Weekly Roundup - Maersk $500 Million Investment, 2024 Predictions and Third-Party Cyber Risks

Maersk plans to invest more than $500 million in Southeast Asia's supply chain activities to increase productivity, lower trade costs, and enhance supply chain resilience in the region. The company intends to expand its warehouse and distribution capacity by almost 480,000 square meters in key locations like Indonesia, Singapore, Malaysia, and the Philippines by 2026. Maersk also aims to decrease trade charges in the region, which are currently higher than in other regions. The investment aligns with Maersk's sustainability mission, as the company is researching alternative shipping fuels. This investment will give customers more transparency, control, and eco-friendly options in their supply chain.

According to recent changes in supply chain barometers, Logistics Viewpoints expect a year of relative stability and a "migration to the mean" in supply chain operations. The GEP Global Supply Chain Volatility Index shows a decrease in supply chain volatility, indicating that supply chain capacity is being underutilized and supply chain volatility is decreasing. Container shipping rates have also returned to normal levels, as shown by the Freightos Baltic Index. Rates over the last six months are in line with the historic average between 2016 and 2020, indicating a reversion to normalcy after the significant increases in rates in 2021 and 2022. Inflation has subsided, with the consumer price index and the producer price index showing a decrease in price inflation. This reduction in inflation is attributed to the subsiding of supply-side constraints caused by the pandemic and a reversion to prior patterns in consumer behavior. Despite the recent volatility, the supply chain function is expected to retain its increased level of importance in 2024.

According to a recent BlueVoyant report, there was a 26% increase in supply chain breaches in 2023, affecting every industry sector except financial services. Furthermore, the report states that 47% of respondents monitored their supply chain for cyber risk monthly or more in 2023, compared to 41% in 2022. Respondents expressed a preference for a combination of AI and human analysts to monitor their digital supply chain. Automation is also being used by 55% of respondents to manage certain aspects of third-party cyber risk. The budget for third-party cyber risk has increased for 85% of respondents in the past year. Additionally, 44% of respondents reported briefing senior management teams monthly or more in 2023. Finally, 19% of respondents are actively working with their suppliers to remediate issues.

Dive deep into research

"A stochastic optimisation approach to maintain supply chain viability under the ripple effect" by Tadeusz Sawik (2023)

"Integrating production, replenishment and fulfillment decisions for supply chains: a target-based robust optimisation approach" by Daoheng Zhang, Hasan Hüseyin Turan, Ruhul Sarker, and Daryl Essam (2023)

Events

TrendSet 2024

When: 6.-8. January 2024

Where: Munich, Germany

What: Experience TrendSet 2024, which takes place twice a year in Munich and is one of the largest order platforms for interiors & and lifestyle products. With around 35,000 trade visitors and more than 2,500 brands from around 40 countries, TrendSet is the perfect opportunity to find out about the latest trends and place orders at an early stage.

On an area of around 100,000 square meters, visitors can explore the 15 Lifestyle Fair Areas, including Home & Textiles, Furniture & Lighting, Kitchen & Tabletop, and Fashion & Jewellery. In addition, you can also visit the three Topic Areas TrendSet Newcomer, TrendSet Fine Arts, and TrendSet Bijoutex to discover the latest creations by up-and-coming artists and designers.

PSI 2024

When: 9.-11. January 2024

Where: Dusseldorf, Germany

What: The PSI Trade Show returns to Düsseldorf in January 2024 and is one of the most important trade fairs for promotional products retailers and manufacturers worldwide. The show will feature an extensive display of promotional products, textiles, gifts, and equipment for the promotional products industry. In addition to the exhibition, there will also be a varied supporting program consisting of lectures, workshops, and discussions on current topics in the industry. The fair offers visitors an excellent opportunity to make new business contacts, discover innovative products and technologies, and expand their business.

Heimtextil 2024

When: 9.-12. January 2024

Where: Frankfurt, Germany

What: Heimtextil is the world's largest trade fair for home and contract textiles. Heimtextil is not just about showcasing existing products but also presenting the latest trends and innovations in the textile industry. The fair features numerous trend shows, lectures, and guided tours that allow visitors to stay up-to-date with the latest industry developments. Heimtextil is an excellent opportunity for professionals and textile enthusiasts to network, exchange ideas, and build relationships. The fair attracts thousands of visitors from different countries, creating an ideal platform for businesses to meet potential clients and partners.