Global Supply Chains Archives

Global Supply Chains Forced to Change Rapidly

Posted on 22 January, 202531 July, 2025 by David Priestman

Three quarters of businesses worldwide are overhauling their supply chains by working with more rather than fewer suppliers to mitigate risks in an increasingly fragmented global environment.

Research unveiled by Economist Impact and DP World at the World Economic Forum highlights this strategic pivot, driven by geopolitical uncertainty which is likely to grow with the ‘America first’ policies of the new administration in the United States.

The fifth annual Trade in Transition study surveyed over 3,500 supply chain executives across the world. The findings reveal firms are being forced to adapt at speed to rising protectionism and shifting geopolitical alliances.

Countries perceived to be non-aligned, such as Vietnam, Mexico, India, the UAE or Brazil, are emerging as vital trade hubs. A significant 71% of executives agree these countries mitigate trade risks, while 69% view them as critical for addressing gaps created by global conflicts.

Around 40% of firms are increasing their US-based sourcing and a further 32% are adopting dual supply chains to mitigate against geopolitical risks. Friendshoring — relocating supply chains to politically aligned countries — complements these strategies, with about 34% of businesses pursuing this approach to navigate tensions between global powers.

Economic challenges remain a priority, with 33% of executives citing prolonged inflation and high interest rates as chief concerns. By leveraging neutral hubs, diversifying suppliers and adopting advanced technologies like AI, businesses are better positioned to navigate this era of economic and geopolitical complexity.

Speaking at the launch of the report at the World Economic Forum in Davos today, DP World Group Chairman and CEO Sultan Ahmed bin Sulayem, said:

“Global trade today is more complex than ever, demanding agility, resilience, and innovation. At DP World, we empower businesses with the global infrastructure, local expertise, and advanced technology needed to thrive in this evolving landscape across fragmented markets. The latest research by Economist Impact provides invaluable insights into the future of trade in this new era. With it, we aim to foster dialogue, innovation, and resilience within the global supply chain ecosystem, empowering businesses to adapt and thrive in an increasingly dynamic world.”

John Ferguson, Global Lead, New Globalisation, Economist Impact, added:

“In 2025 and the foreseeable future, global trade will be shaped by three forces: shifting geopolitics, climate change, and a new wave of AI and automation. Yet, businesses are not retreating from international trade but are stepping up to the challenge. Firms that stay agile and cost-efficient will have the edge. Firms that also combine risk management with AI experimentation and openness will be best placed to win in this new chapter of globalisation.”

Click here to view the full report.

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Concerns over Human Rights in Supply Chains

Posted on 6 July, 202331 July, 2025 by David Priestman

More than two-thirds of chief executives at British companies are concerned about human rights issues in their supply chains, research has suggested. A survey, commissioned by procurement consultancy Proxima, surveyed 1,000 UK CEOs about their approach to supply chain issues.

It found that 67% are concerned with potential issues around human rights and labour rights. Concern is highest in the construction sector (77%), leisure and hospitality (77%), retail (72%), and the food and beverage manufacturing sector (70%), the survey found.

It comes as companies come under increasing scrutiny for emissions and human rights issues across their operations. According to the survey, almost half of UK bosses – 49% – said they expect to spend more time focussing on supply chain issues in the next 12 months.
It found that 42% are considering “onshoring” – moving their entire supply chain to their home country – as a way to prevent disruption and improve transparency.

Meanwhile, 36% said they are looking at “nearshoring” – moving supply chains to countries closer to the UK.

Simon Geale, executive vice president and chief procurement officer at Proxima, said: “Addressing human rights issues across the supply chain is a huge challenge for businesses and it is clearly high up on the agenda for CEOs. We’ve seen a number of businesses fall victim to human rights issues and, as we see increased scrutiny from customers and regulators, supply chain transparency is going to become increasingly critical. This is the emerging priority for CEOs at a time when business leaders are spending more time than ever tackling supply chain issues.”

The UK private sector has seen movement to tackle supply chain issues in recent years through initiatives like the Pharmaceutical Supply Chain Initiative, the Waste and Resources Action Programme, Scope 3 Peer Group, AIM-Progress and the Sustainable Procurement Pledge.
Unilever has been using satellite tracking to monitor deforestation and behavioural patterns around key factories while IMB has developed a supply chain solution blockchain technology, used by companies like Vodafone.

James Butcher, CEO of Supply Pilot, a tech platform that allows companies to better engage with their suppliers, said: “The supply chain disruption continues and this is why so many CEOs are focused on their supply chains. But this unfortunately is at the expense of progress on sustainability as reflected in the poor strategies on supply chain decarbonisation. I believe this is because of the internal narrative reflecting it as an either/or decision on where to focus, whereas a good supplier engagement programme focused on more sustainable and responsible procurement can address both the E and the S of ESG but also delivers more resilient supply chains.”

Neil Robson (pictured), partner at Katten UK, added:

“The fact that 67% of polled UK CEOs are concerned about human rights issues in their supply chains is testament to the fact that ESG is now well-and-truly coming of age. The “S” – the social element of the Environmental, Social and Governance framework used by firms and investors to assess an organization’s business practices – has long taken second or third place to environmental sustainability issues and good governance. However, given ESG’s evolution from ethical investing and ‘corporate social responsibility’, the social element has to remain in focus.

“Concerns with potential issues around human rights/ labour rights in the supply chain seem to have been growing in recent years, following requirements for UK businesses to adhere to the UK Modern Slavery Act, which has been in force since October 2015. As a world-leading piece of legislation, it sets out a range of measures on how modern slavery and human trafficking must be dealt with in the UK and focuses (at section 54) on ‘Transparency in Supply Chains‘. As the survey notes, addressing human rights issues across the supply chain is a huge challenge, but nonetheless supply chain transparency is a potential area of risk that is becoming increasingly critical – especially where those supply chains are overseas, opaque and unclear. Businesses that hold themselves out as ESG-compliant must address their sustainability and good governance, but they must also understand their impact on their entire supply chain and do their best to ensure they are doing the right thing for all concerned.”

Capabilities to get Global Supply Chains Moving

Posted on 24 January, 202329 July, 2025 by David Priestman

To help organizations increase the efficiency of global supply chains, Oracle is introducing new logistics capabilities within Oracle Fusion Cloud Supply Chain & Manufacturing (SCM). The updates to Oracle Transportation Management (OTM) and Oracle Global Trade Management (GTM), part of Oracle Cloud SCM, help customers reduce costs, improve accuracy, automate regulatory compliance, and enhance logistics flexibility.

Logistics leaders are overwhelmed with a recent build-up of port and shipping delays, fluctuating fuel costs, and evolving trade regulations while also being at the forefront of efforts to reduce carbon emissions of goods in transit. Organizations that don’t have flexible and responsive logistics processes in place often end up passing these delays and costs onto their customers.

“The last few years tested the flexibility of global logistics operations and many organizations have struggled to keep pace with the changing market,” said Derek Gittoes, vice president of supply chain management product strategy, Oracle. “With Oracle Transportation Management and Oracle Global Trade Management, organizations can rapidly adapt to changes in their supply chain and logistics network. Oracle’s self-updating platform gives customers access to continuous innovation, as new features are added every 90 days without business disruption.”

The new capabilities within Oracle Transportation Management and Oracle Global Trade Management include:
• Automated Trade Agreement Qualification: Helps customers validate Certificate of Origin, reduce tariffs, and enter new markets. With a deep view into the bill of materials, Trade Agreement Qualification enables customers to comply with labour regulations and prove where goods were produced via auditable records.
• New Oracle Logistics Digital Assistant Capabilities: Allow users to gain insight into the status of their shipments with simple voice commands. With the embedded Logistics Digital Assistant, users can quickly find answers to their questions.
• Enhanced Workbenches: Allow users to combine data from multiple sources into a single view to streamline operations and enhance decision making. New templates for driver management, dock scheduling, work assignments, shipment, spot bids, and restricted party screening enable users to manage specific logistics processes more efficiently.
• New Oracle Transportation Management Mobile App: Enables customers to send assignments to drivers, capture arrival and departure events, and communicate in-transit status and location information. The highly configurable and intuitive app synchronizes offline app data and allows users to execute tasks efficiently no matter where they are.
• ETA Predictions with Machine Learning: Provide real-time updates and shipment tracking to create accurate predictions for arrival times based on a customer’s unique business operations. With more accurate ETA predictions, customers can take quick action to reroute shipments to enhance operational efficiency.

“1-800 Flowers has a very complex supply chain and transportation plan with our focus on high end gifting, and a strategic priority to deliver an unparalleled customer experience through operational excellence,” said Don La France, vice president, enterprise logistics and supply chain solutions, 1800 Flowers. “Our goals were standardization, scaling capabilities, cost savings, visibility and reporting. After some discovery we quickly decided on Oracle for transportation management and warehouse management. We were able to stand up OTM on our largest brand in 12 weeks, improved our proactivity, and gave our teams the visibility needed to drive greater on-time performance. We are very happy with our choice and our decision has been validated by our results many times over.”

Oracle Cloud SCM helps organizations seamlessly connect supply chain processes and quickly respond to changing demand, supply, and market conditions. With new features added every quarter, Oracle Cloud SCM helps customers create a resilient supply network and processes that outpace change.

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