How will supply chains evolve in an energy-constrained, low carbon world?

Volume 1

The first volume of our T&L 2030 series entitled "How will supply chains evolve in an energy-constrained, low-carbon world?" provides a global perspective on the ramifications of energy scarcity and how it is set to reshape the industry. The report draws upon the results of a RealTime Delphi survey among 48 panellists from 20 countries as well as the insights of PwC specialists from around the world. The survey was conducted by PwC in cooperation with the Supply Chain Management Institute of the European Business School. Energy scarcity, consumer behaviour, transport modes and future supply chains represent discrete aspects of how the future may evolve in T&L, each of which is likely to impact the others.

Here are some of the key findings that should inform decision-making in the T&L industry until 2030:

• Oil prices will increase and so will the use of alternative fuels, however neither are likely to revolutionise T&L - but the need to track, document and allocate costs for emissions just may.
• Patterns of individual mobility vary in different regions; however concerns about cost and carbon footprints will spur individuals to reduce holiday and business travel and consume more locally produced goods.
• Supply chain design, including the location of production sites, will need to take energy and emission costs related to logistics processes into account. There will be no reverse of globalisation, but many supply networks will be established at a regional level.

Our publication also includes interviews from two of the sector's top CEOs, which suggest some of the ways today's executives are already thinking about increasing sustainability to prepare for the future. Both interviews highlight the importance of the role of collaboration, be it with governments, or with customers, to achieve environmental goals.