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Climate Change and Supply Chain: What are the Three Key Risks?

the devastating impact of climate change has affected almost every populated region across the globe. Its hazardous outcomes can impart worse environmental effects. When it comes to climate change and supply chain, there are three major risks involved, check out the listed below: 

-Transient Dangers 

-Physical Risks

-Opportunity risks

Supply chain executives are working on a manifesto after understanding the need and urgency of climate adaptation. Companies are trying to model scenarios and develop leverage management methods to combat transition, physical, and opportunity risks.

The Intergovernmental Panel released a report on extreme weather events on Climate Change (IPCC) adaptation which stated that:

“Climate change is having an impact on every populated area on the biosphere. This encompasses Australia, where rainfall has decreased by 16 % since 1970, and the United States, which saw 20 different billion-dollar weather extremes in 2021.”

Top 3 climate change effects on supply chain management:

As discussed above, the main effects of climate change can be roughly split into three categories.

Transient Dangers:

Transition risks generate through the growing market variations and data differences. It specifically happens when the market goes down to a lower-carbon economy. We can understand it by this example that if the cost of carbon increases, the reserves of fossil fuel become limited and constrained. Constrained reserves do not generate financial returns.

Physical risks:

Physical risks can be both acute and chronic in nature. The affinity of physical risks increases with the extended shifts in climate patterns. High tides, floods, rising sea levels, elevated sea temperatures, and recurrent heat waves can also contribute to physical risks.

Opportunity risks:

Opportunity risks are largely based on the customer’s priority and personal product. For better understanding, we can take the example of vehicle growth. The acceptance of electric vehicles is increasing and their respective infrastructure is based on the phenomenon of opportunity risk and customer demand. The byproducts of any vehicle that will eventually impact climatic conditions will be the customer’s responsibility as well as their choice.

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AI in Supply Chain: Investments & Optimization

This article discusses the growing trend of investment in AI in supply chain. Here we will also look at how supply chains, warehouses, and manufacturing facilities invest in technology. 

The Previous Story

Artificial intelligence still requires perfection. Moreover, technology has multiple business flubs. For example, in 2016, the Microsoft AI chatbot was memorized to be racist and sexist. However, AI is here to stay in the supply chain, in fact, it is expected that the prevalence will grow.

According to the MHI annual industry report, 17% of the respondents claimed that they are already using AI and another 45% said that they will be using it in the next five years. The survey was done with more than 1000 professionals in the supply chain around the world. It was also found that the plan is to invest in AI products in the next three years, according to 25% of them.

Ben Lynch, the director of business data analytics at the DHL supply chain, says AI is complex, but its use is very simple. He says people do not require a deep understanding of the algorithm and he thought he would never be able to move as quickly as that. Moreover, he said that it will only get better.


During the past five years, the relationship of DHL with its customers has been shifted by AI. Lynch said that the company went from giving the information to the customers for something that has happened already to something more predictive. He said that through AI machine learning and the availability of data, they can give them insights into everything that is going to happen and not just what has happened.

Furthermore, sophisticated algorithms have fueled the transition, which can handle the sheer data that has been collected.

Lynch said they are generating as much data as has been created every two years. He said that by 2023 they will have twice as much data in the world. Due to this, there has been a huge need for technology to help support this data.

AI is also allowing other types of technologies to advance in the supply chain, such as robotics, as per Thomas Evans, chief technology officer at Honeywell.

AI Investment

Thomas Evans said,

“The complexity and the way-quicker access to AI through third-party providers, and also the ability to build AI platforms and deploy them, is a drastic change and asset to supply chain logistics.” 

He added that it will get more advanced as they harness more data. However, AI is not a panacea for problems in a business. It has experienced pain while growing.

The most recent example is Microsoft’s chatbot ordeal. The online company for real estate Zillow shutdown Zillow offers, which is a home buying and flipper service that is AI-fueled. The company purchased houses that cost them higher while buying compared to how much they could sell them for. Moreover, the company had taken a $304 million inventory write-down during the third quarter of 2021. However, AI is effective and already paying off for the right use of cases.

The report by McKinsey found that for early adopters, the supply chain management by AI improved by 15% logistics; by 35% in inventory and the service levels improved by 65% in contrast to the slower-moving competitors.

The biggest gap that is seen by Lynch is adopting the simplification of data further and getting data or businesses to speak the same language.

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White House Supply Chain Report In the Works!

  • The Biden administration has asked for help to improve cargo velocity through ports, carriers, shippers, 3PLs, and other stakeholders with the White House Supply Chain Report. It was announced at the white house earlier this month.
  • According to a fact sheet, the Freight Logistics Optimization Works initiative that the US department of transportation leads has aimed towards producing a proof-of-concept freight data sharing initiative when summer ends. 
  • The limitation of the pilot is 15 companies and the San Pedro Bay and Georgia ports. However, the web page is expected to be live within a month of the launch. It will gauge the industry’s interest in participating in the program. 


Private companies mostly run supply chains and the government faces limits to their ability to improve cargo flow. However, the task force of supply chains by Biden brings the stakeholders together on conference calls every week to discuss the problems.

 US Port Envoy John D. Porcari leads the calls, said in a statement after another meeting with the stakeholders of the supply chain,

 “I’m very pleased with the industry’s willingness to partner, share data, and develop new information that will help the goods movement chain operate more efficiently,” 

He also said that he encourages the private sector to reach a consensus around data sharing needs. 

According to the fact sheet,

“It will test the idea that cooperation on foundational freight digital infrastructure is in the interest of both public and private parties.”

What should be improved?

One area that needs improvement is the lack of data sharing between the supply chain partners. The companies have improved their general visibility considering their operations in recent years. However, a lot of them are still hesitant to share their data with others.

To solve this issue, a national portal will be available for voluntary exchange to all the participants sharing the data. It will be built based on performance and neutral technology standards for exchanging and using data.

What are the goals?

The goal behind this is to ensure that the dates are returned on time and are consistent throughout the partners, measuring an accurate chassis availability. Moreover, understanding aggregate dwells time throughout the pilot.

The following are included in the pilot members, the ports of Los Angeles and Long Beach, the Georgia Ports Authority, carriers CMA CGM and MSC, and terminal operators Fenix Marine Terminal and Global Container Terminals. Furthermore, Albertsons, Gemini Shippers, Land O’ Lakes, Target, True Value, CH Robinson, DCLI, FlexiVan, FedEx, Prologis and UPS are also a part.

Executives Meet

The executives of the company met with Brian Deese who is the director of the National Economic Council and the US Transportation Secretary Pete Buttigieg. They discussed the new initiative for their progress in supply chain congestion. 

Codero said,

“Our customers and their customers are ready for a new era of data visibility that maximizes efficiency and minimizes delay in goods movement.” 

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Crisis Management: Tips to Get Started

Just when the world thought the pandemic was over and they will see relief in the supply chain, a war with Ukraine took place. Hence, the risks of the supply chain are here to stay and we need to know more about crisis management.

The European threats are most likely impacting most businesses. The drastic and damaging economic sanctions against Russia have a huge reach regarding economic and political ramifications. Predictions say that the probability of your global supply chain snaking through Russia, Ukraine and other neighboring countries is very high. Moreover, most of us are at the mercy of cyberattacks that have been forecasted.

Considering we are professionals, we have the chance to make decisions in support of everyday goods. In times like these, buyers need to be wise about their choices to make a difference.

Here are some tips on how they can start


It is a disappointment when people say they are swamped and don’t care. Moreover, they succumb to the pressure from the uninformed management and are not interested in the world around them or what role it plays.

It would be best if you cared about your country, community, and the world. When we are too busy with our day-to-day rituals, we often forget how our interaction with the world is.

Other than the current situations, professionally, we have the chance to make decisions that will support the common good. We can make our supply chains green would decide on source with suppliers who will not pollute the environment. Moreover, we can support the ethical supply chain by working with companies that support human rights. Championing the social supply chain, we can be the hub advocates of small businesses.

Many buyers say the following things, for example, “they don’t pay me enough to care,” etc., and say that if they had time, they would have done it to their best. People need to understand that the money they spend on behalf of their company has a meaning and influences the block across the world.


Read whatever it is, watch it carefully, and listen. You need to pay attention to the headlines and understand what is happening globally according to the economy and what impact it has on your company, supplies, and the extended supply chains.

One important part of the fiduciary responsibility is to know and be aware of global trade impacts on your business as a buyer. Furthermore, listen to your suppliers because they are the key to most things. Share what you know with the company management, so plans can be adjusted accordingly. In addition, communicate with the customers and all the buyers in the front line take advantage of this proximity.


Be the initiator and lead by viewing procurements through the lens of leadership and not support. Look at what your sourcing decisions are across all domains. Make purchases with purpose in your mind while defending your sourcing decisions simultaneously.

Be realistic about your influential limits. Even though today, everyone is focusing on looking at Ukraine and Russia, losing sight of procurement decisions at a local level isn’t wise. Everything you do makes a difference.

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Supply Chain Risk Mitigation: Now More Important Than Ever

Russia’s untimely invasion of Ukraine has created a potentially dangerous and turbulent situation for logistics. These disruptive circumstances are not only limited to the affected area but are also directly impacting other areas beyond the war zone’s boundaries, urging the nations to work on supply chain risk mitigation strategies.

Russian invasion into Ukraine is affecting the logistics sector primarily and creating havoc for the global logistics industry. The logistics industry is currently facing significant risks which include transportation modes such as air, rail, road, and marine freight and fuel services risks.

However, targeted strategies have been planned to cope up with the logistics disruptions and overcome the potential risks as mentioned above. Some of the sanctions implemented on Ukraine by Russia are making the situation only worse with each passing day. Logistics industry always is at the dying edge of the boat in such war circumstances. National leaders group themselves on a round table and develop different coping strategies in such situations; however, risk mitigation is the only strategy that really counts. Some potential risks are discussed below that can rip off various aspects of the global logistics industry.

Air Freight Risk:

Air freight risk will eventually result in increased cost and limited capacity. It will create no-fly areas due to which flight house will be increased, and so will the operating cost. The impact and likelihood of air freight risk is exceptionally high; therefore, an adequate mitigation strategy must be created to combat any large disruption.

Mitigation strategies for air freight risk:

  • Extend the pricing contracts For the next seven to eight months.
  • Implementation of index-based price managements should be made on immediate notice.
  • Take core partners in confidence and work closely with them to mitigate the increased cost.
  • Remove capacity if not needed in air transport.

Rail Freight Risk:

Rail freight services between Europe and Asia will face disruption. Pan-European rail freight services will also face considerable transportation disruption. The European continental rail network will also be disrupted in the areas outside Russian territory. The impact and likelihood of rail freight disruption will range from high to low.

Mitigation strategies for rail freight risk:

  • Shift modes of transportation to air and water freight services.
  • Utilize the rail linking rail between northern Kazakhstan and southern Turkey.
  • Try using shorter routes for transportation.

Road Freight Risk: 

The disruptions and affected areas of road freight will almost be the same as rail freight. Road freight disruptions will be seen in Eastern Europe and Pan-European territory. Due to the potential risk, routes will be shifted to alternate areas, eventually increasing the transit hours. Similarly, the areas outside the Russian region will be affected equally. The impact and likelihood of road freight disruption will range from low to high.

Mitigation strategies for road freight risk:

  • Work closely with affected road carriers.
  • Understand and learn the changes in routes and services. 
  • Find out whether your carrier of choice will apply a surcharge.


Logistics professionals should not lose their hopes but must prepare themselves for the worst as well. Some of the immediate actions mentioned below should be taken to combat disruption risks.

  • Plan alternates for every sort of logistic risk.
  • Prepare for the unexpected and the worse.
  • Analyze risk assessments and implement strategies on logistics networks.
  • Reduce the risk exposure and constrain the surface area.
  • Enhance the transport planning route time.
  • Re-evaluate network resilience and capacity.
  • Prepare alternate sources of supply and transportation.
  • Create emergency funding for incremental costs of increased fuel charges.
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Increff Funding Event: the Company Raised $12 Billion

Up to $12 million raised in Increff funding for expanding business

Increff is a widely known and acclaimed supply chain firm based exclusively on E-commerce and lifestyle brands. Increff provides its services to famous retail and high-end fashion brands. This year an investment of 12 million US dollars was raised in Increff funding for a billion-dollar valuation of the company and was successful in raising the round. The funding round was attended by Mr. Binny Bansal, the co-founder and CEO of Flipkart. Premji Investors Company and TVS Capital 021 Funds also showed interest and participated in the fund-raising round at Increff.

Series- B funding:

Increff utilizes series- B funding and works as a software specialist to ensure the proper functioning of their offices in different states of the US and Midwest Europe. Increff also tries to add more new and raw products. Increff the series-B funding program showed keen participation from seven huge angel investors.

Progress of Increff in last five years:

Increff has made phenomenal progress of almost 90% to 95% in the last five years, including the Covid lockdown, but the company did not take a significant financial hit. Increff is a relatively large company with inbuilt internal and efficient processes to run the firm on a larger scale. The administration is now working to advance the company by investing in new technology and introducing innovative warehousing services. Increff also aims to open new firms in the United States and Europe.

SaaS-based merchandising solutions:

Increff offers SaaS-based merchandising solutions and addresses all kinds of warehousing issues. Increff is currently the mainstay of solutions for more than twenty retailers across the United States and some parts of Europe.

Support for next-generation entrepreneurs:

Increff is a company based on innovation and thus supports innovative ideas and tries to provide moral and financial support to the next generation of entrepreneurs. Increff is raising financial rounds with new entrepreneurs by investing in them. New entrepreneurs have great skills and intelligence because they know about the increasing growth and importance of e-commerce in global supply chains. New entrepreneurs can change the direction of the tide in the company’s favor by working with competitive brands and using the right technological solutions.

Statement of Sailesh Tulshan: 

Sailesh Tulshan, the founder of 021 Capital, said, “Our company has been partners with Increff for the last five years and has raised investment rounds with them quite frequently. Increff is doing well in transforming and improving merchandising and curating new solutions for global supply chains.”