Supply Chain Movement 54 | Sustainability

The main theme of the 54th issue (Q3, 2024) of the quarterly magazine Supply Chain Movement is Sustainability. 

Publication Date: September 27, 2024

12 | Profile Magne Setnes, Chief Supply Chain Officer, Heineken

Magne Setnes joined Dutch brewery giant, Heineken 25 years ago. He just completed a PhD in artificial intelligence, long before most of us had heard of it. His task was to collect and analyze data from the company’s production sites worldwide to figure out why certain operations and machines ran better than others. The project was cancelled almost the minute he walked in the door. At that time, the data availability was simply insufficient. That has completely changed. Today data from nearly all the company’s global manufacturing sites is collected, analyzed and shared on one platform. Since his surprising start Setnes has worked in many international positions including commercial and managerial roles. He started his latest role as Chief Supply Chain Officer, at the Heineken Global Supply Chain Head Office in Amsterdam, the same week the company closed the office due to the COVID pandemic. “It was a tough start, working in a global organization with no opportunity to meet people except through digital means. I’m glad that’s behind us although, of course, there has been even more volatility in the last four years.”

19 | Checklist for product availability

Today’s consumers expect reliable product availability and sustainable operations. However, many manufacturers and retailers struggle to meet these requirements, while also being profitable and minimizing waste at the same time. Supply chain leaders often face seamingly contradictory goals. How can they deal with them?

21 | In search of the right supply chain start-up caterpillar

Which mountain do you need to climb to innovate your supply chain? That was the central question at the inNOWvate Supply Chain Event. Heineken is climbing Peak Planning, while Lego and Versuni are focusing on Sustainable Summit. PepsiCo is successfully ascending Mount Visibility, crucially assisted by start-ups. However, finding the start-up ‘caterpillar’ that will transform into a beautiful butterfly remains a challenge.

26 | Mindmap AI in supply chains

The recent developments in Artificial Intelligence (AI) since the launch of ChatGPT in late 2022 are astonishing and changing the business dramatically. AI is also revolutionizing supply chains by addressing some of the most pressing challenges faced by businesses today. Supply Chain Movement has created a mindmap of AI in supply chains, together with Carlos Cordon, Professor of Digital and Supply Chain at IMD Business School in Lausanne, and the executive advisory firm Supply Chain Companions. This mindmap is describes the megatrends in global business, the impact of these trends on companies, the challenges in supply chains, and the different practical and applied solutions.

30 | Legislation forces companies to dive into their supply chains

European legislation such as the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) is forcing companies to work on sustainability. Many efforts focus on mapping Scope 3 emissions. Calculating or retrieving data on transport emissions is step one for most companies. Step two, gathering CO2 data from suppliers of raw materials and components, is already proving a lot more difficult in practice. Fortunately, it will be some time before an official stamp from an independent auditor is required.

38 | First edition of ESG IT Subway Map Europe

The global supply chain sustainability software market will grow from US$1.7 billion in 2023 to US$7.7 billion in 2029, according to UK analysts Verdantix. This fast-growing software market is currently hugely opaque, causing problems for companies that need to look for a specific software solution due to mandatory European CSRD requirements. Supply Chain Media has published the first version of the ESG IT Subway Map Europe to help companies discern the right European software vendors.

41 | Checklist for Scope 3 for logistics

Collecting data for Scope 3 reporting is one of the most complex and challenging aspects of CSRD compliance, posing significant difficulties for many companies. Solutions that automate this time-consuming task are increasingly in demand.

42 | Changing agri-food ecosystem

The agri-food ecosystem and its supply chains are undergoing rapid evolution, driven by factors such as technilogical advancements, climate change, shifting consumer preferences, inflation and regulatory changes. To facilitate necessary collaboration and digitalization within agri-food supply chains, consulting firm Argon & Co and Supply Chain Movement have mapped the entire ecosystem. This comprehensive visualization includes farmers, suppliers, manufacturers, logistics companies, wholesalers, data providers, governments, business customers and consumers.

49 | Checklist for warehouse optimization

Warehouse automation is trendy, but the reality is that only 5% of warehousing tasks can be fully automated. The remaining 95% still require skilled human intervention. The key challenge lies in identifying which manual processes can and should be optimized to enhance productivity, improve quality and support employee well-being.

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