Supply chain pressures remain elevated

Global supply chain pressures remained elevated in June despite lower oil prices and easing transportation costs, according to the latest GEP Global Supply Chain Volatility Index.

The monthly index, based on a survey of 27,000 businesses, found that uncertainty surrounding the US-Iran ceasefire in the Strait of Hormuz continued to influence procurement and supply chain activity.

Manufacturers reported the highest level of order backlogs caused by shortages of critical inputs since late 2022, indicating that supply chain bottlenecks are likely to persist into at least the third quarter.

Procurement teams increase buffer inventories

Manufacturers continued building buffer inventories during June to reduce the risk of further disruption.

Reports of safety stockpiling increased again and remained at their highest level since January 2023, while demand for raw materials, commodities and intermediate goods remained strong across North America and Asia.

In contrast, European manufacturers reduced input purchasing during the month.

“The rise in stockpiling and persistent order backlogs point to one clear conclusion: businesses still don’t trust the global trading environment to remain stable,” said John Piatek, Vice President, Consulting, GEP.

“Despite lower oil prices and easing transportation costs, companies continue buying ahead because they expect further disruption. While this is encouraging for the global economy in the near term, it also shows manufacturers remain very cautious and are planning for more disruption in international trade.”

Regional supply chain trends

• The GEP Global Supply Chain Volatility Index remained above zero across all major regions in June, indicating that supply chain capacity continued to be stretched.
• Asia recorded an index reading of 1.95, down from 2.96 in May and its lowest level since March. GEP attributed the decline primarily to easing transportation cost inflation.
• North America’s index declined to 1.17 from 1.69, also a three-month low. Despite the easing in overall supply chain pressure, manufacturers significantly increased purchasing activity in response to shortages of critical items and growing order backlogs.
• Europe’s index fell to 1.13 from 1.43. Manufacturers reduced purchasing volumes to the greatest extent since the outbreak of the Middle East war, although inventory levels continued to increase.
• The UK index declined to 1.05 from 1.34, its lowest level since April, as manufacturers reduced activity.

Purchasing activity remains resilient

Demand for production inputs remained strong globally during June, driven primarily by North America and Asia.

In the United States, manufacturers increased purchases of raw materials, commodities and intermediate goods at the fastest rate since April 2022. Purchasing activity also accelerated in Japan, China and Vietnam.

The report found that European manufacturers moved in the opposite direction, reducing purchasing volumes during the month.

Inventory strategies and material shortages

Inventory growth continued as procurement teams sought to protect operations against future supply disruptions and price increases.

Reports of stockpiled materials increasing due to supply or pricing concerns reached their highest level since January 2023, extending the sustained rise seen since the Middle East war began.

Although the indicator measuring material shortages declined during June, suggesting some improvement in global supply availability, shortages remained elevated compared with historical averages. Manufacturers also reported that work backlogs continued to rise because of inadequate availability of critical inputs.

Transportation and labour conditions

Transportation costs declined during June following a sharp fall in global oil prices. However, GEP said transportation costs remained high by historical standards and, excluding April and May, were at their highest level since June 2022.

Labour shortages were less of a constraint on manufacturing capacity. Reports of production backlogs caused by workforce shortages remained broadly in line with historical averages.

What is the GEP Global Supply Chain Volatility Index

The GEP Global Supply Chain Volatility Index is produced by S&P Global and GEP. It is derived from S&P Global’s PMI surveys, sent to companies in over 40 countries, totalling around 27,000 companies. The headline figure is a weighted sum of six sub-indices derived from PMI data, PMI Comments Trackers and PMI Commodity Price & Supply Indicators compiled by S&P Global.

• A value above 0 indicates that supply chain capacity is being stretched and supply chain volatility is increasing. The further above 0, the greater the extent to which capacity is being stretched.
• A value below 0 indicates that supply chain capacity is being underutilised, reducing supply chain volatility. The further below 0, the greater the extent to which capacity is being underutilised.

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The case for expansion

Zip has opened a new hub in New York City’s Chelsea neighborhood and plans to double its local workforce over the next year, reflecting growing demand for artificial intelligence (AI) in enterprise procurement and an expanding customer base across the US East Coast.

The new office supports the company’s growth in a region that has become its second-largest customer market globally. According to Zip, the tri-state area is home to customers including The New York Times, Two Sigma Investments and Prudential, spanning financial services, enterprise technology and media.

Enterprise procurement growth

The Chelsea office is located in the former Twitter/xAI building and will bring together employees from sales, customer success, engineering, product, design, marketing and general and administrative functions.

“San Francisco built the foundation models. New York is where they meet the enterprise,” said Rujul Zaparde, Co-founder and Chief Executive Officer of Zip. “With the largest concentration of Fortune 500 companies in the country, plus the capital and talent base to match, this is where applied AI actually gets adopted at scale. Putting down real roots here is how we stay close to the customers and the talent shaping what’s next.”

Zip said the expansion reflects increasing demand as procurement becomes a higher priority for Fortune 500 organizations.

AI and procurement technology

The company said it has now orchestrated more than USD$500 billion in enterprise spend across hundreds of organizations globally. It also reported that customers have collectively achieved more than USD$10 billion in savings through its AI platform.

Zip cited a recent Forrester Total Economic Impact study that found the platform delivers a 386 per cent return on investment for large enterprises, with payback achieved in less than six months.

The company also announced that it has been named a Visionary in the 2026 Gartner Magic Quadrant for Source-to-Pay Suites, becoming the youngest company recognized in the category.

Procurement and finance conference

The New York office opens ahead of Zip Forward, the company’s procurement and finance transformation conference, which will be held in New York City on September 16–17 at The Glasshouse.

The event will bring together procurement, finance and business leaders to discuss the role of AI in procurement and finance operations.

Scheduled speakers include Jeff Hoffmeister, Chief Financial Officer of Shopify; Aaron Bearce, Chief Procurement Officer of Visa; Linda Chuan, Chief Value Officer and Chief of Staff to the Chief Financial Officer at Box; Dave Zaccagnini, U.S. Chief Procurement Officer at BMO; and Al Williams, Global Chief Procurement Officer at Invesco.

Workforce expansion

Zip said it is recruiting across all functions for its New York operation as it expands its presence in one of its fastest-growing markets.

The company provides an AI platform designed to unify enterprise purchasing by replacing fragmented procurement tools and manual processes with a single procurement orchestration platform. According to Zip, the platform includes intake-to-pay capabilities and AI agents deployed across enterprise procurement operations.

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Building a New Strategic Distribution Model

The acquisition forms part of Jabil’s continued focus on helping customers build more resilient, agile and secure supply chains by combining its manufacturing experience with Rebound Electronics’ established distribution capabilities.

Frank McKay, Senior Vice President and Chief Supply Chain Officer at Jabil, said the acquisition demonstrates Jabil’s commitment to helping customers manage supply chain challenges.

“At Jabil, we use our deep supply chain expertise, global scale, and manufacturing experience to help customers mitigate risk, navigate disruptions, and build greater resilience. The acquisition of Rebound Electronics is another demonstration of that commitment.

At a time when supply chain disruptions have become the new normal and resilience has never been more important, Jabil has chosen a defining market approach through this acquisition.

Our distribution model combines the insight, knowledge, and strength of a global manufacturer with the flexibility and market responsiveness of a distributor. The result is a new kind of Strategic Distribution Partner, one that offers customers a global partner for all their electronics sourcing needs.

We are excited to demonstrate how this approach can help deliver a more stable and reliable supply chain, even in the face of global challenges. It safeguards access to high-quality components, enabling businesses to remain agile and competitive in a rapidly evolving market.”

Jabil said the combined model will provide customers with a partner for electronics sourcing that brings together manufacturing scale and distribution flexibility.

Expanding Electronics Sourcing Capabilities

Rebound Electronics founder Simon Thake said the acquisition creates an opportunity to expand the company’s capabilities while maintaining its customer-focused approach.

“Becoming part of Jabil marks an exciting new chapter for Rebound Electronics and our customers.

Since day one, Rebound has built its reputation on solving complex sourcing challenges, moving quickly, and delivering exceptional service. Joining forces with Jabil gives us the opportunity to take that foundation to an entirely new level.

Together, we can offer customers broader capabilities, deeper market intelligence, and access to a truly global network, while maintaining the entrepreneurial mindset and customer-first culture that have always set Rebound apart.

This is more than an acquisition, it’s an opportunity to redefine what customers should expect from a distribution partner, and we’re excited about what we can achieve together.”

Supporting Supply Chain Performance and Flexibility

Grant Fairbairn, Chief Revenue Officer of Rebound Electronics, said the acquisition creates opportunities for customers and employees by combining component sourcing expertise with Jabil’s manufacturing and supply chain capabilities.

“This acquisition creates an exciting opportunity for both our customers and our teams.

By bringing together Rebound’s expertise in global component sourcing with Jabil’s extensive manufacturing footprint and supply chain capabilities, we can deliver even greater value across the electronics ecosystem.

Customers today are looking for more than a transactional supplier relationship, they want a partner that can help them navigate complexity, respond quickly to market changes, and support long-term growth. Together, Jabil and Rebound are uniquely positioned to do exactly that.

We are excited about the opportunities ahead and look forward to helping clients unlock new levels of supply chain performance, flexibility, and confidence.”

Creating a Global Sourcing Solution

Raj Keshvara, Chief Operating Officer of Rebound Electronics, said the acquisition combines the strengths of both businesses to create a new strategic distribution offering.

“Joining Jabil marks a transformative moment for Rebound, and we are already seeing the positive impact across the business.

By combining Rebound’s sourcing expertise with Jabil’s global scale, manufacturing strength, and supply chain leadership, we are creating something truly differentiated in the market. This move into Strategic Distribution gives our customers access to broader capabilities, deeper market reach, and a truly global sourcing solution.

What won’t change is what has always made Rebound successful: the quality our customers expect, the dedication of our people, and our relentless focus on service. Those foundations remain firmly in place.

Now, with the backing of Jabil, we are entering an exciting new chapter, one that will allow us to deliver even greater value, increased flexibility, and more innovative solutions for our customers around the world. We believe the opportunities ahead will be genuinely game-changing for our customers and our business.”

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What is DP World’s Global Trade Observatory?

Chinese companies are placing greater emphasis on supply chain resilience, digital transformation and market diversification as they prepare for future growth, according to new research from DP World’s Global Trade Observatory.

The international survey, which gathered responses from 292 supply chain and logistics executives in China, found businesses are looking beyond cost and scale to strengthen sourcing strategies, improve operational flexibility and access new markets amid continued uncertainty in global trade.

Supplier Diversification Leads Supply Chain Strategy

Increasing the number of suppliers to diversify sourcing emerged as the most common strategic priority for 2026, cited by 58 per cent of respondents.

The survey also found that 38 per cent of businesses plan to increase near-shoring operations, while 36 per cent intend to adopt friend-shoring strategies. A further 32 per cent said they plan to increase inventory levels.

According to the findings, companies are building more resilient supply chains by expanding supplier networks, increasing route options and creating greater flexibility to respond to changing trade conditions, costs and customer demand.

Resilience Driven by Multiple Factors

The research suggests that these strategic changes are being driven by more than risk mitigation alone.

Respondents identified sustainability and environmental, social and governance (ESG) requirements, new technologies, greater operational agility and resilience, local trade policies and incentives, tariff responses and new market entry as the principal factors influencing supply chain decisions.

The findings indicate that resilience is increasingly being viewed as a long-term competitive capability rather than solely a response to market disruption.

AI and Digitalisation Top Growth Priorities

Technology investment emerged as the leading driver of future business growth.

Half of respondents identified deploying artificial intelligence (AI) as a top priority over the next one to three years, while 44 per cent highlighted wider digitalisation initiatives.

Growing demand from new markets and consumers was cited by 43 per cent of respondents, while 34 per cent identified new value chains as a key growth opportunity.

According to the report, these priorities reflect a growing focus on digital capabilities to improve operational efficiency and support future supply chain development.

Connecting Global Supply Chains

Glen Hilton, Chief Executive Officer and Managing Director, Asia Pacific, DP World, said: “China’s next trade advantage will come from resilience and adaptability, not just scale. Chinese companies are already diversifying suppliers, entering new corridors and investing in digital systems and AI. But that ambition creates most value when companies can see their cargo, switch between routes, clear borders, manage documentation and fulfil reliably across markets. What customers increasingly need is not a disconnected set of providers.

They need an operating partner that can connect the physical and digital layers of trade – ports, terminals, freight forwarding, customs, warehousing, systems and last-mile execution. DP World is built to help make that complexity work at an international level, so businesses can keep moving even as routes, rules and demand change.”

Supporting Cross-Border Trade

The report notes that DP World has seen these trends reflected in its work with customers in China across sectors including e-commerce, automotive, fashion and luxury, food and beverage, healthcare and technology.

According to the company, its operations in China combine freight forwarding, contract logistics, warehousing, customs and documentation support, ports and terminals, and technology-enabled supply chain visibility to help customers improve operational control and execute cross-border trade more efficiently.

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AI-POWERED SUPPLY CHAIN MANAGEMENT  

Oracle has unveiled four new Fusion Agentic Applications designed to help organizations improve supply chain performance through greater inventory visibility, enhanced supplier management, and increased manufacturing efficiency. 

Integrated within Oracle Fusion Cloud Supply Chain & Manufacturing (SCM), the new applications use coordinated teams of specialized artificial intelligence (AI) agents that are outcome-driven, proactive, reasoning-based, and built for enterprise execution. Alongside the new applications, Oracle has also introduced additional inventory optimization capabilities aimed at helping organizations build more resilient supply chains. 

“Supply chain leaders are under increasing pressure to improve service levels, control costs, and respond faster to disruption amid ongoing economic and operational uncertainty,” said S.Y. Shenoy, Senior Vice President, Fusion SCM development, Oracle.  

As part of Oracle Fusion Cloud Applications, Oracle Cloud SCM provides a unified AI-powered platform that connects supply chain planning and execution processes, enabling organizations to respond more effectively to changing market conditions. 

The platform includes embedded AI agents and agentic applications that support product design, manufacturing, procurement, order fulfilment, and logistics execution. Customers can also use AI Agent Studio for Fusion Agentic Applications to create, connect, and deploy AI automation and agentic applications using Oracle, partner, and external agents without the need for traditional application development. 

FOUR NEW AGENTIC APPLICATIONS  

Running on Oracle Cloud Infrastructure and powered by large language models (LLMs), the latest Fusion Agentic Applications are designed to move beyond AI assistance by executing routine tasks within Oracle Fusion Applications’ existing security framework. The applications can autonomously complete work within established guardrails while escalating exceptions, trade-offs, and decisions where human judgment is required. 

The four new applications include: 

Inventory Planning Command Center – Enables supply chain teams to improve inventory availability, increase service levels, and resolve stock shortages more quickly by replacing manual inventory tracking with an automated, business-focused workflow. 

Supplier Qualification Workspace – Supports procurement teams by streamlining supplier qualification through a guided, risk-based process that helps reduce supplier risk, improve compliance, and accelerate onboarding decisions. 

Production Readiness Workspace – Helps manufacturing teams improve production readiness by replacing manual checklists with proactive recommendations and prioritized actions that reduce setup errors and minimize production delays. 

Kanban Administrative Workspace – Enhances kanban replenishment through proactive, exception-based optimization, helping manufacturers reduce shortages, limit excess inventory, and maintain production flow. 

NEW INVENTORY OPTIMIZATION CAPABILITIES  

Oracle has also expanded Oracle Fusion Cloud Supply Chain Planning with new inventory optimization capabilities designed to balance service levels with inventory costs. 

The enhancements include multi-echelon inventory optimization, which recommends safety stock targets across complex supply chain networks by analysing demand patterns and lead time variability. 

Additionally, interactive inventory network visualization provides planners with an integrated view of supply chain relationships, inventory levels, and service-level metrics to improve understanding of inventory performance and network dependencies. 

Completing the update is the Inventory Optimization Advisor Agent, which helps planners identify inventory risks, understand the causes of service-level shortfalls, analyse inventory dependencies, and recommend adjustments to safety stock levels. 

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Progression Towards Carbon Neutrality

FedEx says operational efficiency, network optimisation and continued investment in fleet electrification are helping reduce emissions while supporting growing freight volumes, although challenges around sustainable aviation fuel (SAF) and charging infrastructure continue to affect the pace of decarbonisation.

FedEx has reported continued progress towards its 2040 carbon-neutral operations target, with operational efficiencies, network optimisation and technology investment contributing to lower emissions while supporting growth across its global logistics network.

The company’s 2026 Corporate Responsibility Report highlights advances in fleet electrification, renewable energy, artificial intelligence (AI) and network optimisation, alongside ongoing investment in supply chain resilience and operational efficiency.

Network Transformation Drives Efficiency

A key focus of the report is Network 2.0, FedEx’s multiyear programme to streamline package collection, transportation and delivery across its network.

The initiative is reducing operational redundancies, improving asset utilisation and creating a more integrated logistics network while also lowering emissions.

Karen Blanks Ellis, Chief Sustainability Officer and Vice President, Environmental Affairs at FedEx, said: “Efficiency has long defined how FedEx operates. Today, it is driving one of the most significant transformations in our history: Network 2.0.

“This multiyear effort streamlines how we pick up, transport, and deliver packages, reducing redundancies, improving asset utilization, and enabling a more flexible, integrated network. As we implement these changes, we are strengthening business, improving service for our customers, and reducing emissions across our operations.”

Emissions Fall as Global Network Expands

FedEx reported that it has reduced its Scope 1 and 2 emissions intensity on a revenue basis by 60 per cent since 2009 while daily package volumes have increased by more than 124 per cent over the same period.

It has also achieved an approximate 15 per cent reduction in absolute Scope 1 and 2 emissions since announcing its goal of achieving carbon-neutral operations by 2040.

Electric vehicles are now operating across six continents within the FedEx network, while the company continues to invest in renewable energy, more efficient facilities and technology designed to improve operational performance.

Technology and AI Support Supply Chain Performance

Alongside physical infrastructure improvements, FedEx said it is investing in AI education and digital technologies to support both employees and supply chain operations.

Raj Subramaniam, President and Chief Executive Officer of FedEx, said: “The challenges of tomorrow demand a new level of innovation, and we are meeting that demand head on. By leveraging our global network, investing in our people, and embracing cutting-edge technologies, we are not just moving goods — we are making supply chains smarter for everyone and building a more resilient future. Our work continues, and the best is yet to come.”

“In today’s rapidly evolving market, our strategy is clear: We are delivering for today while preparing for a resilient tomorrow.”

The report also highlights continued work to integrate data and technology across the company’s logistics network to optimise routing, reduce fuel consumption and improve overall system performance.

Decarbonisation Challenges Remain

Despite reporting progress, FedEx said several external factors continue to affect the pace of its decarbonisation strategy.

According to the report, limited supplies of sustainable aviation fuel (SAF), changing electric vehicle market conditions, charging infrastructure constraints and an evolving regulatory environment are influencing the company’s near-term progress.

Blanks Ellis said: “While we are proud of our progress, this work is not without its challenges. The technologies and infrastructure required to fully transform our operations — particularly sustainable aviation fuel (SAF) and fleet electrification — are not advancing at the pace or scale needed.

“Constraints in SAF supply, shifts in the electric vehicle market, challenges associated with charging infrastructure, and a rapidly evolving regulatory landscape continue to shape what we can achieve in the near term. In response to this rapidly evolving landscape, we are adapting our approach where needed to ensure our strategy remains grounded in reality while continuing to advance our long-term objectives.”

Long-Term Sustainability Strategy

FedEx said its sustainability strategy is built around three pillars: principles, planet and people.

Key environmental initiatives include fleet electrification, renewable energy deployment and investments in more efficient facilities, while longer-term innovation continues through its work with the Yale Center for Natural Carbon Capture, which has now reached five years of carbon removal research.

“Our efforts to deliver a more sustainable future are making a difference. Five years ago, we set an ambitious goal to achieve carbon-neutral operations by 2040. I am incredibly proud to report that we have made significant strides on this journey.

To date, we have achieved an approximate 15% reduction in Scope 1 and 2 emissions, a testament to the hard work and ingenuity of our team. From electrifying our vehicle fleet to investing in renewable energy and more efficient facilities, we are delivering on our promise to create a more sustainable network for everyone,” added Subramaniam.

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A Pathway to Reduced Lifecycle Emissions

Hapag-Lloyd and Seaspan Corporation have completed the first conversion under their joint methanol retrofit programme, upgrading the vessel Seaspan Yangtze to dual-fuel capability.

The retrofit, delivered in collaboration with Everllence, involved converting a conventional MAN S90 engine to enable operation on methanol, providing a pathway to reduced lifecycle emissions and greater fuel optionality across the fleet.

First Vessel Delivered in Five-Ship Retrofit Programme

The Seaspan Yangtze is the first of five 10,100 TEU charter vessels included in the retrofit programme.

The remaining vessels in scope include Seaspan Amazon, Seaspan Ganges, Seaspan Thames and Seaspan Zambezi. The total investment across the five retrofits is estimated at approximately USD$120 million.

The programme represents a structured approach to fleet decarbonisation through the upgrading of existing assets, alongside broader investment in newbuild vessels and alternative fuel capability.

Fuel Flexibility and Emissions Reduction Potential

Once operating on low-carbon methanol, each converted vessel is expected to reduce CO2e emissions by approximately 30,000 to 50,000 metric tons per year.

In addition to emissions reduction potential, the retrofits are designed to extend the operational life of existing tonnage while increasing fuel flexibility across container shipping operations.

Silke Lehmköster, Managing Director Fleet at Hapag-Lloyd, said: “Retrofitting existing vessels is an important lever on our way to decarbonize our fleet operations by 2045. The successful conversion of the Seaspan Yangtze shows that technical innovation and close cooperation with strong partners can make proven vessels ready for the use of low-carbon fuels. For our customers, this is another concrete step towards more sustainable supply chains.”

Retrofit Programme Supports Fleet Transition Strategy

The methanol conversion programme forms part of Hapag-Lloyd’s wider fleet decarbonisation strategy, which combines new vessel orders, dual-fuel retrofits, operational efficiency improvements and alternative fuel sourcing.

The company says that retrofitting existing ships plays a critical role in accelerating emissions reductions across the installed base while supporting longer-term fleet transition goals.

Strengthening Decarbonised Supply Chains

The completion of the first retrofit is intended to support more sustainable ocean transport options for global supply chains, particularly as cargo owners increasingly prioritise emissions visibility and Scope 3 reduction targets.

By enabling existing vessels to operate on alternative fuels such as methanol, the programme aims to provide additional flexibility in fuel sourcing while maintaining continuity of global liner services.

Strategic Collaboration Across Maritime Value Chain

The retrofit was delivered through collaboration between Hapag-Lloyd, Seaspan Corporation and Everllence, highlighting the role of cross-sector partnerships in enabling maritime decarbonisation.

Coordinated investment in retrofits and dual-fuel technologies is becoming an increasingly important pathway for accelerating the transition to low-carbon shipping while maximising the use of existing fleet assets.

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Automating Operational Decisions

Infios has introduced Infios Archer, a new intelligence layer designed to embed artificial intelligence (AI) directly into supply chain execution, enabling organisations to automate operational decisions and coordinate workflows across enterprise systems.

Infios Archer underpins its Infios AI platform by connecting systems, data and workflows to support what it describes as Intelligent Supply Chain Execution.

AI Embedded in Supply Chain Operations

The new platform is designed to move organisations beyond traditional systems of record by embedding AI directly into execution environments, allowing decisions to be made and acted upon in real time.

The technology has been developed to help supply chains respond more effectively to disruption, labour shortages and increasing operational complexity by reducing manual processes and improving operational continuity.

Eugene Amigud, Chief Innovation Officer at Infios, said: “Infios Archer represents a fundamental shift from systems of record to systems of action, connecting systems, creating shared operational context and autonomously executing decisions. Infios Archer is not AI layered on top of systems. It’s embedded inside execution, allowing it to sense, decide, act and learn dynamically. That’s what makes Intelligent Supply Chain Execution real: the ability to connect intelligence to action, instantly and at scale.”

What is Infios Archer?

Infios Archer is designed to operate across order management systems (OMS), warehouse management systems (WMS) and transportation management systems (TMS), creating a shared operational context and coordinating execution across supply chain functions.

The platform comprises five core components:

• Archer Connect integrates data across enterprise systems, partners and formats and converts information into execution-ready workflows.
• Archer Fabric synchronises data across OMS, WMS and TMS platforms to establish a shared operational context.
• Archer Runtime coordinates and executes decisions while providing governance, auditability and operational traceability.
• Archer Studio provides a no-code environment for building and deploying agentic workflows with embedded controls.
• Archer Assistant delivers insights, recommendations and agent actions through a conversational AI interface.

The components are designed to create a continuous decision-action loop that connects intelligence with operational execution.

Early Supply Chain Applications

Infios said organisations are already using Archer to automate workflows including carrier communications, order processing, shipment tracking and exception management.

John O’Callaghan, Director of Information Technology at CJ Logistics America, said: “Infios AI is the first line of defense. It reaches out, calls the carrier, gets an update and if they don’t answer, it immediately follows up with an email. We’ve drastically reduced the number of follow-ups our operations folks have to do, which ultimately alleviates concerns around on-time delivery.”

The platform is intended to reduce manual workloads, accelerate response times and improve service reliability by acting as an always-on intelligence layer.

Supporting Intelligent Supply Chain Execution

Infios said Archer provides the technology foundation for Intelligent Supply Chain Execution by enabling orders, warehouses and transportation networks to operate as a connected ecosystem.

The company said embedding AI into execution workflows allows organisations to detect operational issues earlier, automate routine and exception-based decisions, coordinate actions across supply chain functions, reduce manual intervention, improve service reliability, and maintain governance, transparency and auditability.

The result is intended to be a continuous, real-time operations designed to help supply chains remain responsive and resilient during disruption.

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Next-Generation IoT Connectivity

Maersk has begun deploying next-generation IoT connectivity devices across its refrigerated container (reefer) fleet as part of a multi-year programme designed to enhance real-time tracking, data consistency and operational reliability in temperature-controlled logistics.

The upgrade is intended to replace all existing IoT devices across the reefer fleet over the coming years, with approximately 30 per cent of containers already fitted with the new technology.

Standardising Cold Chain Connectivity

The rollout forms part of Maersk’s broader effort to standardise digital infrastructure across its logistics network following the completion of its new digital connectivity platform across 450 vessels.

The company says the transition to a single generation of devices will improve data consistency and provide customers with a more reliable end-to-end view of refrigerated cargo throughout transit.

Bruce Marshall, Head of Reefer Cargo at A.P. Moller – Maersk, said: “As real-time access and data availability grow increasingly vital for our cold chain customers, the deployment of our next-generation IoT devices will provide them with a much more reliable data flow throughout the container journey.”

He added: “Our fleet’s new digital platform has created a solid foundation for the future. The next step is to replace all existing IoT devices across our reefer fleet with the latest generation of technology, and we have already begun this work. After years of operating with several generations of devices, this upgrade will standardise our devices and deliver a more consistent customer experience.”

Enhancing Supply Chain Visibility

The upgraded IoT devices are designed to support improved monitoring of temperature-controlled cargo from origin to destination, strengthening visibility for supply chain operators managing perishable and high-value goods.

Since 2019, Maersk has provided customers with access to its Captain Peter visibility platform, which enables shipment tracking from container sealing through to final delivery.

The company said that improving data availability across its reefer fleet will further strengthen this visibility offering and enable more advanced use of operational data across customer supply chains.

From Visibility to Predictive Insights

The next phase of development aims to move beyond tracking functionality towards more data-driven decision support tools for customers.

Bruce Marshall said: “For reefer customers, confidence that data is always available is crucial. That experience will improve markedly once our entire reefer fleet is fitted with the latest generation of connectivity devices. The upgrade will also provide the building blocks to introduce new features that will further strengthen the customer offering in the future. We want to pivot our current offering from being just a visibility product to being an intelligent tool that helps customers interpret data and provide recommended actions.”

Fleet-Wide Digital Upgrade Programme

To date, approximately 30 per cent of Maersk’s reefer fleet has been upgraded with the new IoT devices.

The new devices offer increased processing power compared to previous generations and support 4G and 5G connectivity, while remaining backwards compatible with 2G and 3G networks.

The devices are also designed to improve operational safety compliance and include IMO-compliant specifications. In addition, they are powered through energy-harvesting solar technology to support continuous connectivity across long-haul shipments.

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Egypt’s Fully Integrated Logistics Distribution Centre

DP World has officially launched Egypt’s first fully integrated Logistics Distribution Centre (LDC) at Sokhna Logistics Park, introducing a single-site logistics platform designed to streamline inventory management, fulfilment and regional distribution.

Located adjacent to Sokhna Port within the Suez Canal Economic Zone, the facility combines freight forwarding, port operations, warehousing and value-added logistics services, allowing international companies to access the Egyptian market while serving customers across the region and globally.

The launch ceremony was attended by Mostafa Madbouly and senior government officials, alongside representatives from international businesses. The event also marked the signing of agreements with the first three global customers to use the new distribution centre.

Integrated End-to-End Supply Chain Services

The Logistics Distribution Centre provides a fully integrated supply chain solution, combining international freight forwarding, port services at Sokhna Port, warehousing, inventory management, order fulfilment, customs facilitation and transportation coordination.

The facility also offers value-added logistics services including assembly, packaging, repackaging, labelling and product customisation. Under the operating model, customers can retain ownership of inventory until final distribution while serving local, regional and international markets from a single location.

Strengthening Regional Distribution Networks

Positioned alongside one of the world’s busiest trade corridors, the distribution centre is designed to improve market access and increase supply chain flexibility for manufacturers, distributors and exporters.

His Excellency Essa Kazim, Chairman of DP World, said: “The launch of the project marks a new chapter in our long-standing partnership with this dynamic market. Egypt has been one of our most important investment destinations in the region, and today we reaffirm our confidence in its potential to become a global hub for trade, industry and logistics.”

He added: “Egypt’s first Logistics Distribution Centre reflects our vision of creating an integrated ecosystem that connects ports, logistics and supply chain solutions, enabling businesses to access local, regional and international markets more efficiently. We look forward to expanding our investments in support of the Egyptian government’s vision while strengthening the competitiveness of the Egyptian economy and attracting further investment.”

First Customers Signed

The first customer agreements demonstrate early adoption of the integrated logistics model across multiple industries.

Among the initial users is a Kenya-based tea exporter that imports approximately 1,000 TEUs into Egypt annually. The company will use the facility as a regional inventory hub serving customers across Africa, the Middle East and Europe.

A global consumer goods distributor will use the Logistics Distribution Centre to support operations across eight markets spanning Saudi Arabia, the Levant and the Horn of Africa, with its operations supported by a dedicated temperature-controlled facility within Sokhna Logistics Park.

A German multinational specialising in fibre-optic cables and digital infrastructure solutions will also use the centre to strengthen its distribution and re-export operations across Egypt, North Africa and the Gulf Cooperation Council countries.

Improving Supply Chain Resilience

Mohammad Shihab, Executive Vice President, Egypt and Levant, DP World, said: “The launch of the LDC at Sokhna Logistics Park strengthens Egypt’s trade and logistics capabilities by enabling businesses to position inventory closer to customers and serve multiple markets from a single regional hub. The integrated model improves efficiency and flexibility while reinforcing Egypt’s role as a strategic gateway connecting Asia, Africa and Europe.”

He thanked the Egyptian Government for its support in enabling the initiative, which, he said, will attract investment, support industrial growth and enhance Egypt’s competitiveness.

According to the company, positioning inventory and raw materials closer to manufacturing centres and end markets is expected to reduce lead times, improve supply chain resilience and support business continuity.

The facility is also intended to provide faster and more reliable access to essential materials for local industries.

Expanding Egypt’s Integrated Logistics Network

The new Logistics Distribution Centre forms part of DP World’s broader investment programme in Egypt.

The company has invested more than USD$1.4 billion in integrated logistics infrastructure across the country, including the expansion and modernisation of Sokhna Port, the development of Sokhna Logistics Park and a new cold chain facility currently under development.

Combined with DP World’s freight forwarding, contract logistics and end-to-end supply chain services, the integrated network is designed to help businesses improve operational efficiency, reduce logistics costs, strengthen export competitiveness and access regional and international markets through a single logistics ecosystem.

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DRIVING INDUSTRY-WIDE PROGRESS 

EcoVadis and the World Sustainable Hospitality Alliance (the Alliance) have entered into a strategic partnership aimed at advancing sustainability practices across the global hospitality sector. 

Bringing together the Alliance’s network of 66,000 hotels and eight million rooms with EcoVadis’ sustainability assessment expertise, the collaboration is intended to provide hospitality organisations with a more consistent approach to responsible procurement. 

As EcoVadis becomes the Alliance’s preferred sustainable procurement partner, members will gain access to a scalable framework designed to improve supply chain transparency whilst supporting wider decarbonisation initiatives. 

STRENGTHENING RESPONSIBLE PROCUREMENT  

The partnership focuses on three core priorities intended to support both hospitality businesses and their suppliers. 

The first centres on improving supplier performance by expanding the use of EcoVadis supplier assessments across the Alliance’s global network. This will provide suppliers with objective sustainability evaluations and practical improvement pathways, whilst enabling procurement teams to identify supply chain risks more effectively. 

A second priority is the standardisation of decarbonisation efforts. Through the EcoVadis Carbon Action Manager, the partnership seeks to reduce duplicated reporting requirements and deliver assurance-ready Scope 3 emissions insights, helping organisations progress towards decarbonisation in line with frameworks such as the Corporate Sustainability Reporting Directive (CSRD). 

The collaboration will also promote unified ethical standards by aligning the Alliance’s existing frameworks with EcoVadis’ human rights solutions. The objective is to strengthen human rights practices, ethical recruitment, and worker welfare throughout hospitality supply chains. 

“This partnership represents a significant step forward in our mission to drive responsible procurement in hospitality,” said Annette Gevaert, SVP Alliances and Strategic Initiatives at EcoVadis.  

BUILDING A MORE RESILIENT SECTOR  

According to the organisations, the partnership responds to the growing fragmentation of sustainability initiatives across the hospitality industry. 

By combining the Alliance’s measurement standards, including HCMI and Vera-FY, with EcoVadis’ sustainability intelligence, the collaboration is designed to provide hotel groups with a unified framework to manage risk and build more resilient supply chains. 

“Sustainability is no longer a peripheral ambition; it is the bedrock of future-proofing our industry,” said Glenn Mandziuk, President and CEO at the World Sustainable Hospitality Alliance.  

SUPPORTING RESPONSIBLE PROCUREMENT  

The agreement also strengthens the Hospitality Alliance for Responsible Procurement (HARP), an initiative launched by EcoVadis in 2023 alongside leading global hospitality organisations. 

Whilst HARP will continue to operate independently as an autonomous, antitrust-compliant network, the Alliance will support the initiative by endorsing its established methodologies. Through its industry reach, the Alliance aims to encourage wider adoption of responsible procurement practices and contribute towards a more consistent standard across the hospitality sector. 

The post EcoVadis and World Sustainable Hospitality Alliance Reduce Supply Chain Risk Through Sustainable Procurement  appeared first on Supply Chain Outlook.

LEADING THE CHARGE

• Royal Mail has reduced its carbon emissions by nearly one-third since 2021 and aims to achieve net-zero emissions by 2040. 
• The average carbon emissions per parcel, already the lowest in the industry, have decreased by six percent over the past year. 
• These reductions are partly due to ongoing fleet modernisation and improved energy efficiency across the organisation. 

Royal Mail has successfully reduced its carbon emissions by an impressive 31 percent since 2021. This achievement underscores its position as the leading green parcel operator in the UK.

The company has made significant progress toward its ambitious goal of reaching net zero emissions, demonstrating a strong commitment to sustainability and environmental responsibility.

DRIVING TOWARDS A GREENER FUTURE

Data from the latest Sustainability Report indicate that average emissions per parcel delivered have decreased to 164 grams of carbon dioxide equivalent (gCO₂e). This marks a six percent reduction from last year.

Furthermore, in the fiscal year 2025–26, Royal Mail’s total market-based emissions were recorded at 1,085 kilotonnes (Kt)CO₂e, representing a 31 percent reduction from its base year of 2020–21 as well as a seven percent decrease year-on-year.

This remarkable reduction has been achieved through ongoing investments in fleet electrification, along with an increased use of the fossil-free biofuel Hydrotreated Vegetable Oil (HVO) in heavy goods vehicles, and energy-efficiency improvements across Royal Mail’s operations.

Notably, fleet electrification is a key component of Royal Mail’s net zero strategy. In the past year alone, the company deployed over 2,000 electric vans, thereby expanding its already largest electric delivery fleet in the UK to over 8,500 vehicles.

Currently, nearly one-third of its delivery routes are zero-emission, and additionally, 44 delivery offices operate fully electric fleets. Compared to diesel vehicles, electric vans provide significant savings in running, servicing, and maintenance costs.

COMMITMENT TO SUSTAINABLE DELIVERY

Royal Mail is taking significant strides toward decarbonising its national distribution network by introducing its first electric heavy goods vehicles (eHGVs) this December. This move marks a pivotal step in the company’s commitment to sustainability.

Alongside this, December also sees the rollout of 80 micro electric vehicles (MEVs) strategically deployed across key locations such as London, Bristol, Newcastle-under-Lyme, Solihull, Brighton, and the picturesque Scilly Isles.

This comprehensive initiative not only aims to reduce harmful emissions but also seeks to enhance overall delivery efficiency, paving the way for a cleaner and more effective delivery system.

*Based on publicly available reported gCO₂e per parcel from other UK parcel operators.

The varying year-on-year reduction rates indicate that emissions per parcel are influenced by parcel volume as an intensity metric. In contrast, total market-based emissions reflect the company’s overall emissions footprint.

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Improving supply chain performance through partnership

Loftware has announced a global partnership with management and technology consultancy BearingPoint to help organisations improve supply chain performance through enhanced product identification, traceability, and digital connectivity.

The collaboration combines BearingPoint’s expertise in SAP-enabled supply chain transformation with Loftware’s product identification and compliance capabilities to support end-to-end visibility across manufacturing, logistics, and supplier networks.

Supporting SAP transformation

As organisations move beyond basic supply chain visibility, increasing complexity across manufacturing, logistics, and partner ecosystems is driving demand for connected product data and real-time operational coordination.

The partnership aims to extend SAP transformation initiatives beyond core enterprise resource planning (ERP) systems into operational processes by leveraging Loftware Cloud’s SAP Endorsed App status.

According to the companies, the approach will improve product traceability, compliance, automation, and process standardisation across SAP and SAP S/4HANA environments while helping reduce operational complexity and accelerate time to value.

Improving supply chain visibility

By connecting product identity, business data, and operational processes across suppliers, manufacturers, logistics providers, and enterprise systems, the partnership is designed to help organisations build more resilient and connected supply chains.

Justin Sadler-Smith, Chief Revenue Officer at Loftware, said:

“Organisations are under increasing pressure to execute faster and more consistently across globally distributed operations. Our partnership with BearingPoint helps customers bridge the gap between strategic transformation initiatives and day-to-day execution, enabling teams to operate more efficiently, eliminate costly unknowns, respond more quickly to change, and realise greater value from their technology investments.”

Building resilience through collaboration

The companies said aligning product information with business processes will help organisations improve operational performance while supporting long-term supply chain resilience and growth.

Ralf Dillmann, Partner and CEO at BearingPoint North America LLC, said:

“Our clients are redesigning supply chains to improve agility and performance, while navigating complex SAP-driven transformation programs. To be successful, they must align people, processes, and systems around common business objectives. Together with Loftware, we help organisations accelerate adoption of digital transformation initiatives, improve cross-functional coordination, and build a stronger foundation for sustainable operational performance across the enterprise.”

The partnership is intended to support organisations seeking greater visibility, execution intelligence, and collaboration across increasingly complex global supply chains.

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Flytrex milestone highlights scalable drone logistics

Flytrex has announced a major milestone for commercial drone delivery, with its automated airspace management system now supporting nearly 10,000 coordinated flights per month alongside other operators without a single airspace conflict.

The achievement, recorded across shared operating zones in the Dallas–Fort Worth metroplex, demonstrates how autonomous traffic management could accelerate the commercial rollout of drone-based last-mile logistics while enabling multiple operators to safely share the same airspace.

Automated airspace management supports last-mile delivery growth

Operating under the US Federal Aviation Administration’s (FAA) UTM Operational Evaluation programme, Flytrex and fellow drone operator Wing exchange real-time flight data to automatically coordinate routes and prevent conflicts without manual intervention.

Built on the internationally recognised ASTM F3548-21 interoperability standard, the system is designed to provide the digital infrastructure needed to support large-scale autonomous logistics networks as drone deliveries become more commonplace.

Between January and February 2026, Flytrex and Wing completed around 8,000 drone deliveries across overlapping delivery areas in Little Elm and Wylie, Texas.

During the trial:

• The operators conducted simultaneous flights on 30 of 31 operational days.
• The system automatically deconflicted 100% of flight operations, with zero airspace conflicts.
• Combined daily operations increased 215% month-on-month, highlighting the rapid growth of shared drone delivery networks.

Shared airspace becomes critical logistics infrastructure

The Wylie operating area represents one of the closest commercial drone operating environments in the United States, with Flytrex and Wing facilities located just 1.36 miles apart.

According to Flytrex, the successful coordination of competing operators demonstrates that automated traffic management is becoming essential infrastructure as autonomous delivery networks expand into urban and suburban markets.

“What we’ve built in Dallas isn’t just a technical achievement — it’s a proof of concept for the entire industry,” said Shai Karassikov, Product Manager at Flytrex and Co-Chair of the U.S. UTM Tech Committee.

“Scaling from a handful of overlapping flights to thousands per month in just under a year shows how multi-operator drone delivery can scale not just in Dallas but in cities across the U.S.”

Autonomous traffic management underpins future supply chains

As drone delivery networks continue to grow, Flytrex says technologies such as automated route allocation, four-dimensional trajectory planning and real-time flight deconfliction will become fundamental to managing increasingly complex autonomous logistics operations.

Beyond last-mile delivery, the company believes the project demonstrates how autonomous traffic management systems could help support the wider evolution of digital supply chains by enabling safe, scalable coordination of commercial drone fleets without relying on traditional air traffic control.

Flytrex has completed more than 200,000 drone deliveries across the United States as it continues expanding autonomous delivery services for suburban communities.

Little Caesars Partnership

Flytrex recently partnered with Little Caesars, one of the largest pizza chains in the world, to expand drone delivery with a new drone capable of delivering dinner for an entire family. Delivered by Flytrex’s Sky2 drone, the service now enables customers to receive two large pizzas and sodas in a single drone delivery, a first for on-demand food delivery by air.

The first Little Caesars location in Wylie, TX is live and introduces a first-of-its-kind direct integration with Little Caesars’ ordering systems, allowing orders placed via the Flytrex app to flow directly into existing point of sale systems.

“Innovation at Little Caesars has always been driven by one thing—making it easier for customers to enjoy our pizza,” said Trish Heusel, Vice President of Innovation at Little Caesars. “Partnering with Flytrex to bring full family meals by drone delivery is a major leap forward, and a clear example of how we’re pushing the boundaries of convenience, speed, and accessibility in our category.”

“Flytrex is laser-focused on making on-demand food delivery by drone a reality for everyday families,” said Amit Regev, CEO and co-founder of Flytrex. “A big part of advancing this market is making sure people can get the food they actually want, when they want it. Until now, drones simply weren’t capable of delivering a full family meal. The Sky2 changes that. This partnership with Little Caesars expands what drone delivery can do and better meets customers’ expectations, which will drive real, lasting adoption of this technology.”

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THE SILENT SCOURGE

As businesses continue to navigate persistent cost pressures, a new report from Ivalua suggests many are making compromises that consumers may not immediately notice but will ultimately feel.

According to the enterprise AI platform for procurement, more than half (52 percent) of organisations say cost pressures are driving “skimpflation” across their supply chains, with businesses quietly reducing the quality of components or ingredients to protect margins.

The trend is particularly pronounced in the UK, where 64 percent of businesses report experiencing skimpflation – the highest proportion of any market surveyed.

QUALITY TAKES THE HIT

Rather than passing savings directly to customers, many organisations are choosing to preserve profitability by making behind-the-scenes changes.

Ivalua found that 59 percent of businesses have reworked product specifications to reduce production costs, while a further 36 percent have switched to cheaper suppliers or lower-cost goods altogether.

However, these measures are rarely reflected in retail pricing. Among businesses that introduced these changes, only 10 percent lowered prices for consumers.

Instead, 43 percent increased prices, whilst 47 percent left them unchanged, creating a situation where customers are paying the same – or more – for products manufactured to a lower standard.

Alex Saric, Cheif Marketing Officer and Smart Procurement Expert at Ivalua, believes the long-term consequences of these decisions extend far beyond immediate cost savings.

Saric also warns that businesses risk undermining years of brand-building by prioritising short-term margin protection over product quality, arguing that a single reformulated product or cheaper component can quickly erode customer trust.

PRESSURE ACROSS THE SUPPLY CHAIN

The research suggests businesses are not only creating skimpflation but also experiencing it themselves.

Almost half (49 percent) report seeing similar quality reductions from their own suppliers, whilst 53% have experienced delayed product launches, an issue likely linked to supplier quality concerns, poor collaboration, or disruptions that were not identified early enough.

At the same time, organisations are rapidly reshaping their supplier networks in response to changing economic conditions. During the past year, many businesses have replaced, reduced, or exited suppliers across several key regions, including Eastern Europe (44 percent), China (43 percent), Western Europe, and the UK (40 percent), and the Middle East (32 percent).

According to Ivalua, supplier cost inflation is the biggest driver behind these changes (33 percent), followed closely by shortages of critical components (32 percent) and efforts to reduce tariff and trade exposure (30 percent).

As supplier ecosystems become increasingly complex and dynamic, procurement teams are under growing pressure to make faster, more informed sourcing decisions.

AI OFFERS A WAY FORWARD

To help manage these challenges, businesses are increasingly turning to artificial intelligence.

Ivalua’s research found that 76 percent of organisations are already using or experimenting with AI within procurement, whilst a further 14 percent plan to introduce the technology.

Among existing users, 89 percent say AI has been effective in identifying and qualifying new suppliers and sourcing locations.

Despite this momentum, the report also highlights a significant obstacle to successful AI adoption. Nearly half (44 percent) of respondents acknowledge that their supply chain data is not AI-ready, limiting the technology’s ability to deliver meaningful results.

Saric argues that AI’s effectiveness depends entirely on the quality of the underlying data.

“When businesses can’t see across their supply chain, cost pressure forces their hand. They cut components, switch to cheaper suppliers, and hope customers turn a blind eye,” he says.

“AI changes that by giving procurement teams the visibility to find savings and qualify suppliers before quality problems reach the customer. But it only works on clean, connected data. Run it on spreadsheets and scattered systems, and it doesn’t surface better decisions – it just makes the wrong ones faster.”

For businesses facing rising costs, supply chain disruption, and increasing customer expectations, Ivalua’s findings suggest the solution is not simply to reduce costs, but to improve visibility. With reliable data and AI-enabled procurement, organisations can strengthen resilience, identify smarter savings, and avoid sacrificing quality in pursuit of short-term margins.

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