As we begin 2024, the global economy faces heightened maritime risk vis-à-vis climate and geopolitical crises in the Panama Canal Zone, Red Sea, and Baltic Sea, on top of persistent maritime risks in the Middle East, East Asia, and Arctic Circle. Supply chain procurement leaders need to implement strategies and best practices to improvise, adapt, and overcome disruptions to global supply chains and shipping capacity in order to drive resilience through the global economy in 2024.
Risk, Compliance, Sustainability
Risk and compliance-related topics, including supply chain risk, supply chain security, regulatory and company policy compliance, ESG/sustainability
ESG investment claims to leverage financial markets in service of society and to reduce company risk. However, considerable doubts have been expressed about how effective ESG indices and investment actually are in driving meaningful changes. How can investors make informed investment choices to further their lofty goals? Data and reporting frameworks are the mechanisms to link ESG action to impact. Addressing inaccuracies and greenwashing in data and reporting can deliver the substantial potential value to financial risk and social value of ESG investment.
Global ESG and supply chain regulations are driving companies to implement multi-tier supply chain mapping and traceability within certain industries. Here we discuss some impacts of those regulatory requirements on companies’ processes and systems.
This article series looks at the potential opportunities of ESG investment – both for profitability/shareholder value and the social good. Environmental, social, and governance activities and investments have grown exponentially in recent decades.
Generous government subsidies are being provided to kick-start and incentivize the truly enormous investments required to create the scale of green hydrogen infrastructure required to tackle climate change. Over a trillion dollars of investment, between now and 2050, will be required to decarbonize the shipping sector alone. More will be required to decarbonize steel, cement, and other hard-to-abate sectors.
Pallet-level monitoring enables a more intelligent approach to distribution—Intelligent distribution and FEFO inventory management (First Expired, First Out)—as well as providing the data needed to optimize end-to-end processes for maximum shelf life. Implementing these approaches can cut losses in half for retailers and growers.
Supply chain leaders are in a position to lobby for or influence public policies. What policy is in their best interest when dealing with ‘tragedy of the commons’ issues, such as pollution or resource depletion? Is it better to maintain business as usual/laissez-faire, support regulation, or advocate for market-based solutions? Here we explore the tradeoffs.
We examine how to weigh and prioritize multiple supply chain risk mitigation options and the use of monitoring and triggers to guide level-headed decision making during a crisis, using the risk of a China-Taiwan-US war as an example. We also look at various other examples of high-uncertainty risks where our framework could be usefully applied.
Carbon-Offset LNG provides a transition fuel to help the world meet carbon emissions reduction goals, especially in the near-term. Africa has a combination of substantial natural gas reserves and opportunities for legitimate large-scale carbon-offset projects, such as massive afforestation efforts across the entire Sahel.
The importance of effective supply chain risk management intensifies with each new wave of disruptions. A key strategy deserving more attention is Scenario Planning for Strategic Supply Chain Risk Management.
A holistic, integrated approach to predictive maintenance incorporates data, systems, and human expertise from various functions including engineering, manufacturing, field service, logistics, supply chain, HR, finance, and maintenance.