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Bavaria, Germany's southernmost state, is in discussions with Intel to establish a European chip factory to alleviate supply constraints that have hindered automobile manufacturing, according to ministers. The US-based manufacturer has been pursuing 8 billion euros in government subsidies to establish a semiconductor manufacturing facility in Europe. A scarcity of semiconductors is causing problems for Europe's car manufacturers and may jeopardise Germany's economic recovery in the wake of the COVID-19 pandemic.

Over the last few decades, technological developments have provided new challenges and opportunities for the supply chain and logistics industry. This doesn't appear to be slowing down as we move into the age of 5G. Although the long-term capabilities of 5G won't be fully comprehended for a few more years, this new technology offers improved communication abilities through faster data speeds with less latency. Thanks to the fast data speeds 5G provides, manufacturing, and other sectors such as procurement and logistics, will be able to perform very accurate processes.

For many years procurement's function and prominence have been growing and this trend was further accelerated during the coronavirus pandemic. Leaders exhibited their capacity to adapt to a variety of setbacks, keeping supply flowing and expenses in check. Innovative procurement executives foresee its potential for growth as the goals of companies change from attempting to limit the negative consequences of the pandemic to resuming economic expansion.

Logistics is a central pillar of Germany's productivity, opening the way for added industrial value, product movement, and inter-organisation collaboration. The logistics industry in Germany is the third-largest contributor to the country's GDP, behind only foreign trade and the automobile industry. The logistics industry hires roughly three million people and generates €200 billion in annual revenue, accounting for an estimated 7% of the country's GDP. The logistics industry is growing at a much faster rate than the rest of the economy. In Germany, about €15 billion is spent on logistics annually.

The role of supply chain managers has become ever more intense over the last decade. SCM links the entire manufacturing process, from raw material processing and distribution to effective production, logistics processes for moving goods to manufacturers and consumers, and ever systems for returning unwanted or faulty products. External forces outside the manufacturing companies' reach affect this increasingly dynamic ecosystem of processes.

In light of the global health crisis supply chain, procurement, and sustainability leaders are invested in rebuilding more robust and resilient supply chains. The emerging collegiality between specific topics includes digital transformation and the integration of sustainability indicators into procurement and supplier management processes. To support a post-COVID world, supply chain leaders must rethink strategy, moving away from 'Just in Time' to 'Just in Case' using supply chain resilience as a strategic differentiator. Additionally, a rethink of monitoring is needed to shift toward digitally integrated intelligence that scales internationally at the speed of cloud platforms and adjust easily into ecosystems.

After a year of intense logistical disruptions as a result of the pandemic, the supply chain and transportation industry were hit by another massive setback that sent shockwaves across multiple international supply chains. The end of March saw a 200,000-ton tanker run aground in the Suez Canal, one of the world's most important trade routes which sees nearly 12% of imports and exports pass through it. One day after the incident, there were more than 100 vessels stuck waiting to transit the 120-mile channel. This catastrophe is set to intensify an already strained pressure point, causing backlogs and delays for days, from which industry professionals across the globe will have to bounce back from.

The German Federal Government has recently approved a law on due diligence, to guarantee the preservation of human rights and the maintenance of environmental regulations at every stage of the supply chain process. The implementation of this regulation ensures that due diligence is upheld not just within the state, but in places where raw materials are extracted and goods are assembled. Companies with more than 3,000 employees will be subject to supply chain standards by 2023, with fines for non-compliance reaching a 2% of average annual sale, for companies that surpass €400 million in sales. Thanks to their industry leading knowledge and a business model founded on being sector-specific, the team at DSJ Global are able to proactively react to this type of industry news as Germany adapts to the 'new normal'.

After a tumultuous period for the manufacturing industry - due to the ongoing effects of the COVID-19 pandemic - positive data has recently been published in the February 2021 PMIS (purchasing managers index survey). This data highlights strong and accelerated growth in Germany's manufacturing sector. This positive turn is partly due to demand from Asia, the US and Europe, which has led to export sales rising to the highest level since December 2017. According to the Association for Supply Chain Management, Procurement and Logistics (BME), the expectations of manufacturers were very positive with regards to the forecasted increase in production levels over the next 12 months. Furthermore, this highlighted the predictions that demand is expected to rebound even further as COVID-19 constraints are relaxed and consumer confidence resumes.

2020 proved to be a tumultuous year for professionals in the logistics and technical operations industry, as the coronavirus pandemic directly impacted the movement, storage, and flow of goods through borders. Plus, travel restrictions crippled the air transport industry and consequently placed intense pressures on shipping and road freight. Despite the unprecedented challenges faced, many in the industry are keen to ensure that plans to make practises more sustainable will still go ahead, such as plans to reduce carbon footprints and ensure ethical and sustainable supply chains. In order to establish a successful benchmark, category managers will be working to obtain more reliable results from suppliers whilst others will be placing pressure on the industry to adopt more sustainable practises throughout the year.