August 28, 2023
A year ago, French mustard disappearing from supermarkets’ shelves has served as a wake-up call for many, shedding light on the intricate interplay between global supply chain complexities and the tangible realities of our world.
Indeed, amidst recent geopolitical conflicts, inflationary pressures, and a challenging economic climate, the seamless flow and accessibility of goods have faced significant hurdles. Port hold ups, reduced ocean freight availability and surge prices have greatly impacted the supply chains, leading to bottlenecks and challenges in ensuring the smooth delivery of goods to their final destinations.
To effectively navigate these trends, global supply chains have been focusing on enhancing their planning capabilities and cultivating agility and responsiveness, enabled by a comprehensive end-to-end visibility over their entire supply chain.
Undoubtedly, this space has been ripe for disruption. As a matter of fact, and for quite some time, the dirty little secret of the supply chain & logistics industry was that no one really knew where their stuff was. Lately, we have witnessed the entrance of innovative players armed with cutting-edge technologies, reshaping industry verticals and transforming customer expectations. Amazon’s speed of delivery for example has definitely set unparalleled standards, reshaping our perception of what is possible in terms of convenience and efficiency.
On the other side, as supply chain planning and operations face rising complexities and a myriad of risks, along with the amplified focus on environmental concerns surrounding supply chains, the optimization of logistic flows and operations has emerged as a crucial imperative and businesses are recognizing the necessity of fine-tuning their operations to maximize efficiency, resilience, and sustainability.
The need for supply chain processes’ optimization has become pivotal in every part of the way. We believe AI-based solutions have the potential to be game-changers, enabling companies to navigate complex supply chain landscapes with greater efficiency and effectiveness. We also see these solutions acting as catalysts and eventually fueling a shift towards self-driving supply chain networks, notably in procurement, where automation and intelligent decision-making drive progress.
Providing end-to-end solutions that address these challenges across all business functions has become increasingly crucial. Consequently, logistics players are striving to offer comprehensive and holistic solutions, catering to the diverse needs of their customers. As a result, we see incumbents in the industry often opting to acquire these startups, recognizing their innovative solutions and potential for growth. This strategic consolidation allows incumbents to leverage these startups’ expertise and technology, enabling them to stay ahead in a competitive market with very high expectations of precision & excellence.
Furthermore, as supply chains contribute to a significant portion (ranging from 60% to 80%) of global Greenhouse Gas Emissions, decarbonizing this sector has emerged as a necessity in fighting climate change and reaching net-zero. Startups are actively developing new products and features to empower their customers with the essential tools to monitor, evaluate, and mitigate their carbon footprint across the entire supply chain. On the other side, companies are harnessing circular business models and leveraging cutting-edge technologies that enable precise planning, advanced scenario modeling, etc. in an effort to reduce operational inefficiencies and minimize the carbon impact of their supply chain operations.
We asked our portfolio companies Wakeo & Voidless to share their views & insights on the supply chain & logistics space with us. Here is what they had to say about it:
“Worldwide Supply chain is constantly disrupted by massive events such as the war in Ukraine, Covid, Brexit, geopolitical conflicts or climate catastrophes. Leveraging AI, Wakeo helps leaders like Uniqlo, Corteva, Air Liquide, Red Bull or Clasquin navigate large scale disruptions and anticipate delays. Wakeo’s technology enables a more resilient and sustainable supply chain.” – Julien Cote, CEO & Co-founder of Wakeo.
“E-commerce became a pillar of the mass economy but it grapples with inefficient packaging that consumes excessive materials and shipping space, contributing to environmental degradation and 122 million tones of CO2 emissions. Voidless innovative on-demand packaging system ensures optimal utilization of material and space by dynamically customizing package sizes, not only significantly curtailing logistic costs and mitigating the environmental impact.” – Carlo Villani, CEO & Co-founder of Voidless.
