1. Profile and ambition 1.4 Trends The global environment in which global supply chains operate remains complex. The succession of crises over the last ten years has triggered profound transformations in globalization and in the international production systems of global companies. These crises have played out against a backdrop of persistent concerns over long‑term issues: global warming, biodiversity losses, social and economic disparities, energy insecurity, geopolitical risks and international governance. The consequent build-up of complexity has introduced significant uncertainties into the global supply chain model. The combination of the causes and effects of these crises varies depending on geographical zones, countries, markets and business sectors. In this unsettled context, global companies are increasingly forced to modify their sourcing, production and distribution logistics strategies. Some companies in the West have responded to increased economic and geopolitical complexity by simply shortening their supply chains (“re‑shoring” or “near-shoring”) or making them less vulnerable to geopolitical turbulence (“friend-shoring”). However, for many companies, a change of strategic model because of “supply chain risk” rather than that of cost reduction requires profound transformations. These transformations can generally only be gradual, since they require reconsidering cost structures, developing new local partnerships and reviewing the positioning of certain assets. Because of these changes in the global context, or of societal and environmental transformations, several factors strongly impacted the transport and logistics sector: ● high inflation was recorded in many countries in 2023. This inflation has had an impact on household purchasing power, prompting pay increases by employers. This effect, combined with high energy costs, has led companies to seek savings, notably through competitive bidding for logistics services. As a result, we observed a significant increase in the number of tenders in 2023; ● restrictions or temporary closures have affected certain maritime routes. These have been both for environmental reasons (e.g., the Panama Canal, which has been forced to reduce traffic due to a lack of water) and because of conflict situations (such as the Red Sea, which has experienced armed attacks on ships). GEODIS has adapted in response to these traffic disruptions, offering its customers alternatives that enable them to transport their goods under the best possible conditions; 16 - 2023 ACTIVITY AND SUSTAINABILITY REPORT
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