functional short-term planning saw revenues increase by 2.5 times.
            • Monitoring, Adjustments and Responsiveness. Businesses that practised monitoring at “arm’s length” to intervene only if policies are breached and empower local stakeholders to adjust within policies saw a 2.1 times increase.
            • People & Culture
            • Risk & Resilience

            The first step in making your supply chain more resilient is evaluating your current ability to resist disruption.

            Global supply chains became more geographically and organisationally complex over the past decade. As a result, efficiency increased and costs came down. However, speed, efficiency, and cost-saving have their own price. 

            The price of complex, globalised supply chains

            When the COVID-19 pandemic threw the world into the chaos of global lockdowns, many supply chains discovered they lacked the resilience to meet the challenge. As noted in an article published in the Journal of Computers & Industrial Engineering last year, “the interdependency between worldwide partners causes a butterfly effect, leading disruptions to dissipate quickly and the [supply chain network] to be impacted more swiftly.” Supply chain networks had their weaknesses exposed, often in dramatic fashion. 

            Now, four years later, the conversation has shifted. 

            “Manufacturers are facing a wide range of disruptions across the world. Supply chain shortages are caused by geopolitical issues, cyberattacks, consumer-demand swings and natural disasters,” Rochelle Fleming, director of partner marketing at Microsoft, wrote in a recent opinion piece for the Technology Record. As a result, the virtues that drove supply chain organisation pre-COVID—efficiency and cost-containment—are now being held in almost equal importance to a new indicator of supply chain excellence: resilience

            In pursuit of a more resilient supply chain

            Fleming notes that many organisations are turning to digital transformation initiatives to meet the current market challenges. She argues that “new evolving technologies like edge computing and IoT can, and will, transform the way they create resilient supply chains in the future,” and that tools like artificial intelligence (AI) will also “positively impact supply chain resilience.” 

            However, as with all digital transformations, understanding the needs and goals of the business is critical. A recent report by Gartner warns: “simply increasing or decreasing investments in digital or physical resources is not the solution.” 

            Instead, a more targeted, thoughtful approach is required. The key to this is for supply chain leaders to be able to accurately assess their own levels of resilience in order to identify and eliminate weak points. 

            Assessing supply chain resilience 

            When assessing a supply chain’s resilience, there are three fundamental metrics to consider. 

            Time-To-Survive

            A supply chain’s time-to-survive refers to how long it takes the organisation to resume its operations after being disrupted. The shorter a supply chain’s time-to-survive, the better it can maintain stability, even amidst unforeseen events. Supply chain with a shorter time-to-survive is more resilient and less vulnerable to disruption. 

            For example, in the wake of the COVID-19 disrupting businesses, time-to-survive described how long it took companies to outfit staff with PPE, place COVID-safety measures in place, and obtain the go-ahead from regulators. 

            Time-To-Recover

            Time-to-recover refers to how long it takes for a supply chain to return to full capacity and clear its backlog. This is probably the most pivotal step. Time-to-recover is strongly linked with an organisation’s ability to mitigate financial losses, uphold customer satisfaction, and safeguard its reputation.

            Time-To-Thrive

            Lastly, time-to-thrive measures the company’s performance after emerging from a disruption. Evaluating time-to-thrive looks at the state of the supply chain (and company as a whole) pre-disruption and afterwards to determine the lessons learned and steps required to minimise both time-to-survive and time-to-recover in the future. 

            • Collaboration & Optimization
            • Risk & Resilience

            Fashion supply chains cannot be made environmentally sustainable without transparency from cotton field to fitting room.

            Fast fashion famously struggles with unsustainable practices in its supply chain. From procurement through to manufacturing and distribution, unsustainable practices riddle the fashion industry supply chain. 

            While this is widely known, many major clothing brands can’t (or won’t) counteract this trend because their supply chains lack transparency.   

            The true cost of fast fashion

            The fashion industry’s sourcing practices are notoriously damaging to the climate. The fashion industry produces approximately 2-3% annual carbon emissions worldwide. That’s in the same ballpark as commercial aviation (2-3%) and data centres (2.5% to 3.7%)

            Of course, measuring the environmental cost of the fashion industry solely using carbon emissions is reductive at best. 

            Textile industry expert Lutz Walter explains that “desertification, biodiversity, agricultural land degradation or poverty of farming communities in cotton growing countries,” as well as “pollution from textile dyeing or poor pay and labour conditions in garment factories in developing countries,” are much more immediate and costly consequences of wanton waste, pollution, and unsustainable practices in the fashion supply chain. 

            Fashion supply chains still run on unsustainable materials 

            One of the most common methods suggested for reforming fashion supply chains is the industry-wide shift towards more environmentally friendly material manufacturing. Specifics range from more sustainable ways to produce environmentally harmful materials like denim, to reclaiming and recycling old garments. 

            The industry is making progress. However, over the coming decade, this progress is unlikely to amount to more than a drop in the ocean compared to the fast fashion industry’s insatiable appetite for material made and processed as cheaply as possible. 

            According to a 2023 report by the Textile Exchange, so-called “preferred materials” like organic cotton and recycled fabric accounted for approximately 23 million tonnes in 2021, representing 19% of global production. By 2030, recycled fashion will amount to 30 million tonnes per year. 

            However, the total demand for fashion items is expected to grow just as fast (if not faster) than recycling efforts. As such, the proportion of global fashion production derived from “preferred materials” isn’t expected to get any higher than 19%. 

            “In the face of the climate crisis, the policy landscape, and investor and consumer scrutiny, fashion and apparel brands cannot afford to underinvest in their raw materials strategies any longer,” argues Beth Jensen, director of climate and impact at the Textile Exchange

            Transparency in the fashion supply chain

            Fashion companies traditionally have purposely not looked too closely at their supply chains, where environmental and human rights violations have flourished, in order to keep prices low. Now, however, the tide seems to be turning. 

            Recently, investors in Inditex (the parent company of fashion brand Zara) loudly pushed for the company to make its full list of suppliers public so they can better assess any supply chain risks. Inditex, Reuters reports, is one of the last major holdouts among large fashion manufacturers to not publish the names and locations of its sourcing partners’ factories. 

            However, Inditex has refused to increase the transparency in its supply chain, despite Know The Chain, a benchmarking initiative for organisations to address forced labour in supply chains, giving Inditex a lower overall score in its 2023 assessment than it received in 2021.

            Forcing companies to make sustainable decisions regarding the environmental and human impact of their supply chains is an ongoing battle. Recently, landmark legislation in the European Union which would hold corporations accountable for environmental damage and labour abuses in their supply chains has met fierce resistance

            However, legislation in France also recently proposed a ban on fast fashion advertising, French Minister of Ecological Transition, Christophe Béchu, commenting: “Ultra fast fashion is an ecological disaster: clothes are poorly made, widely purchased, rarely worn and quickly thrown away.” 

            Nevertheless, regulatory changes are moving much, much slower than the fashion industry can churn out over 20 million tonnes of clothes per year. 

            A blockchain for cotton

            Some believe technology (combined with restructured business practices and regulation) could be the answer to creating much needed transparency in the fashion supply chain. 

            “With the regulatory landscape, with more transparency and traceability, [brands] won’t have a choice but to prove that what they’ve been saying is happening on the farm is actually happening on the farm,” Crispin Argento, co-founder and managing director of blockchain procurement startup Sourcery, in an interview with Vogue Business. Without intervention, he adds, the global cotton supply chain will collapse. “If we continue with the same practices, in another 20 to 25 years, farmers will stop growing cotton.” 

            Sourcery’s model aims to create transparency starting at the agricultural stage. They then maintain this transparency throughout the process from farm to sales rack. First, they record and verify data at the farming level. Their app then measures how sustainably the farmers grew the crop accordind to their standards. Blockchain technology then links that data to the crop throughout the supply chain. Manufacturers and fashion brands that want to access that data in order to secure their climate conscious bonafides then pay the farmers (and Sourcery) for that verifiable data. The more sustainable the crop, the more money suppliers, manufacturers and brands kick back down the supply chain to the farmers.

            If regulation can create the necessary need for transparency, blockchain technology like the kind created by Sourcery could be the answer to changing the way the fashion industry approaches its supply chain.  

            • Digital Supply Chain
            • Sustainability

            Procurement still suffers from widespread manual processes, which reduce visibility and increase exposure to human error.

            Automation is one of the hotter topics in the procurement sector this year. Chief procurement officers are increasingly fixated on the potential for digital transformation to eliminate manual, routine tasks and processes.  

            Automation has generated significant productivity gains throughout the rest of the supply chain. Robotic process automation is cutting down on human error and lead times in the ordering process.

            “Digital procurement is enabling a progressive digitisation of labour through automation of existing mundane processes and opening the door to new levels of performance at every stage of the procurement process,” notes a KPMG report.

            In warehouse management, organisations are increasingly using robots and co-bots to automate and streamline the picking and shipping process. Logistics is even exploring self-driving vehicles to handle last-mile delivery. It’s unlikely, however, that self-driving long haul trucks will see mass adoption any time soon, given the disastrous collapse of the robo-taxi industry across several US cities. 

            However, in the procurement space, adoption of automation is lagging severely behind. According to a new white paper from SAP, procurement functions depend much more heavily on manual processes. Reportedly, these processes represent “a significant barrier to visibility, effective management, operational efficiency and organisational agility.” 

            The manual process problem

            According to SAP “organisations that automate processes” are more agile than those reliant on manual processes. Essentially, they are significantly more capable of pivoting when needed and withstanding disruption. However, 37% of executives responding to their survey said that “most, if not all,” of their organisation’s procurement processes are carried out manually. That’s a shockingly large number of organisations working with legacy systems. Worryingly, these companies are failing to unlock the benefits of automated digital procurement. Not only that, but they are also exposing themselves to unneccessary risk.

            As a result, 47% of executives said they find it difficult to gain real time visibility into spend. Additionally, 42% experienced reconciliation issues and exceptions. 

            The issue is that, when procurement is managed manually, human error becomes a troublingly constant factor. There are an allarming number of problems that manually conducting procurement administration can create. Communication breakdowns and mystery invoices drive inefficiencies. They also create grey areas where fraud can take place. Dark purchasing (unaccounted for spend from outside the procurement function) also flourishes in organisations where spend and sourcing are handled manually. Most importantly, manually managing procurement processes is time consuming. “This extra time costs money in terms of labour costs and affects your invoice processing costs. Over the course of a year in an organisation with high purchase volumes, this can make a tremendous impact on your bottom line,” notes Keith Murphy, head of content for Planergy.

            • Collaboration & Optimization
            • Sourcing & Procurement

            Three ways that businesses can strengthen their verticals and increase supply chain resilience.

            Resilience has emerged as the key indicator of long-term supply chain success. The current supply chain landscape is defined by geopolitical disruptions, extreme weather events, and economic pressures. Unpredictable consumer demand, rising cybercrime, and tightening regulatory restrictions are also stressing global supply chains already battered by COVID-19. 

            “It is widely accepted that unexpected events and disruptions are intrinsically an integral part of SCNs, which have become increasingly interconnected, interdependent, and complex due to globalisation,” noted the authors of an article published in the Journal of Computers & Industrial Engineering last year. 

            They add that this complexity and interdependency between organisations in a supply chain renders the structure less resilient. Furthermore, disruptions affecting one point in the chain are more likely to affect the rest of it too. Disruption of a fragile supply chain can result in “decreasing sales, delays in distribution, damage to market share and reputation, and declines in stock returns”. In short, the damage can go well beyond the initial disruption.  

            Resilience is becoming an increasingly prized characteristic of modern supply chains. As such, we’ve identified three ways supply chain managers can increase the resilience of their operations. 

            1. Diversify your supplier ecosystem

            Climate-related disruptions and geopolitical crises are affecting more of the world. As a result, sourcing all of a certain product or resource from a single supplier in a single region can render your whole supply chain vulnerable to disruption. If all your raw materials come from a single supplier, country, or region, your supply chain is vulnerable. Whether a war breaks out, a government changes hand, or drought wipes out crops, you are at the mercy of that area’s fortunes. In short, don’t put all your eggs in one basket. 

            A diversified supplier ecosystem that deals with multiple suppliers, both overseas and locally, is significantly less likely to be disrupted. You can further increase resilience by signing dual-source agreements and longer-term contracts. Many organisations are also considering nearshoring and friend-shoring key elements of their supply chains where possible. Sometimes it’s worth paying more for the stability of being closer to home.  

            2. Take a more conservative approach to inventory management

            The days of just-in-time fulfilment and inventory management have been replaced by insecurity and long lead times. Even Toyota Motors—the company widely regarded as having invented the just-in-time methodology—increased its inventory of semiconductors from a three to five month supply amid the shortages last year. 

            Safety stock buffers can be augmented by AI analytics. These tools can effectively manage inventory replenishment by taking into account multiple internal and external business factors. Of course, there is still a risk incurred by holding onto too much stock, as it prevents you from adapting to new challenges as quickly as you might if your operations were more agile. If disruptions do occur, short-term pressure valves can be used to get stock where you need it quickly. This is similar to a backup power supply at a critical building when the grid fails. While a form of rapid response transportation solutions like air freight can avoid a major disruption in the short term, overreliance on these methods can create pain points of their own. 

            3. Practice diversity in your logistics network

            The movement of raw materials, manufacturing parts, and finished products all takes place outside your direct control. Shipping routes are especially prone to disruption, as demonstrated by ongoing delays in the drought-stricken Panama Canal and Houthi military action in the Red Sea. These two unrelated events in tandem effectively doubled the price of container shipping in Q4 2023. By getting what you need from a wider array of locations, you can minimise or even avoid this kind of risk. Obviously, it’s impossible to completely mitigate risk, especially when the threats to your operations are global. Nonetheless, if you are being disrupted less on average compared to your competitors, it’s going to create an advantage.

            By mapping out alternative routes and using multi-modal transportation, supply chains can increase resilience and reduce costs. Switching from rail to road, or from sea to air, for example, can increase your supply chain’s resilience. Lastly, by outsourcing fulfilment to a third party, you can also help scale operations up or down as necessary, which can be especially valuable in a market defined by unpredictable customer demand.

            • Collaboration & Optimization
            • Risk & Resilience

            Lacking the obvious nearshoring locations compared to North America and APAC, European organisations face a series of difficult decisions.

            The current climate of ongoing supply chain disruptions is showing little signs of dissipating. Rising costs, extreme weather, and geopolitical tensions have placed nearshoring at the top of the agenda for many supply chain leaders.  

            Hoping to mitigate the risks posed by more complex, geographically distributed supply chains, companies are starting the process of shifting resource extraction, production, manufacturing, and other critical elements of their value chain closer to home. 

            Nearshoring is a global project 

            Increasingly, manufacturers in the US are “evaluating nearshoring opportunities for their supply chain,” observes Mike Short, President of Global Forwarding, at the US’ largest freight handler C.H. Robinson. “Many are looking to mitigate risks from macroeconomic factors that have historically driven instability in shipping conditions.” 

            At the same time, however, these companies still want to preserve the financial benefits that pulled their business overseas in the first place. 

            As a result industrialised nations are looking at their nearest, most economically developed neighbours to find the right balance of manufacturing capabilities, favourable exchange rates, and nonexistent worker protections to provide a cheap supply of labour. In the US, for example, companies are looking South rather than West across the Pacific to China. 

            According to Propel Software CMO Dario Ambrosini, 2024 will be the year that “Mexico becomes the new China.” He adds: “Mexico has reached an inflection point on high value-added manufacturing capabilities for industries such as aerospace, medical device, automotive, consumer products, and textiles.” 

            However, while nearshoring efforts in North America have a readily available destination in the form of Mexico, Europe is struggling with a series of complex dilemmas. 

            Europe’s nearshoring problem

            Manufacturers in Europe recognise the need to shift production closer to come just like their contemporaries in APAC and North America. However, while they are aware of the imperative, “making that a reality presents practical difficulties,” explains Carlos Cordon, a Professor of Strategy and Supply Chain Management at the IMD Business School. 

            While Mexico offers an “obvious low-cost base in close proximity to the all-important US market,” Cordon explains that in Europe, by contrast, “picking the right site for a new plant is less clear-cut.” Cordon highlights high labour costs in more developed markets, as well as “geopolitical uncertainties” in the peripheral regions where costs remain attractively low. 

            “In Eastern Europe, the shadow of the Ukraine crisis looms large. In Turkey, political risk continues to rise, and inflation is out of control. North African markets are fraught with difficulties, too,” he notes. 

            With a mixture of lower costs and a decent manufacturing base, Portugal and Poland are both set to capture a sizable amount of new business from European manufacturers. Both countries are working hard to attract new foreign investment, and their economies could see significant upticks in the next few years as a result.

            Nevertheless, Cordon cautions that “what appear to be obvious solutions have hidden pitfalls that are only brought to light as market dynamics shift in unprecedented ways, suggesting that there will be an element of gambling and a requirement to accept trade-offs.”

            • Collaboration & Optimization
            • Sourcing & Procurement

            Artificial intelligence could help manage risk to the supply chain by flagging threats and predicting disruption.

            Cybersecurity risk to global supply chains is increasing. 

            In October, data collected by the Boston Consulting Group found that the “number, severity, and sophistication” of cyber attacks is growing. 

            As noted by experts at the Ponemon Institute, the problem is reaching a tipping point. They report that 98% of companies have been negatively impacted by a breach that occurred at a company in their network. Similarly, the Microsoft Digital Defense Report 2023 highlighted that a supply chain attack affected 61% of businesses in the past year.

            Supply chain complexity is creating cyber vulnerabilities  

            The risk of attack, the report notes, is increasing in tandem with the complexity of global supply chains. 

            As organisations increase the scope and diversity of their supplier networks to boost resilience, the number of network tiers and endpoints also increases, and so do the supply chain’s points of vulnerability. 

            Globalised supply chains are increasingly “often several tiers deep” notes the BCG report, which adds: For example, an auto manufacturer’s supply chain includes numerous vendors, manufacturers, service providers, and customers that rely on other suppliers, which, in turn, depend on still other vendors. The auto manufacturer’s many suppliers connect to its digital network.” The organisaiton therefore also connects to their vendors’ and customers’ digital networks. Adding another layer of risk, the suppliers connect to the company using an array of hardware and software components which were acquired from and serviced by still more third party vendors. 

            The upshot is that, in a large, multi-tier supply chain, there are multiple partner entities with varying degrees of proximity to the organisation. However, while the organisation might not have any control over these organisations’ security practices, they nevertheless share in their security risks.  “Third parties’ cybersecurity risks are also the company’s risks,” the report notes. 

            A recent survey of business leaders in Australia conducted by PwC found that more than 75% of respondents believe organisational complexity creates “concerning” cyber risks. However the problem is that “While Australian business leaders have raised concerns that too much avoidable, unnecessary organisational complexity poses concerning cyber and privacy risks, some complexities are necessary,” warns PwC Australia Cybersecurity & Digital Trust Partner Cameron Whittfield. 

            Managing complexity and cyber risk 

            Faced with the financial and reputational damage that a supply chain breach can cause, leaders need to find ways to remain resilient in the face of the cybersecurity threats. Complexity is undeniably a driver of risk to the supply chain. 

            However, faced with the fact that complex supply chains are, in many cases, necessary, organisations need to find ways of protecting themselves from cyber attack without “thoughtlessly streamlining and simplifying operations and processes,” as Whittfield puts it. 

            “Organisations should consciously and deliberately” simplify where possible, he adds, “to protect its systems and data.” However, simplifying the complexities that can be eliminated, and protecting complex elements of the supply chain that can’t are both significant challenges.   

            Intelligence sharing can mitigate complexity risk

            Whittfield argues that collaboration between ecosystem partners and threat intelligence sharing are vital in the process of securing a supply chain. He emphasises that there needs to be “more effective collaboration, within and between the public and private sectors.” Most importantly, the public and private sectors need to collaborate before, not just after attacks take place.  

            “While supply chains are invariably large and complex, it is vital that organisations gain better visibility and more effectively manage their third-party relationships and dependencies. Mapping these relationships and the data held by an organisation is key to increasing cyber resilience and making informed cyber investment decisions,” he adds. 

            This collaborative approach is an essential when mapping the supply chain in order to locate and minimise risks. Visibility remains a huge problem for supply chains, as 85% of supply chain disruptions originate from indirect Tier 2+ suppliers.

            • Digital Supply Chain
            • Risk & Resilience

            From the climate crisis to AI, here are the top 5 trends we see shaping the supply chain landscape in 2024.

            Supply chains are the lifeblood of the global economy, and they have rarely been under greater strain. From the worsening climate crisis to economic downturns in multiple markets, supply chains are facing an increasingly hostile environment. 

            New technologies may play a role in alleviating these pain points. Automation and artificial intelligence promise to combat labour shortages, increase efficiency, and improve resilience. However, adopting new technologies invites complexity, cost, and new forms of risk. Some experts believe that soft skills and a more human, collaborative and localised supply chain is the answer to challenging times.

            From automation to collaboration, here are the five trends we see affecting supply chains in 2024. 

            1. Disruption 

            Organisations around the world hoped that 2024 would mark a return to the stability of the pre-COVID era. It seems, however, as if those simple times may never return. 

            From the Suez and Panama Canals to US anti-Chinese legislation in the EV market, the new normal for supply chains is disruption. This turbulence is coming from both the supply side, where rising costs for material, labour, and shipping, and from the demand side, where consumer behaviour is becoming harder to predict. 

            2. Artificial Intelligence

            In an increasingly challenging landscape, AI adoption is making strides as supply chain managers seek to unlock immediate gains in efficiency. AI promises to deliver real benefits in intelligent sourcing, inventory management, and logistical route planning. Machine learning, a subset of AI enabling computers to learn autonomously, is also poised to revolutionise several elements of the supply chain, from demand forecasting to quality control. The technology has even been floated as a way to develop new products through predictive analysis and decision-making. 

            3. Automation 

            The supply chain industry, like many others, is undergoing a skills shortage as the complexity and volume of work eclipses available labour supply. At least, supply at the wages operators are willing to pay. In response, automation is being heavily leveraged to increase efficiency and plug gaps in organisational structures. 

            On the software side, a KPMG report notes that “Most supply chain tasks can be fully or partly automated through low-code platforms, which use a wide range of Application Programming Interfaces (APIs) and pre-packaged integrations to link previously separate systems.” When it comes to physical tasks like warehousing, many operators have turned to using collaborative robots, or cobots. This technology is revolutionising warehouse operations by enhancing efficiency in tasks like picking, packing, and heavy lifting.

            4. Scope 3 Emissions Visibility 

            Supply chains can account for as much as 90% of an organisation’s environmental impact. Regulatory and public scrutiny of companies with inadequate ESG reforms is mounting. As a result, many supply chain organisations have set ambitious goals to become carbon neutral or achieve net-zero waste objectives. 

            This is the year when those promises will start being put to the test. We will see some supply chains start to make real progress on the decarbonisation of their value chain. Others will be exposed for the consummate greenwashers they are.   

            5. Collaboration 

            While technology undoubtedly offers efficiency gains and other strategic wins, a more collaborative and communicative supply chain can create lasting, more meaningful value. 
            “There’s no way to eliminate risk and volatility from your supply chain entirely, but improving information sharing and collaboration across stakeholders can go a long way to help control the fallout,” notes Fraser Robinson, co-founder and CEO of Beacon, in a recent interview.

            • Collaboration & Optimization
            • Digital Supply Chain

            Disruption and delays in the Suez and Panama Canals are spiking emissions as cargo ships abandon greener “slow steaming” approach.

            The ongoing disruption of shipping passing through the Suez and Panama Canals has caused the cost of worldwide shipping to spike. 

            The damage, however, is not limited to higher prices and delays. New data from the United Nations Conference on Trade and Development has shown that the disruption of the world’s two busiest man-made waterways is incurring a heavy carbon cost as well. 

            An unprecedented challenge 

            The concurrent disruption of traffic through the Suez and Panama Canals is the first time in history that two waterways of this scale have been affected simultaneously. The impact on global trade has been immense. 

            In Q4, the worldwide cost to ship a 40-foot container nearly doubled compared with November of last year, and a UN report observed weekly pricing spikes of over $500 in the last week of December 2023. 

            In the Panama Canal, low water levels have halved the rate at which ships can traverse the 50 mile stretch of water. As a result, long queues have developed, with some captains paying as much as $4 million late in 2023 to jump to the front of the line. Those unwilling or unable to pay inflated rates must choose between weeks spent waiting in line and long, inefficient journeys around the southern tips of either Africa or South America. 

            Houthi military action against Israeli shipping in the Red Sea is having a similar effect. Approximately 22% of global seaborne container trade passed through the Suez canal in 2023. However, the risk of attack has caused many captains to avoid the canal, instead opting for a longer route round the Horn of Africa. The result is that container tonnage passing through the canal fell by 82% by the first half of February 2024. 

            The carbon cost of disruption 

            There is an additional, potentially more pernicious cost, to the reduction in shipping through both the Panama and Suez Canals. 

            Faced with delays and longer diversions, many cargo ships are increasing their average sailing speed. The results are a dramatic increase in emissions which the UNCTAD fears will “erode the environmental gains achieved through ‘slow steaming’, as rerouted vessels increase speeds to cover longer distances.” 

            Slow steaming is a technique that has found favour in recent years as a way of cutting the emissions of global cargo shipping fleets. Reducing the sailing speed of a cargo ship by 10% compared with the planned speed results in a 27% reduction in CO2 emissions. Rough seas and bad weather further exacerbate the effect. Hazardous conditions like those surrounding the Cape of Good Hope or the Horn of Africa force captainsto used their engines less carefully. As a result, they emit more carbon as their engines run longer and faster.

            By comparison, increased speed uses significantly more fuel. A 1% increase in the speed of a large cargo ship increases the amount of fuel it uses by around 2.2%. For example, accelerating from 14 to 16 knots increases fuel use per mile by 31%.

            UN data suggests that, by rerouting from the Suez Canal to the Cape of Good Hope, cargo ships could incur a 70% increase in greenhouse gas emissions for a round trip from Singapore to Northern Europe.

            While the current disruptions affecting the Suez and Panama Canals will pass in time, they will not be the last. The climate crisis is worsening. At the same time, geopolitical tensions are also increasing around the world. As a result, global supply chains are increasingly under threat, along with any ground already gained towards decarbonising the shipping sector.

            • Sourcing & Procurement
            • Sustainability

            Widespread investment into generative AI raises new questions about the technology’s potential to benefit global supply chains.

            Generative artificial intelligence (AI) leapt to prominence last year. The widespread usage of popular large language model powered chatbots (like ChatGPT) and image generators (ie Midjourney) sparked excitement, controversy, and huge capital investment. Since then, adoption has been widespread and investment has been significant. 

            However, an array of people and organisations have leveled criticism at generative AI and its applications. The problems raised with the technology range from it being simply inefficient and unappealing to downright unethical. If the supply chain sector is to make the most of its investment into the technology, it needs to avoid making the mistakes already befalling other sectors, where generative AI is actively eroding value—usually for a high price tag. 

            Generative AI’s big year  

            Funding for generative AI quadrupled in 2023, and as of February 36 generative AI startups had attained unicorn status. Investment in generative AI startups skyrocketed, from $4.3 billion in 2022 to $21.8 billion last year. 

            Generative AI’s ability to create (the appearance of) new content, such as numerical data, images, text, audio or video has generated a great deal of investment, excitement, and media attention (in addition to a truly shocking amount of pornography). However, finding ways for the technology to make the leap from curiosity to useful (and, more importantly, profitable) business tool is still an ongoing search. 

            Clickbait, waffle, and 24/7 content farms 

            Several companies are providing generative AI tools as a way to supposedly enhance the experience they provide. For example, Ebay has started giving the option for sellers to use AI to automatically generate item listings. However, users have criticised the service for surrounding basic information with overly flowery, poorly phrased “waffle.” 

            Similarly, AI leveraged to churn out news articles and blog posts as part of a new wave of automated content farms has also faced criticism for flooding the internet with “low quality” articles and “clickbait.” The problem is escalating rapidly, as well, with a recent study conducted by researchers at the Amazon Web Services (AWS) AI Lab finding that a “shocking amount of the web” is already made up of poor-quality AI-generated and translated content.

            In short, critics of the technology believe generative AI fails to bring any real value to the areas where it is being deployed. The fact that 40% of supply chain organisations are already investing in generative AI begs the question: what are they planning to use it for? Will it add value to the business? 

            More pertinently, are there applications for generative AI that actually can add value to the business? Or, is this tech adoption for its own sake going to hurt the organisations that embrace it like it hurt all those kids who wanted a nice weekend out at a Willy Wonka themed experience in Glasgow?

            What can generative AI actually do for the supply chain?

            The main issue with the more widely known generative AI platforms like ChatGPT is that their outputs are only as good as the data used to train them. Most chatbot AIs currently available to the public are generalists, trained on huge amounts of (stolen) data. 

             However, if trained on the right, thoroughly vetted data, generative AI can be a useful tool for analysing large, unstructured sets of information. It can rapidly classify and categorise information based on an array of visual, numerical or textual data formats. Then, it can take those large volumes of data and summarise them, extracting key insights and trends. The technology could also potentially assist in quickly pulling relevant information from those datasets in order to provide instant responses by voice or text, which might be useful in allowing workers with a lower level of technical skill to perform higher level tasks. 

            It can also quickly analyse and modify strategies, plans and resource allocations based on real-time data—much faster, with a much broader pool of information than a human.  

            Generative AI could also automatically generate content in various forms that enables supply chain managers to automate vendor negotiations according to a preexisting script and set of parameters. 

            However, it all depends on the quality of the model being used and the quality of the data. Without adequate oversight, direction, and scrutiny, generative AI will erode more value from the supply chain than it creates.

            • AI in Supply Chain
            • Digital Supply Chain

            Advanced data analytics are a necessary tool in the fight to predict and avoid increasingly common supply chain disruptions by the climate crisis.

            Extreme weather events are disrupting global supply chains, and the problem is only going to get worse. If organisations are going to build climate-adaptive supply chain models, supply chain leaders need to harness the potential of big data analytics to create the adaptability, flexibility, and resilience required in the face of increasingly hostile and deadly environmental conditions

            Extreme weather drives food insecurity and puts pressure on supply chains 

            In August of last year, severe flooding killed 29 people and caused “tens of billions” of dollars worth of economic damage in the northern Chinese province of Hebei. In addition to the loss of human life, the floods severely impacted regional food production chains. A single extreme weather event impacted more than 2.5 million acres of farmland. 

            Extreme weather events like this are becoming an increasingly common side effect of our collapsing climate. In 2023 alone, climate disasters directly claimed the lives of more than 12,000 people. Every year, the climate crisis will cause more intense, severe, and long-lasting extreme weather events such as hurricanes, floods, droughts, freezes, and wildfires. 

            Extreme weather events are going to continue severely disrupting global supply chains. The consequences of the resulting food insecurity, loss of access to critical supplies, and social unrest as the result of economic stagnation will be appalling. 

            Even countries with relatively low food insecurity like the UK could see civil unrest in a relatively short amount of time due to the effects of worsening weather. 

            If supply chains fail, so does everything else

            A 2023 study found that “food shortages stemming from extreme weather events could potentially lead to civil unrest in the UK within 50 years.” In particular, supply chain disruptions leading to shortages of staple carbohydrates like wheat, bread, pasta and cereal “appear to be the most likely triggers of such unrest.” 

            If these extreme weather events, combined with rising sea levels, disrupt supply chains over the coming decade, the effects will be severe. A report released by sustainability focused consulting company Ramboll argues that “disruptions in the supply chain interrupt manufacturing, production, and delivery of goods, raising costs of materials and prices of products and hurting corporate revenues. With climate change posing such imminent risks of disruptions, supply chains must begin preparing to become resilient and climate adaptive.” 

            Climate-adaptive supply chains built on data 

            Visibility is the first step towards building a more resilient supply chain. Data is the most useful  tool that professionals have at their disposal in order to achieve it. 

            “In the current environmental climate, with extreme weather becoming the norm, organisations must become more agile to beat the disruption and avoid lasting impacts; data insights are key to this,” argues Renaud Houri, EVP of International Markets at project44. He stresses that, “as if the economic crisis was not enough to worry businesses, the spike in extreme wet weather is heightening pressures for supply chains and retailers alike and now it is fight or flight.” 

            Supply chain mapping, in conjunction with using data analytics to monitor changing weather patterns and macroeconomic trends, can create meaningful visibility for supply chain operators.  

            “With better visibility comes better planning, and predictive insights are the first line of defence for delay mitigation,” Houri says. He also advocates for the application of AI and artificial intelligence to transform data into insights for the future. 

            “Intelligent tracking data can be used to proactively detect issues before they happen. Delay and exception risks across all carriers are identified using machine learning, pre-empting negative delivery experiences. Associated changes to staffing demand can also be predicted and addressed,” he explains. “In layman’s terms, this means businesses have a holistic view of their operations to make better, faster decisions in the face of weather disruption, therefore resulting in superior on-time deliveries.” 

            If supply chains intend to weather the coming storm of disruption, they need to leverage their data into a holistic understanding of their operations and use cutting edge technology to stay ahead of one unfolding disaster after another.

            • AI in Supply Chain
            • Sustainability

            Automation has the potential to help solve some of the most pressing challenges facing the supply chain sector in 2024.

            Ever since the COVID-19 pandemic threw global supply chains into chaos, it seems as though supply chain leaders have been fighting to find a way back to normality. 

            However, if the last four years have demonstrated anything, it’s that the stability, speed, and predictability of pre-2020 supply chains are a thing of the past. Resilience, efficiency, adaptability are the new cardinal virtues of an industry fighting on multiple fronts—against economic unrest, geopolitical conflict, and the climate crisis

            Supply chains are experiencing serious pain points as they try to stay afloat while restructuring to be more agile and resilient. Many are turning to automation as a potential solution to some of the most common problems affecting supply chain organisations.

            Among different types of automation, supply chain managers are increasingly turning to robotic process automation (RPA) for its ability to alleviate supply chain pain points. 

            “RPA serves as a driving force for process improvement and task automation, covering everything from order processing to inventory management. The adoption of RPA software in the supply chain marks a significant shift towards improved visibility, precision, and speed,” says Alina Filatova, Head of BA Department at Innowise. “These elements are essential for attaining excellence in logistics. This integration acts as a vital link, bridging the gap between conventional logistics methods and the growing needs of today’s supply chain landscape.”

            Siloed data and legacy systems 

            Despite ongoing digital transformation efforts, many of today’s supply chains are mired with siloed organisational structures and legacy technology. Vital aspects of organisational procedure all too often rely on emailing spreadsheets and PDFs back and forth. Relying on these methods to track and utilise often critical information creates silos, inefficiencies, and reduces the potential for collaboration. 

            On top of that, ERP systems can lack the flexibility to support more agile, fast moving businesses. This results in wasted labour as supply chain professionals spend time moving documents around, inputting data across multiple digital platforms, and otherwise performing repetitive, error-prone tasks. 

            By using an RPA tool to automate data entry, simple communications between supply chain staff and other stakeholder, and standardise information across all platforms, supply chain operators can dramatically increase efficiency and reduce errors. 

            For instance, an RPA tool can handle the whole process of updating customers about their order status faster than a human. It can automate multiple tasks involved in processing, checking, and tracking orders by pulling data from different systems. It can then monitor those orders based on predetermined sets of rules, and provide customers with real-time updates. 

            This has the potential to reduce the amount of manual work being performed, increases the accuracy of orders, and gives better visibility across multiple otherwise siloed and legacy elements of the supply chain tech stack.

            • AI in Supply Chain
            • Digital Supply Chain

            Supply chain leaders face a challenging world. The nature of supply chain management has changed. As a result, supply chain…

            Supply chain leaders face a challenging world. The nature of supply chain management has changed. As a result, supply chain leaders get more recognition for their role in supporting the business than they used to. However, the challenges facing supply chains today have rarely been more daunting. The outset of 2024 has been defined by new challenges and old complications. Skyrocketing shipping costs, logistics disruptions, economic downturn, and other significant issues ranging from the climate crisis to confrontation with labour unions are all conspiring to derail and disrupt supply chains. 

            In the midst of this supply chain leaders are feeling the pressure to not only mitigate risk and avoid disruption, but be a source of strategic wins for the business, from environmental reform to simple cost containment. 

            Without a skilled supply chain leader, organisations will struggle, and perhaps even fail. Here are the top seven skills setting today’s best supply chain leaders apart from their peers. 

            1. Holistic 

            The supply chain is no longer an appendage bolted onto the side of a larger organisation. Supply chain leaders need to take a holistic view that accounts for the entire business. The ones who succeed will drive real success for their organisation.

            Holistic supply chain leadership also requires a deep understanding of the wider industry. This involves a constantly evolving understanding of events, key players, and the trade-specific knowledge underpinning the sector. Taking into account the entire value chain from sourcing through to the customer is a challenging prospect, however. 

            2. Daring 

            In an environment where risk management and resilience are prized almost as much as cost containment, risk-taking supply chain leaders might sound a bit out of place—a dying breed. They’re certainly a rare one. A recent Gartner survey found that only “9% of supply chain organisations expect to achieve revenue gains due to uncertainty.” 

            However, the report also pointed out that supply chain leaders who were willing to take steps to capitalise on uncertainty could also realise huge strategic wins for their organisations. After all, no one changed the world by playing it safe. 

            “An antifragile supply chain starts with the Chief Supply Chain Officer’s mindset,” said Tim Payne, VP Analyst at Gartner. “Rather than trying to keep uncertainty out of the supply chain, antifragile supply chains embrace uncertainty with the objective of learning, evolving and adapting their capabilities based on their improved knowledge of it.”  

            3. Communicative 

            One of the key aspects of successful supply chain management in challenging times is being able to find ways to collaborate, coexist, and drive efficiency. According to Beatrix Praeceptor, CPO of Mondi Group, “A high-performing supply chain is not so much about processes and tools as about people collaborating and communicating effectively.”

            Supply chain leaders need to find ways to drive end-to-end collaboration throughout the value chain. Those that do will end up creating tangible benefits for their stakeholders, partners, and customers alike. 

            4. Digitally Driven 

            Procurement is becoming a more digitally transformed discipline every year. With 2024 expected to see generative artificial intelligence adoption, increased automation, and a surge in the number of electric vehicles throughout supply chains, leaders will need to be able to evaluate new technologies from a point of authority. 

            Digital transformations guided by overexcitement for a shiny new toy you don’t understand are just as dangerous as holding off on embracing technology out of fear or stubbornness. An effective supply chain leader needs to understand the technology they’re using. They also need to understand the market and what’s available to them so they can effectively communicate with vendors about their organisation’s IT needs and advocate for technology solutions that support their goals.  

            5. Agile 

            It goes without saying that supply chain leaders who are able to prepare, respond, and find ways to turn crisis into opportunity will have a huge advantage in the supply chain sector. The industry itself is in a state of constant disruption. From Houthi attacks in the Red Sea to the worsening effects of the climate crisis, supply chains have rarely looked more precarious. 

            As a result, supply chain leaders need to be ready to adapt quickly in order to alter their strategies as demanded by the changing circumstances around them. 

            6. Inspiring

            The supply chain is the lifeblood of a modern business. It traces the story of a product from its raw materials and creation to the customer, and supply chain leaders are the architects of that story. However, the ability to convey that purpose and inspire those around them might be one of a supply chain leader’s greatest tools. 

            Employees who recognise the importance of their work are more likely to work harder, longer, and create better output.   

            7. Ethical 

            Supply chains will play a significant part in whether or not we can overcome the challenges posed by our world. Every supply chain that starts with deforestation, slavery, strip mining, and other objectively unethical practices is complicit. Every supply chain that passes through a sweatshop, uses forced prison labour, or endorses a fascist regime by doing business within their borders is complicit. 

            A heavy ethical burden has been laid at the feet of supply chain leaders. While there may be increased pressure from consumers and stakeholders to improve ESG throughout many organisations, without champions in the supply chain, change will be slow, incremental, and keep many organisations mired on the wrong side of history.

            • People & Culture

            Disruption in the Red Sea and Panama Canal are conspiring to double the cost of worldwide shipping.

            The worldwide shipping sector suffered a cataclysmic shock in 2020 with the advent of the COVID-19 pandemic. Container prices surged, delays spiralled from days to weeks to months, and the highly distributed global model of just-in-time delivery came grinding to a halt. 

            Now, almost four years later, the freight industry is starting to show signs of clawing its way back. Surging oil prices from the war in Ukraine, a looming recession, and the after effects of a US-China trade war all slowed recovery. Slowly but surely, however, global supply chains have recovered, pivoted, and restructured to thrive again. 

            Back to square one: supply chain disruptions are the new normal

            We’re only a few months into the new year, and new pain points already threaten to push global supply chains backwards into situations that feel an awful lot like mid-2020. 

            On top of economic uncertainty, disruptions to global shipping lanes sent shockwaves through supply chains at the start of 2024. 

            Two of the world’s busiest waterways are both experiencing serious disruptions, with both the Panama and Suez Canals handling less traffic. 

            $4 million for a fast pass through the Panama Canal 

            In Panama, a once-in-a-generation drought brought water levels at critical points along the waterway to half its usual level. As a result, cargo traffic dropped from an average of 36 to 38 ships per day in the past to approximately 18 in February. Lower water levels also mean ships cannot pass through the canal as heavily loaded as before. 

            Paul Snell, chief executive officer of British American Shipping, told Fortune in December that “We face less capacity, more trips, higher costs and a less efficient supply chain.” Reports indicate that, at the end of 2023, some tanker captains were paying up to $4 million to jump the queue to pass through the canal. Others risked the weeks-long, dangerous voyage round either the Horn of Africa, or the southernmost tip of South America to reach their destinations. 

            Troubled waters in the Red Sea 

            Over 22,000 ships passed through the Suez canal in 2022. This year, that number is expected to be much lower. 

            The Houthis, acting in response to Israel’s genocidal assault on Gaza, hijacked a series of Israeli-owned cargo ships in the Red Sea. While the attacks were carried out without loss of life, they provoked a sizable response from the US and UK armed forces, and disrupted trade through the world’s busiest waterway.  

            Global slowdown triggers price increase 

            The effect of water shortages in Panama and conflict in the Suez have been profound. A United Nations report found that traffic is down by more than 40% in both the Suez and Panama canals compared to their peak operating rates.

            The result of less traffic, ships travelling longer distances, and increased risk of disruption is a severe rise in the price of container freight. 

            In Q4, the worldwide cost to ship a 40-foot container nearly doubled compared with November of 2023. The US’ nine largest ports experienced a 13% decline in the total number of twenty-foot equivalent units handled compared to the previous year, and C.H. Robinson, the country’s largest freight broker, reported that fourth-quarter revenue and earnings fell 17% and 68%, respectively year-on-year. 

            The report advises that organisations “importing from or exporting to South America, the Far East or the Middle East via either [the Suez or Panama canal] should plan for the incremental cost and time requirements to use alternative shipping routes and modes.” 

            Even if the disruptions in the Suez and Panama are resolved, the first half of 2024 will be defined by higher shipping prices and increased disruption. The UNCTAD’s report confirms that “Container freight rates on Asia–Pacific to Europe routes have risen sharply since November 2023,” with weekly rate spikes for single containers of $500 observed in the last week of December 2023. “Average container shipping spot rates from Shanghai in early February 2024 more than doubled – up by 122% compared to early December 2023. The rates from Shanghai to Europe more than tripled, jumping by 256%.”

            • Risk & Resilience
            • Sourcing & Procurement

            To overcome macroeconomic and environmental challenges, supply chain leaders must foster greater collaboration within their supplier ecosystems.

            As 2024 continues to unfold, the lessons of the past three years are more clearly visible than ever before. Economic pressures, geopolitical conflict, and climate disruption are no longer freak events. They are the new normal and they are here, in one form or another, to stay. 

            Supply chains face an increasingly complex and challenging landscape where the strategies that translated to success pre-pandemic are no longer viable. “Greater efficiency [comes] at the expense of diminished flexibility and effectiveness — a tradeoff the pandemic-induced supply chain disruptions have made painfully clear,” analysts from the Boston Consulting Group argue. 

            Resilience, cost, and environmental impact all need to be held in a much more even balance in 2024 than they did five years ago. As a result, supply chain leaders need to reevaluate their approach to building and maintaining relationships throughout their supplier networks. 

            A collaborative approach to supplier ecosystems 

            In the face of a hostile supply chain landscape, supply chain leaders can potentially mitigate risk and exposure to disruption by taking a less transactional approach to supplier relationships. As noted by Fraser Robinson, co-founder and CEO of Beacon, in a recent interview, “there’s no way to eliminate risk and volatility from your supply chain entirely, but improving information sharing and collaboration across stakeholders can go a long way to help control the fallout.”

            This more collaborative approach rests on the twin foundational pillars of trust and technology. 

            Collaborative digital tools that allow suppliers and buyers up and down the value chain increased visibility can proactively address and mitigate potential delays while replicating wins. This level of visibility can ensure that all parties along the value chain can see exactly where goods and materials are at the same time—in real time. In a market defined by disruptions, this holistic visibility increases organisations’ ability to identify and respond to said disruption dramatically. 

            This level of information sharing obviously requires an amount of trust. This is especially true in a climate where cyber attacks are ever on the rise, with ecosystem partners being an increasingly common source of successful breaches. 

            Despite this, however, there are significant benefits of creating trust up and down the supply chain. According to Robinson, these positives are measurable all the way from raw material production to the consumer. Robinson notes that “Certainly, in our world, it takes time to build that trust from the ground up, so that’s why we just have fact-based solutions. Trust is built much faster if the system accurately reflects reality, and users learn that very quickly.”

            • Collaboration & Optimization
            • People & Culture

            In an environment of constant disruption and change, the Centres of Gravity model could help supply chains stay resilient and cut costs.

            It’s a time of unprecedented disruption and uncertainty for supply chains. Throughout the sector, supply chain managers are searching for ways to reduce costs, increase visibility, and improve resilience. Centres of Gravity is a new supply chain management model that promises to deliver on these needs. Deployed correctly, it will supposedly future proof CSCOs’ operations, even in uncertain times. 

            A treacherous supply chain landscape 

            The supply chain sector is having a difficult year already. The sector is facing shockwaves from geopolitical conflict, a worldwide economic slowdown, and the increasingly disruptive impact of the climate crisis. Together, these factors are conspiring to make the current supply chain landscape especially treacherous. Recently, 38% of small business owners said they believe the global supply chain outlook will negatively impact their business. 

            Interlinked with these trends, consumer demand is shifting in new and unpredictable ways. A combination of rising inflation and backlogged inventory has caused demand to wither. Simultaneously, the waning influence of the pandemic has led to a profitable period for retail in the US and Europe. 

            The US market also “saw a return to pre-pandemic consumer holiday season spending,” last year. However, Yikun Shao, Alibaba’s North American supply chain lead, warns that “businesses may still want a more conservative approach and order products in smaller quantities, meaning that meeting shipping requirements may become more difficult. Demand is not able to meet the products that the supply side is able to provide.” 

            Increasingly, supply chain leaders are prioritising resilience and the ability to scale supply up or, (more often) down at a moment’s notice. 

            What is a centre of gravity in a supply chain?

            The centre of gravity in a supply chain and logistics is the single point where it is most advantageous to locate a distribution hub. Therefore, calculating a supply chain’s centre of gravity takes into account markets, volume of goods, shipping, transport costs, just in time availability, local labour market situation, and cost. Using these factors, supply chain leaders can determine their value chain’s centre of gravity based on demand, supply, or the lowest distribution costs. Importantly, it’s a flexible process, and a supply chain’s centre of gravity can move around depending on the metrics used to calculate it.

            However, current supply chain pressures are too much for the traditional single-centre-of-gravity model to sustain. As noted by Raf Dillman and Kay Manke of BearingPoint, “Today’s supply chains are on the brink of a fundamental transformation due to the challenges of geopolitical conditions, customer demand and regulation. The pressure is on supply chains to deliver value in a complex, fast-moving, fragmented, sustainable, consumer-centric environment.” 

            Centres of Gravity could give supply chains the resilience they desperately need

            In response, a new model is emerging. Consisting of multiple micro-chains that integrate production, processing, and distribution of products, this model acknowledges that supply chains can have multiple centres of gravity.

            Notably, these centres of gravity are located closer to market demand. This helps improve energy and materials efficiency within the sourcing and logistics process. Most importantly, they are also collaborative, capable of leveraging local and regional partnerships, and co-manufacturing models. 

            Distributed centres of gravity are also more sustainable. Dillman explains that multiple centres of gravity drive an increase in the reuse and repurposing of materials. They also ensure goods and materials travel shorter distances. Overall, this model makes supply chain operations more resilient and transparent, as well as driving traceability. 

            “We believe that individual supply chain components will be propelled into multiple Centres of Gravity,” says Dillman. “This will be driven by the convergence of resilient supply chain strategies, the circular economy, reduced energy costs driven by sustainability, and lowered entry barriers for local and virtual production, thanks to digital technologies.”

            Centres of gravity will allegedly drive an industry-wide transformation. We are, they say, moving from “one global and rigid system” to something more “flexible and regional.”

            • Collaboration & Optimization
            • Digital Supply Chain

            Automation can increase efficiency and reduce human error at a time of unprecedented disruption for the supply chain sector.

            More than anything, the global supply chain industry craves consistency, predictability, and security. In a recent survey of supply chain leaders, Gartner found that just 9% of respondents expected to achieve revenue gains due to uncertainty, and 63% of respondents expected a loss of revenue due to exposure to uncertainty. 

            In a climate defined by disruption and uncertainty, automation could provide the resilience that supply chains need to overcome challenging market conditions. 

            A market defined by disruption and rising costs,  

            Supply chains face a complex and challenging geopolitical and economic outlook. Additionally, long-overdue labour organising efforts in markets traditionally hostile to unions like the US are starting to gain traction. 

            “In recent years, labour rates have accelerated beyond what you might have expected,” Mark Richardson, chief executive officer of Ocado Intelligent Automation, complained in a recent interview with Supply Chain Brain

            “Over the last three to six years, the workforce that you want to employ in your logistics facility has just become much, much more expensive. I don’t see any end to that trend, and it results in a significant problem for those of us who need to run large logistics operations. And not only is the labour rate increasing, the number of people who want to do logistics work is decreasing,” he said. 

            Increasingly, supply chain leaders are turning to automation to combat the economic pressures and uncertainty they face. 

            Automation grows in the supply chain 

            Supply chain automation has the potential to improve operational efficiency by reducing human error and speeding up clumsy manual processes. Automation in the supply chain can encompass several technologies, including digital process automation, robotic process automation, artificial intelligence, and machine learning.

            While most supply chains have developed pockets of digitalisation over the last decade or more, it’s not uncommon for these areas of the supply chain to be siloed from one another. One of the key benefits of automating supply chain processes is the connective tissue that automation solutions create between different areas of the supply chain

            Supply chains are going to continue to implement new digital tools, so having an automation layer in place will be highly beneficial in ensuring those layers can seamlessly interconnect.  

            Currently, many supply chains are not integrated and optimised for a fully digital workflow. Even those that are frequently struggle with a lack of digitalisation in their supplier ecosystem.

            Essential processes still frequently rely on humans extracting, inputting, and sharing  data via spreadsheets, PDFs and emails. Without automation and AI-powered tools, many ERP systems lack the ability to automatically incorporate data from disparate and legacy formats. This means that manual data entry is still a significant part of the supply chain professional’s job. 

            The upshot is that, not only are supply chain professionals often performing repetitive, easily automated tasks by hand, but these are the kinds of tasks that most easily lend themselves to human error, often with costly results.  
            “Supply chain automation is a transformative force. It’s revolutionising the way businesses operate, offering numerous benefits, including enhanced efficiency, cost savings, improved customer service, and a positive impact on sustainability,” notes a spokesperson for GEP.

            • AI in Supply Chain
            • Digital Supply Chain

            Consumers and stakeholders are more focused on sourcing transparency than ever, driving the need for better strategic sourcing.

            The demands faced by supply chain leaders are evolving. 

            Pre-pandemic, speed and cost-containment were more or less the start and end of conversations about successful supply chain management. Supply chain managers alluded to sustainability, but lax reporting standards and easy carbon credit trading made “net zero” and “carbon positive” claims easy enough. 

            The mounting horror of the climate crisis has changed things, however. Worsening economic conditions, extreme weather, and other destabilising factors related to climate instability, have shifted the conversation. 

            As noted in a recent report by IBM, “From fast fashion to fluorite, consumers and stakeholders are keyed into product provenance—expecting brands to uphold ethical, responsible sourcing practices.”

            Today, the majority of customers (73%) agree that traceability in the supply chain is important to them, and 71% would be willing to pay a premium. The motivation certainly exists, as does the mounting threat of regulatory penalties for organisations found to be operating in violation of not just climate regulations, but labour rights, and human rights. 

            Delivering supply chain transparency

            Achieving supply chain transparency requires companies to disclose and share critical information within their ecosystem. By doing this, they ensure both consumers and enterprises gain insights into the origins and processes of goods’ production. This practice validates the source of materials, components, and final products. As these goods move through teh supply chain, it also tracks each stage, ensuring that all existing standards are met.

            Visibility, traceability, and openness with customers and ecosystem partners is paramount. However, none of this is possible unless it starts at the highest point in the value chain: sourcing. 

            Rather than focusing exclusively on procurement at the lowest possible price, a company practising strategic sourcing takes into account the total cos of ownership. This includes the ESG impact.

            By formalising the process by which a supply chain function gathers information about its supplier ecosystem, it can create a more holistic view of that ecosystem and increase supplier transparency. 

            Strategic sourcing, supply chain transparency, and sustainability 

            Supply chain transparency allows for the identification and mitigation of environmental impact.  By enabling companies to trace raw material origins, assess supplier environmental practices, and identify areas for sustainability improvements, a strategic sourcing initiative can allow for more informed decision making to reduce carbon emissions, water usage, waste generation, and shrink ecological footprints.

            In addition to emissions, strategic sourcing can help to ensure social responsibility. Better supply chain data can be critical in monitoring and addressing labour conditions, human rights violations, and worker safety throughout the value chain. Similarly, more transparent supply chains can verify their ethical sourcing of raw materials. This is crucial and badly needed in industries like fashion, electronics, and mining, where the risks of conflict minerals, worker exploitation, and harm to local communities are high. 

            Transparency through strategic sourcing also helps build consumer trust. Those consumers demand more information on environmental and social impacts when purchasing, so a more transparent supply chain directly translates into benefits for the bottom line. An increase in the trustworthiness of a supply chain can mean a meaningful boost for brand value.

            • Sourcing & Procurement
            • Sustainability

            Extreme weather and biodiversity disruption threaten our global food supply. Our ability to analyse and predict events may provide protection for our supply chains.

            Extreme weather events are 2024’s biggest supply chain risk. A report by Everstream Analytics found that climate crisis-related disruptions like hurricanes and extreme heat were the top threat predicted to disrupt supply chains this year. 

            It’s an obvious and natural progression, seeing as 2023 saw more extreme weather-related disruptions than any year before. Heavy rains and flooding impacted California, Nevada and Utah early last year. As a result, shipments in areas where transportation systems were disrupted dipped by 20% to 30%. 

            Currently, shipping moving through the Panama Canal has been cut in half by a drought. Historic lack of rainfall has lowered water levels at critical points along the waterway. As a result, ship captains stuck in weeks-long lines are being forced to choose whether to sail around the tip of either South America or Africa, or to pay as much ad $4 million to jump the queue. 

            Eating into supply chains and food supplies

            These delays and extreme weather disruption are especially disruptive to food and agricultural supply chains. Given the perishable, delicate nature of crops and globally plummeting biodiversity, the climate crisis poses unprecedented risks and disruptions to global supply chains,” says David Nickell, Vice President Sustainability & Business Solutions at dsm-firmenich Animal Nutrition & Health. He adds, however, that “this holds doubly true for the agriculture and food sectors.” 

            Climate change is already affecting food security at the global, regional, and local level. Changes in climate can severely disrupt food production and reduce access to food. Not only this, but the changing climate can also affect food quality and nutritional content. The United States EPA noted in a recent report that food insecurity likely to be exacerbated by extreme weather events. The report also notes: “spikes in food prices after extreme events are expected to be more frequent in the future.” Lastly, they add that “increasing temperatures can contribute to spoilage and contamination.”   

            An over-globalised food supply chain

            These disruptions highlight the cracks already appearing in an over-globalised, delicate food supply chain. The EPA observes that even a single climate-related disturbance to food distribution and transport could significantly disrupt not only the safety and quality of food, but also food access. “For example, the food transportation system in the United States frequently moves large volumes of grain by water. In the case of an extreme weather event affecting a waterway, there are few, if any, alternate pathways for transport,” they note.  

            Around the world, extreme weather is disrupting our ability to maintain existing supply chains. Nickell adds that the problem will only be exacerbated as supply chain managers are forced to “look for new methods to address the challenges of changing environmental conditions, evolving consumer buying behaviours and increasing demand for animal protein, which is expected to grow 60% to 70% by 2050, driven by population growth and greater affluence in developing economies.” 

            Hungry for climate data  

            One of the biggest challenges is that food supply chains can’t just be maintained in the face of climate disruption. At the same time, these systems must be decarbonised to avoid further devastation of the environment. 

            For companies throughout the food value chain, the majority of their environmental impact stems from Scope 3 emissions. These are emissions tied to farming, ranching, land clearance, and other activities further up the supply chain. These, Nickell adds, are the most complex part of the carbon footprint of food production. 

            A potential solution, he argues, is better data. “Data-based technologies and advanced Life Cycle Assessment platforms have become pivotal tools to enable scalable measurement and reduction of emissions, enhancing transparency and trust, building supply chain resilience, and driving positive, sustainable outcomes,” he notes. 

            One application for this technology, he continues, is in the animal protein supply chain. Here, “the ability to capture and analyse granular, feed and farm-level data at scale is fundamental,” Nickel says. “To be useful for measurement and for improving sustainability, that data must cover a product’s full life cycle from farm to fork, be easily shareable, scalable and tailored to various needs, whether at the product or company level.”  

            Lastly, he adds: “By leveraging the latest, leading technologies and data-driven solutions… the food industry can work towards reducing its environmental impact and meeting the growing demand for sustainable food in a scalable and credible manner.”

            • AI in Supply Chain
            • Sustainability

            Landry Giardina, Sanofi’s Global Head of Clinical Supply Chain Operations Innovation & Technology talks data-driven performance, resilience, agility and operational excellence within the clinical supply chain area…

            It’s a packed issue this month. Here’s a roll call of just some of this month’s exclusive content…

            Read the latest issue here!

            Sanofi: Clinical supply chain innovation

            Landry Giardina, Sanofi’s Global Head of Clinical Supply Chain Operations Innovation & Technology talks data-driven performance, resilience, agility and operational excellence within the clinical supply chain area

            Sanofi has a mission: to chase the miracles of science to improve people’s lives, and sometimes that means starting over with Plan B, Plan C, or even Plan Z. To do so means to work across the most complex disciplines to solve problems, to push the boundaries and not be afraid to take smart risks, and to dedicate everything to making life better for people everywhere. None of that happens without continuous and groundbreaking R&D and clinical trials to prove the medicines and vaccines it creates are safe and efficient for millions of people around the world. Which makes Landry Giardina and his colleagues’ jobs absolutely essential. 

            Read the full story here!

            Werfen: Procurement and supply chain excellence through teamwork

            Don Perigny, Director Supply Chain, at Werfen, a Specialised Diagnostics developer, manufacturer and distributor, reveals how a strong work culture can achieve incredible success during challenging times.

            “It takes a village to raise a child,’ purports a famous African saying. It’s certainly a phrase that has struck a note with Don Perigny, Director Supply Chain at Werfen. For Perigny, the ‘village’ is Werfen’s supply-chain and procurement team, although he does extend the sentiment to Werfen’s wider network, including its suppliers and partners, who have kept the former professional sportsman busy at the company for over 21 years.

            Werfen is a worldwide leader in the area Specialised Diagnostics for Hemostasis, Acute Care, Transfusion, Autoimmunity and Transplant. The Company also has an OEM division, focused on customised diagnostics. Werfen’s annual revenue exceeds $2bn with a worldwide workforce of 7,000, operating in approx. 35 countries and more than 100 territories through its network of distributors. 

            We join Perigny at his office in Bedford, Massachusetts. He’s just back from a week at Werfen’s San Diego offices, where he spent some quality time with his extended (work) family. And it’s soon clear that the people, the culture and what Werfen does for the world is crucial to Perigny and the wider workforce at the company. 

            Read the full story here!

            Plus, we have expert-driven analysis on hot topics such as AI in supply chain, tackling global regulations and how to encourage more women into supply chain and procurement. 

            CPOstrategy cover star this month is Kristina Andric, Supplier Manager IT at Tetra Pak and recent CIPS Young Talent winner, who discusses the procurement landscape from her perspective and how Tetra Pak is nurturing young procurement leaders like her… 

            This month’s cover star is Kristina Andric, Supplier Manager IT at Tetra Pak and recent CIPS Young Talent winner, who discusses the procurement landscape from her perspective and how Tetra Pak is nurturing young procurement leaders like her… 

            As a household name in food processing and packaging, Tetra Pak stands by having a customer-centric, strong, and competent procurement function.

            As a result, it’s always working hard to evolve, which includes seeking out new procurement talent wherever possible. This is how Kristina Andric, Supplier Manager IT, became part of the team and kick-started an exciting career. 

            Read the latest issue here!

            Andric started working at Tetra Pak in 2018 via a trainee programme called Future Talent. The programme lasted two years and gave trainees the opportunity to understand Tetra Pak from multiple perspectives. Andric was rotated throughout different parts of the organisation and across different geographies, the idea being to give young people a holistic view of the company before taking on a permanent role.  

            “Embracing change marked my career since the beginning,” she reflects. “My curious nature thrives on the opportunity to engage in diverse experiences and continuous learning. Challenges motivate me and develop my potential, so every change has been to my benefit. I’ve enjoyed it all.” 

            Elsewhere, we also have fascinating insights into procurement hot topics such as optimising tail spend with Simfoni and Kearney, amplifying procurement’s influence with Arkestro, while Box looks at The Art Of Procurement As A Change Agent. Plus, we detail 5 ways of tackling procurement’s talent shortage and discuss being prepared for future pandemics…

            Enjoy! 

            Timothy Woodcock, Director of Procurement at CordenPharma, discusses the new wave of change following acquisition and amid transformation

            We have a bumper issue of fascinating exclusives this month!

            Corden Pharma: Powering Change

            Timothy Woodcock, Director of Procurement at CordenPharma, discusses the new wave of change following acquisition and amid transformation 

            Change is here, get busy. Indeed, some organisations are further along a transformation journey than others.
            For CordenPharma, a Contract Development and Manufacturing Organisation (CDMO) partner, they are right on track. 

            CordenPharma supports biotech and pharma innovators of complex modalities in the advancement of their drug development lifecycle. Harnessing the collective expertise of the teams across its globally integrated facility network, CordenPharma provides bespoke outsourcing services spanning the complete supply chain, from early clinical-phase development to commercialisation. Recognised as a key partner to the pharma industry, CordenPharma provides state-of-the-art know-how, an integrated product offering end-to-end capabilities from early-stage development to commercial large-scale manufacturing. 

            A closer look 

            Timothy Woodcock has been the Director of Procurement at CordenPharma since October 2022 and is based in Basel, Switzerland. He explains that since joining over a year ago, while it was a “good start”, he admits to discovering some surprises after closer inspection. “There was a lot of information to get to grips with at the start and it was spread wide and thin,” he tells us. “But the team is certainly key and they have helped me pull it together through solid collaboration and engagement. Of course, there were a few surprises in the process realm, but that’s what makes this challenge so interesting to me.”

            Read the full story here

            carbmee: Carbon management for complex supply chains

            Prof. Dr. Christian Heinrich, Co-Founder at carbmee, discusses his organisation’s journey to being the trusted solution provider for carbon management.

            ​​carbmee means carbon excellence for complex supply chains. It is the carbon management solution for automotive, manufacturing, chemical, pharmaceuticals, medtech, hi-tech, logistics, and FMCG industries. Whether to assess emissions holistically throughout the entire company, product or suppliers, carbmee EIS™ platform can create the transparency required for uncovering optimal emissions reduction potential and at the same time, stay compliant with upcoming regulations like CBAM.

            carbmee’s journey

            Christian Heinrich has been the Co-Founder at the organisation since January 2021. While some executives end up in procurement and supply chain by mistake, for Heinrich he affirms it was “always” the industry for him. As far as he’s concerned, collaboration is a big piece of the puzzle and Heinrich points to his diverse experience in a range of different industries and sectors which have helped him along the way to forming carbmee. 

            “This was actually one of the reasons my co-founder Robin Spickers asked me to leverage my supply chain knowledge,” he says. “Robin had expertise in sustainability areas like Product LifeCycle Assessments and I had that in procurement and supply chain. We connected together and created carbmee to have scope 1, 2 and 3 solutions for carbon accounting and carbon reduction, which also combines the lifecycle analysis.”

            Read the full story here!

            Hemofarm: Strength through glocal procurement

             Zorana Subasic, Director SEERU & PSCoE Cluster Procurement at Hemofarm A.D. reveals how a glocal approach is transforming procurement at the pharmaceutical… 

            Zorana Subasic is all about people. She heads up procurement for Hemofarm, the largest Serbian exporter of medicinal products, with a share of more than 70% of the total pharmaceutical. It sells pharmaceutical products on four continents in 34 states and, since 2006, has been part of the multi-national pharmaceutical giant STADA Group. 

            Meeting the challenges

            Zorana explains that her priority is focusing on people, both within her team and in the wider company, a priority that has been even more important during the last few challenging years and has impacted her leadership style.  ”These are areas that were new for me – managing people in ‘business as usual’ times is completely different to what we’ve been through in the last two or three years. It has affected people, and how it was for me to manage people in difficult times – understanding the challenges around us and making sure that people also understand the challenges.”

            Read the full story here!

            Elon: Procurement as a strategic partner

            Onur Dogay, CPO at Elon Group, reflects on a year of procurement evolution and making the function an indispensable partner to the organisation…

            A lot can happen in a year. Just ask Onur Dogay. In late summer 2022 he arrived in Sweden from his native Turkey to take the helm of a complex and evolving procurement environment at Elon Group AB, the Nordic region’s leading voluntary trade chain for home and electronic products. That he joined just a month after a significant merger that cemented the company’s market-leading position was no coincidence. Rather, Dogay was brought on board with a specific mission: use his industry experience and passion for transforming procurement to sustain the company’s market status while spearheading growth in new areas of retail and electronics. 

            And he hasn’t slowed down since. In little over 12 months, Dogay has overseen a procurement evolution that includes setting a new data strategy that’s aligned with the broader company vision, shifting procurement’s role to be less transactional and more of a strategic business partner, improving communication and partnerships both internally and externally with suppliers, and overseeing the greater use of data and technology to enhance forecasting and planning capabilities. 

            A seasoned procurement professional

            A glance at Dogay’s CV to date leaves little surprise at his success. He is a seasoned procurement professional, with more than 20 years’ experience in procurement leadership positions working across internationally dispersed teams in Europe. “My background is particularly strong in retail, consumer electronics, telecom, and IT business units,” he explains, “including at Arcelik, one of the world’s largest manufacturing companies, and also for one of the biggest retailers in Europe, MediaMarkt. At the time of the merger in 2022 here at Elon Group, this experience, as well as the good relationships I had with many of the suppliers and brands we work with now, was the perfect match for the company.” 

            Read the full story here!

            Microsoft: A sustainable supply chain transformation

            In the past four years, Microsoft has gained more than 80,000 productivity hours and avoided hundreds of millions in costs. Did you miss that? That’s probably because these massive improvements took place behind the scenes as the technology giant moved to turn SC management into a major force driving efficiencies, enabling growth, and bringing the company closer to its sustainability goals. 

            An exciting time

            Expect changes and outcomes to continue as Dhaval Desai continues to apply the learnings from the Devices Supply Chain transformation – think Xbox, Surface, VR and PC accessories and cross-industry experiences and another to the fast-growing Cloud supply chain where demand for Azure is surging. As the Principal Group Software Engineering Manager, Desai is part of the Supply Chain Engineering organisation, the global team of architects, managers, and engineers in the US, Europe, and India tasked with developing a platform and capabilities to power supply chains across Microsoft. It’s an exciting time. Desai’s staff has already quadrupled since he joined Microsoft in 2021, and it’s still growing. Within the company, he’s on the cutting edge of technology innovation testing generative AI solutions. “We are actively learning how to improve it and move forward,” he tells us. 

            Read the full story here!

            Click here to read the entire magazine!

            This month’s exclusive cover story features a fascinating discussion with Dhaval Desai, Principal Group Engineering Manager at Microsoft, regarding a massive and sustainable supply chain transformation at the tech giant… 

            This month’s exclusive cover story features a fascinating discussion with Dhaval Desai, Principal Group Engineering Manager at Microsoft, regarding a massive and sustainable supply chain transformation at the tech giant… 

            In the past four years, Microsoft has gained more than 80,000 productivity hours and avoided hundreds of millions in costs. Did you miss that? That’s probably because these massive improvements took place behind the scenes as the technology giant moved to turn SC management into a major force driving efficiencies, enabling growth, and bringing the company closer to its sustainability goals. 

            Expect changes and outcomes to continue as Dhaval Desai continues to apply the learnings from the Devices Supply Chain transformation – think Xbox, Surface, VR and PC accessories and cross-industry experiences and another to the fast-growing Cloud supply chain where demand for Azure is surging. As the Principal Group Software Engineering Manager, Desai is part of the Supply Chain Engineering organisation, the global team of architects, managers, and engineers in the US, Europe, and India tasked with developing a platform and capabilities to power supply chains across Microsoft. It’s an exciting time. Desai’s staff has already quadrupled since he joined Microsoft in 2021, and it’s still growing. Within the company, he’s on the cutting edge of technology innovation testing generative AI solutions. “We are actively learning how to improve it and move forward,” he tells us. 

            Read the full story here! 

            Plus, there’s more!

            We also have some inspiring and informative content from supply chain leaders and experts at Schneider Electric, Smart Cube, Protokol, Red Helix and Astrocast. Plus, expert predictions for 2024 from leading supply chain leaders, as well as a round-up of the best events this year has to offer! 

            Read our amazing content here!

            Enjoy! 

            Our exclusive cover story this month centres around Versuni, home to some of the world’s most renowned home appliance brands

            Versuni: Procurement excellence to drive growth 

            Our exclusive cover story this month centres around Versuni, home to some of the world’s most renowned home appliance brands. Versuni is a company with a rich history, dating back to 1891, albeit under a different name. Philips Domestic Appliances was renamed Versuni after the Netherlands-based giant sold the business to China-based global leading Private Equity company Hillhouse Capital in September 2021. And so began a process of disentanglement as Versuni embarked on its journey to becoming a successful and independent entity with a simple yet clear purpose of turning houses into homes. 

            Read the new issue here!

            “We refer to ourselves as a 130-year-old company with a scale-up mentality,” explains Hugo Sparidans, Chief Procurement Officer, Versuni. “We combine the legacy we have with Philips with all the goodies here in this new, agile environment where things can happen much faster and with a different mindset fully focused on growth.” 

            Versuni is now operating under private equity ownership following its separation from Philips two years ago. “My boss called me and said, ‘So, we’re going to spin off Domestic Appliances. Do you have the interest to lead the transition for Procurement within that spin-off, and then potentially after?’ That was an interesting question for me,” Sparidans explains. “I’d had a great career within Philips working for a successful business, but I was now facing the idea of leaving that behind for a trip into the unknown.” 

            Read the full story here!

            Mars LATAM: Shaping the world of tomorrow  

            Mars Pet Nutrition LATAM is changing the sustainability game within the pet food sector. Gabriel Guzman, VP Procurement LATAM, and Ana Milena Zambrano, Climate & Sustainable Sourcing Head LATAM, explain how…

            Gabriel Guzman, VP Procurement LATAM, and Ana Milena Zambrano, Climate & Sustainable Sourcing Head LATAM, are leading a major ongoing evolution within Mars Pet Nutrition LATAM. Guzman has worked in some of the world’s largest organisations over 25 years, spearheading many high-profile projects during this time. Zambrano’s career spans 15 years across consumer goods and supply chains, with sustainability as a core lifelong passion. 

            A focus on sustainability and the environment is nothing new for Mars – it’s part of the culture. It’s a business with firm ESG pillars and a clear concept of what sustainability means to the organisation. “We believe the world we want tomorrow starts with how we do business today,” says Guzman. “It is the vision at the heart of our Sustainable in a Generation Plan – one where the planet is healthy, people and their pets are thriving, and society is inclusive.”

            Read the full story here!

            EMCS: A small fish making a big impact 

            We sit down with Trevor Tasker, CEO of EMCS, for the second time to discuss partnership, leadership, and the state of the industry 

            EMCS Industries is one of the best-kept secrets in its sector. An innovator from day one, EMCS Industries invented the world’s first electrolytic marine growth protection system (MGPS). This set the basic standard for the field, to the extent that everybody else now uses the same or similar technology based on the EMCS Canadian engineered and manufactured antifouling system. Trevor Tasker is the CEO of the company, and he’s not only passionate about what EMCS does, but his rich background in leadership puts him in excellent stead as head of an industry-leading company. 

            Tasker’s first job at the age of 16 was as a self-employed wedding DJ. Since then, he has honed his entrepreneurial spirit on an international scale in industries such as financial, large scale digital signage, steel manufacturing, and others. He has experience in both building his own businesses, and being an employee, giving him a good foundation of what it means to both lead and be led. 

            “It allows you to get a good mix of what you like, what you don’t like, how you’d like to be treated, and how that shapes the way you treat others as you move through your career,” says Tasker. He’s worked across a variety of industries but the common denominator has been that he’s always either been in a leadership position within a company or running his own company. He’s conducted business all over the world and collected the tools he’s needed to be the best leader he can. 

            Read the full story here!

            AlphaSense: Making procurement a priority 

            Joaquin Rivamonte, Director of Procurement at AlphaSense, talks about how he’s bringing scalability to the organisation, and the benefits of procurement working hand-in-hand with the wider business 

            Joaquin Rivamonte has enjoyed a rich and varied career, one which taught him numerous lessons in preparation for his role with market intelligence platform, AlphaSense. He cut his teeth in the financial service sector; he was the Director of Procurement for some medium-sized investment banking companies in San Francisco, helping support Silicon Valley before the businesses he worked for were bought by bigger banks. One was acquired by JP Morgan Chase, where Rivamonte became VP of Procurement. He was then asked to move to New York, just as Silicon Valley was experiencing the dotcom boom.  

            Office photos at AlphaSense, 24 Union Square East in New York City.

            Rivamonte’s background in building procurement departments from the ground up continued, and eventually, Microsoft took him on. He moved to Seattle to be part of the Microsoft team in 2005, and this was the beginning of his education in how very large procurement departments work. “I did have experience in large groups of people reporting to me already,” Rivamonte says, “but at Microsoft, I had $2-3bn dollars of category responsibility under me. 

            “I was responsible for putting together the consulting category, which was almost $1bn, and the outsourcing category of about $1.2bn, plus the web development category and a lot of different IT contracts.” 

            Read the full story here!

            This month’s cover story features Fiona Adams, Director of Client Value Realization at ProcurementIQ, to hear how the market leader in providing sourcing intelligence is changing the very face of procurement…

            It’s a bumper issue this month. Click here to access the latest issue!

            And below are just some of this month’s exclusives…

            ProcurementIQ: Smart sourcing through people power 

            We speak to Fiona Adams, Director of Client Value Realization at ProcurementIQ, to hear how the market leader in providing sourcing intelligence is changing the very face of procurement… 

            The industry leader in emboldening procurement practitioners in making intelligent purchases is ProcurementIQ. ProcurementIQ provides its clients with pricing data, supplier intelligence and contract strategies right at their fingertips. Its users are working smarter and more swiftly with trustworthy market intelligence on more than 1,000 categories globally.  

            Fiona Adams joined ProcurementIQ in August this year as its Director of Client Value Realization. Out of all the companies vying for her attention, it was ProcurementIQ’s focus on ‘people power’ that attracted her, coupled with her positive experience utilising the platform during her time as a consultant.

            Although ProcurementIQ remains on the cutting edge of technology, it is a platform driven by the expertise and passion of its people and this appealed greatly to Adams. “I want to expand my own reach and I’m excited to be problem-solving for corporate America across industries, clients and procurement organizations and teams (internal & external). I know ProcurementIQ can make a difference combined with my approach and experience. Because that passion and that drive, powered by knowledge, is where the real magic happens,” she tells us.  

            To read more click here!

            ASM Global: Putting people first in change management   

            Ama F. Erbynn, Vice President of Strategic Sourcing and Procurement at ASM Global, discusses her mission for driving a people-centric approach to change management in procurement…

            Ripping up the carpet and starting again when entering a new organisation isn’t a sure-fire way for success. 

            Effective change management takes time and careful planning. It requires evaluating current processes and questioning why things are done in a certain way. Indeed, not everything needs to be changed, especially not for the sake of it, and employees used to operating in a familiar workflow or silo will naturally be fearful of disruptions to their methods. However, if done in the correct way and with a people-centric mindset, delivering change that drives significant value could hold the key to unleashing transformation. 

            Ama F. Erbynn, Vice President of Strategic Sourcing and Procurement at ASM Global, aligns herself with that mantra. Her mentality of being agile and responsive to change has proven to be an advantage during a turbulent past few years. For Erbynn, she thrives on leading transformations and leveraging new tools to deliver even better results. “I love change because it allows you to think outside the box,” she discusses. “I have a son and before COVID I used to hear him say, ‘I don’t want to go to school.’ He stayed home for a year and now he begs to go to school, so we adapt and it makes us stronger. COVID was a unique situation but there’s always been adversity and disruptions within supply chain and procurement, so I try and see the silver lining in things.”

            To read more click here!

            SpendHQ: Realising the possible in spend management software 

            Pierre Laprée, Chief Product Officer at SpendHQ, discusses how customers can benefit from leveraging spend management technology to bring tangible value in procurement today…

            Turning vision and strategy into highly effective action. This mantra is behind everything SpendHQ does to empower procurement teams.  

            The organisation is a leading best-in-class provider of enterprise Spend Intelligence (SI) and Procurement Performance Management (PPM) solutions. These products fill an important gap that has left strategic procurement out of the solution landscape. Through these solutions, customers get actionable spend insights that drive new initiatives, goals, and clear measurements of procurement’s overall value. SpendHQ exists to ultimately help procurement generate and demonstrate better financial and non-financial outcomes. 

            Spearheading this strategic vision is Pierre Laprée, long-time procurement veteran and SpendHQ’s Chief Product Officer since July 2022. However, despite his deep understanding of procurement teams’ needs, he wasn’t always a procurement professional. Like many in the space, his path into the industry was a complete surprise.  

            To read more click here!

            But that’s not all… Earlier this month, we travelled to the Netherlands to cover the first HICX Supplier Experience Live, as well as DPW Amsterdam 2023. Featured inside is our exclusive overview from each event, alongside this edition’s big question – does procurement need a rebrand? Plus, we feature a fascinating interview with Georg Rosch, Vice President Direct Procurement Strategy at JAGGAER, who discusses his organisation’s approach amid significant transformation and evolution.

            Enjoy!

            Welcome to issue 43 of CPOstrategy!

            Our exclusive cover story this month features a fascinating discussion with UK Procurement Director, CBRE Global Workplace Solutions (GWS), Catriona Calder to find out how procurement is helping the leader in worldwide real estate achieve its ambitious goals within ESG.

            As a worldwide leader in commercial real estate, it’s clear why CBRE GWS has a strong focus on continuous improvement in its procurement department. A business which prides itself on its ability to create bespoke solutions for clients of any size and sector has to be flexible. Delivering the superior client outcomes CBRE GWS has become known for requires an extremely well-oiled supply chain, and Catriona Calder, its UK Procurement Director, is leading the charge. 

            Procurement at CBRE had already seen some great successes before Calder came on board in 2022. She joined a team of passionate and capable procurement professionals, with a number of award-winning supply chain initiatives already in place.

            With a sturdy foundation already embedded, when Calder stepped in, her personal aim focused on implementing a long-term procurement strategy and supporting the global team on its journey to world class procurement…

            Read the full story here!

            Adam Brown: The new wave of digital procurement 

            We grab some time with Adam Brown who leads the Technology Platform for Procurement at A.P. Moller-Maersk, the global logistics giant. And when he joined, a little over a year ago, he was instantly struck by a dramatic change in culture… 

            Read the full story here!

            Government of Jersey: A procurement transformation journey 

             Maria Huggon, Former Group Director of Commercial Services at the Government of Jersey, discusses how her organisation’s procurement function has transformed with the aim of achieving a ‘flourishing’ status by 2025…

            Read the full article here!

            Government of Jersey

            Corio: A new force in offshore wind 

            The procurement team at Corio on bringing the wind of change to the offshore energy space. Founded less than two years ago, Corio Generation already packs quite the punch. Corio has built one of the world’s largest offshore wind development pipelines with projects in a diverse line-up of locations including the UK, South Korea and Brazil among others.  

            The company is a specialist offshore wind developer dedicated to harnessing renewable energy and helps countries transform their economies with clean, green and reliable offshore wind energy. Corio works in established and emerging markets, with innovative floating and fixed-bottom technologies. Its projects support local economies while meeting the energy needs of communities and customers sustainably, reliably, safely and responsibly.  

            Read the full article here!

            Becker Stahl: Green steel for Europe 

            Felix Schmitz, Head of Investor Relations & Head of Strategic Sustainability at Klöckner & Co SE explores how German company Becker Stahl-Service is leading the way towards a more sustainable steel industry with Nexigen® by Klöckner & Co. 

            Read the full article here!

            And there’s so much more!

            Enjoy!