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How do you think companies can build supply chain resiliency ?
Devin : “ Geopolitical uncertainties , the slowdown of economies , and changing consumer-buyer trends are just a few reasons why working towards supply chain strategies that don ’ t rely on a single global source is essential to build resilience .
“ While the world is very much still connected , wars , sanctions , and regulations will not only impact how and where companies manufacture goods , but also where the components and inventory are stored . In fact , there was a recent announcement of a $ 20 billion investment to onshore manufacturing capacity of cranes for US ports to secure the country ’ s own supply chains and port infrastructure .
“ It isn ’ t just on a global scale where we see tenants looking to build resiliencies in their own supply chains ; we often meet with tenants who express the need for multiple warehouse facilities to allow them the ability to shift between geographies or shipping methods . Agility is essential – our strength is combining the global reach of Brookfield with our local ‘ boots on the ground ’ approach to implement actionable solutions .” Dan : “ We take a holistic view of these challenges ; individual incidents reflect the underlying weaknesses of a traditional supply chain infrastructure and highlights the longer-term megatrend of deglobalization , which is at the heart of our three Ds strategy – Deglobalization , Digitalization , Decarbonization .
“ However , in Europe , we believe the trend will steer more towards regionalization , with local hubs that allow much more adaptability when navigating unforeseen challenges . We ’ re supporting our customers across all sectors to pivot away from global supply chains as a way of building greater resilience , as well as helping them consider the logistics infrastructure they need today and in the future .”
How are you seeing sustainable business practices implemented in supply chain functions ?
Dan : “ Supply chain decarbonization is a growing business priority in Europe , especially in the face of reporting indirect emissions required under the pending EU CSRD . From moving goods to the facilities they are stored in , decarbonizing is trending across the industry , posing a huge opportunity for us to help our tenants . As one of the leading impact investors , Brookfield benefits from a highly experienced network to support the implementation of solutions that tackle carbon emissions .
“ There ’ s a lot of attention on greening supply chains , but logistics infrastructure is a largely untapped opportunity to decarbonize supply chains . For example , the tenants at the e-Valley logistics park in France share infrastructure and resources and can reduce transportation to end users due to the strategic location of the hub being near Paris , helping to improve Scope 1 and Scope 2 credentials .” Devin : “ The US typically trails the EU on sustainability , although more actionable plans have been developed in recent years . IRA legislation has been an impetus to decarbonization , and in logistics , we ’ ve tapped into these opportunities by partnering with Brookfield ’ s renewables businesses to leverage our rooftops for solar power production .
“ We have a solar project commencing in Massachusetts , which will kick off a larger portfolio initiative . Local grid restrictions and differing state policies can hinder broad scale projects , but the communities in which we operate have been incredibly receptive to the benefits of installing solar panels on otherwise unused roof structures .”
What impact does AI and automation have on supply chains ?
Dan : “ We ’ re seeing emerging technologies shaking up the logistics game , such as automated order picking to drive greater efficiency . While there ’ s a general shift towards data driven decision making , I think an
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