In the second part of this two part series, Molly Cooper, Features Editor at The Manufacturer, spoke with Ben Farrell, CEO of the Chartered Institute of Procurement & Supply (CIPS), about the changes happening with modern day supply chains and the need for certified competency.
The evolution of the global supply web
The idea that globalisation is ending ignores human history. People have always expanded their boundaries, moving from villages and towns to a fully connected world. “I can’t see that this is going to change. But it’s how we manage that globalisation now to get to a place where the choices we make are resilient ones,” said Ben.
As he noted in the previous article, industry needs to move away from the idea of a supply chain to a dynamic supply web. Navigating this web requires creating strategic options that protect the organisation, which may involve regional manufacturing groups and a more diversified footprint.
“The goal is no longer just about finding the cheapest source, but building the agility to pivot when disruptions occur.”
Ben Farrell, CEO, CIPS
Moving beyond the AI hype
AI is, and has been a hot topic for a while and this is no different in supply chains. Yet, its practical application in supply chain management varies wildly. Ben explained that while many organisations currently limit their AI usage to advanced word processing or administrative copilots, the true value lies in predictive logistics and network visibility.
“I’ve seen a defence manufacturer use AI to understand their third and fourth-order suppliers for the very first time. They were sourcing items from countries they didn’t even know they were getting them from, because those suppliers were providing components to other organisations. For the first time, they understood that risk.”
This level of deep-tier visibility allows procurement teams to identify hidden vulnerabilities and evaluate whether a supply base aligns with their standards.
The adoption gap
Despite the potential, widespread operational adoption remains cautious. Ben said that in a recent CIPS emergency webinar, polled professionals across 104 countries revealed that only 11% use AI to respond to the crisis at hand.
“There’s a lot of hype around it at the moment, but people are cautious. Where you’re already spending money, it makes sense but businesses aren’t sure exactly where to spend the money yet,” he said.
When properly integrated, AI will enable real-time, dynamic decision-making. The future of the supply web relies on the ability to analyse live data and shift from one supply base to another seamlessly as risks evolve.
The 2050 sustainability challenge
Procurement and sustainability are inseparable. Looking ahead to the global landscape of 2050, supply webs will need to navigate the ever-changing environment they are in. Ben lists three examples of change:
- Population growth: A global population climbing from 8 billion to 9.7 billion.
- Rapid urbanisation: Sixty-five per cent of the population living in urban environments (up from less than 50% today).
- Resource strain: An ageing demographic creating unprecedented demand for healthcare, food, water and new transportation infrastructure.
These shifts mean global supply networks will face great pressure to deliver higher levels of service while simultaneously cutting emissions.
“All of the pressures on emissions are going to be much more challenging unless we do something about it collectively,” Ben warned.
“We need a new perspective on global supply in relation to sustainability otherwise, we are sleepwalking into a place that we don’t want to be.”
Ben Farrell, CEO, CIPS
Skills gap
Modern business is increasingly defined by the strength of its supply web, with top leaders rising directly from supply chain roles. Rather than displacing jobs, technology like AI is creating a freedom for procurement professionals. By automating technical work like data processing, AI allows teams to focus on high-level strategy and relationship management.
“AI is liberating professionals to focus on the parts of their role which is based on human connection and relationship building,” said Ben. As a result, the industry’s future depends on a shift towards softer skills like storytelling, persuasion and building collaborative, shared-purpose partnerships.
Professionalising the future workforce
Looking ahead, there is a growing imperative to formalise professional standards across the sector, particularly in public procurement. Given the massive scale of public spending, there is a critical need for verified expertise to ensure efficiency and accountability.
“We need a minimum standard of competence and people who understand sustainability in the supply chain, efficiency and cost altogether. We need to regulate that to ensure we have qualified people doing the work.”
Ben Farrell, CEO, CIPS
The ultimate goal for industry is to evolve the profession to a stage where certified competency is mandatory. Ben believes that managing the complexities of modern supply webs requires a workforce that is uniformly trained to balance tight budgets with rigorous environmental and operational risk management.
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