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Climate Risk Is No Longer Optional in Supply Chain Management
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2 semaines agoon
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A recent report published by the Center for Climate and Energy Solutions explores the current challenges facing global supply chains, including man-made and natural disasters. It reviews the existing supply chain resilience frameworks, emphasizing viability, flexibility, contingency, and supplier collaboration. The crux of the report is the absence of climate-specific metrics and decision-useful disclosure tools made available for supply chain managers. In an era of economic volatility and climate change, companies are navigating turbulent waters. Current barriers facing the implementation of climate risk analytics include data challenges, limited supplier transparency, and mismatched climate assessments and goals. The report calls for integrated approaches that align climate and supply chain practices and greater collaboration among businesses.
This report addresses the critical gap in current supply chain management: the lack of integrated climate analytics. It highlights how this absence prevents managers from being informed about existing and impending climate risks. The report advocates for the adoption of integrated strategies that blend climate and supply chain management, stressing the importance of enhanced business collaboration to achieve this.
I spoke with Sadie Frank, one of the contributors to the report, who worked with C2ES in the past, helping inform the private sector on regulation developments. She is now a co-founder of a climate risk analytics firm, N4EA. Through her work, she found that climate professionals think of supply chains fairly narrowly and focus primarily on asset risk. As we know, the supply chain is a multi-disciplinary space that includes trade finance, warehouse operations, planning, transportation, and much more.
The need to develop tools to harmonize climate risk, including floods, fire, and asset risk. While working on informing the climate risk community of the true expansiveness of what supply chains truly entail, and the rich history of supply chain resilience.
How are companies implementing Climate Risk Assessments today?
“It’s a spectrum; companies such as those in the rail industry are more forward-thinking due to their vulnerabilities to flooding, temperatures, and weather.” Companies are also already thinking about climate reporting, citing two climate reporting bills in the state of California, SB 261 and SB 253, impacting over 4500 companies with revenues greater than $500 billion.
Operational pressures are growing as global climate targets slip out of reach, making climate risk management more urgent. “We are starting to see that companies are not as likely to carve out a climate risk function, and are thinking more broadly about enterprise risk management, which includes new sources of risks and increasing volatility within their existing risk management framework.” She finds it more exciting, as this is a more effective strategy to think about climate risk.
What opportunities does collaboration bring for companies?
Fostering closer collaboration with suppliers, beyond mere document exchange for disclosure, is encouraged. This direct engagement allows for a deeper understanding of how suppliers perceive and manage risk.
“There’s a significant opportunity to merge expertise in supply chain risk assessment and climate risk management, translating this into improved operational outcomes.” A better operational understanding of extreme weather will enhance short-term operational resilience, while climate risk professionals will gain a more comprehensive, long-term view of supply chain resilience.
Going Beyond Risk Alerts:
Risk alerts are helpful, but they are not the full package. Typically, you will be pinged if your supplier is impacted by an incident such as a fire or flood, but the alerts fail to provide further details on the extent of the impact. These warnings should include more context and meaning so supply chain managers can better understand the true impacts of the incident to plan accordingly.
How are supply chains today preparing for climate disruptions?
“Significant advancements have been made in the core areas of resilience, flexibility, contingency, and collaboration within supply chains.” While substantial progress has occurred since the COVID-19 pandemic, same-day shipping models have inadvertently introduced considerable fragility. Additionally, tariffs have heightened global awareness among companies, prompting them to develop more strategic approaches to sourcing and planning.
“The future of supply chain management lies in a comprehensive understanding of transport networks, encompassing both their physical risks and vulnerabilities. This involves accounting for human-made factors like tariffs, alongside the evolving changes to our planet.” Strategic warehouse placement is crucial, but it’s equally vital to integrate climate risks associated with your transport networks into the decision-making process.
Closing thoughts: “This is the new normal. There is no way we can engineer our way out of increased supply chain volatility and climate risks. As supply chain professionals, we must accept that our world is more chaotic and find solutions to better manage the future.”
Organizations Included:
C2ES: The Center for Climate and Energy Solutions (C2ES) is a nonprofit, nonpartisan organization dedicated to advancing practical policies and actions to address climate change and promote clean energy. It works with businesses, policymakers, and communities to develop innovative solutions that reduce greenhouse gas emissions and strengthen climate resilience.
N4EA: is a predictive analytics company focused on climate and weather risk in global supply chains, using real-time data and geospatial modeling to simulate disruptions and their impact on logistics, emissions, and costs.
The post Climate Risk Is No Longer Optional in Supply Chain Management appeared first on Logistics Viewpoints.
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Join us for Tomorrow’s Webinar: Building a Sustainable Supply Chain: Turning Commitments into Competitive Advantage
Published
1 jour agoon
3 novembre 2025By
Sustainability has moved beyond corporate responsibility. Today, it’s a core element of supply chain performance and brand value. Organizations across every sector are rethinking how materials are sourced, products are moved, and data is managed to reduce emissions, improve efficiency, and strengthen resilience.
Join us for an in-depth Logistics Viewpoints webinar on Sustainability in the Supply Chain, where industry leaders will share how they are embedding environmental and social responsibility into the fabric of their operations. This session will explore practical steps for achieving measurable progress — not just pledges — in areas such as supplier engagement, energy management, and circular logistics.
Key topics include:
Proven frameworks for integrating sustainability into procurement and manufacturing
Tools and metrics for tracking emissions and improving data visibility
How transparency and collaboration can reduce risk and enhance competitiveness
Lessons learned from companies leading the charge toward carbon-smart logistics
Our expert panel will focus on real-world case studies and actionable takeaways, giving attendees insights they can immediately apply to strengthen their sustainability programs.
Whether your organization is just beginning its journey or refining an established strategy, this webinar offers a roadmap to align sustainability goals with measurable business outcomes.
Register now to join us live and learn how forward-thinking companies are transforming sustainability from a compliance obligation into a competitive advantage.
The post Join us for Tomorrow’s Webinar: Building a Sustainable Supply Chain: Turning Commitments into Competitive Advantage appeared first on Logistics Viewpoints.
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Stellantis: $13 Billion, 5,000 Jobs, and a New U.S. Manufacturing Strategy, Reshaping the North American Supply Chain
Published
1 jour agoon
3 novembre 2025By
AUBURN HILLS, MI. Stellantis announced plans to invest $13 billion over the next four years to expand its U.S. manufacturing footprint. The initiative will add more than 5,000 jobs across Illinois, Ohio, Michigan, and Indiana and increase U.S. vehicle production by about 50 percent.
The investment will fund five new vehicle programs, 19 product refreshes, and a new four-cylinder engine program. It is the company’s largest single U.S. investment and signals a long-term commitment to both internal combustion and electrified vehicle platforms.
“This investment in the U.S. will drive our growth, strengthen our manufacturing footprint, and bring more American jobs to the states we call home,” said Antonio Filosa, Stellantis CEO and North America COO. “As we begin our next 100 years, we are putting the customer at the center of our strategy, expanding our vehicle offerings, and giving them the freedom to choose the products they want and love.”
“Accelerating growth in the U.S. has been a top priority since my first day,” Filosa added. “Success in America is not just good for Stellantis in the U.S. It makes us stronger everywhere.”
State-by-State Overview
Illinois: Belvidere Plant Reopening
Stellantis will invest $600 million to reopen the Belvidere Assembly Plant for production of two Jeep models, the Cherokee and Compass, beginning in 2027. The project is expected to create 3,300 jobs.
Ohio: New Midsize Truck Production
About $400 million will fund production of an all-new midsize truck at the Toledo Assembly Complex, joining the Jeep Wrangler and Gladiator lines. The move will add about 900 positions when production begins in 2028. Additional upgrades are planned across Toledo operations to support ongoing Jeep production.
Michigan: Large SUV and Dodge Durango Successor
At the Warren Truck Assembly Plant, Stellantis will invest $100 million to produce a new large SUV available in both range-extended EV and combustion formats. The launch, expected in 2028, will add 900 jobs. Another $130 million will prepare the Detroit Assembly Complex, Jefferson, for the next-generation Dodge Durango, slated for production in 2029.
Indiana: New Engine Program
In Kokomo, Stellantis will invest more than $100 million to build the new GMET4 EVO four-cylinder engine. Production is set to begin in 2026 and will add about 100 jobs.
Supply Chain and Logistics Considerations
The Stellantis plan reflects a larger trend toward regionalized manufacturing and shorter supply chains. By expanding production in the Midwest, Stellantis is reducing exposure to overseas logistics risks and shipping delays that have challenged the industry in recent years.
Reopening Belvidere and expanding operations in Toledo and Kokomo will strengthen domestic supplier ecosystems for components such as engines, drivetrains, and electronics. Adding dual powertrain lines, both EV and ICE, will require parallel material streams and more sophisticated synchronization between inbound logistics, supplier planning, and workforce scheduling.
At the same time, expansion across multiple states increases the complexity of coordination and sourcing. Tier-1 suppliers will need to adjust production capacity, labor allocation, and transportation networks to align with Stellantis’ new programs. Global lead times for critical components such as semiconductors, battery modules, and sensors remain unpredictable, requiring early-stage visibility and contingency planning.
For the broader supply chain, the challenge lies in maintaining steady component availability while scaling new vehicle lines and managing cost pressures tied to both traditional and electrified platforms.
Outlook
Stellantis operates 34 U.S. facilities across 14 states and employs more than 48,000 people. This new investment deepens that footprint and aligns with an operational goal of building greater resilience and control within the domestic production network.
For supply chain leaders, Stellantis’ move highlights the continued shift toward regional production, flexible sourcing strategies, and closer collaboration between OEMs and their supplier networks. The focus now is not just on capacity but on stability, adaptability, and execution across interconnected plants and partner
The post Stellantis: $13 Billion, 5,000 Jobs, and a New U.S. Manufacturing Strategy, Reshaping the North American Supply Chain appeared first on Logistics Viewpoints.
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OpenAI and AWS Forge $38B Alliance, Microsoft Exclusivity Ends, New Multi-Cloud AI Compute Era Begins
Published
1 jour agoon
3 novembre 2025By
OpenAI has entered into a multi-year, $38 billion agreement with Amazon Web Services, formally ending its exclusive reliance on Microsoft Azure for cloud infrastructure. The deal, announced today, represents a fundamental realignment in the cloud compute ecosystem supporting advanced AI workloads.
Under the agreement, OpenAI will immediately begin running large-scale training and inference operations on AWS, gaining access to hundreds of thousands of NVIDIA GPUs hosted on Amazon EC2 UltraServers, along with the ability to scale across tens of millions of CPUs over the next several years.
“Scaling frontier AI requires massive, reliable compute,” said Sam Altman, OpenAI’s CEO. “Our partnership with AWS strengthens the broad compute ecosystem that will power this next era.”
A Structural Shift Toward Multi-Cloud AI
This marks the first formal infrastructure partnership between OpenAI and AWS. Since 2019, Microsoft has provided the primary compute backbone for OpenAI, anchored by a $13 billion investment and multi-year Azure commitment. That exclusivity expired earlier this year, opening the door to a multi-provider model.
AWS now becomes OpenAI’s largest secondary partner, joining smaller agreements already in place with Google Cloud and Oracle, and positioning itself as a co-equal pillar in OpenAI’s global compute strategy.
“AWS brings both scale and maturity to AI infrastructure,” noted Matt Garman, AWS CEO. “This agreement demonstrates why AWS is uniquely positioned to support OpenAI’s demanding AI workloads.”
Infrastructure Scope and Deployment
The deployment will include clusters of NVIDIA GB200 and GB300 GPUs linked through UltraServer nodes engineered for low-latency, high-bandwidth interconnects. The architecture supports both model training and large-scale inference, applications such as ChatGPT, Codex, and next-generation multimodal systems.
AWS has already begun allocating capacity, with full deployment expected by late 2026. The framework also includes options for expansion into 2027 and beyond, giving OpenAI flexibility as model complexity and usage continue to grow.
Continued Microsoft Collaboration
Despite the AWS deal, OpenAI maintains its strategic and financial relationship with Microsoft, including a separate $250 billion incremental commitment to Azure. The move reflects a deliberate multi-cloud posture, a strategy increasingly favored by large-scale AI developers seeking to balance cost, access to specialized chips, and platform resiliency.
Implications for Supply Chain and Infrastructure Leaders
This announcement underscores several macro-trends relevant to logistics and industrial technology executives:
AI Infrastructure Is Becoming a Supply Chain of Its Own
Cloud capacity, GPUs, and networking fabric are now constrained global commodities. Long-term compute contracts mirror procurement models traditionally seen in manufacturing or energy, locking in scarce resources ahead of demand.
Multi-Cloud Neutrality Reduces Vendor Lock-In
The shift toward multiple cloud providers parallels how diversified sourcing reduces single-supplier risk. Expect enterprise buyers to apply similar logic when procuring AI infrastructure and software services.
Operational AI at Scale Requires Cross-Vendor Interoperability
As companies like OpenAI distribute workloads across ecosystems, interoperability standards, ranging from APIs to data-plane orchestration, will become critical for continuity, performance, and governance.
CapEx Discipline Returns to the Forefront
With multi-year AI compute deals now exceeding $1.4 trillion in aggregate commitments across the sector, CFOs and CIOs are under pressure to evaluate utilization efficiency and long-term ROI of their AI infrastructure spend.
Broader Market Context
AWS’s win follows similar capacity expansions with Anthropic and Stability AI, but this partnership represents its highest-profile AI infrastructure engagement to date. It also signals that OpenAI intends to maintain independence in its technical roadmap, balancing strategic investors with diversified operational suppliers.
The timing is notable: OpenAI recently restructured its governance model to simplify corporate oversight, a move analysts interpret as preparation for a potential IPO that could value the company near $1 trillion.
AWS stock rose approximately 5 percent following the announcement, reflecting investor confidence in the long-term demand for AI-class compute.
Outlook
For the logistics and manufacturing sectors, the implications extend beyond software. The same GPU-based data centers that train language models are also powering digital twins, simulation models, and optimization engines increasingly embedded in supply chain planning.
As hyperscalers compete for AI workloads, enterprises should expect faster innovation in distributed computing, lower latency connectivity, and new pay-as-you-go models designed for AI-intensive industrial applications.
Summary
The $38 billion OpenAI–AWS partnership marks a decisive end to Microsoft’s exclusivity and a broader normalization of multi-cloud AI ecosystems.
For technology and supply-chain leaders, it serves as a reminder: compute itself has become a strategic resource, one that must now be sourced, diversified, and managed with the same rigor once reserved for physical inventory.
The post OpenAI and AWS Forge $38B Alliance, Microsoft Exclusivity Ends, New Multi-Cloud AI Compute Era Begins appeared first on Logistics Viewpoints.
Join us for Tomorrow’s Webinar: Building a Sustainable Supply Chain: Turning Commitments into Competitive Advantage
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