Redesigning supply chains for a divided world

It is no exaggeration to say that global supply chains are in a period of unprecedented upheaval. Tariffs, geopolitical realignments, climate-driven disruptions, and escalating stakeholder scrutiny have created a level of complexity that many procurement leaders describe as the most challenging of their careers. 

​And while each industry faces its own unique battles — sourcing cotton at scale is a very different problem from securing clean energy inputs — there is a growing recognition that the underlying forces reshaping supply chains are universal. 

​Across our work with procurement and operations teams, we’ve seen how often these conversations happen in silos. Yet the most powerful insights tend to emerge when leaders step outside their sector and learn from adjacent industries. Supply chain resilience is no longer a category-specific puzzle; it has become a cross-industry discipline with shared risks, shared technologies, and shared opportunities. 

​To surface these shared lessons and catalyze a more connected dialogue, Phronesis Partners convened an exclusive group of cross-industry senior executives, founders, board members, and investors, brought together for a high-level round table featuring a keynote address by Paul Polman, former CEO of Unilever. The session united leaders shaping the future of technology, energy, fashion, mining, investment, global trade, and public policy—creating a rare forum for candid, cross-sector insight-sharing. ​

Their perspectives reflect the emerging front line of the next supply-chain battleground — a world where technology, natural resources, and above all, the capacity for resilience will determine competitive advantage.  

​Senior executives convene to discuss supply chain challenges

Deglobalization follows disruption 

There are three major forces driving change in global trade today: deglobalization, nearshoring, and the rising threat of reputational risk. 

​We have already seen the diversification of manufacturing away from China as a sole hub towards other countries in Asia, Latin America, and Eastern Europe – and in a year of economic disruption, the move towards deglobalization continues to increase. 

​Ninety-five percent of supply chain executives cite tariffs as a primary disruptor, pushing sourcing from China to Vietnam, Cambodia, and nearshoring destinations¹. Trade policy changes have prompted 91% of operations and supply chain leaders to consider significant shifts to their strategy²; while almost half of U.S. businesses planned to increase nearshoring volumes in 2025.³ 

​These transitions mean that regionalization is no longer theoretical. It’s operational. And with global alliances being redrawn, friend shoring – connecting like-minded trade partners – will also become more common. 

​The success of implementing the so-called ‘great supply chain reset’ relies on shared intelligence, cross-industry standardization, and strong leadership. As former Unilever CEO Paul Polman, speaking at the round table, put it: “Systems don’t change if people don’t change. An organization changes if a leader is committed.”

​Bringing business together

In fact, it was widely acknowledged by executives at the event that the only way to effect real supply chain transformation was to work with and learn from cross-industry peers. Several leaders characterize the current environment as the 'great supply chain shift,’ marked by structural shifts that require organizations to reassess legacy operating models and adopt more resilient, data-driven approaches. By doing so, Polman observed, “You always come out a little bit better and a little bit richer and hopefully with some great ideas that benefit our businesses.” 

​Among the challenges that could be solved more effectively with a cross-industry hive-mind approach are managing trade and regulatory changes, understanding investment opportunities and gaining access to innovative solutions – leading to greater financial, digital and organizational resilience. Tomorrow’s resilient supply chains will be built by partners who collaborate, not compete, across boundaries. 

​As a co-author of the United Nations Sustainable Development Goals, one of Polman’s most firmly held beliefs is in the power of a net positive approach, where businesses come together to optimize return for all stakeholders; bearing in mind not just monetary returns, but also impact on human health and the environment. 

​“Being less bad is simply not good enough anymore,” he declared. “We need to get people to think what it means to be regenerative, restorative, reparative, not only as individuals itself, but also as companies.” 

​Sustainability as a net positive

Consumers are turning away from global brands who are focused solely on price towards more thoughtful producers who can demonstrate local provenance and a commitment to limiting harmful impacts.  

In a 2024 study, 60% of consumers said their concerns about climate change had increased⁴, while sustainable packaging, innovative materials and true craftsmanship emerged as key factors in the purchase of luxury fashion in a 2025 study⁵.  

​Andrew Xeni, Founder of British retailer Nobody’s Child and CEO of tech firm Fabacus, has introduced digital product passports (DPPs) into every item in Nobody’s Child’s winter collection. The response has been overwhelmingly positive.  “I do believe that if the consumer believes in the authenticity of your responsible credentials and your efforts, it yields an incredible return,” he said. 

​Keeping pace with tech transformation

Many product and goods-driven businesses have turned to digital product passports (DPPs) to help ensure traceability. As well as fashion firms like Nobody’s Child, this includes mining multinational Rio Tinto, whose Global Head of International Affairs and Strategy, Mark Richards, spoke about the company’s proprietary DPP system. 

​Known as START (Sustainability, Traceability and Assurance by Rio Tinto), the tool uses blockchain to generate product information across 14 different ESG factors, from water and carbon to health and safety and diversity. The initiative has been up and running for a decade, putting mining companies like Rio Tinto ahead of the curve on traceability methods. 

​Technology can help solve many supply chain challenges. Yet tech tools are often evolving much faster than the pace of adoption. Research shows that while 53% of firms already use AI to anticipate and mitigate disruptions, only 23% have a formal AI strategy⁶. 

​Those at the leading edge of AI are unsurprised by this disconnect. As Elke Karkens of OpenAI noted, “It's still very early days for a lot of organizations, and they often don't know where to get started. Despite a lot of industries dabbling in AI, I think the common denominator; what we're seeing in terms of success are organizations that aren't waiting for the perfect path to be laid out for them to start getting involved with this technology.” 

​Karkens suggested a number of characteristics for successful AI adoption: willingness to experiment, clear KPIs, and most importantly, executive buy-in. “The organization needs to be willing to move, and willing to move fast,” she said. 

​What was clear from this event is that prioritizing agility cuts across supply chain transformation – whether in implementing new technology at speed or in realigning centers of production and trade partnerships. 

​Many thanks to Saranac, Spheres Advisors and Sourcing Journal for their input and support. 

​To learn more about our cross-industry events including Executive Roundtables, contact [email protected]. 

​Download the presentation: Redesigning Supply Chains for a Disrupted World.

Notes:

[1] 95% of Supply Chains Are Shifting Due to Tariffs and Geopolitics—Are You? | Inspectorio

[2] 2025 Digital Trends in Operations survey: PwC

[3] Nearshoring & Reshoring Trends: Recent Data | QIMA

[4] The Sustainability Puzzle: What Do Consumers Really Want? | Bain & Company

[5] EY Luxury Client Index 2025 | EY - Switzerland

[6] 2025 Digital Trends in Operations survey: PwC