As reported by KPMG, 71% of global companies identify raw material costs as their most significant supply chain threat in 2023, indicating a critical need for strategic adaptation and resilience.
The San Francisco Fed highlights the intricate relationship between global supply chain pressures and inflation, illustrating how even modest disruptions can have far-reaching impacts on economic stability.
A one standard deviation shock to the Global Supply Chain Pressure Index (GSCPI) can significantly raise goods price inflation, underscoring the delicate balance of global trade and economic health .
Experts underscore the urgency of addressing these challenges head-on.
The transition towards friendshoring and nearshoring, alongside increasing investments in digital technology, are highlighted as vital strategies for businesses aiming to navigate the turbulent waters of today's global supply chain landscape .
Climate change contributes to the scarcity of critical raw materials by affecting the availability of water, energy, and agricultural outputs. These shortages pose a severe risk to industries dependent on these materials, forcing companies to rethink sourcing strategies and supply chain resilience
As governments worldwide respond to the urgent need to combat climate change, new regulations and policies are being implemented. These changes affect global trade by imposing carbon taxes, environmental reporting requirements, and sustainability standards that companies must navigate
As the complexity of managing climate risks grows, the need for end-to-end supply chain visibility becomes more critical. Companies are investing in technologies like IoT, blockchain, and AI to gain real-time insights into their supply chains, enabling them to anticipate disruptions and respond more effectively
"With over 60% of organizations planning to bolster their supply chain processes through digital technology, the path forward is clear: embracing technological advancement and strategic foresight is paramount for building a resilient, responsive, and sustainable global supply chain."
This story is not just ours; it's yours as well. By understanding the challenges and embracing the solutions, you become a part of the global effort to transform the supply chain into a force for good, ensuring a more stable, equitable, and sustainable future for all.
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Our initiatives are crafted to tackle the complexities of the global supply chain head-on, focusing on sustainability, innovation, and resilience.
