Week in Review: Tackling Supply Chains from Food Security to Pharma Transparency to Pet Food

April 24, 2024

April 29, 2024


x min read

This week’s supply chain news curation dives into a series of significant developments impacting industries across the globe. We're exploring innovative World Bank projects enhancing food security by improving logistics as well as a surge in Philadelphia-based cargo thefts that highlight pressing security challenges. We'll also discuss the shift towards low-carbon operations as businesses adapt to evolving regulatory demands, and how cutting-edge digital tools boost transparency in the pharmaceutical sector. Lastly, we learn about Purina and Cargill’s efforts in pioneering sustainable agriculture to cut carbon emissions in the pet food supply chain. So, without further ado, let’s break everything down!

Strengthening Food Supply Chains through Improved Connectivity

As global food production hits record highs, the persistent problem of worldwide hunger stresses the importance of robust and efficient supply chains. High transportation costs often exacerbate food insecurity in the world's most vulnerable regions—so to combat this, the World Bank has spearheaded several important projects.

Impactful Projects Enhancing Regional Supply Chains

From 2010 to 2018, the World Bank's Abidjan-Lagos corridor project improved the lives of 53 million people by easing the flow of goods and reducing travel times. In Nigeria, between 2008 and 2016, the Rural Access and Mobility Project brought 1.5 million people closer to all-season roads, directly linking them to larger markets and better crop prices. There’s more, too: these projects are only the tip of the iceberg.  

Addressing Transport Costs to Reduce Food Insecurity

The World Bank also aims to directly combat transportation costs—which account for up to half the retail price of food in some African regions. Projects that streamline cross-border trade and improve road infrastructure—such as the drastic cut in border crossing times at the Raxaul-Birgunj border—directly contribute to lower food prices, enhancing supply reliability, breaking logistical barriers, and making food more accessible and affordable in areas hit hardest by food shortages.

Addressing Cargo Theft: A Growing Concern in Philadelphia

The recent theft of $12,000 worth of pork from a parked truck in Philadelphia spotlights a troubling increase in cargo theft incidents. When thieves can steal 56 cases from a refrigerated truck and escape undetected in a silver Lexus SUV, there's a problem.  

Frequent Targets & Vulnerable Spots

The pork theft incident marks the 37th cargo theft in Philadelphia this year—and the majority have occurred at night while the driver is asleep. Thieves are clearly exploiting the noise from these refrigerated trucks as a cover, with recent thefts including everything from bourbon and seafood to frozen meats cumulatively valued in the tens of thousands.

The Bigger Picture: Parking & Safety

A lack of secure parking spaces is exacerbating this issue. With a reported deficit of 4,400 truck parking spaces in Pennsylvania, drivers often have to park on highway shoulders, exposing their vulnerability to theft. While the state's Transportation Advisory Committee is pushing for a comprehensive study under HR236 to improve truck parking facilities and provide safe, accessible rest stops for truckers to reduce such risks, it’s also clear that proactive measures and increased visibility can help, too.

Dealing with Scope 3 Emissions: A Strategic Imperative for Businesses

Even though the U.S. Securities and Exchange Commission (SEC) does not mandate Scope 3 emissions reporting in its latest climate disclosure rules, businesses increasingly recognize the need to better manage these emissions. As the primary contributors to a company's carbon footprint, Scope 3 emissions—which account for an average of 75% of an organization’s greenhouse gasses—require diligent oversight to ensure a successful transition to a low-carbon economy.

The Importance of Scope 3 Management

With organizations under growing pressure from investors, partners, and customers to demonstrate effective management of climate risks, understanding emissions from supply chain partners—over which they have no direct control—is vital. Although not currently mandated by the SEC, many companies face Scope 3 reporting requirements under the EU's Corporate Sustainability Reporting Directive (CSRD). This trend suggests that broad regulatory adoption is likely forthcoming—influencing companies globally due to the interconnected nature of supply chains.

Developing a Sustainable Roadmap

Beyond compliance, managing Scope 3 emissions helps companies forge a sustainable path. Practical strategies for Scope 3 reduction include vertical integration, optimizing supply chain efficiency, and redesigning products to reduce emissions. The Task Force on Climate-Related Financial Disclosures found that 86% of respondents see cross-industry metrics as integral for informed financial decision making—and with comprehensive data, companies can prioritize actions based on their relative impact.

Why Pharma & Life Sciences Need to Boost Digital Supply Chain Visibility

Recent insights from EY highlight the growing need for better digital supply chain visibility in the pharmaceutical industry. As companies deal with complex supply chains and significant operational challenges exacerbated by global disruptions, adopting advanced digital tools is increasingly vital for maintaining efficiency and managing risks.

Enhancing Operations with Digital Tools

The pharmaceutical and life sciences supply chain—known for complexity and low visibility—can benefit immensely from digital integration, especially as these tools offer real-time data monitoring, alerts for quick adaptation to supply chain disruptions, and more accurate data for proactive management. EY also notes that using technology to streamline operations and reduce the need for large inventories is more important than ever—with delivery times longer than before the pandemic and inflation driving up costs.

Taking a Proactive Approach to Risk Management

EY also notes that employing digital tools for deeper insight into the supply chain enables pharmaceutical companies to identify potential issues before they become disastrous. Mapping supply networks in detail helps pinpoint critical raw materials and high-risk suppliers—facilitating early intervention. Leveraging AI to analyze data further helps companies make informed decisions on the fly and detect pricing shifts and supply bottlenecks.

Purina & Cargill Team Up for Sustainable Pet Food Production

Nestle’s Purina pet food brand is partnering with Cargill to champion sustainable agriculture by integrating regenerative farming into their North American supply chains. The end goal is to slash the emissions of more than 200,000 acres of farmland.

Empowering Farmers with Sustainable Techniques

Purina is stepping up to support Midwest farmers as they switch to sustainable practices such as cover cropping and crop rotation. By investing in these changes, Purina aims to cut the carbon footprint from its grain supply by up to 40% over the next three years. However, beyond just meeting environmental goals, the initiative aims to keep producing high-quality pet food—while making sure it’s responsibly sourced.

Expanding Sustainable Impact

Cargill’s ambitious plan aims to spread regenerative practices to over 10 million acres by 2030, marking a major effort to minimize the agriculture sector’s carbon footprint. Since 2020, Cargill has already enhanced regenerative farming on 880,000 acres, focusing on expanding these methods, improving water efficiency, and aiming to restore 600 billion liters of water within a decade. Now imagine applying this same track record to the Purina partnership and its impacts in creating a resilient and sustainable food system.

Empowering Supply Chains with Tive’s Advanced Solutions

From enhancing global food security to tackling cargo theft and pushing sustainability initiatives, the challenges facing today's supply chains are vast and complex. As such, the time is now to adopt innovative solutions that not only keep pace with industry changes—but also set new standards for operational excellence and sustainability. Tive steps in to offer precisely that:

  • Trackers: Revolutionize your shipment tracking with Tive's advanced Solo 5G trackers, offering real-time location and condition monitoring to ensure the security and integrity of your cargo.
  • Tive Tag: Enhance perishable shipment protection with Tive Tag—an affordable and reusable paper-thin temperature logger—to verify that your goods have remained pristine throughout transit.
  • Platform: Streamline your supply chain management with Tive's intuitive cloud platform, offering comprehensive visibility, analytics, and integration capabilities for seamless shipment tracking and monitoring.
  • Industries: Tive caters to a diverse range of industries, ensuring tailored solutions for unique supply chain challenges—from perishables to high-value goods to transportation and logistics to pharmaceuticals…and beyond.
  • 24/7 Live Monitoring Team: This team is available to help ensure that your shipments are constantly watched over and managed to guarantee timely and secure delivery.

Arm yourself with innovation: let Tive lead the way in transforming your supply chain operations. Embrace the future of logistics–get started with Tive today.

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