GartnerSC analyst Sarah Watt shares how supplychain leaders can balance priorities such as increasing energy costs and decarbonization. Read the latest Q&A now:
In advance of the conference, we sat down with Sarah Watt to ask her how supply chain leaders should manage theQ: What are the main challenges that supply chain leaders are currently facing?
Energy costs are increasing. This is being felt both by business and consumers – and in turn drives costs and inflation. I was looking at the cost of a barrel of brent crude between March 2021 and 2022, and in this time it has more than doubled. Supply chain leaders need to navigate increasing costs of energy for manufacturing, but also all the knock-on effects for shipping and cost of materials.
In regard to decarbonization, more companies are setting science-based targets, and this is often a catalyst for looking at scope 3 value chain emissions. shows that supply chain emissions are 11.4x higher than operational emissions for many organizations. This means that supply chain leaders are in the spotlight to understand their value chains’ greenhouse gas emissions, and then to act.
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