TAKEAWAYS Shaping the Future of the Global Supply Chain
SUPPLY CHAIN SUSTAINABILITY TRENDS Q&A with Jeff Pepperworth, President & CEO, iGPS Logistics Sustainability has been an industry buzzword for a while now. What are some new/current trends you are seeing? Even though sustainability is not a new initiative, we see the adoption of greener supply chain practices on a much larger scale. Previously, bigger-name brands were the main players
SURVEY SAYS: IT’S RISK MANAGEMENT OVER COST A shift is afoot when it comes to selecting and locating global supply chain networks. Instead of focusing solely on lowest-cost strategies, leaders are emphasizing building resilience, agility, and flexibility into their supply chains, shows new research from Gartner. The data shows that these risk management considerations have displaced cost-efficiency as the top drivers of network changes. Here are some key takeaways from the global survey: • 73% of companies have added or removed production locations from their supply chain networks in the past two years. • Of those that have made changes in the past two years, 90% report that they have met or exceeded the expected benefits of the change. • Despite the early success of these network shifts, 96% of respondents cite challenges with operating in new locations; operational and logistics costs are cited most often.
advocating for the implementation of more eco-friendly practices. But because big retailers have been pushing their suppliers to adopt sustainability programs, we now see a ripple effect, and more secondary and tertiary players are putting environmental responsibility at the forefront. Are there any buzzy sustainability efforts companies should be more aware of, such as new developments with AI and other tech? While route-planning technology has been around for a while, it is certainly becoming more advanced, and we have more electronic “eyes” on our roadways than ever to help shippers identify ways to optimize. AI is also creating dimensional references to build packaging that is specific to items being shipped—cutting down on dunnage and wasted space—and ensuring that boxes on pallets are cubed more efficiently, so more products can be transported at once. This all adds up to reduced greenhouse gas emissions in the atmosphere. The market for green bonds and other sustainability bonds hit a growth milestone last year. What can you tell us about these bonds and what they mean for supply chain and environmental sustainability? When you look at the investment marketplace, it’s clear that investors— including institutional investors, angel investors, and VC firms—are increasingly looking to include sustainable investment vehicles as part of their portfolios. Not all consumers are investors, but all investors are consumers. They are looking to invest in sustainable brands in the same way that consumers are looking to do business with sustainable brands. Here at iGPS, we have multiple participants in our own green bonds, and we expect that the industry will continue to move in this direction. How can the supply chain sector as a whole help to get sustainability moving forward in a stronger direction? It comes down to unification. In what ways can we unify the supply chain sector around common sustainability goals? For example, many years ago the grocery industry standardized the pallet. It was recognized that a consistent asset of specific dimensions was necessary to ensure that all forklifts and warehouse racking could handle pallets. So, what else can we unify? Can we make water packaging or egg cartons consistent so that these products have the same density and can be transported more efficiently, without impacting the spirit of competition? If we look at the supply chain holistically and discover new ways to adopt common standards, we can move toward an even greener and healthier future.
• A shortage of factory workers was a more
common challenge in North America compared to all other regions.
14 Inbound Logistics • September 2024
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