Challenges in Global Supply Chains

Never judge a business by its front office but by its back-end logistics. Managing sourcing across India, Pakistan, and Bangladesh has taught me that logistics isn't just about moving boxes—it's what makes or breaks a retail operation. Here's why: The global logistics market hit $9.2 trillion in 2023, with Asia-Pacific contributing 42% of this value (McKinsey Global Institute). Yet, companies lose 20-30% of their logistics costs to inefficiencies. (McKinsey & Company) The real cost of weak logistics shows up in: → Inventory Stockouts: 8.3% of retail sales are lost to out-of-stock situations, costing retailers $1 trillion annually (IHL Group)  → Dead Stock: The average retailer ties up 25% of working capital in excess inventory (Gartner)  → Broken Promises: 69% of customers won't shop with a retailer again after a late delivery (Retail TouchPoints)  → Emergency Shipping: Rush shipping can cost 5-10x more than standard rates (Deloitte) In 2024, due to various disruptions in logistics caused by war, instability, and climate change-induced natural disasters, I witnessed firsthand how fragile supply chains can be. Geopolitical turmoil, including events like the Red Sea Crisis and the Ukraine conflict, further exacerbated these disruptions, underscoring the critical need for resilient and adaptable supply chain strategies. Companies with robust logistics weathered the storm, while others faced existential crises. Today's successful businesses need: 📌 Strategic warehouse placement near key markets 📌Real-time inventory tracking across locations 📌Multiple transport routes for critical supplies 📌Robust risk mitigation plans In my experience, managing an annual sourcing volume of $100 million, the difference between profit and loss often comes down to one question: Can you get your product where it needs to be when it needs to be there? What's your biggest logistics challenge? Share your experience below. #SupplyChain #LogisticsManagement

Sustainability in Supply Chains A guide for private markets investors 🌍 Private markets investors face increasing pressure to integrate sustainability into supply chain management. This guide by PRI explains why supply chain due diligence is essential and how investors can embed it across the investment cycle to safeguard assets, reduce risks, and capture value. Supply chain risks, ranging from human rights abuses to environmental violations, have become financially material issues with direct implications for investor performance, regulatory compliance, and reputation. Human rights concerns are significant. Forced labour affects an estimated 28 million people worldwide, with rising risks in major sourcing countries such as India, Vietnam, China, Mexico and the United States. Migrant workers are particularly vulnerable, while child labour remains prevalent in high-risk industries and regions. Working conditions also present serious challenges. Excessive hours, unsafe workplaces and poor wages undermine the stability of global supply chains. These issues are concentrated in industries such as apparel, electronics, food and agriculture, construction materials and mining where oversight is often limited. Environmental risks add complexity. Nearly half of global sourcing markets face high or extreme risk of violations related to waste management, emissions and hazardous materials. Biodiversity loss and deforestation linked to commodities such as palm oil, soy and timber increase exposure to both regulatory and operational disruptions. Regulatory requirements are tightening worldwide. The EU Corporate Sustainability Due Diligence Directive, the US Uyghur Forced Labor Prevention Act and the EU Deforestation Regulation compel companies and investors to identify, mitigate and report risks throughout their supply chains. Failure to comply carries financial consequences. Volkswagen shipments were detained at US ports, Shein faced delays in listing plans due to sourcing concerns and companies in Germany were investigated and fined for breaches of the Supply Chain Act. These examples show how supply chain management is now a strategic necessity. Proactive due diligence creates opportunities. Companies with strong supply chain transparency and risk management can secure contracts, improve resilience, reduce costs and strengthen their brand. Investors can leverage these practices to enhance portfolio performance and protect value at exit. The guide explains that due diligence should be present at every stage of the investment cycle. This includes governance and policies, early screening, detailed risk assessments, legal agreements, active engagement, monitoring and exit planning. Clear roles, data systems and training are critical. Integrating sustainability into supply chain due diligence strengthens both risk management and value creation. #sustainability #business #sustainable #esg

Being a demand and supply planner is brutally tough. These are the top 10 nightmares and how to fix them: 1️⃣ Forecasts that are always wrong ↳ No matter the effort into forecasting, actual demand rarely matches ➡️ The Fix: focus on forecast bias over accuracy—adjust models based on historical patterns 2️⃣ Constantly Changing Demand Signals ↳ Sales suddenly double—but no one tells supply planning ➡️ The Fix: implement a structured demand review as part of S&OP 3️⃣ Stockouts of Critical SKUs ↳ A high-demand product is out of stock, leading to lost sales ➡️ The Fix: use safety stock per demand variability & supplier lead times 4️⃣ Excess Inventory Trapping Cash ↳ Warehouse shelves are full, finance is concerned about working capital ➡️ The Fix: use ABC analysis to prioritize fast-movers, and apply variable inventory covers instead of static min-max levels 5️⃣ Repeated Last-Minute Expedites ↳ Air-freight emergency shipments become the norm, destroying profitability ➡️ The Fix: identify the root causes of expediting—poor forecasts, unreliable suppliers, or internal misalignment—and address them systematically 6️⃣ Supplier Delays and Capacity Constraints ↳ A supplier misses deadlines, causing chaos to the entire production plan ➡️ The Fix: build supplier scorecards, negotiate dual sourcing, and set up buffer stock for long-lead-time items 7️⃣ Mismatch Between Demand and Production ↳ Factories are making what they can, not what's actually needed ➡️ The Fix: align capacity planning with real demand signals, improve S&OP 8️⃣ Poor Data Quality ↳ Incorrect master data is driving bad planning decisions ➡️ The Fix: conduct data audits, enforce master data ownership, and use automation tools like Power Query to clean data regularly 9️⃣ No Visibility into Pipeline Inventory ↳ You think the stock is available, but half of it is stuck in transit or Quality Control (QC) holds ➡️ The Fix: improve real-time inventory tracking, and use inventory dashboards in supply planning 1️⃣0️⃣ S&OP Becoming a Formality ↳ Meetings are held, numbers are discussed, but no one follows through on execution ➡️ The Fix: make decisions actionable, track key S&OP outputs (plan vs. actual), and ensure senior leaders drive accountability Any others to add?

Copper smelters paying miners? Yep, we’re back there again. Spot TC/RCs just went negative, meaning smelters are literally paying miners to take concentrate. It’s not the first time (we saw flashes of this in 2023 and back in the 2015–16 squeeze), but it always says the same thing: mine supply is way too tight for the amount of smelting capacity online. This time, it’s made worse by the Cobre Panama shutdown, bottlenecks into China, and traders hoarding high-grade. What’s wild is that Chinese smelters are still running, even at a loss, thanks to record gold prices and byproduct credits from sulfuric acid. But that can only go on for so long. Margins are razor thin, and eventually something gives. Meanwhile, if you’re a miner, you’re in a sweet spot, better pay and less pressure to negotiate. But the bigger picture? This isn’t just a smelter problem. It’s another neon sign flashing “we need new mines.” Exploration has to kick into gear now or we’re going to see even tighter concentrate markets by the back half of the decade. The energy transition can’t happen if we keep starving the front end of the copper chain. #Copper #Mining #Exploration #TC_RC #Smelting #CriticalMinerals #China #EnergyTransition #Gold #SulfuricAcid #SupplyChain Sources: – S&P Global, Scarce copper concentrate puts pressure on undersupplied smelters, May 2, 2025 – Reuters, Record gold prices help keep China's copper smelters going despite losses, Apr 30, 2025 – US News/Money, Chinese copper smelters grapple with margin collapse, Mar 20, 2025 – S&P Global, Copper project shortage to see supply lag demand post-2025, Mar 27, 2024

𝐌𝐨𝐬𝐭 𝐩𝐫𝐨𝐜𝐮𝐫𝐞𝐦𝐞𝐧𝐭 𝐟𝐚𝐢𝐥𝐮𝐫𝐞𝐬 𝐝𝐨𝐧’𝐭 𝐬𝐭𝐚𝐫𝐭 𝐰𝐢𝐭𝐡 𝐩𝐫𝐢𝐜𝐞. They start with misalignment that was never visible during negotiation. Early in my career, I believed strong contracts created control. 𝐂𝐥𝐞𝐚𝐫 𝐒𝐋𝐀𝐬, 𝐝𝐞𝐟𝐢𝐧𝐞𝐝 𝐩𝐞𝐧𝐚𝐥𝐭𝐢𝐞𝐬, 𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞𝐝 𝐠𝐨𝐯𝐞𝐫𝐧𝐚𝐧𝐜𝐞. On paper, everything looked protected. In reality, the pressure points appeared where alignment was missing, not where clauses were weak. I have managed supplier environments where agreements were fully compliant, yet outcomes remained fragile. Delivery timelines slipped, priorities conflicted, and accountability became negotiable the moment conditions changed. The issue was never the contract. It was the absence of shared intent behind it. Procurement does not operate in stable conditions. It operates in moving environments where suppliers carry capacity constraints, operational pressures, and competing commitments that are not always visible at the negotiation table. This is where control reaches its limit. Control ensures adherence when conditions remain predictable, but alignment determines behaviour when they do not. In complex supply networks, the real question is not whether a supplier can deliver under agreed conditions. It is whether they will prioritise your outcome when those conditions are disrupted. That decision is rarely driven by contract language. It is shaped by how clearly expectations were aligned, how early risks were discussed, and whether the supplier sees themselves as part of the outcome or outside of it. I have seen suppliers go beyond contractual obligations when alignment was strong. I have also seen suppliers stay strictly within contractual limits when alignment was absent, even if it meant the business absorbed the impact. Both scenarios were compliant, but only one was resilient. This is where procurement leadership evolves. It moves from securing terms to shaping behaviour, from enforcing compliance to building accountability that exists even when enforcement is not immediate, and from managing suppliers to aligning ecosystems that can withstand pressure. The strongest supply networks I have worked with were not built on leverage alone. They were built on clarity of intent, consistency in engagement, and relationships that could carry pressure without breaking alignment. Because when disruption arrives, suppliers do not respond to contracts first. They respond to priorities, and those priorities are shaped long before the disruption begins. A question I continue to challenge myself with: how confident are we that our most critical suppliers will protect the outcome, not just the contract, when conditions become difficult? One principle experience has made non-negotiable: "𝐂𝐨𝐧𝐭𝐫𝐨𝐥 𝐬𝐞𝐜𝐮𝐫𝐞𝐬 𝐜𝐨𝐦𝐩𝐥𝐢𝐚𝐧𝐜𝐞. 𝐀𝐥𝐢𝐠𝐧𝐦𝐞𝐧𝐭 𝐬𝐞𝐜𝐮𝐫𝐞𝐬 𝐜𝐨𝐧𝐭𝐢𝐧𝐮𝐢𝐭𝐲." LinkedIn LinkedIn News #Procurement #Leadership #SupplyChain #SRM #LinkedInNews

Farmers are ready, but the system isn't - The Supply Chain Trap for Regenerative Farmers Even when farmers overcome financial barriers to transition, another challenge remains: the supply chain isn’t built for them. Most farmers today sell into centralised commodity markets that don’t differentiate between products which degrade and and those which regenerate landscapes. A farmer supporting soil health, increasing biodiversity, and reducing inputs still gets paid the same as one depleting their land. No premium, no incentive, no reward for better outcomes. Why? Because the system isn’t designed for regenerative agriculture. Lack of Decentralised Processing: Most sorting, storage, and processing infrastructure serves industrial supply chains. We see an increasing consolidation with less and less abattoirs, mills, dairies, which are bigger and bigger. In 2007, the UK had nearly 100 small abattoirs. By 2023, this number declined to just over 60, with 59% of the remaining facilities anticipating closure within five years without government support. In the US, the four largest beef packing firms handle 85% of all beef packing. If a regenerative grain farmer wants to sell outside the commodity system, in small batches, they often can’t - there’s simply no place to to process their crop locally. No Verification, No Market Access: Without verification, regenerative farmers struggle to prove their methods to buyers who would pay more. Certification so far is geared towards organic, not regenerative - i.e. practice, not outcome-based. Retail Disconnect: Even retailers that want regenerative products lack sourcing frameworks. The result? A fragmented supply chain where regenerative farmers can’t reach the right buyers at the right price. If we want to build the supply-chains to make it possible for farmers: Decentralised processing hubs to break dependence on centralised commodity buyers. Even more and better direct-to-consumer platforms. Transparent verification that actually supports regeneration and recognises the work of farmers. Retail action towards regenerative sourcing, creating real market demand. Farmers are leading the transition. The supply chain must catch up. I'm curious - where is this already taking place? Which positive examples do we see which we can build on?

📘 Goodbye Globalization — a few takeaways that stuck with me: I used the Easter break to read Elisabeth Braw’s Goodbye Globalization — a sharp, sober reflection on how the rules of global business are being rewritten, quietly but fundamentally, as everything we knew over the past 30 years since the post–Cold War era is being re-evaluated. In short, globalisation meant trade and national security operated in separate lanes; even when geopolitical tensions rose, governments were careful not to disrupt the flow of commerce. Companies spent decades building ultra-efficient global supply chains, and for a while, it worked — manufacturing boomed, goods flowed freely, and consumers enjoyed low prices. That era is now over. From COVID-19 to Russia’s war in Ukraine to the US–China tariff wars, recent shocks revealed just how fragile our interconnected systems are. After decades of economic integration, a new world order is taking shape. So what does it mean for #climatetech companies? 1️⃣ 𝐃𝐞𝐜𝐚𝐫𝐛𝐨𝐧𝐢𝐬𝐚𝐭𝐢𝐨𝐧 𝐁𝐲 𝐃𝐞𝐬𝐢𝐠𝐧 – Energy security is national security. The push for energy independence — often more than climate concern — is now the primary driver of the renewables transition. Cost-competitive, decentralised, and less geopolitically risky, clean energy is becoming a strategic asset. Just look at China: its electrification push isn’t driven by decarbonisation, but by the race for global competitiveness. 2️⃣ 𝐑𝐞-𝐢𝐧𝐝𝐮𝐬𝐭𝐫𝐢𝐚𝐥𝐢𝐬𝐚𝐭𝐢𝐨𝐧 𝐓𝐡𝐫𝐨𝐮𝐠𝐡 𝐓𝐞𝐜𝐡𝐧𝐨𝐥𝐨𝐠𝐲 – As global supply chains fragment, local production is becoming the answer. “Friendshoring” and “regionalisation” are the new buzzwords. Bringing manufacturing “home” — while staying economically viable — now relies on technology like AI, robotics, and localised supply chains (think raw materials and minerals). Climate tech companies have a real opportunity to build “resilient by default” industrial models that don’t depend on low-cost overseas labour, but on smart, scalable systems closer to their markets. 3️⃣ 𝐅𝐫𝐨𝐦 𝐆𝐫𝐞𝐞𝐧 𝐏𝐫𝐞𝐦𝐢𝐮𝐦 𝐭𝐨 𝐆𝐫𝐞𝐞𝐧 𝐀𝐝𝐯𝐚𝐧𝐭𝐚𝐠𝐞 – Being green isn’t just about values anymore — it’s becoming a competitive edge. Today, clean technologies unlock government incentives, help avoid trade barriers, and align with new industrial policies. The climate tech winners won’t just be the cleanest — they’ll be the most strategically aligned with Globalisation 2.0. At Extantia, we’re backing the climate tech founders who see this shift not as a headwind — but as the biggest tailwind of the decade!! #venturecapital #GoodbyeGlobalization

Fertilizer is the new gas. Today, Europe and the world are more food dependent on Russia than before the full-scale invasion of Ukraine. The EU Commission wants to decrease Russian gas imports but, in a twist of geopolitical irony, we have ramped up imports of Russian fertilizers, which are heavily dependent on natural gas, and are now importing them at record levels. That is a paradox. And it is a vulnerability. The food superpower, Russia, is becoming more powerful. Russia is now the second-largest fertilizer producer, behind China. Large reserves of raw materials and low energy costs mean their fertilizer production and export is set to grow. To further add to this, the Russian government keeps extending their export quotas for fertilizers, allowing increased exports to fund their budget and war efforts. Earlier this spring, the EU responded to this growing dependency by proposing quotas and tariffs. But their impact won't be felt for at least a year or two. Meanwhile, the U.S. imposed tariffs on trading partners, including Norway and the EU, while Russian fertilizers enter tariff-free. That, too, is a paradox. Europe's strategic autonomy demands decisive action. I urge EU decision-makers to fast-track meaningful measures against Russian and Belarusian fertilizers. If the EU fails to do so, we risk undermining European producers, financing a war, and endangering the stability of our food system.   I spoke with BBC News about this. Listen from minute 16:10: https://bbc.in/4mfeevc

How will the trade war affect the world’s sustainable energy transition? We just celebrated a major milestone in the green energy transition: Clean energy now generates over 40% of the world's electricity, as per a new report from think tank Ember. A decade ago, that figure was closer to 20%. Global trade has long been the engine behind the rise of renewable energy. From solar panels manufactured in China, to wind turbines built with components sourced across different continents, the clean energy revolution underway has been propelled by open markets and international cooperation. #Trade across countries has allowed countries to leverage our comparative advantages, lowering costs and allowing for the commercial scaling of these technologies. Solar power, of which more than 80% of panel production takes place in China, has become one of the most affordable sources of electricity. #Solar has doubled within just 3 years, contributing greatly to the goal of making net-zero energy accessible to all. Trade has not just supported this growth; it has enabled it. But just as the world begins to tip toward a #cleanenergy future, we’re starting to see momentum stall. Rising trade tensions and unprecedented global tariffs now pose a huge threat to the progress we have experienced in recent years. #Tariffs are set to increase costs of renewables, making it less affordable, particularly in developing countries and furthering the inequality that already exists in the green transition. These higher costs will slow down clean energy adoption across the world, delaying the path towards our global net-zero targets. Supply chain disruptions and further retaliatory tariff measures will continue to threaten sustainable energy adoption. While the current landscape offers ample opportunity for greater regional cooperation, diversifying supply chains take time and investment – which again means deceleration in #renewable adoption, at least in the short to medium term. But the urgency of the climate crisis waits for no one. We simply cannot afford to not have the U.S., the world’s largest economy and second-largest emitter, on board. #Climate change requires us to coordinate our efforts – and trade barriers are diverting our attention and resources away from collaborative solutions. Every delay puts us further off course towards a more #sustainable future, deepening the risks we all face, from rising climate disasters to energy insecurity. The road to a sustainable future is paved not just with technology and investment, but with trust, collaboration, and shared vision. Now, more than ever before, we need to build bridges and partnerships, rather than walls and tariffs. We cannot lose sight of the fact that #cooperation remains the cornerstone of meaningful progress for our green energy transition. ❓ Comment your thoughts below.  ⚡ Share this post to raise awareness.  💡 Follow Poman Lo for more insights.

Asia-Pacific is emerging as the world's next major data center hub. But the common question is, can our infrastructure address the complex power challenges that follow? I came across a recent Deloitte report projecting that Asia-Pacific could attract close to $800 billion in data center investments by 2030, with India among the key contenders. According to this report, right now, India accounts for nearly 20% of global data consumption, yet we host less than 5% of the world’s data centers. This gap highlights the enormous room for growth. Countries with local AI data centers gain control over their data, see stronger compliance, and have a platform for innovation. At various forums, I have shared that the APAC region already has structural advantages, we have the technology, the competence and the scale. However, the defining moment will be how quickly power availability and transmission readiness scale to ensure round-the-clock reliability for AI workloads. The priorities must shift toward stronger grid infrastructure and faster integration of renewables. If implemented effectively, the APAC region can build AI infrastructure that is globally competitive, sustainable, and future-ready. Sharing the link here: https://lnkd.in/g4DnrSC6? Will Symons Abhrajit Ray #DataCenter #RenewableIntegration #Deloitte #APAC