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.

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.

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.

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.

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!


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!

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! 

Author

Sean Galea-Pace

Published

8 May 2024

Estimated Read time

7Mins

Satya Mishra, Director, Product Management at Amazon Business, discusses how CPOs have become an important voice at the table to drive digital transformation and efficient collaboration.

Harnessing efficiency is at the heart of any digital transformation journey.

Digitalisation should revolve around driving efficiency and achieving cost savings. Otherwise, why do it?

Amazon is no stranger to simplifying shopping for its customers. It is why Amazon has become a global leader in e-commerce. But, business-to-business customers can have different needs than traditional consumers, which is what led to the birth of Amazon Business in 2015. Amazon Business simplifies procurement processes, and one of the key ways it does this is by integrating with third-party systems to drive efficiencies and quickly discover insights. 

Satya Mishra, Director, Product Management at Amazon Business, tells us all about how the organisation is helping procurement leaders to integrate their systems to lead to time and money savings.

Satya Mishra: “More than six million customers around the world tap Amazon Business to access business-only pricing and selection, purchasing system integrations, a curated site experience, Business Prime, single or multi-user business accounts, and dedicated customer support, among other benefits.

“I lead Amazon Business’ integrations tech team, which builds integrations with third-party e-procurement, expense management, e-sourcing and idP systems. We also build APIs for our customers that either they or the third-party system integrators can use to create solutions that meet customers’ procurement needs. Integrations can allow business buyers to create connected buying journeys, which we call smart business buying journeys. 

“If a customer does not have existing procurement systems they’d like to integrate, they can take advantage of other native tools, like a Business Analytics dashboard, in the Amazon Business store, so they can monitor their business spend. They can also discover and use some third-party integrated apps in the new Amazon Business App Center.”

Why would a customer choose to integrate their systems? Are CPOs leading the way?

Satya Mishra: “By integrating systems, customers can save time and money, drive compliance, spend visibility, and gain clearer insights. I talk to CPOs frequently to learn about their pain points. I often hear from these leaders that it can be tough for procurement teams to manage or create purchasing policies. This is especially if they have a high volume of purchases coming in from employees across their whole organisation, with a small group of employees, or even one employee, manually reviewing and reconciling. Integrations can automate these processes and help create a more intuitive buying experience across systems.

“Procurement is a strategic business function. It’s data-driven and measurable. CPOs manage the business buying, and the business buying can directly impact an organisation’s bottom line. If procurement tools don’t automatically connect to a source of supply, business buying decisions can become more complex. Properly integrated technology systems can help solve these issues for procurement leaders.”

Satya Mishra, Director, Product Management at Amazon Business

Beyond process complexity, what other challenges are procurement leaders facing?

Satya Mishra: “In the Amazon Business 2024 State of Procurement Report, other top challenges respondents reported were having access to a wide range of sellers and products that meet their needs, and ensuring compliance with spend policies. 

“The report also found that 52% of procurement decision-makers are responsible for making purchases for multiple locations. Of that group, 57% make purchases for multiple countries.

“During my conversations with CPOs, I hear them say that having access to millions of products across many categories through Amazon Business has allowed them to streamline their supplier quantity and reduced time spent going to physical stores or trying to find products they’re looking for from a range of online websites. They’ve also shared that the ability to ship purchases from Amazon Business to multiple addresses has been very helpful in reducing complexity for both spot-buy and planned or recurring purchases. Organisations may need to buy specific products, like copy paper or snacks, in a recurring way. They may need to buy something else, like desks, only once, and in bulk, at that. Amazon Business’ ordering capabilities are agile and can lessen the purchasing complexity.”

How should procurement leaders choose which integrations will help them the most? 

Satya Mishra: “At Amazon Business, we work backwards from customer problems to find solutions. I recommend CPOs think about what existing systems their employees may already use, the organisation’s buying needs, and their buyers’ typical purchasing behaviors. The buying experience should be intuitive and delightful. 

“Amazon Business integrates with more than 300 systems, like Coupa, SAP Ariba, Okta, Fairmarkit, and Intuit Quickbooks, to name just a handful. With e-procurement integrations like Punchout and Integrated Search, customers start their buying journey in their e-procurement system. With Punch-in, they start on the Amazon Business website, then punch into their e-procurement system. With SSO, customers can use their existing employee credentials. Our collection of APIs can help customers customise their procure-to-pay and source-to-settle operations. This includes automating receipts in expense management systems and track progress toward spending goals. 

“My team recently launched an App Center where customers can discover third-party apps spanning Accounting Management, Rewards & Recognition, Expense Management, Integrated Shopping and Inventory Management categories. We’ll continue to add more apps over time to help simplify the integrated app discovery process for customers.

“Some customers choose to stack their integrations, while others stick with one integration that serves their needs. There are many possibilities, and you don’t just have to choose one integration. You can start with Punchout and e-invoicing, for example, and then also integrate with Integrated Search, so your buyers can search the Amazon Business catalog within the e-procurement system your organisation uses.”

Are integrations tech projects?

Satya Mishra: “No, integrations should not be viewed as tech projects to be decided by only an IT team. Integrations open doors to greater data connectivity and business efficiencies across organisations. Instead of having disjointed data streams, you can connect those systems and centralise data, increasing spend visibility. You may be able to spot patterns and identify cost savings that may have gotten lost otherwise. 

“It’s not uncommon for me to hear that CPOs, CFOs and CIOs are collaborating on business decisions that will save them all time and meet shared goals, and integrations are in their mix of recommendations. 

“One of my team’s key goals has been to simplify integrations and bring in more self-service solutions. In terms of set-up, some integrations like SSO can be self-serviced by the customer. Amazon Business can help customers with the set-up process for integrations as well.”

How has procurement transformed in recent years?

Satya Mishra: “Procurement is no longer viewed as a back-office function. CPOs more commonly have a seat at the table for strategic cross-functional decisions with CFOs and CIOs.

“95% of Amazon Business 2024 State of Procurement Report respondents say the purchases they make mostly fall into managed spend. Managed spending is often planned for months or years ahead of time. This can create a great opportunity to recruit other stakeholders across departments versus outsourcing purchasing responsibilities. Equipping domain experts to support routine purchasing activities allows procurement to uplevel its focus and take on higher priorities across the organisation, while still maintaining oversight of overarching buying patterns. It’s also worth noting that by connecting to e-procurement and expense management systems, integrations provide easy and secure access to products on Amazon Business and help facilitate managed spend.”

What does the future of procurement look like?

Satya Mishra: “Bright! By embracing digital transformation and artificial intelligence to form more agile and strategic operations, CPOs can influence the ways their organisations innovate and adapt to change.”

Read the latest CPOstrategy here!

Author

Andrew Woods

Published

17 October 2023

Estimated Read time

4Mins

This month’s cover story features Fiona Adams, Director of Client Value Realization at ProcurementIQ, to hear how the market leader in providing sourcing intelligence is changing the very face of procurement…

It’s a bumper issue this month. Click here to access the latest issue!

And below are just some of this month’s exclusives…

ProcurementIQ: Smart sourcing through people power 

We speak to Fiona Adams, Director of Client Value Realization at ProcurementIQ, to hear how the market leader in providing sourcing intelligence is changing the very face of procurement… 

The industry leader in emboldening procurement practitioners in making intelligent purchases is ProcurementIQ. ProcurementIQ provides its clients with pricing data, supplier intelligence and contract strategies right at their fingertips. Its users are working smarter and more swiftly with trustworthy market intelligence on more than 1,000 categories globally.  

Fiona Adams joined ProcurementIQ in August this year as its Director of Client Value Realization. Out of all the companies vying for her attention, it was ProcurementIQ’s focus on ‘people power’ that attracted her, coupled with her positive experience utilising the platform during her time as a consultant.

Although ProcurementIQ remains on the cutting edge of technology, it is a platform driven by the expertise and passion of its people and this appealed greatly to Adams. “I want to expand my own reach and I’m excited to be problem-solving for corporate America across industries, clients and procurement organizations and teams (internal & external). I know ProcurementIQ can make a difference combined with my approach and experience. Because that passion and that drive, powered by knowledge, is where the real magic happens,” she tells us.  

To read more click here!

ASM Global: Putting people first in change management   

Ama F. Erbynn, Vice President of Strategic Sourcing and Procurement at ASM Global, discusses her mission for driving a people-centric approach to change management in procurement…

Ripping up the carpet and starting again when entering a new organisation isn’t a sure-fire way for success. 

Effective change management takes time and careful planning. It requires evaluating current processes and questioning why things are done in a certain way. Indeed, not everything needs to be changed, especially not for the sake of it, and employees used to operating in a familiar workflow or silo will naturally be fearful of disruptions to their methods. However, if done in the correct way and with a people-centric mindset, delivering change that drives significant value could hold the key to unleashing transformation. 

Ama F. Erbynn, Vice President of Strategic Sourcing and Procurement at ASM Global, aligns herself with that mantra. Her mentality of being agile and responsive to change has proven to be an advantage during a turbulent past few years. For Erbynn, she thrives on leading transformations and leveraging new tools to deliver even better results. “I love change because it allows you to think outside the box,” she discusses. “I have a son and before COVID I used to hear him say, ‘I don’t want to go to school.’ He stayed home for a year and now he begs to go to school, so we adapt and it makes us stronger. COVID was a unique situation but there’s always been adversity and disruptions within supply chain and procurement, so I try and see the silver lining in things.”

To read more click here!

SpendHQ: Realising the possible in spend management software 

Pierre Laprée, Chief Product Officer at SpendHQ, discusses how customers can benefit from leveraging spend management technology to bring tangible value in procurement today…

Turning vision and strategy into highly effective action. This mantra is behind everything SpendHQ does to empower procurement teams.  

The organisation is a leading best-in-class provider of enterprise Spend Intelligence (SI) and Procurement Performance Management (PPM) solutions. These products fill an important gap that has left strategic procurement out of the solution landscape. Through these solutions, customers get actionable spend insights that drive new initiatives, goals, and clear measurements of procurement’s overall value. SpendHQ exists to ultimately help procurement generate and demonstrate better financial and non-financial outcomes. 

Spearheading this strategic vision is Pierre Laprée, long-time procurement veteran and SpendHQ’s Chief Product Officer since July 2022. However, despite his deep understanding of procurement teams’ needs, he wasn’t always a procurement professional. Like many in the space, his path into the industry was a complete surprise.  

To read more click here!

But that’s not all… Earlier this month, we travelled to the Netherlands to cover the first HICX Supplier Experience Live, as well as DPW Amsterdam 2023. Featured inside is our exclusive overview from each event, alongside this edition’s big question – does procurement need a rebrand? Plus, we feature a fascinating interview with Georg Rosch, Vice President Direct Procurement Strategy at JAGGAER, who discusses his organisation’s approach amid significant transformation and evolution.

Enjoy!

Author

Andrew Woods

Published

12 September 2023

Estimated Read time

4Mins

Read in brochure format

Welcome to issue 43 of CPOstrategy!

Our exclusive cover story this month features a fascinating discussion with UK Procurement Director, CBRE Global Workplace Solutions (GWS), Catriona Calder to find out how procurement is helping the leader in worldwide real estate achieve its ambitious goals within ESG.

As a worldwide leader in commercial real estate, it’s clear why CBRE GWS has a strong focus on continuous improvement in its procurement department. A business which prides itself on its ability to create bespoke solutions for clients of any size and sector has to be flexible. Delivering the superior client outcomes CBRE GWS has become known for requires an extremely well-oiled supply chain, and Catriona Calder, its UK Procurement Director, is leading the charge. 

Procurement at CBRE had already seen some great successes before Calder came on board in 2022. She joined a team of passionate and capable procurement professionals, with a number of award-winning supply chain initiatives already in place.

With a sturdy foundation already embedded, when Calder stepped in, her personal aim focused on implementing a long-term procurement strategy and supporting the global team on its journey to world class procurement…

Read the full story here!

Adam Brown: The new wave of digital procurement 

We grab some time with Adam Brown who leads the Technology Platform for Procurement at A.P. Moller-Maersk, the global logistics giant. And when he joined, a little over a year ago, he was instantly struck by a dramatic change in culture… 

Read the full story here!

Government of Jersey: A procurement transformation journey 

 Maria Huggon, Former Group Director of Commercial Services at the Government of Jersey, discusses how her organisation’s procurement function has transformed with the aim of achieving a ‘flourishing’ status by 2025…

Read the full article here!

Government of Jersey

Corio: A new force in offshore wind 

The procurement team at Corio on bringing the wind of change to the offshore energy space. Founded less than two years ago, Corio Generation already packs quite the punch. Corio has built one of the world’s largest offshore wind development pipelines with projects in a diverse line-up of locations including the UK, South Korea and Brazil among others.  

The company is a specialist offshore wind developer dedicated to harnessing renewable energy and helps countries transform their economies with clean, green and reliable offshore wind energy. Corio works in established and emerging markets, with innovative floating and fixed-bottom technologies. Its projects support local economies while meeting the energy needs of communities and customers sustainably, reliably, safely and responsibly.  

Read the full article here!

Becker Stahl: Green steel for Europe 

Felix Schmitz, Head of Investor Relations & Head of Strategic Sustainability at Klöckner & Co SE explores how German company Becker Stahl-Service is leading the way towards a more sustainable steel industry with Nexigen® by Klöckner & Co. 

Read the full article here!

And there’s so much more!

Enjoy!

Author

Sean Galea-Pace

Published

1 August 2023

Estimated Read time

2Mins

Read in brochure format

Welcome to issue 42 of CPOstrategy!

This month’s cover story sees us speak with Brad Veech, Head of Technology Procurement at Discover Financial Services.

CPOstrategy - Procurement Magazine

Having been a leader in procurement for more than 25 years, he has been responsible for over $2 billion in spend every year, negotiating software deals ranging from $75 to over $1.5 billion on a single deal. Don’t miss his exclusive insights where he tells us all about the vital importance of expertly procuring software and highlights the hidden pitfalls associated.

“A lot of companies don’t have the resources to have technology procurement experts on staff,” Brad tells us. “I think as time goes on people and companies will realise that the technology portfolio and the spend in that portfolio is increasing so rapidly they have to find a way to manage it. Find a project that doesn’t have software in it. Everything has software embedded within it, so you’re going to have to have procurement experts that understand the unique contracts and negotiation tactics of technology.” 

There are also features which include insights from the likes of Jake Kiernan, Manager at KPMG, Ashifa Jumani, Director of Procurement at TELUS and Shaz Khan, CEO and Co-Founder at Vroozi. 

Enjoy the issue! 

Author

Andrew Woods

Published

23 June 2023

Estimated Read time

2Mins

Read in brochure format

Welcome to issue 41 of CPOstrategy!

This month’s exclusive cover story features a fascinating insight into the procurement function at lighting giant, Signify.

A forward-thinking enterprise constantly reevaluating and adapting its operations against an ever-changing landscape, Signify has recently transformed its procurement function. And so we join Luc Broussaud, Global Head of Procurement/CPO and Arnold Chatelain, Transformation Program Director for Signify’s Procurement Organization to see why, and how, they have evolved procurement at the company.

Signify is a global organisation spread over all continents and Luc heads up the procurement function. According to Luc, he and his team no longer engage in traditional transactional procurement, but instead leverage digitalisation to deliver competitive prices as well as what they call ‘concept saving’, “Which is how we redesign or improve our product; leveraging the knowledge of our suppliers to make it cheaper, more efficient, easier to manufacture and install, and more sustainable for the planet.”

CPOstrategy - Issue 41

Luc joined Signify in 2018, after being the CPO of Nokia (based in Shanghai) and has always been working within procurement. He joined Signify with a broad skillset and a wealth of experience. “I joined because the people I talked to, from the COO to the CEO and CFO were all incredibly knowledgeable and passionate about procurement,” he reveals. Read the full story here!

Not only that, but we also have some incredible insights from procurement leaders at Heijmans, Datadog, HICX, DPW, ProcureCon Asia and SourcingHaus Research! Plus, the very best procurement events of 2023.

Enjoy the issue!