Weekly Roundup - Corporate Sustainability Gaps, Procter & Gamble’s Green Logistics Push, and GM-Hyundai’s Electric Collaboration

A recent survey of 500 B2B buyers and sellers highlights a growing disconnect between sustainability expectations and supplier offerings. While sustainability is now one of the top three purchasing criteria for corporate buyers, with 36% willing to leave suppliers that don’t meet these standards, only 53% of customers feel the sustainable options they’re offered fully meet their needs. Nearly 60% of buyers expect to prioritize sustainability even more in the next three years, posing a risk to suppliers that don’t adapt.

Source: Bain Global B2B Survey, April 2024

Despite 85% of suppliers embedding sustainability into their products, only 27% of them feel knowledgeable about their customers’ sustainability needs. To bridge this gap, Bain & Company suggests suppliers focus on four strategies: prioritizing sustainability-focused customers using data, crafting better value propositions, equipping salesforces with sustainability expertise, and capturing new sources of value through more comprehensive pricing strategies. Suppliers who fail to adapt could lose sales to competitors as the demand for sustainable products continues to grow, threatening their market position in a rapidly evolving marketplace.

Source: Bain Global B2B Survey, April 2024

The hack of Hezbollah's pagers and walkie-talkies has brought attention to the vulnerabilities in global supply chains for older electronics. Unlike new, high-margin products with tightly controlled distribution, older technologies often pass through poorly regulated channels, making it difficult to trace their origins. In regions like Asia, where surplus inventories and complex manufacturing agreements dominate, counterfeit goods are rampant. Companies like Icom, which stopped producing the IC-V82 model a decade ago, struggle to control the flood of imitation products. These fake devices are sold on platforms like Alibaba and Taobao, bypassing official distribution networks. The ease of compromising supply chains to insert explosives into devices further illustrates the challenges posed by weak oversight, allowing counterfeit goods to proliferate unchecked, increasing risks of tampering and misuse.

Procter & Gamble has reactivated a 600-meter rail line at its Crailsheim production and distribution site, aiming to shift between 6,000 and 10,000 truckloads annually to rail transport. This move is intended to alleviate traffic on local roads and highways while significantly reducing CO2 emissions. The company celebrated the reopening with a ceremony, marking a milestone as the first European site with a combined transport terminal for P&G. With an investment of over €6 million, the project includes the modernization of the rail line, the addition of a shunting locomotive, and a lifting crane for efficient container handling. The Crailsheim site plays a central role in P&G's European logistics network, producing products like Always, Swiffer, and Pampers, and now leads the way in sustainable logistics within the company.

General Motors and Hyundai Motor have signed an agreement to collaborate on vehicle and engine production, focusing on electric and hydrogen technologies. The partnership will explore joint sourcing of battery materials and steel to reduce costs and accelerate the development of new vehicles. GM CEO Mary Barra emphasized the complementary strengths of both companies, aiming to deliver more competitive vehicles efficiently. Hyundai’s Euisun Chung highlighted the partnership’s potential to boost competitiveness and customer value. Additionally, GM has finalized a $3.5 billion joint venture with Samsung SDI to produce EV batteries, with production set to start in 2027. The shift to electric vehicles requires a specialized supply chain, increasing the need for industry collaboration and communication.

Dive deep into research

"A hybrid multi-criteria decision-making and machine learning approach for explainable supplier selection" by Abdulla, A. and Baryannis, G. (2024)

"An integrated supply chain network design for advanced air mobility aircraft manufacturing using stochastic optimization" by Dulia, E.F. and Shihab, S.A.M. (2024)

Events

MRO Europe

When: 22. - 24. October 2024

Where: Barcelona, Spain

What: MRO Europe is the leading event in the region for the commercial aviation aftermarket, combining a senior level conference and international exhibition. Over 450+ solution providers exhibit at the show, attracting over 10,000 attendees representing airlines, lessors, MROs, OEMs, suppliers and industry experts.

ibtm WORLD

When: 19. - 21. November 2024

Where: Barcelona, Spain

What:Connect with the global events industry’s key players under one roof in the heart of Barcelona. Meet the right people for your business, workshop business challenges into opportunities, build connections and gain industry insights. Experience three days of innovation and collaboration.

Space Tech Expo