Supply Chain Transformation and Sustainability Initiatives

Graeme Carter serves as the Chief Global Supply Chain Officer, overseeing a complex and evolving network designed to enhance efficiency and sustainability. With a team of 350 professionals located at a supply chain hub in Barcelona, which acts as the global center for supply chain planning, the company manages seven manufacturing sites and 26 distribution centers across the world.

Implementing Technology for Better Planning

In an effort to streamline operations and improve decision-making, the company has implemented an AI-based demand planning tool known as Yoshu. This tool not only enhances demand forecasting but also optimizes maintenance procedures, embodying Carter's preference for simple, standardized solutions. Digital transformation remains a high priority, aiming to bolster the supply chain's agility and responsiveness.

Positioning core inventory near manufacturing sites and finished goods closer to consumers is a strategic approach that is supported by Yoshu's capabilities. This ensures a more responsive supply chain, capable of adjusting to fluctuations in demand and minimizing delays.

Focus on Sustainability

The company's efforts extend beyond efficiency, with a significant emphasis on sustainability within the supply chain. Collaborations with research and development, packaging, and procurement teams are integral to these initiatives, ensuring robust inbound data to support these goals. Carter likens the supply chain to a 'Supply Biome', highlighting the interconnected and evolving nature of its components.

By 2025, the landscape of supplier sustainability is expected to shift significantly. The European Union's Corporate Sustainability Due Diligence Directive (CSDDD) will enforce stricter environmental reporting requirements, while the U.S. Uyghur Forced Labor Prevention Act (UFLPA) will intensify scrutiny on human rights practices. This evolving regulatory environment necessitates heightened compliance, particularly in ensuring visibility and due diligence across all suppliers.

Challenges in Compliance and Transparency

One of the major challenges anticipated in 2025 is the need for greater visibility in the supply chain. Due diligence will be required not only for direct suppliers but also for indirect ones, which pose significant compliance risks. Fragmented data systems and inconsistent Environmental, Social, and Governance (ESG) reporting requirements across different regions further complicate these efforts.

Collaboration with suppliers is essential to achieve transparency and navigate the complexities of global value chain management. This involves overcoming local regulatory challenges, cultural differences, and shifting geopolitical conditions that complicate compliance. Companies must also address the volatility and labor shortages that are now considered the norm in supply chains.

Building Resilience in Supply Chains

In response to ongoing disruptions and labor shortages, resilience initiatives are being developed to ensure the supply chain can withstand external shocks. These initiatives must be both strategic and systematic, addressing the complexities and ever-changing nature of supply chains. Internal changes are essential to foster a systematic approach to operations resilience, emphasizing the importance of collaboration across the enterprise.

As the economics of supply chains continue to evolve, the need for robust and verified security measures in modern transportation systems becomes increasingly critical. By prioritizing resilience, companies can better manage the challenges posed by a volatile environment and ensure the continued flow of goods and services.

Businesses face heightened compliance demands, with visibility and due diligence as key challenges in 2025.

The ongoing transformation in supply chain management underscores the necessity for companies to adapt to new regulatory, technological, and sustainability demands. As Graeme Carter and his team continue to navigate these challenges, the focus remains on enhancing efficiency, sustainability, and resilience in a rapidly changing global landscape.