What the iPhone Can Teach Politicians About Trade
I increasingly wish that politicians would acquire basic knowledge of supply chains. In their insightful article The Guts of an Apple iPhone Show Exactly What Trump Gets Wrong About Trade, Dedrick, Linden, and Kraemer critique common misconceptions surrounding reshoring, using the iPhone to illustrate complexities in global supply chains. Amidst debates intensified by Trump’s tariffs on imports, the authors emphasize that China actually contributes minimal value – less than $10 per phone – to the manufacturing of an iPhone, despite high assembly costs appearing on trade deficits. Most significant value comes from the U.S., Japan, Taiwan, and South Korea, reflecting a supply chain where assembly location does not equate to economic dominance. The authors demonstrate that reshoring manufacturing, particularly for products like iPhones, would neither boost the U.S. economy nor restore high-value jobs. Political decision-makers should recognize global supply chains’ complexity. What we need are informed decisions that appreciate how value is created in today’s interconnected global economy – not simplistic trade policies.
“Navigating the Landscape” of Overused ChatGPT Buzzwords
Everyone seems to be “thrilled” these days. Many people write that “X plays a pivotal role in enhancing Y, promoting Z” or that we should “navigate the landscape of” something; that something “will not only do A, but also B”; or that research findings “underscore” or “highlight” something. I now read “foster”, “navigate,” and “leverage” in many documents. And a lot of things seem to be a “testament” to something. People ask us to “join them as they explore” something when they want to “share a milestone” with us or highlight their “New Paper Alert!” with lots of emoticons. They demonstrate that “by embracing A, they are doing B” and they share a lot of “significant insights” after they “dive deep” into something. All of these words, phrases, and sentence structures make sense, but I don’t think it makes sense that we all use the same writing style. Many of us have IKEA furniture in our homes – and try to make sure that other people do not immediately know that it is IKEA. Maybe the same should apply to ChatGPT. Shortly after this tool was released, I fell into some of these traps myself. However, ChatGPT has been around for more than two years now. We should have learned how to use it by now, shouldn’t we?
Taking Academic Ownership of the Supply Chain Emissions Discourse
I am very happy to announce that I have co-authored a new article, Taking Academic Ownership of the Supply Chain Emissions Discourse, with Felix Creutzig. In this editorial, published in the Journal of Supply Chain Management, we emphasize the need for SCM researchers to actively engage with the issue of supply chain emissions, which we define as “the total greenhouse gas emissions generated by the entire network of interconnected and interdependent actors involved in all value-related activities—from upstream to downstream” (p. 3). Our article presents a framework of corporate interventions – categorized as collaborative or authoritative and targeting either behavioral or operational changes – to reduce supply chain emissions and outlines research opportunities using propositional, processual, perspectival, and provocative theorizing. We hope that this work will inspire both academic and practical advancements, particularly by enabling SCM researchers to make meaningful theoretical contributions and assisting SCM practitioners in advancing global efforts to address the climate crisis.
Wieland, A. & Creutzig, F. (2025). Taking Academic Ownership of the Supply Chain Emissions Discourse. Journal of Supply Chain Management, 61(1), 3–13. https://doi.org/10.1111/jscm.12338
Geopolitical, Economic, and Technological Trends in Logistics
A new ISPI-McKinsey report, Logistics in Transition. Exploring Geopolitical, Economic, and Technological Trends, edited by Carlo Secchi and Alessando Gili, examines the challenges and transformations in global logistics. It emphasizes the impact of geopolitical shifts, the climate crisis, and technological advances on supply chains. The report covers a wide range of topics, including the transformation of global value chains, maritime logistics, hydrogen mobility, artificial intelligence, and the decarbonization of ports. It highlights the importance of international cooperation to improve global connectivity and resilience. In addition, the report explores how logistics can adapt to protectionist industrial policies and the dual transition of the digital and energy sectors. It provides strategic insights for Europe, Italy, and companies to mitigate risks and manage these changes. The analysis underscores the need for diversification and redundancy in transportation systems to ensure security of supply and the smooth functioning of the global economy.
Corporate Sustainability Due Diligence Directive (CSDDD)
A few days ago, the European Council approved the Corporate Sustainability Due Diligence Directive (CSDDD). It mandates that companies “should take appropriate steps to set up and carry out due diligence measures, with respect to their own operations, those of their subsidiaries, as well as their direct and indirect business partners throughout their chains of activities”. It clearly takes a supply chain perspective: “The chain of activities should cover activities of a company’s upstream business partners related to the production of goods or the provision of services by the company, including the design, extraction, sourcing, manufacture, transport, storage and supply of raw materials, products or parts of the products and development of the product or the service, and activities of a company’s downstream business partners related to the distribution, transport and storage of the product, where the business partners carry out those activities for the company or on behalf of the company”. It does “not cover the disposal of the product”. The Directive will now go to the EU Parliament for approval.
Personal Predictions for Supply Chain Management in 2024
For several years now, it has been a tradition for me to use this blog to offer a little outlook on the coming months of SCM, a kind of glimpse into the crystal ball. This year, however, it is particularly difficult for me to do so. I have spent the last couple of weeks repairing the extensive damage that the climate crisis has caused to my parents’ house. Since the spring of 2023, the sea surface temperatures have consistently reached unprecedented extremes, leading to evaporation over the Atlantic and heavy rainfall in Germany. My compatriot, climatologist Stefan Rahmstorf, summarizes the current situation in Germany as follows: “Extreme precipitation is on the increase worldwide, including here [in Germany] due to global warming. Climate researchers have been warning about this for more than 30 years; the data from weather stations have long since confirmed it.” I hope you understand that in this situation I don’t feel like making predictions for SCM this year. My hope for this year is that we can all work together to protect the climate, because emissions along global supply chains play a critical role in this necessary transformation.
Building a Circular Supply Chain
The Ellen MacArthur Foundation, in collaboration with the Circular Supply Chain Network, recently published a white paper entitled Building a Circular Supply Chain. This publication addresses the transition from traditional, linear supply chains to circular ones, emphasizing the increased resilience they offer. Circular supply chains, characterized by distributed networks, multidirectional flows, and maximization of product and material use, provide a solution to the vulnerabilities of linear models. These supply chains not only help reduce greenhouse gas emissions and costs, but also minimize dependence on natural resource extraction. The white paper also highlights the key role of supply chain professionals in this transformation. They are responsible for managing the vast quantities of materials in the global economy and can influence the wider adoption of circular economy principles. The paper and an accompanying fact sheet highlight nine focus areas for supply chain leaders to facilitate this crucial transition, providing a comprehensive guide to redefining supply chains in today’s economic landscape.
Navigating the Climate Crisis in Apple’s Global Supply Chain
This article, entitled Apple’s Supply Chain Is on a Collision Course With Climate Change, argues that Apple’s supply chain faces major risks from the climate crisis. Despite its efforts to become carbon neutral, the regions where its suppliers are located are highly vulnerable to climate-related natural disasters and have carbon-intensive energy grids. I believe it would make a great case study for business school classes, using the following questions: 1. Identify and summarize the key challenges and risks Apple faces related to its supply chain in the context of the climate crisis. 2. Propose a risk management plan that Apple can implement (short-term and long-term strategies) to address these challenges. 3. Critically evaluate Apple’s recent carbon offset initiatives. 4. How can Apple “future-proof” its operations against escalating climate challenges? 5. How does Apple’s situation compare to other global electronics companies in terms of vulnerability to the climate crisis? What are the implications for the electronics industry?
Enhancing the Practical Relevance of SCM Research
One hundred years ago, practitioners were the lead researchers seeking to improve production processes. Iconic developments such as the Toyota Production System emerged from the real-world challenges faced by these early scientists. Fast forward to today, and there is a growing concern that our research is losing touch with real-world practice. Toffel’s (2016) article, Enhancing the Practical Relevance of Research, provides an insightful critique of the current state of operations (and supply chain) management research. In it, the author emphasizes that research should address real problems and offer solutions that practitioners can implement. The author suggests ways to bridge the gap between academia and practice: engaging with practitioners, site visits, working as a practitioner, and even forming consulting teams of practitioners. But making research relevant is not enough. Scholars must also ensure that their findings reach the right audience. The article calls on academic institutions – from journals to doctoral programs – to prioritize relevance alongside rigor.
Toffel, M.W. (2016). Enhancing the Practical Relevance of Research. Production and Operations Management, 25(9), 1493-1505. https://doi.org/10.1111/poms.12558
The Tragedy of Deforestation in Our Global Supply Chains
Forests are not only a vital resource for maintaining a healthy and stable climate, but they also provide numerous ecosystem services such as biodiversity conservation, soil conservation, and water regulation. However, supply chains that rely on unsustainable practices are a major threat to the world’s forests. This BBC video emphasizes that immediate action is needed to address the drivers of deforestation and promote sustainable supply chains.
