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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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 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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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 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

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

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

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 res