Weekly Roundup - Cybersecurity Risks in Supply Chains, Unilever’s European Overhaul, and Uber’s AI-Powered EV Push

One of the critical issues in managing digital supply chains is the tendency for organizations to prioritize cost when selecting suppliers, often overlooking risk and security factors. This creates vulnerabilities as many suppliers lack strong cyber risk management practices. Despite cost savings, neglecting cybersecurity and resilience can lead to significant long-term expenses, such as operational disruptions and data breaches. Only half of surveyed organizations include information security in their supplier assessments, further exposing them to threats. Thus, the weakest link in the supply chain can amplify risks across the entire ecosystem.

Compounding risks occur when multiple risk factors interact, often pushing organizations to the brink of disruption. These risks can snowball, starting from isolated incidents (e.g., a ransomware attack), but when combined with factors like talent shortages or extreme weather events, they can lead to large-scale operational disruptions. Over the past three years, many organizations experienced multiple severe risks, with 75% of revenue potentially at risk in the most severe cases. The complexity and scale of these disruptions demonstrate the importance of addressing risks holistically, integrating cyber resilience with supply chain operations to avoid reaching critical failure points.

Unilever is investing over €150 million to overhaul its European homecare business supply chain in an effort to address years of underperformance and attract post-pandemic shoppers, especially younger consumers. The revamp, which started in 2023 and will continue until 2026, includes building new factories, adding warehouses, and upgrading production lines. This is part of CEO Hein Schumacher's broader strategy to boost growth, alongside plans to cut a third of office roles by 2025. The homecare division, which includes brands like Persil, Omo, and Comfort, is increasing its promotion, research, and development spending by 40%. The changes are designed to improve product quality, marketing, and store promotions, while deprioritizing certain brands. Unilever’s European homecare business saw nearly 13% growth in the first half of the year, largely driven by sales volume. New products tailored to consumer habits, like a laundry detergent for shorter wash cycles, contributed to this growth. For instance, Carrefour and Tesco launched Unilever's new Wonderwash detergent, targeting Gen-Z shoppers, which helped Unilever gain market share in the liquid detergent category.

Goodman recently obtained a building permit for a multi-level logistics facility in Hamburg's Billbrook industrial area. The three-story facility will feature 16,460 square meters of storage space on the ground floor, a mezzanine for offices and social areas, and the upper floor will include 169 parking spaces for delivery vehicles and a 3,600 square meter cross-docking area. The design allows for optimal use of automation and robotics, catering to industries like pharmaceuticals, food, hazardous materials, e-commerce, and parcel logistics.The flexible ground-level space is ideal for fulfillment, cross-docking, and electric vehicle (EV) parking, while a combination of warehousing, showrooms, assembly, and spare parts logistics is also possible. Sustainable design elements include Greenspace+ standards, a photovoltaic system for renewable energy, smart metering for energy management, and eco-friendly construction materials. The facility will be built on industrial wasteland, supporting resource conservation and promoting biodiversity.

Uber is launching an AI assistant, powered by OpenAI's GPT-4, to help drivers transition to electric vehicles as part of its efforts to reduce emissions. The AI chatbot, unveiled at Uber's Go-Get Zero event in London, will launch in the U.S. early next year and expand globally, providing personalized EV-related guidance based on location and incentives. By 2040, Uber aims to fully switch to EVs and has pledged $800 million to support drivers in the transition. Currently, 180,000 Uber drivers in North America and Europe are moving to EVs each month, with adoption rates five times faster than average motorists. Uber is also launching a mentorship program for drivers switching to EVs and awarding $50,000 to top merchants on its food delivery platform for sustainability initiatives.

Read more on recent highlights

• BP abandons goal to cut oil output, resets strategy
• Fake jet-engine parts case prompts call for supply chain reforms
• Indonesia launches US$200m LFP cathode facility to boost global EV battery supply chain
• F1 and DHL's bid to reduce air freight emissions with SAF
• How natural disasters expose supply chain vulnerabilities
• DB Cargo: 2,300 jobs to be eliminated during conversion
• Online retailer Shein's 2023 sales hit $2 billion in UK

Dive deep into research

"Cascading disruptions: Impact of modularity and nexus supplier predictions" by Namdar, J., Blackhurst, J., Zhao, K. and Song, S. (2024)

"Predictably unpredictable? How judgmental and machine learning forecasts complement each other" by Nair, D., and Huchzermeier, A. (2024)

Events

Battery Experts Forum

When: 05. - 07. November 2024

Where: Darmstadt, Germany

What: The Battery Experts Forum in Darmstadt is the leading platform for discussing the latest developments in battery technology, presenting innovative products and making valuable business contacts. With a comprehensive conference program and top-class trade visitors in the renowned Darmstadtium, the event attracts experts from all over the world. Benefit from first-class conferences, trade exhibitions and the opportunity to present your company. Meet experts, present your research and stay at the forefront of battery innovation.

Greener Manufacturing Conference

When: 13. - 14. November 2024

Where: Cologne, Germany

What: Greener Manufacturing Conference & Expo is the largest, free to attend trade fair and conference for renewable and circular manufacturing solutions which reduce the impact of industrial and manufacturing processes on the environment and global climate change. Held as part of Sustainable Industry Week, it provides visitors with the perfect opportunity to source new solutions across the entire supply chain to meet the growing demand for sustainable and circular products.

SLUSH

When: 20. - 21. November 2024

Where: Helsinki, Finland

What: Slush is a not-for-profit organization on a mission to help and create founders to change the world. Based in Helsinki, Slush annually hosts the world’s leading startup event bringing together a curated crowd of European startups, world-class investors, and tech journalists. We stand by relevance over scale, bringing tangible value, and sharing actionable company-building advice.