Inbound Logistics | January 2026

WHAT’S THE WORD

The Language of Logistics

SUPPLY CHAIN DISRUPTION: A. CHRONIC B. CATASTROPHIC

QUICK REFRESHER

The upstream supply chain can be thought of as “supply” while the downstream supply chain is the “demand.” UPSTREAM VS. DOWNSTREAM

Recognizing there are two distinct faces of disruption—chronic and catastrophic—must be part of any attempt to strengthen resilience, according to DP World’s global report.

DOWNSTREAM OPERATIONS The downstream supply chain starts once the product is manufactured. It covers everything involved in getting the product to the end customer: • Warehousing and order fulllment • Distribution and logistics • Last-mile delivery • Customer service and returns Downstream operations focus DIVE DEEPER HERE:

UPSTREAM OPERATIONS The upstream supply chain refers to all activities that happen before manufacturing—primarily the ow of materials into the company—including: • Supplier management, relationships, and selection • Sourcing and procurement • Inbound logistics • Inventory of raw materials Upstream supply chain management focuses on building strong supplier partnerships, ensuring materials meet quality standards, and reducing lead times and costs.

“If this difference is ignored, the risk is that rms over-insure against rare shocks and underinvest in

the operational discipline that keeps shelves stocked and factories running the rest of the time. High-volume sectors such as perishables and retail need tighter day-to-day coordination and exibility to smooth these bumps, while automotive customers need very low tolerance of failure at key nodes.” –Beat Simon, Global Chief Commercial O cer and Chief Operating O cer-Logistics, DP World

on customer satisfaction,

shortening delivery times, and reducing return rates.

vs.

CSR

ESG

2026 TERM TO WATCH

CSR stands for Corporate Social Responsibility. CSR is a management concept and business approach that helps companies integrate social, environmental, and economic concerns into their values, corporate culture, and decision-making processes. ESG stands for Environmental, Social, and Governance. This set of criteria is measurable and used by investors to evaluate potential profitable and ethical business investments. What’s the Dierence? Although CSR and ESG share objectives, the two are not interchangeable. The biggest di erence resides in how corporate accountability is tracked and measured. In terms of CSR, companies voluntarily self-assess how successful they are at integrating social and ecological accountability programs into their operations. In contrast, ESG focuses on how these e orts can be gauged and quantified. By using metrics to rank and evaluate a business’s performance, companies can tangibly express to customers, investors, and stakeholders how they manage their supply chain, human rights record, carbon imprint, corporate governance, and more.

Data Fabric

A data fabric architecture is a modern approach to data architecture that enables organizations to manage and utilize data across diverse systems, locations, and partners. Rather than centralizing data into a single platform, data fabrics establish a unified data layer that connects information wherever it resides—cloud or on-premise supply chain applications.

SOURCE: GARTNER

SOURCE: THOMASNET

20 Inbound Logistics • January 2026