How the Private Sector can Improve Supply Chains

Just 12% of the world’s largest companies have people focused supply chain goals 🌍 While environmental targets are increasingly common, people remain the overlooked dimension. The World Resources Institute reviewed more than 1,000 supply chain goals from nearly 700 large companies. The findings show a clear imbalance. 12% of companies had at least one people focused supply chain goal. 3% set targets to improve working conditions or invest in reskilling workers. In contrast, most goals concentrate on emissions, packaging, sourcing compliance, and other environmental outcomes. Goals linked to wages, safety, supplier diversity, and well-being are rare. The analysis shows that around 90% of commitments push or pull suppliers to comply. Fewer than 10% adopt a partnership approach that shares value and resources. This matters because smaller suppliers, particularly SMEs, face structural disadvantages. They lack the technical and financial capacity to meet additional demands, which limits investments in safety, fair pay, or workforce development. Without a shift in approach, sustainability targets are at risk. Cleaner and more resilient supply chains cannot be achieved if the needs of the people running them are ignored. The paper highlights three critical questions for companies: Who is impacted by transitions to future supply chains? What is in it for them? Where can investment generate mutual benefit? Practical examples show what is possible. Mars’s Shubh Mint program doubled farmer incomes in India. Tony’s Open Chain created a new model of cocoa sourcing with farmer cooperatives. IKEA supported hundreds of suppliers in accessing renewable energy. The Apparel Impact Institute mobilized blended finance for factory upgrades. These cases demonstrate that partnership models create mutual value. They strengthen supplier resilience, improve livelihoods, and enable companies to meet climate and nature goals. The call to action is clear. Every large company should set at least one people focused supply chain goal by 2030. Investors, governments, and civil society can accelerate this shift. Supply chain sustainability will be won or lost depending on whether people are recognized as central to transformation. Ignoring them undermines both impact and resilience. #sustainability #business #sustainable #esg

I've spent this week in Poole talking about how we walk the walk when it comes to our values and ethics. One of the main conversations we had was around climate change. Not just as an ethical conversation but also as a business one and it made me think more retailers need to be having it. Scientists are forecasting a super El Niño event later this year. For most, that sounds like a weather story. For anyone running a retail business, it's a supply chain story, a pricing story and a risk story all in one. This isn't a distant problem. It's already affecting costs, availability of ingredients and planning cycles. I wonder how many retail and hospitality businesses in the UK had to adjust opening hours and staffing conditions this week alone? It was a week of learning, and I'm extremely grateful to Ruth Andrade and Gabbi Loedolff for providing me with new knowledge. My takeaways are there's things we as business leaders can be doing but there's also support needed from Government. Three things retailers can start doing now: 1. Map your supply chain properly. Know where your ingredients and products actually come from, not just your first tier supplier but the farms and regions behind them. You can't manage a risk you haven't named. 2. Start the energy conversation. Switching from gas to electric, reducing water consumption and auditing your carbon footprint across sourcing and logistics. These aren't just nice to have values. They reduce exposure to volatile energy markets and future regulation. 3. Build flexibility into supplier relationships. Single source dependency is a risk that climate change is making more expensive every year. Where you can, diversify. Where you can't, plan for disruption. Three things we could do with government support on: 1. Faster infrastructure investment to support the transition from gas to electric at scale, particularly for businesses with large property portfolios. 2. Clearer long term policy on sustainable sourcing so businesses can plan and invest with confidence rather than waiting to see what the rules will be. 3. Financial incentives for small and medium suppliers to adapt their practices. The retailers who want to source responsibly can only do so if the people growing and making their products can afford to change. Climate change isn't coming for retail eventually. It's already here in the cost of ingredients, the instability of supply chains and the increasing frequency of disruption. Businesses treating it as a strategic priority now will be in a much better position than the ones who wait to be forced into it. What things would you add as a priority for businesses and governments to be looking at? #Climateaction #Sustainability #Retailleadership

Global trade is in a crunch, as a complex web of factors cause a container capacity crisis that’s shaking the very foundations of international commerce. The onset of peak shipping season, the need for longer transit times to circumvent the Red Sea, and adverse weather conditions in Asia have all conspired to disrupt trade on vital routes. This disruption has led to ocean carriers either skipping ports or reducing their port time, which subsequently impacts the collection of empty containers.    But businesses are not helpless in this situation. There are several strategies that can be adopted to alleviate the impact.     1. Enhance Supply Chain Visibility: By implementing advanced tracking systems like CARGOES.COM Flow offered by DP World Americas, businesses can receive real-time updates on container movements, aiding in the prediction and management of delays. 2. Diversify Supplier Base: Establishing relationships with multiple suppliers can decrease reliance on a single source and enhance the ability to source containers. 3. Optimize Inventory Management: The adoption of just-in-time inventory practices can reduce storage needs and the number of containers required. 4. Leverage Technology: Utilizing AI and machine learning can lead to more accurate demand forecasting, resulting in better container utilization. 5. Collaborate with Stakeholders: A close collaboration with shipping lines, ports, and regulators can result in more efficient container management and turnover. 6. Adjust Logistics Strategies: Considering alternative transportation methods or rerouting options can help bypass congested ports.    By proactively addressing these areas, businesses can better weather the storm of container shortages and ensure a smoother operation of their supply chains. This is not just a survival strategy, but an opportunity to innovate and thrive amidst adversity.    #GlobalTradeCrisis #SupplyChainManagement #LogisticsInnovation #ContainerShortages #DPWorldAmericas

Here’s how I helped a four-year-old beauty start-up boost gross margin by 11 % in under 12 months. A former Unilever colleague called me: “A young beauty brand needs procurement help. Can I connect you?” One discovery call later, I was speaking with the COO of a fast-growing company that had: An immature supply chain Zero procurement ownership — anyone who needed something simply placed an order Step 1 – Get the facts After NDAs were signed, I requested their P&L plus raw purchase data. Step 2 – Build visibility I built a SKU-level cost model by region and customer. It exposed: Negative gross margins on several SKUs Thin margins on key accounts $3 million in supplier-related damages that no one was tracking Step 3 – Design the fix Instituted a procurement operating model and org structure Wrote role profiles, including Head of Procurement Mapped the end-to-end value stream and margin levers The team rolled out a “Gross-Margin Maximization Program” — they nicknamed the template the “Anna Model.” Result: Gross margin up 11 %, now benchmarked against sector peers and attractive enough to secure fresh PE investment. ----------- If you're enjoying these insights, follow me here on LinkedIn for more on supply chain strategy, procurement transformation, and building antifragile operations. 📘 My book Antifragile Supply Chains shares practical frameworks and real-world stories to help you turn disruption into competitive advantage. Now available on Amazon

What do Walmart and Unilever have in common?  Both companies have been able to reimagine sustainable supply chains and leverage them to drive business results.      Walmart’s Project Gigaton has cut over 230 million metric tons of greenhouse gas emissions through collaboration with 2,300 suppliers. Unilever, with its Sustainable Living Plan, invests in regenerative agriculture and partners with small-hold farmers to both mitigate risks and unlock new business opportunities.  But it’s not just the big players who benefit. As someone working closely with organizations to streamline their supply chains, I have witnessed first-hand how every business can gain from rethinking its supply chain sustainability. Here’s how:     1. Risk Mitigation: A sustainable supply chain can help businesses preemptively address vulnerabilities, like resource scarcity, regulatory changes, or global disruptions. By working closely with suppliers and supporting their capacity building, companies can reduce risks that would otherwise threaten the continuity of their operations.     2. Cost Efficiency: Sustainable supply chains reduce waste, improve energy efficiency, and minimize unnecessary costs. This isn't just theory—businesses that adopt these practices report significant savings.     3. Supplier Empowerment: Empowering your suppliers to adopt sustainable practices strengthens their operations and fortifies your entire value chain. Building capacity among suppliers ensures more reliable, ethical, and resilient relationships.      4. Innovation and New Opportunities: Sustainability drives innovation. When companies focus on reducing waste or rethinking processes, they uncover creative solutions that can open new markets and improve product design.     Sustainability isn’t just a trend—if you're serious about staying competitive in a changing world, it's time to reimagine your supply chain.       #Sustainability #SupplyChain #ESG #BusinessResilience 

Buyers must work closely with suppliers to process orders and shepherd them from the moment the PO is cut, to the moment the shipment arrives on the loading dock. In between, there are numerous steps that must be executed and monitored by both the buyer and supplier. But working closely together on PO management is often a struggle in and of itself. Buyers must meet suppliers where they are, meaning they must use whatever system suppliers have in place. For most manufacturers, email is the default method, and that can quickly become a nightmare. Emails can be missed or delayed. If a particular supplier is on vacation or leaves the company, other team members likely won’t be able to jump into the missing person’s system and work efficiently. And that’s not to mention human error. Did the emails get mixed up? Has all the data been entered (accurately) into the ERP at the appropriate time? How long ago was the PO sent? Did the supplier send an acknowledgment? Searching for all this information is time consuming, costly, and bogs down buyers in a mountain of clerical work just to get their basic daily work completed. Successful modern supply chains are moving beyond these old ways and embracing new synergistic approaches that deliver all the benefits of supplier collaboration with far fewer headaches, far better data accuracy, and far greater profitability. Some of the benefits of Supplier Collaboration: 1. Improved Supply Chain Visibility: collaboration allows for better visibility into the entire supply chain, including real-time data on inventory levels, production schedules, and demand forecasts. This visibility helps in making informed decisions and responding quickly to disruptions. 2. Cost Reduction and Cost Sharing: collaborative purchasing allows manufacturers to consolidate their orders and negotiate better volume-based discounts with suppliers. Combining resources for transportation, warehousing, and logistics can lead to cost savings due to economies of scale. 3. Demand Forecasting and Inventory Optimization: sharing demand forecasts and production plans enables suppliers to align their production schedules more accurately with customer needs. Accurate demand forecasting reduces the risk of stockouts or overstocking, leading to improved customer service and lower carrying costs. Collaboration often promotes lean inventory practices, minimizing waste and holding costs. 4. Quality Improvement: manufacturers can establish key quality metrics and performance indicators, allowing both parties to monitor and improve product quality over time. 5. Risk Mitigation: manufacturers and suppliers can jointly assess potential risks in the supply chain, ranging from natural disasters to geopolitical instability. Collaborative partnerships enable the development of robust contingency plans to mitigate the impact of disruptions.

Have you ever wondered why a sudden disruption in the supply chain—be it a natural disaster, a geopolitical shift, or a global pandemic—can cripple even the most robust manufacturing operations? Many supply chains are built for efficiency but not necessarily for resilience. This is where AI steps in, transforming traditional supply chains into "smart" ones. Imagine a manufacturing plant capable of adapting in real-time to unexpected changes in supply or demand. This might sound futuristic, but it’s already happening thanks to AI. These technologies are the unsung heroes quietly revolutionizing our approach to supply chains, shifting the focus from reactive responses to proactive strategies. So, how does AI make supply chains smarter and more resilient? Firstly, AI excels at predicting disruptions before they occur. Machine learning algorithms analyze vast datasets from diverse sources—weather forecasts, market trends, social media, and more—to identify potential risks. Remember the last-minute scramble for raw materials due to an unforeseen event? With AI, those days are dwindling. Secondly, AI optimizes inventory management. By understanding patterns and anomalies, AI ensures that manufacturers maintain the perfect balance of stock—neither too much nor too little. It minimizes waste and reduces costs, addressing the precarious balance between supply and demand. Moreover, AI enhances communication and coordination across the supply chain. Smart sensors and IoT devices deliver real-time data, helping stakeholders make informed decisions promptly. This visibility is key to building a responsive and agile supply chain. However, the real magic lies in AI's ability to learn and improve constantly. Each interaction and decision point offers data that fine-tunes AI models for better future predictions and strategies. The shift to smart supply chains is not merely about adopting new technology but rethinking the entire supply strategy to prioritize agility and resilience. As AI continues to evolve, it pushes the boundaries, turning vulnerabilities into opportunities for innovation. Next time you navigate a supply chain challenge, consider how AI could not just solve the problem but transform your entire system's adaptability. The future of manufacturing isn’t just about survival; it’s about thriving in the face of uncertainty. How will you harness this power?

AI and Machine Learning: Powering a Smarter Supply Chain In today’s fast-paced world, logistics and supply chains are the backbone of global commerce, ensuring goods flow seamlessly from origin to destination. As demands for speed, accuracy, and sustainability rise, artificial intelligence (AI) and machine learning (ML) are transforming warehousing, transportation, and inventory management. Here’s how AI and ML are revolutionizing supply chains while supporting the workforce. Streamlining Operations AI and ML excel at analyzing vast datasets to uncover insights humans might miss. In warehouses, AI optimizes storage by predicting which items are picked together, reducing travel time for workers. This cuts physical strain and lets teams focus on high-value tasks. In transportation, ML enhances route planning by factoring in traffic, weather, and fuel costs. Dynamic rerouting saves time and emissions, helping drivers focus on safe, timely deliveries. AI acts like a co-pilot, making work smoother and more efficient. Improving Demand Forecasting Accurate demand prediction is a supply chain challenge. Overstocking wastes resources; understocking disappoints customers. AI-driven models analyze market trends, consumer behavior, and even social media to forecast demand precisely. This ensures lean inventories and reliable service. For planners, AI reduces guesswork, freeing them to focus on strategic tasks like supplier relations or customer experience. It’s a partnership that enhances decision-making, not a replacement for human expertise. Enhancing Visibility and Collaboration Supply chains involve many players—suppliers, manufacturers, distributors, and retailers. AI integrates data across these touchpoints, providing real-time visibility. ML models flag potential disruptions, like delayed shipments, enabling proactive solutions. This fosters collaboration, aligning teams and partners. For workers, this means less time on crises and more on meaningful tasks. Customer service teams, for instance, use AI insights to provide accurate delivery updates, boosting satisfaction without extra workload. Addressing Job Concerns Some fear AI will eliminate jobs, but in logistics, it complements human skills. AI handles repetitive, data-intensive tasks, freeing workers for creative problem-solving and strategic roles machines can’t replicate. While AI suggests warehouse layouts, humans ensure practical implementation. Training programs help workers master AI tools, from picking systems to analytics dashboards, creating new skills and career paths. The future isn’t fewer jobs—it’s better ones, where workers shine with AI support. A Bright Future AI and ML are transforming logistics, making supply chains faster, smarter, and greener. By optimizing operations, forecasting demand, enhancing visibility, and driving sustainability, these tools empower workers to deliver exceptional results.

Manufacturing is coming back to America and it’s not just a political blip, it’s a lasting business trend. CEOs and supply chain leaders, here’s what you need to know: Reshoring is Real: The push to bring supply chains back to the U.S. isn’t going away. The U.S. government (under both parties) is prioritizing domestic production and supply chain security. Companies are spending billions on new American plants – a sign that local manufacturing is on the rise, not decline. Don’t Put All Your Eggs in One Basket: Going forward, a hybrid supply chain is the best strategy. Build up some manufacturing in the USA (yes, it’s more expensive now, but it gives you stability and a foot in the future). At the same time, keep leveraging China for what it excels at – China still produces about 28% of the world’s goods, more than any other country, and its factories can offer unbeatable efficiency and scale. Plus add one or two other countries to your sourcing mix (think Vietnam, Mexico, India, or others) to hedge against risks and tap specialized skills or lower costs. This diversified approach will make your supply chain much more resilient to shocks. Technology Levels the Playing Field: Why is U.S. manufacturing becoming viable again? Automation and AI. Robots and advanced manufacturing tech are rapidly reducing the labor cost gap. If you automate, the cost difference between making something in Ohio versus overseas shrinks a lot. In fact, experts say widespread reshoring won’t be possible without robotics – it’s the key to overcoming the high labor costs in the U.S. The good news: the U.S. is a leader in these technologies, and as they spread, producing closer to your main market (the U.S.) makes more sense. On top of that, recent crises showed the dangers of over-reliance on imports (remember the PPE shortages when 70% of our masks came from China?). Both government and consumers now prefer products made locally or in trusted countries. Bottom line: Realign your operations now. Start forging partnerships with U.S. manufacturers, even if it costs more in the short term – consider it an insurance policy and a learning investment. Continue your productive relationships in China, but avoid being too dependent on them. And cultivate alternative suppliers in other countries. This multi-pronged strategy (US + China + others) will keep your business agile, no matter what geopolitical or economic curveballs come. Reshoring manufacturing is a long-term movement, not a fad. Companies that get ahead of it will benefit from greater security, political support, and yes, potentially a marketing boost for “Made in USA” products. The landscape is changing – make sure your supply chain is ready for the new normal.