1. 1.3 Sector trends As geopolitical tensions undermine the development of global trade, they weaken business confi dence. State intervention in the economy, with the use of sanctions, embargoes, constraints on technology transfers and customs duties to protect borders, is impacting the resilience of supply chains, which manage to resist and adapt in spite of everything. In such an uncertain environment, companies and their logistics partners need to work together to adjust strategy and priorities throughout the supply chain, from procurement to product distribution. Transition and adaptation to climate change Challenges: uncertainties surrounding the availability and cost of different energy sources make it more complex to plan the energy transformation schemes that are essential for the decarbonization of the economy. For companies committed to decarbonization trajectories, choosing committed suppliers is key to helping them achieve this transition. The question of how to share transition costs remains a critical issue and is an obstacle to scaling up. In addition, the effects of climate change can affect working conditions, the health of employees and local communities, transport infrastructures, continuity of operations and increase costs. The Group’s response: implementation of a climate transition plan to gradually reduce the use of fossil fuels and the environmental impact of its activities. Progressive deployment of low-carbon modes of transport, multimodal solutions, optimized loading and delivery circuits, and energy effi ciency improvements. Development of a climate risk adaptation and management strategy, to maintain the continuity of logistics operations. Re-shoring or near-shoring Challenges: in a multipolar, heterogeneous and confrontational world, global companies are changing their sourcing, production, logistics and product distribution strategies. The fragmentation of globalization, weakened by growing geopolitical tensions, the slowdown of the Chinese economy and protectionist policies, is leading to a reconfi guration of supply chains. This context is driving some companies to shorten their supply chains through re-shoring and nearshoring or make themselves less vulnerable to geopolitical turbulence through friend-shoring. The Group’s response: actively listening to customers, especially the key accounts that GEODIS supports across several regions and lines of business. The aim is to fully understand the challenges they face, so as to be able to propose and develop relevant alternative solutions with them. Development of e-commerce Challenges: the level of e-commerce remains high, particularly in the retail sector. This has generated an increase in the volume of small and medium-sized parcels to be delivered within short timeframes as close as possible to consumers in urban and suburban areas. This entails complete rethinking of fl ow and inventory management without compromising on service quality and complying with environmental regulations in urban areas aiming to reduce city center congestion, CO2 emissions and air and noise pollution, as well as to protect the safety of vulnerable road users (pedestrians, cyclists and so on). The Group’s response: integration of customers’ omni-channel strategies and expertise in optimizing supply chains in real time through complete visibility of inventories and fl ows. Availability of low-emission solutions (alternative energy vehicles, cargo bikes, barges) for last-mile delivery in line with new regulations. Setting up of local storage solutions. Commitment to the circular economy through reverse logistics. Digital transformation Challenges: the logistics sector is at the heart of a global transformation to streamline customer processes and position itself to contend with the rise of digital-native players. Advanced data expertise is a source of performance and competitiveness, and has become strategic for optimizing fl ow management, reducing costs, contributing to decarbonization and reacting more quickly to unforeseen events. Automation and robotics now allow more fl ows to be processed in record time. The Group’s response: use of data and digital technologies to drive innovation that is adapted to the realities on the ground and profi table for supply chain professions. Greater competitiveness and productivity thanks to machine learning (AI). Use of machine learning to optimize delivery routes, plan inventories and reduce costs and losses for customers. Implementation of robotic systems to make operations more effi cient and faster, and to improve working conditions. 2024 ACTIVITY AND SUSTAINABILITY REPORT - 13 EDITORIAL > 1. GROUP PROFILE > 2. GENERAL INFORMATION > 3. ENVIRONMENT > 4. SOCIAL > 5. ETHICS > 6. ANNEXES
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