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Building Business Resilience: A Deep Dive into Accenture’s “Resiliency in the Making” Report

by Editorial Team

In a world rife with disruptions, how can businesses not just survive but thrive? Dive into Accenture’s “Resiliency in the Making” report to discover actionable insights and strategies for building a resilient business model.

The “Resiliency in the Making” report by Accenture delves into the critical issue of business resilience in the face of various disruptions. From global pandemics to geopolitical unrest, businesses have faced numerous challenges that have revealed dangerously low levels of resiliency within engineering, supply, production, and operations. According to the report, this vulnerability has caused businesses to miss out on a staggering $1.6 trillion in revenue growth opportunity on average each year.

The Cost of Low Resiliency

The report highlights that many businesses have resorted to short-term fixes, such as inventory buildup, which has reached a value of $1.9 trillion. These reactive strategies have led to a 40% increase in product order-to-delivery lead times over the last two years.

Timeline of Recent Disruptions

The report provides a timeline of disruptions that have impacted businesses:

  • 2020: Global pandemic, rise in demand for digital products, and truck driver shortages
  • 2021: Cyber-attacks on production lines, semiconductor shortages
  • 2022: War in Ukraine, raw material and critical mineral shortages
  • 2023: Inflation, global talent shortages, extreme weather events

Three Actions to Build Resiliency

The report suggests three key actions for building business resiliency:

  1. Invest in Visibility and Predictability: Companies that invest in technology focused on visibility, predictability, and continuity can revolutionize their operations.
  2. Adapt and Advance: Businesses should adapt to challenges and make their production processes more resilient.
  3. Harness the Power of Disruption: More resilient companies have been able to capture an additional 1.2 percentage points in EBIT margin compared to their less resilient peers.

Key Takeaways

  • Resilient companies are alerted to disruptions faster and recover sooner.
  • Investing in the right mix of resiliency-focused capabilities can lead to better business results.

Concluding Remarks

The “Resiliency in the Making” report by Accenture serves as a comprehensive guide for businesses looking to build a resilient model that can withstand various disruptions. The time to invest in resiliency is now, and the report provides actionable insights to achieve that.

Engage with Us

We’d love to hear your thoughts on building business resilience. Have you implemented any of these strategies? What challenges have you faced? Feel free to share your experiences and questions in the comments below.

Note: All quotes and data are sourced from the “Resiliency in the Making” report by Accenture.

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Redefining Trust in Global Supply Chains

by Editorial Team

The Evolution of Supply Chain Trustworthiness and Its Impact on Business Success

Introduction
In today’s rapidly changing global landscape, the trustworthiness of supply chains has become a paramount concern for businesses. As companies grapple with unforeseen challenges, from geopolitical tensions to resource shortages, the question arises: How can organizations ensure their supply chains remain reliable and gain the trust of their stakeholders?

The Trust Deficit in Supply Chains
Recent events have highlighted the vulnerabilities in global supply chains. For instance, a major European beverage manufacturer faced challenges like high energy bills, aluminum can shortages, and reduced availability of cargo vehicle drivers due to policy changes. Such disruptions have led to increased costs, delayed product deliveries, and a subsequent erosion of customer trust.

The Post-Pandemic Supply Chain Landscape
While the immediate challenges of the COVID-19 pandemic may have subsided, the aftershocks continue to reverberate. Supply chain disruptions have become commonplace, with 77% of executives admitting to experiencing adverse supply chain events in the past year (Deloitte survey). Moreover, 44% of these executives anticipate more disruptions in the coming 24 months. These challenges range from price volatility and inflation to labor shortages and geopolitical instability.

The Trust Equation
Trust in supply chains is multifaceted. It’s built on capability, reliability, humanity, and transparency. While capability and reliability focus on an organization’s competence, humanity and transparency emphasize its intent. For businesses, this means not only delivering products efficiently but also doing so in a manner that is transparent and respects all stakeholders.

Leading with Trust
Top-performing supply chain organizations prioritize actions that foster reliability and transparency. They invest in technologies like digital threads and predictive algorithms to enhance supply chain predictability. Moreover, they emphasize visibility, especially concerning environmental, social, and governance (ESG) factors. For instance, leading companies are more likely to have visibility into their scope 3 emissions, which are indirect emissions produced by customers and suppliers.

Humanity as a Competitive Edge
The human aspect of supply chains, though often overlooked, can be a significant differentiator. Leading supply chain organizations prioritize talent development and align their operations with customer values. By treating stakeholders with empathy and fairness, companies can build stronger, more trusting relationships.

Conclusion: Building the Trustworthy Supply Chain of Tomorrow
For supply chain executives, the path forward involves a delicate balance of enhancing competence while also prioritizing intent. By investing in technology, focusing on transparency, and emphasizing humanity, businesses can build more resilient and trustworthy supply chains. As the global landscape continues to evolve, those that prioritize trust will be better positioned to navigate challenges and seize new opportunities.

What are your thoughts on the evolving nature of supply chain trustworthiness? How is your organization addressing these challenges? Share your insights and join the conversation below.

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Supply Chains Still Vulnerable: Are Companies Letting Their Guard Down?

by Editorial Team

Navigating the Next Phase of Supply Chain Resilience

Global supply chains remain vulnerable despite years of turbulence, according to McKinsey’s latest report, Supply Chains: Still Vulnerable. The COVID-19 pandemic, geopolitical tensions, and environmental disasters have spotlighted the fragility of supply networks. But as companies shift away from reactive measures, this report warns that many are slowing their efforts to build lasting resilience. Are businesses prepared for the next wave of disruptions, or have they taken their foot off the gas?

Lessons from Recent Supply Chain Turbulence

The last few years have pushed supply chains to the limit. From semiconductor shortages stalling automotive production to Red Sea shipping disruptions, companies have struggled to maintain continuity. According to McKinsey’s 2024 survey, 90% of respondents reported supply chain challenges over the past year, indicating that instability is now a constant. Yet, troubling trends show companies scaling back resilience measures.

“Only a quarter of companies have formal processes to discuss supply chain risks at the board level,” the report reveals, leaving businesses exposed to future disruptions. Senior leadership often lacks a clear understanding of risks, suggesting that companies need to elevate supply chain resilience as a strategic priority.

Progress Amid Challenges

Despite slowing momentum, there are areas of progress. Key initiatives such as dual sourcing, regionalization, and digitization have shown positive results:

  • 73% of companies have implemented dual-sourcing strategies to reduce dependency on single suppliers.
  • 60% are regionalizing supply chains, reducing reliance on distant suppliers and improving flexibility.
  • Comprehensive visibility into tier-one suppliers increased to 60%, reflecting advancements in tracking primary supply chain partners.

However, McKinsey’s findings indicate that deeper transparency remains elusive. Visibility beyond tier-one suppliers is declining, leaving companies vulnerable to disruptions further down the supply chain.

Digitization: A Work in Progress

While digitization is critical to improving resilience, the report highlights gaps in execution. Although two-thirds of companies have initiated advanced planning and scheduling (APS) systems, only 10% have fully deployed them. Furthermore, one-third of respondents admitted to lacking clear business cases for these digital systems, slowing adoption and preventing companies from realizing their full value.

“Digitization efforts remain incomplete, and most companies still grapple with imperfect data,” the report notes. Businesses are encouraged to adopt the 80/20 rule, moving forward with digital tools despite data imperfections and refining systems as they go.

Talent Shortages and the Digital Divide

One of the most pressing challenges is the shortage of digital talent. McKinsey reports that 90% of companies struggle to meet their digitization goals due to talent gaps. Companies that relied on external hiring are now pivoting toward in-house talent development to build long-term capabilities. Internal reskilling programs are on the rise, but the report emphasizes the need for sustained investment in workforce development to keep pace with digital transformation.

Sustainability and Compliance: Lagging Efforts Pose Risks

As new regulations emerge, including the European Union’s Corporate Sustainability Due Diligence Directive, companies face mounting pressure to improve their sustainability practices. However, only 9% of respondents report being fully compliant with these regulations, highlighting a significant gap in sustainable sourcing. The report warns that companies that fail to act quickly may lose access to essential low-carbon materials as competition for sustainable resources intensifies.

What’s Next for Supply Chain Resilience?

The path forward requires companies to continue building resilience, even as external pressures seem to ease. McKinsey outlines several strategies to close existing gaps:

  1. Implement Early-Warning Systems: Use AI-driven tools to monitor supplier risks, weather patterns, and social media for early signs of disruption.
  2. Develop Talent Internally: Shift focus from external hiring to in-house training and reskilling to bridge digital talent gaps.
  3. Improve Data Quality and Analytics: Invest in data platforms and refine processes to maximize the value of digital tools.
  4. Elevate Supply Chain Issues to the Board Level: Ensure that senior leadership is actively engaged in supply chain risk discussions and decision-making.

Key Takeaways

  • Momentum is slowing: Companies need to maintain focus on resilience-building initiatives to stay ahead of disruptions.
  • Talent and data gaps persist: Bridging these gaps is critical to unlocking the full potential of digital tools.
  • Sustainability compliance is a growing challenge: Companies must act swiftly to meet regulatory requirements and secure sustainable inputs.

Is Your Supply Chain Prepared? Join the Conversation

Is your organization prepared for the next supply chain disruption? Consider these questions to assess your resilience:

  • Do you have visibility into your entire supply chain, beyond tier-one suppliers?
  • Are your planning systems leveraging AI to evaluate risks effectively?
  • Does your leadership actively discuss and plan for supply chain risks?

We’d love to hear your thoughts and experiences. Share your insights in the comments below—how are you future-proofing your supply chain, and what challenges are you facing along the way? Let’s exchange ideas on building resilient and sustainable supply chains for the future.

Engage with us: How is your organization balancing digitization, talent acquisition, and sustainability efforts? What strategies have worked for you, and what roadblocks have you encountered? Join the conversation below!

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Navigating Drought: Panama Canal Imposes Restrictions on Large Ships

by Editorial Team

The Panama Canal, a crucial artery of global trade, is grappling with a significant challenge – drought. As water levels drop, the canal authorities have imposed restrictions on large ships, a move that could have far-reaching implications for global trade and supply chains.

The Depth Dilemma

Effective from June 25, container ships navigating the Panama Canal will be restricted to a depth of 43.5 feet or 13.3 meters. This measure is a response to the shallower waters caused by the ongoing drought in the region, which has necessitated a series of depth restrictions since January. The largest vessels that traverse the canal, known as Panamax container ships, require at least 43 feet to pass through.

Avoiding a Traffic Stall

The canal authorities aim to prevent a situation akin to the infamous Suez Canal blockage in 2021 when the container ship Ever Given got stuck, causing significant trade and supply chain disruptions. The Panama Canal is responsible for 3.5% of global trade, and any disruption could have a significant impact on the global economy, which is still recovering from the COVID-19 pandemic.

The Impact on Shipping

The new restrictions mean that ships will have to carry less cargo or shed other weight to float higher in the canal. This could lead to shipping delays and increased capacity limits and surcharges for vessels passing through the canal. However, Liquid Natural Gas (LNG) carriers, which typically have a depth of 37 feet (11.2 meters), will not be affected.

The Trade Route Most Affected

The Northern Europe to South American West Coast corridor is the trade route most impacted by these restrictions. This route has experienced volatility since 2020, with issues related to shipping volumes and constant fluctuations in short- and long-term contract freight rate levels.

The Drought Situation

The region’s warmer and drier conditions, attributed to a lack of rainfall between February and April, are exacerbating the situation. The El Niño phenomenon, which warms sea-surface and air temperatures, is expected to lead to water shortages in the region, surpassing record lows by July.

Conclusion

The Panama Canal’s current predicament underscores the intricate relationship between climate change and global trade. As the canal grapples with the challenges posed by drought, it serves as a stark reminder of the need for sustainable and adaptive strategies in managing global trade routes.

What are your thoughts on the impact of climate change on global trade routes? How can the shipping industry adapt to these challenges? Share your thoughts and comments below.

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Elevating Supply Chain Risks: A Boardroom Priority in the New Business Landscape

by Editorial Team

The importance of supply chain risk management has skyrocketed, making it a top priority for corporate boards. This shift has been triggered by the COVID-19 pandemic, which exposed the vulnerabilities of supply chains and the significant impact of disruptions on businesses. But what are the supply chain-related issues that warrant board-level attention, and how can they be effectively managed?

The Evolution of Supply Chain Management

In the past, supply chain teams operated behind the scenes, with little need for risk dashboards or mitigation strategies. However, the pandemic has shattered these glass walls, thrusting supply chain risks into the spotlight and onto board agendas.

The Rising Challenges

Global supply chains are grappling with escalating energy and commodity costs, geopolitical tensions, and a surge in cyberattacks. In this increasingly complex environment, corporate boards are not taking supply chain continuity for granted.

Four Key Supply Chain Risks Worthy of Board Attention

1) Impact on Revenues and Costs

Supply chain risks that materially impact the bottom line are sure to capture the board’s attention. These risks may arise from a key supplier’s failure to deliver a crucial component, leading to the company’s inability to fulfill its own obligations. They may also stem from rising prices, as seen in the chip industry, where companies have struggled to pass on increased costs to their customers.

2) Reputational Impact

Companies relying on a global network of suppliers are at risk of reputational damage. This could result from a compliance scandal related to corruption or sanctions violations. If a company’s internal controls are weak, the price of non-compliance in these heavily enforced areas can be high, and the reputational damage can be substantial.

3) High-profile Risks

Risks that consistently make business headlines are likely to feature on the board’s agenda. Cyber risk is a prime example, posing a constant threat to a company’s operations. A successful attack on a supplier can compromise their customers’ sensitive data, disrupt deliveries, and potentially allow access to customers’ internal systems.

4) Impact of Supply Chain Adjacent Risks

The final group of risks is related to those already on the board’s radar. For instance, sustainability and climate risks are well-known board agenda items, but the impact of these risks on the supply chain is often overlooked. Most corporate sustainability commitments are delivered by companies’ suppliers, while climate risk is a crucial aspect of supply chain resilience.

Conclusion

The COVID-19 pandemic has elevated the importance of supply chain risk management, making it a boardroom priority. As businesses navigate this new landscape, effective management of these risks is crucial for ensuring business continuity and resilience.

What are your thoughts on the role of supply chain risks in boardroom discussions? How do you see these risks evolving in the future? Share your thoughts and comments below.

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2023 Logistics Supply Chain Risk Report

by Editorial Team

Without logistics most supply chains would grind to a halt, as the world discovered during the pandemic.

As we emerge into more normal trading conditions, businesses across industry are looking to logistics providers to help them improve and optimize how they move and store goods between their supply chain nodes.

Meanwhile, logistics companies face their own supply chain challenges, including workforce issues, rising wage demands, global geopolitical and trade tensions and pressure to decarbonize transportation.

How are logistics businesses adapting?

To find out how the sector is navigating this changing landscape, we surveyed 100 risk and supply chain leaders, from freight forwarders to shipping lines, airfreight operators and trucking companies.

How do they see the supply chain landscape? How are they building resilience? What are the main challenges and risks they face? And what will the supply chains of the future look like?

About our survey

When: November – December 2022

Who: 100 senior decision makers, including risk managers, supply chain and logistics managers and CEOs.

Where: Countries across Europe, North America, Asia-Pacific and Latin America.

Size: All companies surveyed had annual revenue over $250 million.

Ripple effect increases risk burden for logistics

Logistics is at the core of every industry’s supply chain. That means the sector’s risks are multiplied.

From cyber-attacks to extreme weather, firms need to worry not only about their own operations, but also the knock-on impact on their customers and how that might rebound on them.

Cyber risks

In our survey, cyber risks were believed to have the most profound impact on supply chains, rated by 58% as medium and 31% high impact.

58% believe cyber risks to have medium impact on supply chains and 31% said it would have high impact.

Freight companies are sharing more data with partners and customers than ever before, while the number of parties in logistics chains, often using linked systems, means there are more potential weak links for cyber criminals to exploit.

Because delays are costly for logistics companies and their customers, criminals may think they are more likely to pay to end a ransomware attack, making the industry a more attractive target.

Climate and environment

Almost half (47%) of respondents placed climate change and environment among the top global trends affecting supply chain risks.

Logistics firms are under a lot of pressure to help their clients meet their carbon reduction targets.

But there’s also pressure from governments to reduce emissions from transport more generally.

Climate impacts are also being felt in extreme weather events, which are increasing in frequency and pose a growing disruption risk.

Increased product complexity

Increased product complexity topped the list of underlying factors playing the greatest role in supply chain risks, named by 35% as a top concern.

This may reflect the challenges of transporting increasingly specialized and sensitive products and raw materials, for example for in the life science sector, especially as clients demand more contractual indemnities against delay and damage.

Greatest challenge to addressing risks over next 3-5 years

Bar chart with 5 data series.

Question: Which of the following will pose the greatest challenge to addressing your risks over the next 3 to 5 years?

Participants were asked to rank top 3

The chart has 1 X axis displaying categories.

The chart has 1 Y axis displaying Values. Data ranges from 0 to 0.

ValuesLack of access to insurance and risk transfer solutionsLack of data, knowledge and understanding of these risksLack of internal risk management tools and insightLack of budgetLack of board buy-in0WTW

Greatest challenge to addressing risks over next 3-5 years

Question: Which of the following will pose the greatest challenge to addressing your risks over the next 3 to 5 years?

Participants were asked to rank top 3

End of interactive chart.

Economic risks

Economic uncertainty emerged as the second leading factor underlying supply chain risks, ranked by 30% among their top concerns.

The sector is at risk from price and wage rises, volatile fuel and energy costs and falling consumer demand.

If inflation dips back to near normal levels by the end of 2023, it could ease some of these pressures.

Geopolitical risk

Geopolitical risk was among the factors thought to have the greatest impact on supply chain risks, rated by 54% as medium and 29% high impact.

“The Ukraine conflict has disrupted some road and rail routes between Asia and Europe, while simmering tensions in the China Sea could put cause problems for more global routes in the future.” Breda Keating | Director, Global Marine, International Trade & Logistics

The conflict in Ukraine has disrupted some road and rail routes between Asia and Europe, while simmering tensions in the China Sea could put cause problems for more global routes in the future.

We’re also seeing more claims against logistics firms for customs errors as a result of complex documentation requirements post-Brexit.

Onshoring

48% of respondents said onshoring and near-shoring were among the top global trends affecting their supply chain risks.

As more products are sourced and manufactured closer to home, there will be fewer goods being transported around the world, which will impact demand for logistics services.

Pandemics

Though we may be past the acute disruptive impacts of COVID-19, the risk of a new strain of the virus, or a new unforeseen pandemic, seems to be still front of mind, topping the list of global trends with the greatest influence on supply chain risks at 56%.

3 key findings

63% said losses related to the supply chain had been higher or much higher than expected over the last two years.

85% of businesses said they have made at least some improvements in their approach to supply chain management in response to the pandemic.

77% cited a lack of insurance solutions among the greatest challenges to addressing their risks over the next three to five years.

Squaring the logistics circle

Logistics companies see supply chain risk from all angles. They need to manage not only their own risks but those of the companies they work for.

That’s not an easy balance to strike.

These challenges look set to grow as the risk of supply chain disruption stays high and customers demand more, both in terms of service delivery, sustainability and contractual obligations.

“Wider external factors, from geopolitics to cyber security increase the need for careful risk management.” Anthony Monaghan | GB Industry, Transportation Leader

Wider external factors, from geopolitics to cyber security increase the need for careful risk management.

Our survey shows that businesses are working to overcome problems and considering a range of strategies to increase resilience.

But they’re hampered by a lack of appropriate insurance solutions and difficulty getting hold of enough accurate data to manage their risks.

Working more closely with customers and partners can help companies understand their supply chains better and address these risks.

Diagnostic mapping and monitoring tools and analytics can help to visualize, quantify and assess risks across the chain and in specific locations.

See the original post on https://www.lexology.com/library/detail.aspx?g=9843ae71-6497-4d1c-9668-4f5cbdaa8440

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Estée Lauder Lags Behind Rivals in China’s Booming Beauty Market

by Editorial Team

The multinational beauty firm Estée Lauder is facing supply chain issues in China that have caused a drop in market share in comparison to its rivals. China, which has the largest cosmetics market in the world, is a significant development engine for the beauty sector. The challenges faced by Estée Lauder serve as a reminder of how supply chain disruptions affect the sector, which is increasingly dependent on the nation for production and sourcing.

According to reports, Estée Lauder’s supply chain issues are a result of the corporation placing an undue amount of dependence on a single Chinese manufacturer to produce a crucial product. The facility was forced to close for an extended period of time because to COVID-19 breakouts and labor shortages, which led to delays in product shipments and shortages on store shelves. Not only Estée Lauder but other cosmetics manufacturers in China are having supply chain issues. Due to China’s tighter regulatory environment and growing tensions with the West, other participants in the business are also dealing with similar difficulties.

Estée Lauder has moved to diversify its manufacturing and sourcing operations away from China in order to lessen the impact of the supply chain disruptions. According to reports, the corporation has grown manufacturing in other nations including Vietnam and Malaysia and is looking into opportunities for shifting production to other Southeast Asian markets. However, it might take some time for these changes to take effect, and they might not entirely make up for the lost income in China.

The difficulties faced by Estée Lauder in China serve as a reminder of the value of a diversified supply chain and the necessity of contingency planning. Even though China is still a crucial market for the beauty sector, businesses must be ready for supply chain interruptions and unforeseen circumstances that could affect their operations. To increase the visibility and resilience of the supply chain, this entails diversifying manufacturing and sourcing operations across several nations and investing in technology and data analytics.

Not only the beauty business in China is having supply chain issues. Labor shortages, regulatory crackdowns, and geopolitical tensions are also causing disruptions for businesses in other sectors, such as technology and the automotive industry. Supply chain disruptions in one region of the world can have an impact on enterprises all over the world as the world becomes more connected.

In conclusion, Estée Lauder’s supply chain issues in China should serve as a lesson for businesses who rely significantly on the nation for sourcing and production. While there are many advantages to conducting business in China, businesses must also be ready for the dangers and difficulties that come with doing business there. Businesses must diversify their operations and invest in supply chain resilience if they want to succeed in the increasingly complex and unpredictably changing global economy.

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The Power Play: U.S. Concerns Over China’s Potential Weaponization of Supply Chains

by Editorial Team

As global interconnectivity increases, the control structure is shifting. One such change is the growing concern in the United States that China may use its dominance in global supply chains to advance its political and military goals. This article examines these concerns and their potential geopolitical and global trade implications.

The American Perspective

The United States has expressed growing concern regarding China’s impact on global supply chains. According to the “Annual Threat Assessment” report published by the Director of National Intelligence, there is concern that China may use its supply chain dominance as a strategic weapon to bolster its political and military power.

Supply Chain Dominance of China

China holds a formidable position in global supply chains. The nation has already utilized its supply chain dominance to compel foreign firms and nations to transmit technologies and intellectual property. This strategy has allowed China to acquire a competitive advantage in numerous industries, from manufacturing to technology.

The Double Threat

The U.S. intelligence community believes Beijing could secure regional and global influence by combining its economic and military dominance. This dual menace has the potential to reshape the geopolitical landscape, which would have significant implications for international relations and global trade.

China’s potential weaponization of supply chains highlights the intricate interplay between economics and geopolitics in the interconnected world of today. As nations contend with these transforming dynamics, the need for strategic foresight and adaptable policies becomes ever more crucial.

What are your thoughts on the possibility of supply channels being weaponized? How can countries navigate these intricate dynamics? What strategies should the United States employ to address these concerns? Share your insights and comments in the section below.

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Decoding Global Supply Chains: Insights Every CEO Needs to Know

by Editorial Team

The global supply chain landscape is rapidly evolving, driven by geopolitical shifts, technological advancements, and a push for sustainability. Explore the key strategies and insights CEOs need to navigate these changes effectively.

The global supply chain is undergoing a seismic shift, fueled by the need to minimize disruptions from geopolitical tensions, pandemics, and climate-related events. This transformation is not only physical but also digital, impacting where factories are located, how they are managed, and how businesses operate globally.

The Reshoring Trend

A report from the Capgemini Research Institute highlights a significant trend: companies are investing $3.4 trillion in new or modernized capacity, with nearly half of this investment focused on onshoring. This shift is driven by the desire to mitigate risks associated with concentrated production and to adapt to rising protectionism. Governments are incentivizing key industries to ensure national capacities in critical sectors like medicines, vaccines, and computer chips.

Technological Advancements

The rise of automation, AI, and other technologies is revolutionizing supply chains. Robots, hyper-automation software, and additive manufacturing are becoming cost-effective enablers, reducing dependency on human labor and enabling more efficient operations. For instance, Unilever’s digital transformation of its supply chain has led to a significant reduction in processes and increased operational resilience.

Sustainability and Compliance

Sustainability is a major focus for companies, with many targeting zero emissions across their operations. This includes Scope 1, 2, and 3 emissions, covering everything from direct operations to supply chain partners and product users. Capgemini’s alliance with Kuehne+Nagel, for example, aims to offer integrated services that enhance sustainability and operational efficiency.

Case Studies

Unilever and L’Oréal are prime examples of successful supply chain transformations. Unilever’s integration of supply chain and IT functions into Unilever Business Operations has streamlined processes and enabled rapid digital innovation. Similarly, L’Oréal’s overhaul of its logistics strategy to meet omnichannel demands showcases the importance of agility and customer-centricity in supply chain management.

Key Takeaways

  1. Resilience and Adaptability: Companies must build resilient supply chains capable of withstanding global disruptions.
  2. Technological Integration: Leveraging advanced technologies is crucial for efficiency and scalability.
  3. Sustainability: Emphasizing sustainability is not just a regulatory requirement but also a competitive advantage.

Engage with Us

How is your company adapting to these supply chain changes? What technologies are you leveraging to enhance resilience and sustainability? Share your thoughts and join the conversation in the comments below.

Conclusion

Navigating the complexities of global supply chains requires a deep understanding of current trends and strategic investments in technology and sustainability. By adopting a forward-thinking approach, CEOs can ensure their companies remain competitive and resilient in an ever-changing global landscape.

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Unleashing the Power of Procurement: A CEO’s Secret Weapon for Growth and Resilience

by Editorial Team

Procurement in the Spotlight: Driving Business Growth and Resilience in Uncertain Times

In a world marked by uncertainty and disruptions, procurement emerges as a secret weapon for CEOs. This article delves into a recent Forrester Consulting report commissioned by Ivalua, revealing how procurement is becoming a critical function for achieving growth and resilience.

In today’s complex and dynamic business environment, organizations face challenges that extend beyond conventional economic, monetary, and financial risks. They also grapple with mega threats such as inflation, recession, geopolitical risk, and supply chain disruptions, which can significantly impact their performance and survival. A recent Forrester Consulting report commissioned by Ivalua, titled “Procurement: A CEO’s Secret Weapon for Growth and Resilience in Turbulent Times,” explores how the procurement function can become more agile and help organizations adapt to market or business environment changes.

The report emphasizes the expanded mandate of procurement, which now entails value orchestration. It discusses the role of procurement in resolving disruptions for businesses and how supplier strategies have become more digitized and collaborative. The report also highlights the hindrances to procurement agility, such as a lack of leadership, data, and outdated systems.

The study found that improving procurement initiatives helps meet business objectives, allows procurement leaders to discover hidden gems and slash costs, increases operational resilience, and reduces overall business risk due to transparent communication. The report concludes with key recommendations for chief procurement officers (CPOs) and procurement teams to navigate their organizations in an uncertain environment.

Takeaways:

  1. “Redefine the procurement function so that it is fit for purpose. Invest in modern technology and train a new generation of strategic buyers.”
  2. “Take a holistic view of technology. Ensure that investments improve data quality and access, rather than creating further siloes.”
  3. “Ally with your firm’s suppliers to meet ESG imperatives. Adjust sourcing strategies for low-carbon business and work with suppliers to deliver ESG standards.”
  4. “Boost your organization’s supply chain resilience by adopting just-in-case thinking. Stabilize your firm’s supply chains at the first indication of a crisis and codevelop long-term strategies with your suppliers to make your company more resilient and future fit.”

We’d love to hear your thoughts on the evolving role of procurement in today’s business landscape. How do you see procurement driving growth and resilience in your organization? Share your insights and join the conversation in the comments section below.

Please read the full report here:

Procurement-A-CEOs-Secret-Weapon-for-Growth-and-Resilience-in-Turbulent-Times-ForresterDownload
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