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After frenetic activity during the pandemic and a decline postpandemic, M&A in transportation and logistics enters a new world in 2024. But major forces are transforming the industry and creating five priorities for M&A investment. The pandemic highlighted the strategic importance of supply chain execution. Many transportation and logistics players looked to M&A to keep things moving and profited handsomely. In 2023, deal activity slowed to a crawl, but 2024 promises new opportunities, as leading investors have amassed funds that they are ready to spend. But the M&A environment is changing, as financial, market, and technology forces are transforming the industry. Would-be dealmakers should prepare for this new world now.

Recognizing the evolving role of Procurement in a new economic era is vital, given significant global disruptions like volatility, regionalized supply chains, AI dominance, and talent scarcity. Procurement faces a substantial challenge in value generation, navigating four key megatrends: multipolar world dynamics, advancements in AI and machine learning, demographic shifts, and the transition to low-carbon energy. Moreover, the concept of new "currencies of procurement" goes beyond cost savings, emphasizing improvements in net margin, securing volume and growth, and leading emissions reduction across the value chain. As Procurement strives to become an end-to-end value entrepreneur, adapt to macroeconomic pressures, and establish a future-ready organizational model, talent management and digitization emerge as pivotal factors in its transformation. 1. Multipolar World Dynamics: Shift towards a multipolar world challenges global value chain interconnectedness. Procurement focuses on resiliency, moving beyond cost improvement, and supporting businesses in volatile markets. 2. Advances in AI and Machine Learning: Rapid AI and machine learning advances empower procurement with deep insights from unstructured data. This enhances spend transparency, optimizes supply chains, and underscores the need for advanced analytics tools. 3. Demographic Shifts: Shrinking workforces and skill gaps intensify competition for digital talent. Procurement seeks candidates with analytical skills and data competence, emphasizing talent management for agile and digital-centric operations. 4. Transition to Low-Carbon Energy: Procurement leads in minimizing value chain emissions, securing green materials, and managing capital for net-zero goals. The trend aligns sourcing decisions with sustainability, reflecting a broader shift towards greener practices. #procurementexcellence #supplychain #innovationinprocurement #supplychainresilience #businessstrategy #strategicbuying #digitaltransformationinprocurement #procurementinsights #futureofprocurement #operationalexcellence #sustainability

Reshoring is changing the game for supply chains, making them more resilient and flexible. Companies are bringing production closer to home, thanks to government incentives and the need to handle disruptions better. They're also adopting decentralized and asset-light models to cut costs and boost sustainability. To make reshoring work, it's all about smart planning and close collaboration across different teams. https://bit.ly/3Mvf1aJ. 

Excellent piece uncovering the pivotal role of Chief Procurement Officers (CPOs) as they guide organizations through transformative change. CPOs are evolving into indispensable partners in executive decision-making, steering organizations to adapt by integrating agility, technology, and innovation into their value chains. 💡 Four megatrends shaping the future of procurement: 💡 🌎 A multipolar world challenges global value chain interconnectedness. 👩💻 AI and machine learning bring spend transparency and insights. 🙌 Demographic shifts intensify competition for digital talent. 💚 The transition to low-carbon energy reshapes resource and energy systems. 📣 New "currencies of procurement" redefine success: 📣 Improving net margin by outperforming the market. 💰 Ensuring volume and enhancing growth strategically. 📈 Leading value-chain emissions reduction for net-zero objectives. 🌱 Companies excelling in reinventing external spend management in this new era can derisk, decarbonize, and optimize their largest cost base. Embracing the new currencies for procurement is crucial for holistic value creation. #Procurement #AI #Sustainability #SupplyChain #Innovation #FutureOfWork

How does private equity revolutionize supply chains, drive innovation, and optimize value? Get a deeper understanding into the transformative role of private equity in supply chain and value chain optimization in the article below, and uncover strategic insights for today's supply chain executives. https://lnkd.in/efN5sPNk --- ⦿ Partner with us in recruiting top executive talent in the value chain, technology, and logistics space. ⦿ Be at the forefront of relevant tech trends to drive change in supply chain & logistics with Supplify. #SupplyChain #SCM #SupplyChainManagement #LeadersInSupplyChain

How does private equity revolutionize supply chains, drive innovation, and optimize value? Get a deeper understanding into the transformative role of private equity in supply chain and value chain optimization in the article below, and uncover strategic insights for today's supply chain executives. https://lnkd.in/efN5sPNk --- ⦿ Partner with us in recruiting top executive talent in the value chain, technology, and logistics space. ⦿ Be at the forefront of relevant tech trends to drive change in supply chain & logistics with Supplify. #SupplyChain #SCM #SupplyChainManagement #LeadersInSupplyChain

Supply chain disruptions, technological advances, agility, and innovation have become paramount. CPOs play a pivotal role, as they navigate these shifts. There are several megatrends shaping procurement; the multipolarity of the world, the growing importance of AI and data analytics, and demographic shifts. It introduces a fresh perspective on "currencies of procurement" that extend beyond traditional cost savings.  McKinsey & Company's article offers valuable support for our advanced  #vendordiscovery solutions. It simplifies vendor management, enhances agility, and drives value creation through technology and data analytics - needed to manage some megatrends. Discover more here: https://lnkd.in/ekhf3rr5 #ProcurementInsights #Forestreet  #vendormanagement   

Informative read from McKinsey & Company - it discusses the shifting landscape of M&A investment in the transportation and logistics industry, with five new investment priorities emerging. Despite deal activity slowdown in 2023, research suggests that 2024 presents new opportunities for M&A investment in the sector, with leading investors poised to spend substantial funds once market conditions stabilize. https://bit.ly/4ajUWOp.

According to this KPMG US article  - “Low touch planning improves predictability enhancing Return on Equity (ROE) by 2 to 4 percentage points, and adds 1 to 3 percent to gross margins across revenue, cost, and assets.” With Goods, in just seven days, you can stop running around with multiple systems, take back control of your supply chain, and get back to concentrating on growing your business. https://lnkd.in/d2qEPh4z