Author

Que Tran

Published

30 October 2025

Estimated Read time

5Mins

Que Tran, VP Technology – Ports and Terminals, Europe, DP World, discusses how innovation is addressing the challenges of transporting perishables

From Romanian blueberries to Turkish figs, Europe’s fresh produce economy depends on one thing above all else: temperature integrity. In the world of perishables, it doesn’t take much to turn a successful delivery into a costly loss. A few degrees of fluctuation can spell the difference between a market-ready shipment and a complete write-off.

As demand for fresh food increases and expectations around quality, provenance and sustainability continue to grow, the pressure on Europe’s cold chain has never been greater.

According to recent forecasts, the European cold chain market is expected to grow by $76.8 billion between 2024 and 2028, propelled by rising e-commerce, growing health consciousness and increased cross-border trade in fresh food products. For businesses shipping perishables across the continent, or around the world, that growth represents both opportunity and risk.

If we are to meet this moment, we must move beyond capacity and invest in capability: infrastructure that is smarter, more connected and fundamentally more resilient.

The perishables challenge

The logistics of perishable goods are complex by nature. Seasonal spikes, short shelf lives and exacting customer requirements all place extraordinary demands on cold chain infrastructure. Add growing geopolitical uncertainty and climate volatility such as flash floods, heatwaves and disrupted harvests, then even the most robust systems are put to the test.

Traditional cold chain facilities, especially inland, often lack the visibility and flexibility required to respond in real time to issues like route changes, power fluctuations or handling delays. And as regulators and retailers raise the bar on food waste, traceability and carbon emissions, businesses are under pressure to find solutions that go beyond compliance and deliver competitive advantage.

Smarter, cooler infrastructure

At DP World, we believe that cold chain should be as dynamic as the markets it serves. That’s why we’re investing in next-generation infrastructure, tailored specifically to the needs of perishable goods. In Türkiye and Romania, we’ve partnered with agribusiness exporters to enhance reefer handling capacity and cold storage performance across our terminals. These facilities are designed with food security and product integrity in mind, and incorporate climate-controlled chambers, smart insulation systems and modal connectivity to ensure perishable cargo arrives in prime condition.

For example, at our Constanta terminal in Romania, we’ve built new roll-on roll-off (RO-RO) facilities as part of a €130 million investment. These investments are streamlining vehicle and container flows for perishable goods and connect directly to regional rail and inland hubs. The terminal now provides direct multimodal access from Romania’s agricultural heartlands to European retailers and Middle Eastern markets, making it a vital link in the region’s evolving cold chain.

Visibility means viability

Perhaps the greatest breakthrough for Europe’s cold chain lies not in hardware, but in software. While new storage facilities and transport infrastructure are essential, it is the digital systems behind them that unlock real efficiency, visibility and control. Real-time tracking and predictive analytics are enabling logistics providers to manage complexity, respond faster to disruption and ensure temperature-sensitive goods arrive exactly as expected.

These digital solutions now available provide full visibility across the cold chain journey. With IoT-enabled sensors and real-time tracking tools, we can monitor container conditions in transit. This ensures that goods stay within their temperature thresholds and provide us with data that can be shared with shippers, regulators and retailers.

These digital tools also enable route optimisation based on weather, emissions and congestion data, crucial for avoiding delays and maintaining freshness across multimodal networks. In Türkiye, for example, these systems are supporting fruit exporters by combining predictive analytics with satellite-tracked containers, giving shippers live insights into humidity, CO2 levels and location status.

Smart solutions also make inspections faster and safer.  Remote cargo inspection apps reduce the risks for surveyors and cut inspection time significantly, helping perishable shipments clear ports faster and avoid spoilage.

Greener from the ground up

Cold chain logistics have historically been carbon-intensive, but that’s changing fast. At DP World, sustainability is ingrained into the infrastructure we’re building, and the modes we prioritise.

In Antwerp, where we deal with significant volumes of perishable shipments, our terminal is powered by on-site wind turbines and a biogas plant. Our fully electric automated stacking cranes (ASCs) operate with near-zero emissions. This is at the heart of our value proposition. We’ve taken steps to reduce terminal emissions across our European network by investing in electrification, renewable energy, and more sustainable transport solutions.

We’re also rethinking how the cold chain itself operates. Through the industry-wide “The Move to Minus 15” initiative, we are working with partners across the logistics and food sectors to adopt a new global temperature standard for frozen food storage, raising it from -18°C to -15°C. This seemingly small change has the potential to reduce energy consumption and emissions at scale, without compromising food safety. By aligning temperature protocols across the industry, we can significantly reduce the carbon footprint of frozen logistics and create a more sustainable future for food distribution worldwide.

Regional focus, global impact

Europe’s cold chain is not one network: it’s many, each with its own regional characteristics. But common themes are emerging. Producers want to reach more markets, retailers want greater predictability, and consumers want freshness.

In Eastern Europe, nearshoring and agricultural investment are creating new supply centres in places like Romania, Türkiye, and Serbia. These regions need modern logistics ecosystems to match their production capacity.

At the same time, congestion and emissions are driving modal shifts in Western Europe, with countries like Belgium and the Netherlands investing heavily in inland waterways and rail. The supply chain industry is aligning its infrastructure to support these goals, offering barge-ready and rail-integrated cold storage as standard in most new terminals.

Whether it’s figs from the Aegean or citrus from the Danube, Europe’s perishables need a cold chain that’s fast, flexible and ready for the future.

The road ahead

The future of fresh trade in Europe will be defined by data, design and decarbonisation. Retrofitting old warehouses won’t be enough; we need to remodel the system entirely. That can’t be done in isolation.

To deliver a future-ready cold chain, collaboration is critical. Logistics providers, retailers, regulators and tech players must co-create solutions that make sustainable perishable trade the norm. It’s now about creating confidence as well as keeping products cold for customers.

If we get it right, the benefits go far beyond logistics. A smarter cold chain strengthens Europe’s food security, supports farmers, reduces waste and unlocks trade that truly works for everyone.

  • Procurement Strategy

Author

Fraser Robinson

Published

15 September 2025

Estimated Read time

5Mins

Fraser Robinson discusses the challenges threatening supply chain planning, why visibility isn’t enough, and what being future-ready means

It’s safe to say it’s been a particularly turbulent time for the global shipping and logistics industry. Disruption is ever more frequent and unpredictable. Geopolitical conflicts, tariffs, major climate events, and economic uncertainty all require constant attention and adaptation.

In just one week, the US and Japan struck a trade deal at the same time as the EU set out plans to match the US’s tariffs of 30% – the latest in a wave of rapid policy changes that continue to reshape global trade. Between October 2023 and October 2024, G20 countries introduced 91 new trade restrictions affecting over $828 billion in goods, more than triple the value seen the year before. These frequent tariff changes, with some being as large as they are too, will impact anything from freight costs to route selection and sourcing strategies.

Regarding sustainability, regulations to limit Scope 3 greenhouse gas emissions and safeguard marine ecosystems can require adapted routes to increase efficiency and avoid protected areas. In April, for example, the International Maritime Organisation approved new net-zero regulations for global emissions, aiming to reach the target by 2050. 

All of this shows how quickly tides can change – and why having real-time visibility over carrier shipping routes, freight rates and logistics is integral to being able to adapt just as fast. But visibility alone isn’t enough. When disruption strikes, teams need to act quickly – and relying on back and forth emails and spreadsheets won’t cut it.

Supply chain managers are in real need of digital tools that not only unify their data, but also enable real-time collaboration and seamless communication with partners across the network. Improving the speed and the accuracy of the decision making process.

The unpredictability of the modern supply chain

Tariffs can bring major changes to shipping trends and patterns. But they’re far from the only source of unpredictability. The climate crisis is triggering more damaging and widescale events that can cause disruption in the blink of an eye. A recent NASA study left researchers “amazed and alarmed” at just how sharply the rise in the frequency, length and severity of extreme weather events like floods and droughts has been in the last two years. So, it’s integral to build and evolve supply chains that are able to withstand these unprecedented changes.

Then you have a range of other factors like port congestion, labour disruption and emerging tech risks, which can all heighten unpredictability. For example, the number of parties involved in a shipment leaves the supply chain susceptible to cyberattacks such as ransomware, where cybercriminals lock down systems until they are paid a ransom.

If just one supplier suddenly can’t make a delivery as their internal systems are frozen, then shipping carriers, ports and warehouses all need to adapt to new schedules and orders to maintain operational efficiency. Not to mention the impact of cashflow from stock outs.

The (massive) need to go digital

Naturally, trying to coordinate across a global network of carriers, suppliers, warehouses and customers can be time consuming and chaotic. Spreadsheets and emails are still widely used in supply chains to organise shipments and communicate – but this creates fragmented processes, a sea of data silos and a lack of real-time coordination. No wonder 86% of operations leaders in a PwC survey said their company needed to invest in better tech to track and measure supply chain risk.

With disruption never far from shore, every partner in a supply chain needs access to the same real-time picture of moving goods. By tracking freight and providing automated alerts for any shipment disruptions or delays that take place, the latest digital platforms can display all relevant logistics data and shipping documents on a live tracking dashboard, and these dashboards are easily shareable via a link to every stakeholder.

Not only does this allow stakeholders to view and spot risk sooner, but it brings together every supply chain partner into one location. In turn, this makes it easier to triage issues and coordinate action plans to maintain the flow of goods. For example, it makes it simple for parties to confirm and share cargo ready dates with suppliers and forwarders, or resolve issues in an embedded chat. And by receiving timely notifications, supply chain professionals can act quicker to mitigate the negative impact of delays and disruptions.

Weathering future storms

The unification of data and communication is not only about firefighting immediate disruption. These capabilities are integral to taking a wider view and forming resilient supply chains that can weather the unpredictable and changeable nature of the industry. We need more advanced methods for measuring metrics like carrier performance and emissions and then using this data to optimise routes and reduce factors like demurrage and detention costs.

Are there ways to understand the frequency and severity of delays by carriers? How about understanding which carriers and forwarders are delivering the quickest, most reliable service? The monitoring of data over time can provide the answer to such questions. Supply chain managers can build ETA accuracy reports, for instance, that compare initial ETAs against ATAs. They can benchmark transit times and accrue objective performance insights that inform decisions about choosing suppliers and routes and ports. It all comes down to having data in one place that can be analysed by AI and provide key, and complex insights.

Of course, there is also an increasing onus on balancing performance with sustainability.

Carbon reports can analyse crucial metrics like distance, vessel and carrier to paint a clear picture of the carbon impact of each shipment. By understanding this impact for different routes and carriers, supply chain managers can make much more informed and sustainable choices when planning their routes. And with consumer and regulatory scrutiny set to intensify, the ability to be transparent through carbon reporting can increase trust and brand reputation.

Disruption is becoming more of a normality in supply chains – it’s something that is predictable. What supply chain professionals can’t predict is what that disruption will look like and where it might come from. As with anything in the modern world, data and communication are crucial to responding quickly to these events as well as implementing changes that improve the overall resilience of supply chains – and choosing sustainable options is generally choosing more reliable ones too.

More turbulence will come, and digital solutions offer the best route for keeping goods and shipments sailing through the storm.

  • Procurement Strategy
  • Risk & Resilience

Author

Andrew Woods

Published

18 August 2025

Estimated Read time

4Mins

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

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

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

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

Regional Economic Impact Patterns Emerge

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

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

Border States Showed Highest Anticipatory Anxiety

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

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

Emergency Financing Surge in Major Economic Centers

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

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

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

“Going Out of Business” Fears Peak in Manufacturing States

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

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

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

Cash Flow Crisis Indicators

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

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

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

  • Procurement Strategy
  • Risk & Resilience

Author

Simon Bowes

Published

6 August 2025

Estimated Read time

5Mins

Simon Bowes, CVP Manufacturing Industry Strategy EMEA at Blue Yonder, on how to navigate challenging situations in supply chain.

Organisations worldwide continue to face severe supply chain disruptions, creating immense operational challenges. Compounding these difficulties is a bleak economic outlook that shows few signs of improving, keeping consumer confidence stubbornly low.

Meanwhile, experts are claiming that President Trump may stand firm on his plans for sweeping global tariffs. This is despite a US trade court ruling that the President had exceeded his authority in imposing the duties and ordered an immediate block on them – only for a federal appeals court to temporarily reinstate the most sweeping of the President’s tariffs. This means tariffs remain an ongoing problem and, the UK market will likely face further disruption.

When you factor in increased costs, labour shortages, escalating geopolitical tensions, cybersecurity attacks, and weather-related disasters (like the $27 billion in damages seen in the US alone), it’s evident that constant instability has become the new normal for supply chains.

Senior executives agree, with 84% stating in a recent survey, that they have encountered disruptions within their supply chain over the past year. Therefore, organisations must be prepared for the unexpected, understand the potential consequences, and have a plan in place to mitigate such risks. 

How can organisations create a strategy for the unpredictable? The answer is by building a comprehensive plan that integrates the capabilities, processes, and technologies needed to operate efficiently, no matter what happens.

End-to-end supply chain planning

The first step is to create an overarching strategy that encompasses the entire supply chain. Having visibility across all areas will support synchronised planning and communication across disparate functions. 

When organisations bring together teams and processes, they can start to overcome the traditionally fragmented approach to supply chain management. Uncoordinated procedures inevitably create an inefficient and weaker supply chain, which makes it particularly vulnerable to disruptions. 

Whereas, resilience is strengthened by collaboration between functions, if backed with integrated data systems and communication methods to enable sharing of real-time information. Keeping all parties in the loop, with relevant data and meaningful insights, encourages better and faster responses to problems, as well as increases awareness of potential forthcoming issues.

Ideally, what’s needed is an end-to-end connected platform where all departments, offices and sites are working from the same consistent, up-to-date data. And, are not required to change systems to find or cross-check relevant information and iron out anomalies.

Smart decision making with AI and automation

Next, it’s vital to incorporate intelligent automation to improve and speed up decision making. Companies are already using data tools to forecast supply and demand planning, but they now can incorporate AI’s ‘always-on’ capabilities to dynamically evaluate and adapt to changes in supply and demand.  

AI-powered solutions can assess how work is progressing by automating data gathering for analysis and optimisation. Automation can handle routine issues, leaving supply chain professionals free to focus on more strategic tasks. Furthermore, AI can facilitate transparent, trackable decision-making to accommodate predicted supply chain disruptions or react to unexpected ones. This level of auditing provides vital insights that will help refine future decisions and actions for the next time similar circumstances materialise, improving outcomes in the long-term.

Additionally, organisations can leverage AI to predict the likelihood of disruptive events happening. Knowing how often they occur and how they have unfolded in the past can inform decision-making and planning. Whether that’s examining competitor behaviour or economic trends, AI tools can process millions of pieces of real-world data to model likely what-if and worst-case scenarios that could impact the supply chain. While these instances may seldom occur, proactive scenario pre-planning provides the foundation for an effective response in the event of real-world disruptions or disasters.

Organisations should identify the specific issues which present the highest risk to their business and ensure appropriate mitigation measures are ready to be activated immediately they are needed.

Investment in flexible, agile solutions

Restrictive working practices coupled with outdated technology can make it harder to react effectively when disruptions occur. Building long-term supply chain resilience means finding a best-in-class solution and partner with deep domain expertise to guide deployment of appropriate modern technologies.

When considering options, businesses should keep in mind fundamental requirements for flexible, agile technologies. These include checking how a software or platform supports data integration and cross-organisational collaboration, whether it can simulate market conditions in near real-time, if the technology architecture is compatible with AI, and how easily does it scale.

It’s critical to have a technology platform that’s designed for scalability and extensibility to manage changing workloads and requirements. Therefore, organisations should look for products with a cloud-native architecture for scalability and resilience, a microservices-based approach for flexibility, and solutions that are easy to configure and maintain without specialised IT expertise.

Building a resilient supply chain

In today’s volatile business landscape, organisations must embed resilience into their end-to-end supply chains, supported by the right technical infrastructure. Investing in modern technologies and platforms offers additional advantages. Advanced solutions that adapt easily to changing conditions, automate manual processes, and harness the power of AI can also provide a competitive edge. For instance, AI’s ability to crunch and analyse vast amounts of data can reveal hidden opportunities stemming from unexpected events—opportunities that might have been overlooked previously.

By making smart technology decisions, organisations can build more resilient supply chains, enabling them not only to survive in current unstable conditions but also to optimise performance and operate more profitably.

  • AI in Supply Chain
  • Procurement Strategy

Author

Lorenzo Romano

Published

8 July 2025

Estimated Read time

3Mins

Lorenzo Romano, CEO of GCX Managed Services, explains the ways in which supply chain professionals can work around current challenges.

The turbulence of 2025 has brought significant disruption to global supply chains, amplifying existing complexities and introducing new challenges. From a network management perspective, businesses are grappling with regional compliance standards, the security of third-party data and applications and the logistical difficulty of tracking assets worldwide, including in remote ‘dark spots’. These are no longer isolated technical concerns; they are central to business continuity and operational resilience. 

Ongoing challenges, intensified by recent volatility, should prompt businesses to reassess their strategies. As cross-border operations become more critical, agility – both technological and strategic – will be essential to navigate shifting economic conditions. Those unable to adapt may find themselves facing further obstacles, especially those unable to differentiate or scale effectively. Reinforcing this point, research shows that 70% of businesses are planning to increase their investment in supply chain technology, driven by the promise of enhanced reporting, advanced analytics, improved system uptime and more seamless integration capabilities. 

The role of MSPs in business resilience

Managed Service Providers (MSPs) are playing a pivotal role in helping businesses navigate this uncertainty. Their value extends beyond technical support to encompass strategic guidance and operational transformation. A recent Gartner study reveals that 61% of executives view technology as a key competitive advantage in supply chain operations, while 20% highlight the importance of emerging technologies in driving supply chain innovation. The report also emphasises the need to strengthen supplier relationships as a strategic priority. 

In this context, MSPs are playing a pivotal role in helping organisations reassess and realign their supply chain strategies. They support efforts to diversify supplier networks, facilitate scalable technology adoption and cultivate strategic partnerships, all of which are essential for building resilience in the face of ongoing market volatility.

Securing the supply chain with Zero Trust 

A key component of supply chain resilience is the adoption of a global Zero Trust framework. When supply chains span multiple jurisdictions and involve numerous third parties, traditional perimeter-based security models are no longer fit for purpose. Zero Trust continuously verifies every user, device and application, regardless of location, thereby minimising the risk of breaches and ensuring secure access to critical systems and data. 

MSPs play a crucial role in implementing and maintaining these architectures, leveraging their established relationships with regional suppliers and vendors worldwide. This enables businesses to more effectively deploy Zero Trust frameworks and strengthen their defences against increasingly sophisticated threats.

Building ecosystems for long-term success

Success depends not only on technological infrastructure but also on the strength of a business’s vendor and partner ecosystem. MSPs contribute to building these by focusing on value-added services that go beyond traditional IT support. By cultivating collaborative relationships and aligning with partners who share a commitment to innovation and agility, businesses can better withstand disruption and maintain operational continuity. 

While supply chain volatility is inevitable, it does not have to be debilitating. With the right blend of innovative technology, Zero Trust security and resilient partner ecosystems, businesses can remain agile and competitive. MSPs are central to this effort, helping organisations build the operational strength and adaptability needed to thrive. As 2025 continues to unfold, it will be the capacity for rapid adjustment and strategic foresight that defines long-term success.

  • Procurement Strategy

Author

Oliver Chapman

Published

15 May 2025

Estimated Read time

4Mins

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

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

Looking a little closer

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

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

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

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

The real impact of the UK-US “deal”

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

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

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

The bigger picture

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

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

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

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

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

It’s “not all doom and gloom”


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

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

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

  • Collaboration & Optimization
  • Procurement Strategy
  • Risk & Resilience

Author

Andrew Woods

Published

31 July 2024

Estimated Read time

5Mins

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

Author

Andrew Woods

Published

23 July 2024

Estimated Read time

3Mins

Shelley Salomon, VP of Global Business, Amazon Business, discusses her company’s commitment to fostering gender diversity in procurement.

Procurement’s gender imbalance isn’t new.

Traditionally, the function was regarded as a male-dominated profession. But change is afoot, in more ways than one. While a digital transformation amidst technological innovation is well-publicised, another evolution is underway within the workforce.

Gender diversity has become an important component of many company strategies globally. While progress to encourage more women into procurement has already started. There still remains an imbalance, particularly among those holding leadership positions. With current statistics suggesting around one in four leadership positions are held by women, there is still room for improvement.

So, is progress happening quickly enough? Shelley Salomon, VP of Global Business at Amazon Business, discusses her organisation’s commitment to fostering gender diversity and how women can reach parity in procurement. 

In your opinion, where is procurement today in terms of women’s representation in 2024?

Shelley Salomon: “Women’s representation in procurement has seen progress these past few years, but there remains room for further improvement. Gartner’s data shows that women comprise 41% of the supply chain workforce. It’s encouraging to see greater gender diversity within the industry.

“While these statistics are encouraging, they also highlight ongoing challenges. Particularly at the leadership level. Only 25% of leadership roles are held by women. This disparity underscores the need for sustained efforts to promote gender diversity and support women’s ascension to senior positions within procurement.

“My perspective on this trend is one of cautious optimism. The progress we see is promising, reflecting a growing recognition of women’s unique contributions to procurement roles. Diverse perspectives and gender equity are vital for effective decision-making and problem-solving. Additionally, multiple credible studies show that companies with the greatest gender balance in the C-suite are likelier to achieve above average financial results. However, much work must be done to ensure these advancements translate into lasting change.”

While progress to encourage more women into the workforce seems to be underway, there is still a major disparity in the number of women leaders in procurement. What is the best way to go about rectifying this? 

Shelley Salomon: “I believe there’s a significant opportunity to welcome more women into procurement leadership roles. By establishing robust mentorship and sponsorship programmes, organisations can provide invaluable guidance, support, and networking opportunities. Thus empowering women to thrive in their careers and gain visibility within the organisation. Investing in inclusive leadership development programmes is essential. These initiatives focus on building inclusive skills and readiness for leadership roles, continuing to foster a more inclusive and dynamic workforce.

“In my opinion, implementing inclusive hiring practices that actively promote gender diversity, such as using diverse hiring panels and conducting blind recruitment processes, is essential to minimising biases. 

“Lastly, setting clear, measurable goals for increasing the number of women procurement leaders and regularly reporting on progress to hold leadership teams accountable can drive meaningful change. By taking these proactive steps, organisations can create a more equitable environment that supports the advancement of women into leadership roles within procurement.”

Read the full story here!


  • AI in Procurement
  • Data in Procurement
  • Digital Procurement
  • Procurement Strategy
  • Sustainability Technology

Author

Andrew Woods

Published

16 July 2024

Estimated Read time

7Mins

Supply chain 4.0 – where preparedness and opportunity meet in the digital supply chain 

Supply chains matter. One break in the link and manufacturers can be left with costly disruptions that bring the entire operation to a standstill – and the problem isn’t going away soon. According to McKinsey research, disruptions lasting a month or longer now happen every 3.7 years on average. Whether it is issues securing raw materials, a steep rise in shipping costs, labour shortages, geopolitical conflicts, or sustainability concerns, the pressure is mounting on manufacturers to diversify their supplier partnerships and introduce more flexible operations. For manufacturers determined to create more resilient supply chains, Andrew Newton, Business Central Consultant at Columbus UK, argues that a digital transformation of supply chains will be integral to the industry’s ongoing survival. 

Industry 4.0 has been the main driving force behind recent supply chain transformation with the introduction of IoT technologies such as cloud, data analytics, and AI throughout the manufacturing ecosystem. This includes smart factories that enhance manufacturing with Industry 4.0 tech and smart products offering internet-based services. 

It’s now time for the supply chain to step up to the 4.0 digital plate. Market leaders, particularly in the automotive and electronics sectors, have already launched digital transformation initiatives to establish flexible and high-performing supply chains. And manufacturers of all sizes can learn from their example on how to achieve sustainable change. 

When disruption is constant, an organisation’s preparation for supply chain changes will provide a significant competitive advantage. From effective data connectivity to reshoring operations, operationalising AI, and implementing a long-term sustainability agenda – successful manufacturers must be able to incorporate these factors into supply chains to drive innovation and redefine how products are created, developed, and delivered to meet evolving consumer demands. 

Unearth actionable findings within the data haystack 

Many businesses now have extensive data archives spanning several years, including substantial sales orders and operational performance records but the ability to extract maximum value from this data remains a common challenge. Manufacturers want to establish robust connections with shop floor assets to unlock enhanced operational efficiency and make more informed decisions. However, many lack the data-related skills to successfully link their machinery or manage the influx of data streams from sensors. 

This is where the introduction of business intelligence dashboards with Supply Chain 4.0 can offer real-time production insights to inform decisions, boost efficiency, cut costs, and refine product quality. 

The convergence of operational technology (OT) and information technology (IT) adds to the data challenge, particularly where legacy equipment is still in use. It is important to recognise that the solutions being implemented require tailored approaches due to the unique demands of each manufacturing organisation. Developing applications within a business can be tricky, with not every business having the in-house data skills to do this. 

Custom applications that don’t require extensive coding expertise can address this digital skills gap. Versatile solutions that combine low-code services, self-service analytics, and automation for instance, can make it easier for manufacturers to create applications that precisely align with their specific needs, boost efficiency, and innovate in the process. The establishment of a reliable data environment with Supply Chain 4.0 ensures that manufacturers can enhance decision-making and operational efficiency, all while reducing costly errors. 

Operationalise AI to stay one step ahead 

AI has left a mark on every industry and when it comes to the manufacturing landscape, the story is no different. Already many businesses are using AI tools to process real-time data from shop floor sensors to provide manufacturers with immediate insights and action, especially if quality measures breach thresholds. But the capabilities of AI don’t stop at detection. 

Manufacturers must consider many factors in production and delivery, such as demand versus capacity and how much materials cost along the supply chain – and this is where unsupervised AI can be a useful tool for risk identification and market trend forecasting. 

For instance, AI can suggest preferred suppliers to purchase from based on their supply chain history or issue alerts for impending weather events affecting supply chains. Social media analytics enabled by AI can also be used to project patterns to better understand where the market is heading but it can’t fully predict the future. Instead, the role of AI with Supply Chain 4.0 is to help manufacturers identify shifting consumer interests and trends, spot market trends relating to offerings or brand, and forecast waning or growing interest in product types. 

I want it now! Proximity sourcing can help meet customers’ changing expectations 

As supply chain disruptions become part of the new business environment, it’s time for manufacturers to end the reliance on disparate and siloed operations and instead look to nearshoring as the answer. 

Customer expectations around delivery times are changing, with 62% of UK consumers now expecting next-day delivery when ordering online – an expectation that traditional offshoring business operational models now struggle to match. Yes, regional or local supply chains can be more expensive and add another level of complexity, but they do allow for greater inventory control and bring the product closer to the end customer, which reduces overall lead times. This reduction with Supply Chain 4.0 ensures that manufacturers can promote higher customer responsiveness and allows for constant improvement and innovation based on consumer feedback. 

Nearshoring also provides an opportunity to clamp down on miles covered and will help manufacturers introduce a circular approach to operations. With over 4 in 5 UK adults recognising their role in lessening their environmental footprint, it is clear that the manufacturing industry needs to mirror this popular attitude – and technology will play a key role here. Automation techniques for instance can improve traceability and visibility over the entire product line, highlighting how businesses use and waste materials, along with how they can reuse products for better forecasting and reduce fossil fuel usage and pollution. 

Particularly in the food industry, conscious consumers will base their buying behaviour on transport miles and the environmental impact of the product’s journey. If manufacturing businesses are able to clearly share this information with transparent supply chains, they will not only open themselves up to a larger customer pool but will also play a major role in tackling environmental challenges in the industry. 

Long-term commitment to sustainability goals 

Nearshoring is certainly one way that manufacturers can become more sustainable but with customer sustainability expectations rising, companies now have to show a long-term commitment to creating greener supply chains. 

Many businesses are making efforts to report on internal sustainable efforts such as energy consumption but extending reporting down the supply chain poses challenges, such as effectively reporting on a supplier’s energy usage. To achieve a comprehensive sustainability profile, this reporting must span the entire supply chain. 

Supply Chain 4.0 brings sustainability reporting tools that provide comprehensive tracking and analysis of environmental and social impacts, which will enable manufacturers to make informed decisions, ensure regulatory compliance, and communicate sustainable practices transparently. Manufacturers are looking to achieve this connectivity, particularly in linking shopfloor equipment usage with sustainability goals. 

Leading organisations are pushing for data standardisation among their supply chain suppliers but this brings its own set of pros and cons. Increased standardisation can make the supply chain more efficient and easier to review, potentially reducing a company’s risk. However, there’s more work needed to establish this standardisation. 

As public and regulatory interest grows, having a clear view of supply chain processes will become even more important. In the short-term, expect leading companies to keep investing time and effort to better organise their supply chain data. 

Supply Chain 4.0 – where preparation and opportunity meet in the digital supply chain 

Digital transformation is a long and complex journey but preparedness plays a key role in achieving optimal outcomes. Through the process of transformation, manufacturers can more effectively adapt to ever-shifting business conditions and evolving customer demands with Supply Chain 4.0, all while maintaining a competitive edge. 

The issue remains that each manufacturer faces their own unique scaling challenges that require a calculated approach to processes, planning, and implementation to create a sustainable business model. Often companies have growth ideas but lack a clear path to achieve them. The identification of key supply chain trends will set apart the laggards from the market leaders

Read the full issue of SCS here!

  • Procurement Strategy
  • Sustainable Procurement

Author

Andrew Woods

Published

18 June 2024

Estimated Read time

5Mins

Our cover story this month…  Marriott International Inc: A more sustainable supply chain  With science-based targets approved, Marriott is accelerating…

Our cover story this month… 

Marriott International Inc: A more sustainable supply chain 

With science-based targets approved, Marriott is accelerating work to help make its supply chain more sustainable. We speak to Stéphane Masson, Senior Vice President, Procurement, Marriott International, Inc. – for our exclusive cover story this month – to find out how… 

“Like many global companies, Marriott recognises that serving our world helps the communities where we operate and is also good business,” Masson tells us. “This Earth Day, we announced the approval of our near-and-long-term science-based emissions reduction targets by the Science-Based Targets initiative (SBTi), with a goal to reach net-zero greenhouse gas (GHG) emissions by no later than 2050. Approval of these targets is bringing heightened focus on our work to embed sustainability in our operations.  

Specifically, the company has committed to reduce absolute scope 1 and 2 GHG emissions 46.2% by 2030 from a 2019 base year. Marriott also commits to reduce absolute scope 3 GHG emissions from fuel and energy-related activities, waste generated in operations, employee commuting, and franchises 27.5% within the same timeframe.  

Importantly for our team and the suppliers we work with across the globe, Marriott’s targets include 22% of our suppliers by emissions—covering purchased goods and services, capital goods, and upstream transportation and distribution—which will have science-based targets by 2028. 

In the longer term, Marriott also aims to reduce absolute scope 1 and 2 GHG emissions 90% by 2050 from a 2019 base year and reduce absolute scope 3 GHG emissions 90% within the same timeframe.  

Our Global Procurement organisation plays an important role in setting up Marriott as we work to achieve the targets within this timeline. And it will require an evolution in how we engage Marriott associates, our suppliers, and other members of the industry.” 

Read the full story here! 

Grupo Modelo: Procurement and sustainability in action! 

We speak to Soqui Calderon, Regional Director of Sustainability for Grupo Modelo and the Middle Americas Zone, to see how the beverage giant is tackling sustainability from a procurement perspective… 

Grupo Modelo is a giant. A leader in the production, distribution and sale of beer in Mexico, Grupo Modelo is part of the Middle America Region (of the AB InBev Group) and boasts 17 national brands, among which are Corona Extra, the most valuable brand in Latin America, as well as Modelo Especial, Victoria, Pacífico and Negra Modelo. The company also exports eight brands and has a presence in more than 180 countries while operating 11 brewing plants in Mexico. 

Through more than nine decades, Grupo Modelo has invested and grown within – and with – Mexico, generating more than 30,000 direct jobs in its breweries and vertical operations, located throughout the country. 

Grupo Modelo, like many forward-thinking companies, is currently focused on a drive towards establishing a truly sustainable business. This endeavour is best exemplified in the Middle Americas Zone (MAZ), where sustainability efforts have been led by for the past five years by Soqui Calderon Aranibar, Regional Sustainability and ESG Director. Ambitious targets have been established for the region, but some remarkable achievements have already been made. As Calderon says: “For our team, sustainability is not just part of our business, it IS our business.” 

Read the full story here! 

SDI International: Delivering tail spend excellence 

SDI International’s Brendan Curran and Joaquín Morales discuss empowering procurement innovation, the importance of effective tail spend management, and how its Master Vendor programme transforms the function 

In a world of greater complexity and risk, technology adoption and digitalisation, and an ever-evolving compliance and regulatory environment, procurement teams still grapple with a perennial challenge: cost reduction. Which is why tail spend management – often overlooked and unmanaged while procurement focuses its attention on strategic, high-spend categories – is so important. Indeed, for many organisations, taking effective control of costly, one-off buys and high-volume, low-value purchases involving numerous suppliers can deliver as much as 5% to 10% of cost savings, according to Boston Consulting Group. 

But tail spend, by its nature, is complicated. It requires significant focus to effectively manage high volumes of data, often has a perceived lack of strategic importance within both procurement and the wider organisation, lacks visibility, involves vast numbers of transactions, many product categories, and a largely anonymous supplier base, and can bring potential compliance risks because of poor onboarding processes or inconsistent terms and conditions.  

Tackling the problem can be daunting for procurement teams. But, according to SDI International, it doesn’t have to be. The organisation, one of the world’s largest diversity and woman-owned procurement outsourcing and technology providers, delivers industry-leading holistic tail management solutions based on a successful formula: simplify, digitalise, innovate. Its Master Vendor programme provides procurement teams looking to tackle their tail with a one-stop solution for tail spend that leverages the latest and most efficient technologies to handle supplier onboarding and on-time payment, and manage the entire tail supply chain, stakeholder servicing, and escalations. The result is a procurement department better able to drive cost saving, efficiencies, and more strategic outcomes.  

Read the full story here! 

  • AI in Procurement
  • Data in Procurement
  • Digital Procurement
  • Procurement Strategy
  • Sustainable Procurement

Author

Andrew Woods

Published

25 April 2024

Estimated Read time

3Mins

Goods manufactured using forced labour are set to be banned from EU supply chains following a move said to target China.

In a move that echoes US legislation passed in 2021, the European Union voted this week on a new bill. The legislation, which is expected to come into effect within the next three years, bans products made with forced labour. The bill is expected to target the presence of forced labour in Chinese supply chains. In theory, it will prevent such products from reaching the EU. 

Forced labour in Xinjiang

Today it’s estimated that around a million people are currently performing forced labour in the Xinjiang region. The people forced to work in the Chinese government’s “labour transfer programs” are largely ethnic Uyghurs and other Turkic Muslims. According to Human Rights Watch, the Chinese government forces these people to take jobs away from their homes. Once separated from their families, the transported people work long hours in unsafe factories and warehouses. 

If estimates are correct, approximately one in four people trapped in forced labour live in Xinjiang. Many of the industries in Xinjiang form the basis of supply chains that supply Western nations. From textiles and mining to consumer goods manufacturing, forced labour casts a long shadow over global supply chains. 

“It is simply unacceptable for our Union, which should be a global champion in promoting values, to continue importing and selling in our shops products that were made with blood and tears at some step along their supply chain,” MEP Maria Manuel Leitao Marques said in a statement to the press earlier this week. Leitao Marques is one of the lawmakers who pushed the latest anti forced labour bill through the EU parliament. 

Forced out of the EU 

This week, the EU Parliament voted through new regulations banning the presence of forced labour in its supply chains. The EU will no longer allow products made with forced labour to be sold, imported, or exported within its borders. 

Shipments deemed to contain banned products will be intercepted and destroyed at the EU border. If found in violation of the law, manufacturers of banned goods will have to withdraw their products from the EU single market and donate, recycle or destroy them.

“Today, worldwide, 28 million people are trapped in the hands of human traffickers and states who force them to work for little or no pay. Europe cannot export its values while importing products made with forced labour,” Leitao Marques said in a statement. She hailed the ruling as “a victory for progressive forces.” 

However, critics of the bill have argued that the law does not go as far as the one implemented by the US government. Washington’s 2021 bill bans the importation of products from Xinjiang unless businesses can prove their production did not involve forced labour. In particular, the Biden administration has used it as a way to force China out of the US’ electric vehicle manufacturing supply chain.

The EU bill passed with 555 votes in favour, 6 votes against and 45 abstentions. Now that the bill has been approved, the text must pass a final formal approval from the EU Council. EU lawmakers will then publish the bill in the Official Journal. Once it takes effect, EU countries will have to start applying it in 3 years.

  • Procurement Strategy
  • Sustainability

Author

Sean Galea-Pace

Published

25 March 2024

Estimated Read time

4Mins

N-SIDE VPs Amaury Jeandrain and Charlotte Tannier discuss their organisation’s partnership with Sanofi and look ahead to a brighter future.

Transparency. Good partnerships need it to survive.

For N-SIDE and Sanofi, it has been a key ingredient to what has made the partnership successful for the past eight years.

Since late 2015, N-SIDE has established and built on a strategic partnership with France-based pharmaceutical company Sanofi, aimed at optimising the firm’s clinical trial supply chain. The partnership helped digitalise Sanofi’s clinical supply chain while driving greater performance and waste reduction.

Harnessing efficiency

N-SIDE is a global leader in increasing the efficiency of life sciences and energy industries by providing software and services that optimise the use of natural resources, facilitating the transition to a more sustainable world. Founded in 2000, N-SIDE has built deep industry knowledge and technical expertise to help global pharmaceutical and energy companies anticipate, adapt, and optimise their decisions. In the life sciences industry, N-SIDE reduces waste in clinical trials, leading to more efficient, faster, and more sustainable clinical trials.

Amaury Jeandrain, Vice President Strategy of Life Sciences at N-SIDE, has witnessed first-hand the development of the partnership since he joined the company in January 2016. “Very quickly, the value of risk management and waste reduction was perceived internally and this partnership ended up growing to become one of our largest. Today, Sanofi is the company at the forefront of a lot of the innovation co-created with N-SIDE.”

Amaury Jeandrain, Vice President Strategy of Life Sciences at N-SIDE

Pharmaceutical companies of varying sizes use N-SIDE solutions to avoid supply chain bottlenecks in their clinical trials, decrease risks and waste, control costs, reduce time-to-market and speed up the launch of new trials. N-SIDE’s focus is on four key pillars to bring high levels of efficiency into Sanofi’s clinical supply chain: best-in-class supply chain, people, analytics and innovation.    

Charlotte Tannier, Vice President of Life Sciences Services at N-SIDE, adds that the key differentiator is the transparency between her organisation and Sanofi. “We trust each other and know that we can be fully open with them,” she explains. “We like to build new things together and co-develop innovative solutions.”

Charlotte Tannier, Vice President of Life Sciences Services at N-SIDE

Teaming with Sanofi

Having defined a clear route to success through the Sanofi partnership, Amaury is keen to point out that the relationship has acted as something of a catalyst for future business collaborations with other companies. “There are a lot of good practices that were initiated with Sanofi that now became a standard in our industry,” he discusses.

Looking ahead, the future of the partnership looks bright and is showing no signs of slowing down. Charlotte explains that the next step is all about “integration.” “For the moment, we have multiple teams and departments that are using the N-SIDE solutions, and many other software are used as well within the organisation. The focus in the short term will be to enable a unified IT landscape and environment,” she reveals. “The objective will be to be fully integrated and to increase the impact of the data they own. Because we believe, with Sanofi, that the way forward is through data. We are also planning to help Sanofi leverage more of the data that we’re generating together to increase its impact.”

As technology continues to evolve and organisations become even more digitally mature, partnerships built on transparency and trust will be in demand. N-SIDE and Sanofi already have that head start.

Click here to read more about how Sanofi is driving data-driven performance, resilience, agility and operational excellence within the clinical supply chain.

  • Procurement Strategy