ReportWire

Tag: Supply Chain

  • Canopy issues warning on tightening global wood fibre supply

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    Canopy, which collaborates with over 1,000 brands to facilitate supply chain shifts that protect forests and promote low-carbon practices, has presented new research on vulnerabilities in global wood supply chains. The nonprofit also announced a $2bn blended finance platform aimed at expanding sustainable textile production.

    The new research brief, created in partnership with Finance Earth, outlines pressures affecting global wood supply chains due to climate impacts, regulatory changes, and increased competition for forest resources.

    The report identifies key risks for businesses that rely on forest products, including rising demand for wood fibre in multiple sectors that now surpass what forests can sustainably provide.

    Further challenges highlighted include limited wood availability resulting from land competition and ecosystem degradation, alongside stricter compliance requirements related to regulations such as the EU Deforestation Regulation and human rights due diligence obligations.

    The research recommends three approaches for companies:

    1. Lessen dependence on raw wood by expanding the use of circular and next-generation materials created from sources such as agricultural by-products, discarded textiles, and recycled materials, to separate growth from the use of primary forests and reduce vulnerability to fluctuations in price and regulatory requirements.

    2. Strengthen the security of the remaining wood supply by making sure any ongoing use of new wood is properly certified, fully traceable, and evaluated for environmental and community impacts, including risks to ancient forests, endangered ecosystems, Indigenous Peoples, and local populations.

    3. Prepare for potential disruptions by including wood-related risks in scenario planning and stress testing processes, as well as directing investment towards more robust sourcing methods and strategies.

    Canopy founder and executive director Nicole Rycroft said: “Forests are one of our greatest climate allies and central to meeting global climate and nature targets, yet current sourcing models and supply chains are pushing them to breaking point. This brief makes it clear: if companies and investors stay locked into business-as-usual wood sourcing, they are signing up for higher costs, greater supply vulnerability, and growing regulatory and reputational risk. This exposes businesses unnecessarily, given there is a clear exit ramp with Next Gen and alternative sources.”

    Through the newly launched finance platform, Canopy will involve government representatives, private sector participants, investors, and philanthropic organisations to support wider adoption of sustainable textile materials.

    Canopy’s replicable blended finance model aims to fund the full value chain, from feedstock systems and pre-processing to mill upgrades and bankable offtake agreements. The programme will initially launch in India, where abundant residues and recycled textiles, strong fibre-processing capacity, and rising global demand support rapid scaling. By aligning catalytic capital, private investors, and supply-chain partners under one coordinated approach, it seeks to scale Next Gen production across paper, packaging, and MMCF textiles, creating a template for other markets.

    Canopy’s 10th edition of the Hot Button report, released on 16 October 2025, highlighted that the global man-made cellulosic fibre (MMCF) supply chain has seen an increase from no low-risk Green Shirt producers in 2016 to 21 in 2025.

    “Canopy issues warning on tightening global wood fibre supply” was originally created and published by Just Style, a GlobalData owned brand.

     


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  • Supercharge Your Retail and CPG AI Strategy in 2026

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    As a C-suite advisor working closely with retail and consumer packaged goods (CPG) brands, I am seeing a consistent pattern across the industry. Leaders recognize that AI has the power to transform how they forecast demand, manage supply chains, engage consumers, and operate stores and plants. Yet despite high ambition and extensive experimentation, most organizations are not capturing enterprise level value. Many have multiple pilots running, but few have built the operating systems required to scale AI responsibly and profitably. At the same time, AI capabilities are advancing at a pace that outstrips traditional planning and deployment cycles. To win in 2026, retail and CPG companies must shift from fragmented activity to an integrated, disciplined approach that makes AI a core driver of growth, speed, and resilience.

    This shift starts with process intelligence. Real value emerges only when AI is anchored in an accurate understanding of how work happens across manufacturing, distribution, stores, digital platforms, and consumer interactions. Combined with targeted prioritization, workflow redesign, and continuous iteration, process intelligence becomes the backbone of an AI strategy that consistently delivers measurable outcomes. The following four box framework reflects the highest performing organizations’ practices and provides a clear roadmap for retail and CPG leaders ready to accelerate impact.

    Box one: Map operational truth with process intelligence

    Across retail and CPG operations, work rarely flows as designed. Stores follow multiple replenishment patterns depending on staffing. Plants exhibit microvariations in setup and changeover that suppress throughput. Digital channels contain subtle breaks that increase abandonment and returns. Supply chains absorb friction in ways that leaders cannot easily see. Process intelligence reveals these realities by reconstructing actual workflows, highlighting variation, bottlenecks, and inefficiencies.

    This visibility is essential because the companies capturing the greatest AI returns are those that redesign workflows during deployment. They cannot redesign without understanding the truth. Process intelligence shows precisely where AI should intervene and what must change for AI to succeed. Examples include identifying that most out-of-stocks originate from backroom accuracy issues rather than forecasting, discovering that promotional execution varies significantly by retail partner, or uncovering that production delays stem from a pattern of short stoppages overlooked in manual reporting.

    With this fact base, leaders can move beyond assumptions and direct AI investment toward the highest leverage points.

    Box two: Prioritize AI where margin, growth, and friction collide

    The most common mistake retail and CPG leaders make is spreading AI efforts too thin. High performers take the opposite approach. They identify where AI can most meaningfully shape margins, growth, and consumer experience, then channel resources into those opportunities. A structured intake and evaluation model ensures that the best ideas rise to the top based on economic potential and feasibility, rather than enthusiasm alone.

    For retailers, high value opportunities often include demand forecasting, allocation, replenishment, labor optimization, personalization, and service automation. For CPG companies, predictive maintenance, inventory planning, trade optimization, supply chain synchronization, and accelerated insights generation offer the strongest returns.

    A disciplined prioritization framework evaluates impact. It also evaluates feasibility and data readiness, in addition to reuse potential. This prevents wasted energy and ensures AI is deployed where it can reshape performance. Examples include targeting AI toward rework loops in retail contact centers, applying machine learning to optimize trade spend effectiveness, or using predictive models to reduce factory downtime. This focus ensures that AI investments meaningfully influence financial and competitive outcomes.

    Box three: Redesign workflows to embed AI, not sit alongside it

    AI only creates lasting value when it is woven into the flow of work. Retail and CPG companies must redesign processes so AI informs or automates key decisions and employees know how to collaborate with these systems. Workflow redesign transforms AI from a tool into a capability.

    In retail, this might include closed loop replenishment systems that link shelf scanning, automated ordering, and dynamic labor scheduling. In customer experience, AI might be embedded directly into omnichannel journeys to improve guidance. It could be used to reduce returns and accelerate resolution. In CPG operations, predictive quality and yield models may be integrated into line operations, while agent-based systems support procurement, logistics, and planning teams.

    Workflow redesign also requires data consistency, clear decision rights, and ongoing human oversight. Employees must understand how to supervise AI and refine its outputs. When workflows are redesigned, AI drives speed, accuracy, and consistency while unlocking new capacity for higher value work.

    Box four: Build continuous governance, measurement, and iteration

    Retail and CPG operate in highly dynamic environments shaped by promotions, seasonality, supply volatility, and shifting consumer sentiment. AI systems must be equally dynamic. Continuous evaluation and strong governance are needed, while rapidly iterating to ensure that AI remains accurate and effective.

    Leaders must establish governance structures that clarify decision rights, protect data, and accelerate approvals. They must define clear performance indicators such as grounding accuracy, reliability, response time, cost efficiency, and business impact. AI systems should be monitored continuously to detect drift and unexpected behavior. They also monitor performance degradation.

    Iteration closes the loop. Retailers may retrain demand models weekly to capture new patterns, refine pricing recommendations when overrides reveal model gaps, or adjust customer service workflows based on real world usage. CPG brands may refine predictive maintenance models based on emerging line performance or recalibrate trade algorithms based on retailer specific dynamics.

    2026 and beyond

    In my role, I see unmistakable momentum paired with equally significant risk. AI is poised to redefine the future of both sectors, yet only the organizations that establish the operating systems required for scale will capture its full value. Process intelligence provides the clarity needed to understand how work truly happens. Rigorous prioritization ensures that investment flows to the opportunities with the greatest strategic return. Workflow redesign creates the structural conditions for AI to operate effectively in that workflow. Continuous iteration enables systems and teams to adapt as markets and operations evolve. Together, these capabilities form a disciplined, enterprise ready AI strategy capable of delivering durable competitive advantage.

    Go inside one interesting founder-led company each day to find out how its strategy works, and what risk factors it faces. Sign up for 1 Smart Business Story from Inc. on Beehiiv.

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    Charisma Glassman

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  • How Chemical Transparency Builds Consumer Trust 

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    The chemical industry is at a turning point. What used to be casual consumer curiosity about ingredients has become a non-negotiable demand for complete transparency. This shift is fundamentally changing how every business that deals with chemicals operates, and companies that don’t adapt are getting left behind. 

    After serving over 90,000 customers through Lab Alley, I can tell you this isn’t a trend that will reverse itself. It’s the new baseline for doing business. But here’s what most companies miss: Transparency isn’t just about avoiding problems anymore. It’s become a growth driver. 

    Why transparency is reshaping consumer expectations 

    The transparency revolution stems from several converging forces, though digital connectivity might be the biggest game-changer. According to research from Commport, 62 percent of online shoppers will not buy from companies with incorrect product data, and consumers now have unprecedented access to product information. 

    Regulatory changes have also accelerated these demands. The FDA’s recent Chemical Contaminants Transparency Tool signals government commitment to what HHS Secretary Kennedy calls “radical transparency” that extends beyond traditional disclosure requirements. 

    Then there’s the generational shift. The Commport research also shows that 94 percent of consumers are more likely to remain loyal to brands offering complete transparency, with 56 percent saying that such transparency would make them “loyal for life.” This impact is stronger among specific demographics: 90 percent of millennial respondents would buy from a company they see as purposeful, while 45 percent of Gen Z shoppers are more interested in brands they think are trustworthy. These statistics represent the future of purchasing power in both consumer and business markets. 

    What transparency looks like in chemicals 

    Chemical transparency goes beyond disclosing ingredient lists. It means giving access to comprehensive documentation, robust verification systems, and clear communication about how products are developed, manufactured, and distributed.  

    This begins with precise specifications disclosures. Rather than broad categorizations like “industrial grade,” both consumer brands and B2B customers now expect detailed purity percentages, moisture content specifications, and comprehensive impurity profiles. Take our USP-grade glycerin. We provide detailed certificates of analysis showing exact purity levels, specific gravity measurements, and chloride content specifications. 

    Geographic sourcing has become just as important. With the U.S. imported approximately $320 billion in chemical products annually (as of 2019), customers increasingly request complete country-of-origin documentation and alternative sourcing options. B2B buyers need this information for risk assessment and compliance with their own transparency commitments. 

    Certifications as trust signals 

    Third-party certifications used to be nice extras that companies could add if they wanted to stand out. Not anymore. Today, they’re essential for building trust between what suppliers claim and what customers actually believe. The certifications that really matter for transparency include: 

    Kosher and Halal certifications signal stricter manufacturing processes and appeal to both religious and secular markets. USP verification ensures you meet pharmaceutical-grade standards for purity and consistency. RSPO certification addresses the sustainability concerns around palm oil derivatives that customers increasingly demand. Organic certification meets the growing push for naturally-derived ingredients, while ISO certifications demonstrate you have comprehensive quality management systems in place. 

    Each certification requires rigorous third-party auditing and ongoing compliance, but provides customers with verified assurance that products meet specific standards without requiring independent verification. 

    Industries driving the demand 

    As of 2025, three industries are driving transparency standards across the entire supply chain, and their requirements are quickly becoming benchmarks for other sectors. 

    Food and beverage manufacturing: This has become a demanding sector, reformulating products for cleaner labels and creating pressure for ingredients with consumer-friendly names like “cultured wheat extract” instead of “potassium sorbate.” They need batch-level tracking, shelf-life documentation, and comprehensive allergen information because one contamination incident can trigger widespread recalls.  

    Cosmetics and personal care: These companies are responding to the clean beauty movement by seeking natural alternatives to synthetic ingredients. The EU’s cosmetics regulations have established global transparency standards that affect suppliers worldwide. 

    Pharmaceutical manufacturing: This sector has expanded transparency demands beyond regulatory compliance to include comprehensive risk management and supply chain security, requiring detailed supplier qualifications and facility inspection information. 

    Risks versus benefits 

    The contrast between companies that embrace transparency and those that resist it has become stark, with measurable business consequences. 

    Risks of opacity: Companies resisting transparency face escalating risks. According to the Commport research, businesses that cannot provide comprehensive product documentation are being eliminated from procurement processes before price discussions even begin. 

    Regulatory agencies are implementing increasingly stringent disclosure requirements, and supply chain vulnerabilities without detailed supplier information can cause production delays and permanent customer relationship damage. 

    Benefits of openness: That 94 percent consumer loyalty statistic translates directly to business performance. Our customer retention exceeds 95 percent among accounts receiving comprehensive transparency documentation, with these customers consistently expanding their purchase volumes over time.  

    Beyond loyalty, transparent companies command premium pricing through documented value propositions while gaining access to new markets through verified certifications. The operational benefits are equally compelling; transparency systems dramatically reduce customer service inquiries and shorten sales cycles by giving buyers immediate access to the information they need. 

    Build your transparency strategy 

    Start with comprehensive documentation systems, including complete records of sourcing, manufacturing processes, and quality control procedures. If you can’t document it, you can’t be transparent about it.  

    Then, focus certification programs on credentials that provide the greatest market access for your target markets. Finally, ensure organizational commitment through training programs that help employees understand how their roles contribute to transparency objectives. 

    The path forward 

    Chemical transparency has evolved from consumer preference to business imperative. At Lab Alley, our transparency commitment has enabled rapid growth while building deep customer relationships based on trust and verified performance. This approach requires ongoing investment, but the returns through customer loyalty, market access, and operational efficiency continue to exceed our expectations. 

    The chemical industry’s transparency revolution is accelerating. Companies that embrace this change will thrive in the evolving marketplace; those that resist will find themselves competing on price alone in a market that increasingly values verified quality and comprehensive documentation.  

    The opportunity is clear. Will your company lead this transformation or follow others who recognized transparency as the competitive advantage it has become? 

    The final deadline for the 2026 Inc. Regionals Awards is Friday, December 12, at 11:59 p.m. PT. Apply now.

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    Fred Elabed

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  • How China’s Chokehold on Drugs, Chips and More Threatens the U.S.

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    BEIJING—China has demonstrated it can weaponize its control over global supply chains by constricting the flow of critical rare-earth minerals. President Trump went to the negotiating table when the lack of Chinese materials threatened American production, and he reached a truce last week with Chinese leader Xi Jinping that both sides say will ease the flow of rare earths.

    But Beijing’s tools go beyond these critical minerals. Three other industries where China has a chokehold—lithium-ion batteries, mature chips and pharmaceutical ingredients—give an idea of what the U.S. would need to do to free itself fully from vulnerability. 

    Copyright ©2025 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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    Yoko Kubota

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  • Lee’s Famous Recipe Chicken Renews Partnership With ArrowStream Keeping Supply Chain Crisp

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    Lee’s Famous Recipe Chicken Strengthens Supply Chain Operations with ArrowStream


    CHICAGO, November 4, 2025 (Newswire.com)
    –
    ArrowStream, Inc. (“ArrowStream”), the leading provider of end-to-end supply chain management software for the foodservice industry, announced today Lee’s Famous Recipe® Chicken (“Lee’s”), a name synonymous with delicious, home-style fried chicken, has renewed its partnership with ArrowStream to continue modernizing its supply chain performance and operational efficiency.

    For nearly 60 years, Lee’s has been famous for its hand-breaded chicken that is prepared fresh daily. Starting as a single store in Lima, Ohio, Lee’s has grown across the United States and Canada to over 130 locations. With ambitious growth plans in the coming years, Lee’s continues to be supported by ArrowStream Central, a platform designed specifically for restaurant operators to streamline operations, reduce costs, and improve efficiency.

    With ArrowStream Central, Lee’s gains real-time visibility into its purchasing and distribution data, allowing its team to quickly identify issues, analyze spend, and uncover savings opportunities. The platform also enables Lee’s to manage supplier compliance, ensure accurate pricing, and maintain product consistency across all restaurant locations.

    “ArrowStream has become an essential part of how we manage our business,” said Ryan Weaver, CEO at Lee’s Famous Recipe Chicken. “We operate a lean team, but because ArrowStream’s platform is so intuitive and easy to use, we’re able to fully leverage everything it offers. It’s a robust solution that gives us the visibility, control, and insights we need to make confident decisions, keep our supply chain efficient, and support our restaurants as we continue to grow.”

    By centralizing data and improving communication across its network, ArrowStream helps Lee’s proactively address supply disruptions, quickly resolve product quality and service incidents through Foodservice Incident Management (FSIM), and stay ahead of market shifts. This partnership ensures the brand can maintain high-quality standards, resolve issues efficiently, and deliver a consistent guest experience, even as supply chain demands evolve.

    “We are proud to continue supporting Lee’s Famous Recipe Chicken,” said Jay Moon, Chief Customer Officer at ArrowStream. “Our goal is to help operators like Lee’s simplify the complexity of supply chain management through better data, stronger partnerships, and smarter decision-making. Lee’s success demonstrates how technology and collaboration can work together to drive performance across the entire supply chain.”

    Lee’s is part of a growing group of restaurant brands using ArrowStream to optimize sourcing, maintain quality compliance, and manage costs more effectively. From large national franchises to emerging regional chains, ArrowStream provides foodservice operators with the tools and insights needed to stay competitive in a fast-changing industry. That is why brands like IPC Subway, Topgolf, and Noodles & Company trust ArrowStream to elevate their supply chain.

    For restaurant chains interested in improving visibility and control within their supply chain, reach out to a supply chain expert at ArrowStream to learn more.

    Contact Information

    Joe Ferrell
    VP, Marketing – SaaS Division
    joe.ferrell@buyersedgeplatform.com

    Source: ArrowStream

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  • Tariff-Driven Shifts Continue to Shape Asia’s Manufacturing Activity

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    Factory activity gauges in Asia reflected a divergence across major exporting economies, as worries over U.S. tariffs continued to cause shifts in supply chains.

    The latest set of S&P Global purchasing managers indexes showed that goods producers in export powerhouses South Korea and Taiwan flagged deteriorating demand last month, but Southeast Asian countries like Vietnam and Thailand recorded a pickup in new orders.

    Copyright ©2025 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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    Kimberley Kao

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  • More trick, less treat: expect smaller candies at Halloween as prices rise – MoneySense

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    Trick-or-treaters hoping the trend is temporary are likely to be disappointed, as climate change and other factors are expected to make higher cocoa prices a new long-term reality. Companies trying to manage sky-high prices for ingredients can only pass along so much of the cost to consumers, so they have turned to portion sizes, alternate ingredients and other strategies as well. 

    Candy makers get creative as cocoa costs stay high

    Cocoa prices have more than doubled over the past two years due to poor weather and crop disease in West Africa, which supplies more than 70% of the world’s cocoa.

    The North American benchmark price for a tonne of cocoa stood at US$6,207 on Wednesday, according to the International Cocoa Organization, which releases a daily average of futures prices for the commodity in London and New York. That’s down from December’s peak of US$11,984, but it’s still 60% higher than two years ago. Prices had held steady at around US$2,500 for more than a decade leading up to 2023.

    “It has come down a little bit from its peak, but it’s still almost triple what it used to be,” said Jo-Ann McArthur, president of Nourish Food Marketing. “You can’t absorb that as a manufacturer.”

    Signs of a pivot have already emerged. Hershey Co. launched chocolate nuggets filled with pumpkin spice latte flavour this fall, while its Reese’s peanut butter cups got a Halloween makeover with werewolf tracks—substituting half the chocolate coating with vanilla cream. (Some of these new variations are not yet available in Canada.)

    With the nuggets, “they’ve used that filling to really change the composition of the Halloween candy to reduce the amount of chocolate,” McArthur said. “They’re turning a negative into a positive. That’s clever product innovation.”

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    Climate and economic factors point to lasting cocoa challenges

    Some chocolate makers are also using cocoa substitutes, such as chocolate powder or a shea butter mix to reduce ingredient costs, McArthur said. “You’re going to have to fundamentally use less cocoa, less chocolate,” she said. “With climate change, this is probably a long-term phenomenon.”

    Climate scientist Anna Lea Albright said climate change-induced heavy rainfalls in West Africa are affecting cocoa yields. “We find that heavy rainfall is damaging, so in a very broad sense, that poses a risk to cocoa production without adaptation,” said Albright, an environmental fellow at Harvard University’s Center for the Environment. 

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    On top of that, factors such as El Niño are factors in year-to-year variation, she added.

    Environmental impacts are making cocoa pricing more volatile. According to the International Cocoa Organization, prices surged in early June on concerns about production in Ivory Coast but eased on optimistic forecasts for production in Ghana and Latin America. They rose again in late June after heavy rains in West Africa, which could worsen the outbreak of diseases that harm crops.

    Albright said other non-climatic factors, such as rising fertilizer costs, are also adding to cocoa supply disruptions. 

    “It’s going to be challenging for any manufacturers who use cocoa in their products,” said Tim Webb, partner for supply chain and procurement at KPMG in Canada. “It’s unlikely that cocoa prices will return to more normalized levels given tight supplies, tariffs, and the added compliance cost of tracing and disclosing cocoa supplies,” he said. 

    Rising costs squeeze chocolate makers and consumers alike

    Some chocolate makers raised prices to adjust to the rising ingredient costs earlier this year, while others have downgraded their sales estimates as consumer demand wanes.

    Chocolate maker Lindt & Spruengli AG, a global powerhouse, in July reported higher cocoa costs and lower volumes in its mid-year report, with the slower sales largely concentrated in North America.

    Hershey’s, meanwhile, announced earlier this year it was raising its retail prices, and in some cases, shrinking the packaging with the same price. The price increases, however, were not reflected in Halloween packaging.

    The average price increases were in the low double-digit percentages to make up for the higher cost of cocoa and other ingredients. Prices of confectionary products rose 9.2% in September, compared with 5.8% the previous month, Statistics Canada reported on Tuesday.

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    The Canadian Press

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  • How cargo thieves steal millions of dollars of goods by posing as legitimate truckers

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    Los Angeles — On Tuesday, the San Bernardino County Sheriff’s Department in Southern California announced the arrests of a dozen people accused of stealing millions of dollars in goods through a cargo theft ring that used legitimate trucking companies as cover.

    But the goods they stole represent just a drop in the bucket of a nationwide problem: cargo thefts account for up to $35 billion in losses in the U.S. every year, according to the National Insurance Crime Bureau, with many heists happening while shipments are in transit through sophisticated online schemes.

    “People obviously are driving the freeways and they see commercial trailers up and down the freeway all day long, but no one really knows if that is a stolen load that they’re driving next to, and or if it’s just going from point A to point B,” said Lt. Dave Navarro with California Highway Patrol.

    It can be tough to spot, Navarro said, because many cargo heists start out looking like legitimate transactions. First, thieves steal a business’s identity, then they trick shippers into handing over entire container loads.

    That’s how Utah-based Ari Bikes lost a truckload of almost 350 new bicycles.

    Tyler Cloward, Ari Bikes’ director of product development, says the company that signed up to deliver the load turned out to be thieves impersonating a legitimate trucking company’s email.

    “It looked completely real, everything checked out,” he said.

    Last November, Santo Tequila, a company owned by celebrity chef Guy Fieri, lost 24,000 bottles of tequila worth over $1 million in a similar scheme, “60 Minutes” reported. Criminals created fake online profiles of trucking companies, bid on jobs they suspected might be valuable and hired unsuspecting drivers online to pick up the shipment.

    But instead of sending the drivers to the Santo warehouse in Pennsylvania, the criminals remotely redirected them to take the shipment west — all the way to Los Angeles. About 11,000 bottles were eventually recovered by police, but the rest were never found.

    As for Ari Bikes, after the company put out a call for help online, the biking community came through. A local shop sent a video of a man bringing one of the stolen bikes in looking for parts. Cloward got most of the bikes back, but he’s still finding listings for the remaining ones at deep discounts online.

    Navarro says if a deal looks too good to be true, it just might be, and customers can protect themselves by doing a little research on a seller before purchasing high value items online.

    “Call the phone number, see if the phone number works, go to the website, see if the website works,” said Navarro. “Do some checks and balances before you throw your money out there.”

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  • How cargo thieves intercept truckloads of goods along the supply chain

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    A sheriff’s department in Southern California announced the arrests of a dozen people accused of stealing millions of dollars in goods through a cargo theft ring that used legitimate trucking companies as cover. But the goods they stole represent just a drop in the bucket of a nationwide problem. Carter Evans reports.

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  • Vestas Shelves Plan for Polish Wind Turbine Factory on Low European Demand

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    Vestas Wind Systems VWS -3.14%decrease; red down pointing triangle said lower demand in Europe has pushed it to pause the planned construction of a new factory in Poland.

    The Danish wind turbine maker last year unveiled plans to build a new blade factory in Szczecin, near the Baltic Sea coast, to support Europe’s build-out of offshore wind parks.

    Copyright ©2025 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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    Dominic Chopping

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  • Opinion | Allies United Against China on Rare Earths

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    Treasury Secretary Scott Bessent said Wednesday he plans to coordinate with allies to counter China’s weaponization of rare-earth minerals. It’s the right move, though he might find it easier to rally the world if President Trump weren’t also hitting our allies with unprovoked unilateral tariffs.

    Mr. Bessent earlier in the week accused Beijing of pointing “a bazooka at the supply chains and the industrial base of the entire free world,” by threatening global export controls on products that contain even minuscule amounts of Chinese rare earths. He’s right. China has a stranglehold on these minerals, and it’s a serious problem.

    Copyright ©2025 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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    The Editorial Board

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  • How Customs Brokers Are Using AI to Cut Tariff Costs

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    Both before and since President Donald Trump cemented the details of his sweeping import tariffs in August, U.S. businesses have scrambled to find ways to limit the considerable cost increases attributed to the duties. Those levies have jacked up prices on finished imported products and materials, prompting companies turn to businesses developing specialized artificial intelligence (AI) tools that permit importers to keep pace with complex and shifting rules and rates — and reduce their impact on bottom lines.

    While the new tariffs generated extra costs and considerable uncertainty for most companies, they’re a growth driver for logistics and customs brokerage businesses. That’s particularly true for relatively young and innovative startups in the sector. They’re now fielding a surge of requests for help from existing and prospective customers not seen since a pandemic-era spike in demand. Increasingly, those and other enterprises are offering specialized AI solutions to analyze the shifting details effecting importing costs — and help clients navigate those and gain insights about their best choices for the future.

    Flexport, a San Francisco freight forwarding startup and a 2022 Inc. Best in Business honoree, this week released a slate of AI tools that automate and analyze import data, and allow users to select the best options for their near and long term future. According to a recent Wall Street Journal report on the product launch, the new apps “help retailers and manufacturers comply with rapidly changing tariff policies,” and “analyze customs filings for errors and compliance risks, and that identify ways of reducing future duties.”

    The growing selection of AI-powered tech tools focus on dealing with tariff costs and compliance is as diverse as they are powerful. They optimize the timing departures and arrivals of shipments to benefit from lower transport and duty rates, and identify new suppliers in countries that face lower customs duties. Some are so granular they can audit a customer’s machinery and other assets, and identify internal parts that can be replaced with compatible alternatives with lighter levies.

    Chicago-based FourKites and New York-based Altana go even farther. Each of those startups create a digital twin of a customer’s supply chain, orders, inventory, and shipments en route. They then use that data to generate real-time risk analyses and recommendations for better and cheaper alternatives — both before and after tariffs are applied.

    On the in-house side, Salesforce released a new AI agent earlier this year that client businesses can give to their own customs specialists. The automated tech allows those experts to keep track of and respond to the frequent changes to the tens of thousand import classifications and codes applicable to individual products. Those include raw supplies like steel and lumber, as well as goods assembled from a wide variety of tariff-affected materials.

    Whether that AI tech focuses on specific areas of importing and tariffs, or provides a wider range of ways to assist importers, their objectives generally cover similar ground. That usually means optimizing procurement, automating product classification analysis, and ensuring compliance with U.S. Customs rules.

    They also forecast a company’s developing demand for imports, then simulate freight rates for various dates to limit transport costs. Their automated preparation of customs forms using updated official rules decreases the risks of errors that can stick companies with higher duties, while speeding the clearance of shipments once they arrive.

    Why should smaller businesses consider paying for AI tools to improve their supply chains and minimize the additional costs tariffs create? Because some companies risk spending even more if they don’t get that help.

    According to a recent Reuters report, many legacy players in the roughly $5 billion U.S. customs brokerage industry are increasing the $4 to $7 fees they previously charged for every code number corresponding to imported products they declare for customers. The new hikes tend to add from $1 to $5 per code, with international logistic giants like UPS, FedEx, and DHL similarly increasing rates.

    At the same time, all those businesses are also reinforcing their teams overseeing U.S. customs processing in response to higher demand, and updating their computer systems. Those investments are almost certain to be passed along to importing customers in the final bill they pay, further bloating the costs of tariffs.

    Consequently, using AI to automate, oversee, and respond to frequently changing customs rules — and improve importers’ supply chain strategies in the process — may turn out to be the most productive and cost-effective choice for many businesses.

    That same conclusion by a growing number of companies has allowed Flexports to already double its 2024 gross profit from customs brokerage this year, the Journal said. That’s expected to rise even higher in 2026.

    “It’s become very complicated to calculate tariffs… (and) we hear a lot about the need for good tools to calculate this stuff” Flexport founder and chief executive Ryan Petersen told the paper. “There’s a real big role for technology in this.”

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    Bruce Crumley

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  • Co-Manufacturing Helps Reshape the CPG Landscape

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    For large consumer packaged goods (CPG) companies considering commercializing an innovation, the instinct is to look inward first. You have your own plants where you want to utilize capacity, long-standing supplier relationships, and decades of experience producing at scale.

    When a new product idea surfaces, it feels natural to route it through the existing system.

    While most CPG companies have built their facilities for efficiency and volume, they may not be as optimal for innovation and experimentation. And your network, while strong, is usually deep in certain categories and thin or nonexistent in others.

    You may know every large player in extrusion and co-extrusion, but no one who knows how to make a horizontal multi-layered product. That’s where co-manufacturing (co-man) searches come in.

    A co-man is a third-party partner that produces products on behalf of a brand—offering specialized expertise, flexible capacity, and speed that internal plants often can’t provide.

    They fill the gaps your network simply can’t solve.

    Why it matters to big CPGs

    Most global players already work with co-mans—but usually only the biggest ones built for massive runs. That creates a bottleneck. The pool of new viable partners is small, and those plants aren’t designed for the kind of flexibility or agility that innovation demands.

    That’s where smaller co-mans shine. They may never produce your national launch, but they’re the flexible, adaptable partners who help validate new ideas and opportunities. Their ability to handle small runs of unique and differentiated innovations gives R&D and innovation teams the space to test, optimize, and validate before scaling.

    Smaller co-mans also tend to be early adopters of new production technologies. They work with emerging brands to prove novel approaches, from packaging to processing. Once those methods are validated with an exciting, high-growth startup, the larger manufacturers begin to adopt them.

    By overlooking smaller partners, big CPGs risk missing out on the very innovations that could unlock future growth.

    The hidden challenges

    Hurdles for large companies with billion-dollar brands look different than for smaller emerging manufacturers. One of the most common pain points is volume. Big CPGs’ internal plants are designed for quality and efficiency at scale, which makes them poorly suited for micro-runs.

    Network limitations also create barriers. Big CPG supply chain teams know their category cold. They may have relationships that run deep in bars, baking, or breakfast food, but when the business wants to branch into a new space—say plant-based protein or functional drinks—those core embedded contacts may not have the right expertise.

    Building new networks from scratch takes time that innovation pipelines don’t have.

    Sourcing adds another layer of complexity. Specialty ingredients, unique packaging formats, or sustainable materials take time, money, and energy to find, especially without existing supplier ties. Even with strong procurement teams, big companies often discover that their infrastructure isn’t designed to move quickly in unfamiliar territory.

    Finally, there’s the inertia challenge. Large organizations have the budgets and people to pursue innovation, but carefully honed internal processes can slow the work. Layers of approvals, risk assessments, and capital planning designed to protect the organization can make it difficult to move at the pace that retailers and consumers expect.

    Smaller co-mans are built to flex into the spaces where internal systems aren’t optimal, while also providing agility and connections.

    How to approach the search

    When large CPGs look outside, three practices separate the successful partnerships from the costly detours:

    • Design an “innovation testing” criteria that smaller co-mans can meet—something that doesn’t require all the standards of a national launch. Keep it flexible and adaptable.
    • Think short-term experiments, not forever relationships. Smaller co-mans don’t want to work through 100-page legal contracts for a one-time run. The same goes for quality assurance needs. Scale back expectations to what’s truly required for them—and you—to be successful.
    • Pay for effort, not just throughput. Rethink the scaled production requirement of high volume and efficiency, and instead value the time and effort invested—regardless of total output.

    Just like your plants are built for scale, chances are your supply chain teams are also running at full capacity. Searching for the proverbial needle in a haystack co-man is often not the best use of their time.

    Final thoughts

    The largest CPG companies in the world have built systems that are the envy of the rest of the industry. Their scale, efficiency, and reach keep products on shelves across continents at higher margins.

    But those same systems aren’t optimized for everything.

    When it comes to testing new ideas, entering unfamiliar categories, or producing in small volumes, the machinery of big plants works against you.

    Co-man searches provide a release valve. They give innovation teams options when the corporate engine has too much forward momentum in core categories to explore a quick pivot. They connect companies to specialized expertise, flexible capacity, and networks that don’t exist inside the organization. And they turn test-market ambitions into something real, fast.

    In a market that rewards speed and precision, the companies that thrive are the ones that know how to supplement their strengths. They don’t rely on infrastructure alone. They look outward, find the right partners, and use those relationships to keep their pipelines moving and their edge sharp.

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    Jonathan Tofel

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  • 6 Reasons Your Procurement Transformation Is Stalling

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    Procurement transformation sounds straightforward: Modernize how your company sources goods and services to drive efficiency, savings, and speed. In reality, though, it can be one of the toughest functions to evolve.

    That’s because procurement touches everything: product, finance, supply chain, operations, compliance, and more. To achieve step change, you need to move beyond incumbent negotiations and lean into changes that require deep cross-functional coordination.

    It’s not just about cutting costs. Done right, procurement becomes a strategic lever for growth, resilience, and margin improvement. Yet many transformation efforts stall. Despite the frameworks and ambition, outcomes often fall short. Why?

    Here are six of the most common reasons procurement transformations lose momentum or fail to deliver—and how to get them back on track.

    Reason #1: No clear goals, accountability, or empowerment

    It’s impossible to steer the ship if you don’t know where you’re headed. Yet too many transformation programs lack clear, time-bound savings targets—let alone assigned owners.

    Start with a rapid analysis of your major spend categories and create a roadmap with prioritized initiatives. Set targets grounded in real data and assign accountable leaders for each one. Link targets to annual goals to ensure transformation isn’t treated as a side gig.

    And don’t forget empowerment. Teams should own initiatives end to end—meaning they have authority to make decisions, resources to execute, and backing to remove obstacles. Without that, accountability quickly turns into frustration.

    Reason #2: Your team lacks the right expertise or doesn’t have capacity

    Procurement teams already run lean. Most spend their days managing suppliers, resolving issues, and keeping the business running. Piling on transformation work quickly becomes overwhelming.

    When results stall, ask two questions: Do we have the expertise to move this category forward? Or are we simply out of bandwidth? From electronic components to baked goods, make sure your team has the category expertise to unlock step-change results.

    Capacity matters too. Focus on the highest-value projects, shelve distractions, and streamline stage-gate processes. For critical gaps, drop in seasoned interim experts who can deliver impact on day one. And don’t overlook tech—AI tools can free up time and keep momentum going.

    Reason #3: Cross-functional alignment or sponsorship is missing

    Procurement may lead the initiative, but the work cuts across functions. Consolidating or switching suppliers might require changes in product, IT, manufacturing, finance, and more.

    Yet too often, those teams are looped in late—or not at all. When key players don’t understand their role or timing, bottlenecks emerge. Illuminate the full scope of work at the outset. Set expectations, establish checkpoints, and expose blockers early.

    And ensure the program has an executive sponsor to drive prioritization and help clear roadblocks across the org.

    Reason #4: Not enough project management muscle

    Procurement transformation isn’t business as usual. The work volume increases, timelines compress, and normal ways of working don’t scale.

    Project management becomes essential. But many teams lack dedicated support or even a consistent way to track progress. And while category managers often excel at supplier negotiations, they may not have the skills to lead large, cross-functional initiatives.

    That gap slows momentum. To move at speed, assign project managers, provide simple templates, and hold regular cadence meetings to assess progress and resolve issues. A little structure goes a long way.

    Reason #5: Last mile problems: Verification and control

    After all the effort—sourcing, negotiations, transitions—why don’t the savings show up in the profit and loss statement? Often, it’s because price verification didn’t happen or compliance slipped.

    The supplier pricing might not have been correctly loaded into systems. Or internal teams may still be ordering from the wrong vendor. Procurement assumes the work is done, but the organization hasn’t fully adopted the change.

    Make validation a formal step and compliance monitoring an ongoing process. A quick invoice audit can confirm pricing is accurate and applied. Build this into every initiative—along with regular compliance and quality checks.

    Reason #6: Outdated assumptions and insufficient reporting

    Savings targets are set based on inputs like projected volumes, tariff impacts, and inflation. But those assumptions can change mid-transformation. If volumes drop, you might save per unit but still miss the overall target.

    These gaps may be unavoidable, but they still need to be explained. Engage your financial planning and analysis team early to model impacts, track performance, and update leadership.

    When gaps to target emerge, be ready for the question: “So how will we make up the difference?” That’s when you go back to the roadmap, reprioritize, and pull forward the next high-value opportunity.

    The bottom line
    Procurement is one of the most powerful transformation levers in business. But to unlock its full value, you need to be clear about your goals, honest about your roadblocks, and ready to lead across functions—not just within them. That’s how you stop spinning your wheels and start delivering results.

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    Christopher Sanders

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  • The Matcha Market’s Identity Crisis: What Western Brands Are Getting Wrong

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    Matcha is booming globally, but Western commercialization is blurring cultural lines, raising questions about authenticity and sustainability. Unsplash+

    Walk into any New York City or Los Angeles cafe, and you’re bound to see matcha lattes on nearly every menu. Today, matcha is a multi-billion-dollar category, valued at roughly $3.8 billion and projected to surpass between $6 and $7 billion by 2030. The Japanese Ministry of Agriculture, Forestry and Fisheries reported that the 2024 tencha output, the leaf used to produce matcha, was more than 2.5 times greater than it was ten years prior. Yet despite its popularity, much of the Western market has strayed from the Japanese tea culture it claims to celebrate, leaning instead into commercialization, pastel aesthetics and trend-driven marketing that obscure the drink’s origins. This pivot away from cultural roots raises bigger questions about authenticity, consumer trust and the sustainability of global supply chains, forcing brands across the beverage and wellness industries to confront where cultural appreciation ends and cultural appropriation begins.

    The problem with “ceremonial” vs. culinary 

    The majority of the Western matcha branding is built on surface-level and shallow narratives—phrases like “Zen rituals” or “ancient traditions” that often gloss over the history and cultural meaning. Even common labels that consumers might think hold weight—like “ceremonial grade” and “culinary grade”—are actually marketing inventions. In Japan, there is only one form of matcha, traditionally used in tea ceremonies, such as chadō. The ceremony is meant to be a meditative ritual emphasizing harmony, respect and mindfulness. As the tea ages, it is repurposed for cooking, not because of a quality hierarchy but as part of a cultural practice rooted in stewardship. Western labeling systems create the illusion of quality tiers when, in reality, they reflect a lack of authenticity.

    Demand, supply chains and distortion

    Beyond surface-level marketing, the surging global demand for matcha has reshaped supply chains—with both benefits and drawbacks. Demand has nearly tripled since 2010, with Japanese production rising from about 1,400 tons to more than 4,000 tons in 2023. On one hand, international attention has given Japanese tea farmers access to new opportunities for differentiated revenue streams. On the other hand, supply shortages and inflationary pressures mean that local consumers are paying higher prices for a product that’s deeply tied to their daily rituals and cultural heritage. Today, ceremonial-grade matcha can now sell for $30 to $100 per ounce as demand far outpaces supply.

    Compounding the issue, other countries—most notably China and Vietnam—have entered the market with low-cost green tea powders labeled as matcha. These substitutes dilute the category’s integrity and confuse consumers, while Western brands sourcing from bulk suppliers risk misleading their customers and undermining small family-run farms in Japan that continue to uphold centuries-old practices and traditions. Without long-term brand partnerships and reinvestment, these farms, which are already challenged by an aging workforce, face the risk of disappearing altogether. 

    Authenticity as a business imperative

    This isn’t just a cultural issue—it’s a business issue. Today’s consumers are more discerning than ever. They demand transparency not only in ingredients and efficacy, but also in sourcing and values-based purchasing. Driven by surging demand, Japan’s green tea exports, including matcha, rose 25 percent to $252 million in 2024, while the volume of exports grew by 16 percent, according to Japan’s Ministry of Agriculture, Forestry and Fisheries. Market research firm NIQ reported that U.S. retail sales of matcha alone jumped 86 percent from three years ago—evidence of just how rapidly the category is scaling. Yet growth will not guarantee endurance. Brands that reduce tradition to an accessory or buzzy positioning may enjoy temporary popularity, but they risk losing long-term credibility in a market that increasingly rewards authenticity. This desire for transparency and respect for heritage is what led me to create wellness brand Apothékary.

    The line between appropriation and appreciation 

    Too many brands have been blurring the line between appreciation and appropriation. But the difference is clear: appropriation extracts while appreciation amplifies. True appreciation requires a commitment to education, investment and reciprocity, whether that means sourcing directly from Japanese farmers, reinvesting in their communities or accurately contextualizing traditions rather than bending them for Western convenience. As the wellness industry matures, authenticity and cultural respect will evolve into powerful competitive advantages. Brands that prioritize building trust through respect for craft, culture and supply chain integrity will endure. Those that don’t could very likely end up on the wrong side of consumers’ scrutiny down the line.

    Matcha’s rising global popularity could ultimately serve as a powerful bridge between cultures, connecting traditions across continents. Authenticity is not just about heritage. It’s the key to the market’s future. Unless brands begin treating matcha as more than a trendy green powder for lattes and stunt marketing campaigns, the category could end up collapsing under the weight of its own hype. 

    The Matcha Market’s Identity Crisis: What Western Brands Are Getting Wrong

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    Shizu Okusa

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  • Energy crisis looms for US warehouses

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    An annual survey conducted by industrial real estate investment trust Prologis revealed supply chain managers are becoming increasingly concerned with reliable energy sources for the warehouses they operate.

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    Of the 1,816 senior executives polled across the globe, 89% said they experienced an energy-related disruption to operations over the past year. The outlook among the group is that energy reliability could be the “next major supply chain crisis.”

    “Almost nine in 10 companies experienced energy disruption in the past year, from price volatility to weather-driven outages,” a Monday report said. “Executives are consequently worried about power reliability, with seven in 10 saying they fear outages more than any other disruption.”

    Mass adoption of AI technologies and the required buildout of data centers to support them will likely drive a 10% to 50% increase in power requirements over the next five years, 76% of the respondents said.

    Eighty-three percent said energy procurement could reach crisis level, however, less than a third currently have backup systems in place. Interestingly, 90% said they would pay premium rates for warehouses with dependable power sources.

    “Energy is the new fault line in global supply chains,” said Susan Uthayakumar, chief energy and sustainability officer at Prologis. “A majority of companies faced energy disruptions last year, and most expect their power needs to surge in the years ahead. The companies that solve for energy resilience will be the ones that stay ahead.”

    The report flagged other trends that are reshaping supply chains.

    Production and distribution are moving closer to the consumer, with 77% of companies already on a path to “regional self-sufficient networks,” and six in 10 expecting a more localized supply chain by 2023.

    “Geographic realignment is accelerating toward localized production, aligning around major cities as high consumption centers and labor bases,” the report said. “After decades of chasing the cheapest global labor, companies are reversing course.”

    Also, 70% of companies have implemented advanced or transformational AI technologies to improve operations.

    While 82% of survey respondents expressed optimism for 2026, they also acknowledged changes in business practices, such as adopting new technology, implementing risk monitoring systems and increasing inventory levels to prevent stockouts.

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  • Data Spotlight: Revenue surprises, tariffs impact & more | Insights | Bloomberg Professional Services

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    1. Tariffs: Using supply chain and facilities data to evaluate market shifts in North America

    In an earlier study, we looked at the two weeks following the 2024 U.S. election and found that companies with U.S.-centric supply chains outperformed their globally exposed peers. That analysis highlighted how supply chain data can reveal investor sentiment during periods of policy change.

    In this expanded study, we extend the analysis through July 2025 and across North America markets to capture the effects of the tariff war. Using Bloomberg’s Supply Chain and Facilities datasets, we grouped companies of North America based on presence of US operational exposure or not and examined how performance diverged since the US elections and around key trade announcements.

    Chart 1 shows the overall average US operational exposure for a selection of Bloomberg Indices for North America. Outside the US, Canada and Mexico are quite exposed countries to the U.S. making them sensitive to any change of trade policy.

    Focusing first on U.S. domiciled companies, Chart 2 shows relative performance of companies with high exposure to the U.S. versus those with low US exposure for companies of the Bloomberg US 1000 Index (B1000) comprised of the largest 1,000 market capitalization in the US. Interestingly, companies with very high U.S. exposure have been performing well from the US Election to April 2025 as the Policy of the Administration has supported US based industries. However after April 2, Liberation Day tariffs, we note a peak and a reversal of this movement – probably highlighting the administration willing to make deals that can be profitable to US companies with global footprint.

    Performances of Highly US Exposed Versus Low Exposed Groups of U.S. Companies (B1000 Index)

    In addition to U.S. companies, we have examined the rest of North America’s largest markets (Canada and Mexico). Chart 3 summarizes the cumulative performance of companies exposed to the US against those without US exposure: it appears that U.S. trade war is translating into negative equity returns for companies in their neighbor doing business with them.

    Looking beyond North America, we observe a consistent trend globally (Chart 4).

    Performance of Long-Short (US Exposed Versus Non-Exposed), by Regional Index
    Performance of Global Ex-US Companies with US Exposure Versus Companies Without US Exposure

    Themes: Macro Investing, Tariff
    Roles: Equity Portfolio Managers, Quants, Strategists
    Bloomberg Datasets: Supply Chain, Facilities

    2. Tracking when guidance moves markets: the Japanese case

    During each earnings season, companies release actual financial results and often provide forward-looking guidance for upcoming quarters or the full fiscal year. While markets – and especially systematic players – have traditionally focused on the difference between reported earnings and consensus expectations because of a lack of availability of company guidance in a machine readable format, our research underscores the increasing importance of monitoring guidance surprises — instances where a company’s outlook materially deviates from market forecasts.

    To explore this further, we use Bloomberg’s Company Financials, Estimates and Pricing Point-in-Time dataset to examine the frequency of earnings guidance issuance across various regional indices (Chart 1). The findings reveal that companies in Japan are significantly more likely to provide forward EPS guidance compared to their counterparts in the U.S., China, and Europe — highlighting a notable regional difference in corporate disclosure practices.

    Percentage of Companies Issuing Guidance by Index

    We further used the data from the Japanese equity market to examine how equity markets respond to earnings guidance surprises — defined as the difference between a company’s issued EPS guidance and the consensus EPS estimate for the next fiscal year. 

    Our findings (Chart 2) show that positive guidance surprises tend to yield immediate next-day positive performance, with the magnitude of the surprise closely correlated to the size of the price move. In contrast, negative guidance surprises tend to trigger immediate declines in stock price — even when reported results exceed expectations. 

    This shows that investor sentiment can be more sensitive to forward-looking outlook than to trailing performance, with guidance acting as a forward-looking shock that reshapes market expectations and valuations.

    Average Next-Day Returns: Positive vs. Negative Guidance Surprise

    Bloomberg Company Financials, Estimates and Pricing Point-in-Time product provides a comprehensive, point-in-time history of company-reported metrics, consensus estimates, and management guidance as well as pricing information. This data enables investors to backtest stock performance accurately around earnings releases, helping investors understand how actuals, consensus estimates, and company-issued guidance interact to drive market reactions.

    Themes: Quantitative Trading, Alpha Generation
    Roles: Equity Portfolio Managers, Quantitative Researchers, Traders
    Bloomberg Datasets: Company Financials, Estimates and Pricing Point-in-Time

    3. Analyzing transaction data analytics and estimates to anticipate earnings surprises

    Analysts estimates set investor expectations for a company’s performance each period, and earnings surprises often trigger significant stock price movements. If company performance trends can be evaluated ahead of earnings release,  it may create opportunities to identify and respond to surprise-driven price actions. Using Bloomberg Second Measure’s near real-time transaction data (available on a 3-day lag via feeds), investors can gain early insights into company performance well before official reports. When combined with consensus estimates from Company Financials, Estimates and Pricing Point-in-Time dataset, it empowers investors to build actionable trading strategies.

    In our study, looking at a quarterly rebalanced backtest from Q2 2020 to Q1 2025 we see that companies in the top quintile of revenue surprises—where transaction data analytics from Bloomberg Second Measure show stronger sales than market expectations—generated higher cumulative returns than those in the bottom quintile.

    The Quintile 1 basket delivered robust long-term performance, while the Quintile 5 basket (representing the most negative surprises) showed lower performance. A long–short strategy that takes a long position in Quintile 1 and shorts Quintile 5 produced modest but consistent gains, reinforcing the idea that upside surprises offer a stronger signal than downside disappointments. 

    As shown in Chart 2, there are a variety of sectors covered in this analysis. This type of analysis can be refined based on a dedicated sector analysis: indeed this type of strategy may perform differently according to the industry.

    These results underscore the value of alternative data might have in anticipating market-moving fundamentals before official disclosures.

    Cumulative Return Analysis: Top vs Bottom Quintiles
    Company Coverage, Breakdown by Sector BICS Level 2

    Themes: Equity Fundamentals, Alpha Generation
    Roles: Equity Portfolio Managers, Quantitative Researchers, Traders
    Bloomberg Datasets: Company Financials, Estimates and Pricing Point-in-Time, Bloomberg Second Measure

    How can we help?

    Bloomberg’s Enterprise Investment Research Data product suite provides end-to-end solutions to power research workflows. Solutions include Company Financials, Estimates, Pricing and Point in Time Data, Operating Segment Fundamentals Data and Industry Specific Company KPIs and Estimates Data products, covering a broad universe of companies and providing deep actionable insights. This product suite also includes Quant Pricing with cross-asset Tick History and Bars. Additional solutions such as Geographic Segment Fundamentals Data, Company Segments and Deep Estimates Data and Pharma Products & Brands Data products will be available in 2025. All of these data solutions are interoperable and can be seamlessly connected with other datasets, including alternative data, and are available through a number of delivery mechanisms, including in the Cloud and via API. More information on these solutions can be found here.

    Bloomberg Data License provides billions of data points daily spanning Reference, ESG, Pricing, Risk, Regulation, Fundamentals, Estimates, Historical data and more to help you streamline operations and discover new investment opportunities. Data License content aligns with the data on the Bloomberg Terminal to support investment workflows consistently and at scale across your enterprise.

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    Bloomberg

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  • The Shocking Cost of Vendor Data Breaches | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Modern supply chains are a complex web of interconnected, intertwined digital ecosystems, each supporting the other. Look around you, and everything from how your workstations perform to how your data is being managed consists of several different suppliers and vendors, beyond what might be evident to you on first glance.

    You may have bought your web domain from an American company, but your hosting servers are in Europe. You probably bought your cloud infrastructure from AWS or Google, but your data is being stored in a remote village in Norway.

    Beyond what is visible lies a plethora of vendors and suppliers that work together like clockwork to make sure your business infrastructure remains up and running.

    However, this is where the problem begins. A single outage, data breach or fault with one of these vendors can have a devastating ripple effect on your business operations.

    Your direct vendor might not even be responsible, but their service might depend on a third-party provider, with whom you have no connection, and yet, your business takes the complete brunt of the situation.

    Therefore, in today’s world, companies don’t just have to prepare for internal data risks but also think about the data risks posed to their suppliers and vendors.

    Related: How to Mitigate Cybersecurity Risks Associated With Supply Chain Partners and Vendors

    Vulnerabilities due to a web of interdependencies

    In 2021, millions of websites across the world suddenly went offline. This included business websites, banks, ecommerce ports and even government agencies. In fact, it took out a major chunk of European and mostly French websites.

    After a couple of hours, it was found that one of the four data centers owned by the company OVHcloud was destroyed due to a fire.

    While the data centers supposedly had backups, the resulting damage in terms of data breaches and lost business cost tens of millions of dollars.

    Even some of the largest companies in the world are regularly attacked and are susceptible to data leaks.

    Orange Belgium‘s data breach exposed information of 850,000 customers. Allianz Life‘s data breach exposed personal information of more than a million customers, and a Qantas cyberattack leaked information on over six million airline customers!

    More recently, a ransomware attack on the UK’s NHS (National Health Service) disrupted blood tests across several London hospitals, eventually leading to the death of at least one patient. The software provider for the NHS, Advanced Computer Systems, was eventually fined £3 million, but only after an innocent life had already been lost.

    While these large organizations cannot be solely blamed, it is clear that even if you have the most robust IT and security infrastructure within your organization, you are never immune to the vulnerabilities of your vendors.

    Common mistakes that lead to weak data management

    Similar to the example of OVHcloud, many vendors simply lack a robust backup system to ensure operations run smoothly — this is where the problem starts. Due to a poor backup system, they also have an insufficient disaster recovery plan in case of a ransomware attack. Therefore, a fire in only one of their four data centers brought down millions of their customers’ websites.

    Another example might be the NHS’s software. They probably had data integrity checks built into their security, but they were insufficient, making it easy for an attack to take place across a number of locations. Overall, a reliance on manual recovery efforts and weak cybersecurity practices creates vulnerabilities that can have devastating consequences.

    Related: 3 Ways to Ensure Cybersecurity Is a Priority for the Companies You Partner With

    Cost of a vendor data crisis

    Any data breaches or attacks on your vendors will have a direct impact on your business. It can directly result in operational downtime, which can include workflows that completely stop working, supply chain disruptions, invoicing issues and much more.

    In the short run, it can lead to lost sales, SLA breaches and even penalties, while in the long run, the financial impact due to reputational damage can be even worse. If customers can’t trust you to deliver on time or protect their data, they might never return.

    It’s important to safeguard your business against such scenarios, and there are a couple of steps that can help you mitigate these.

    How to mitigate a vendor data crisis

    Before signing a contract with a vendor, it’s important to do your due diligence and assess their data and security infrastructure. This might seem instructive, but it is one of the important first steps you can take to protect your business and data against vulnerabilities.

    It is also important to carry out regular audits and ensure SLAs are met and that they are up-to-date with industry standards.

    Overall, there needs to be a plan for diversification so that no single vendor can impact a critical workflow.

    Related: Why Cybersecurity is the Key to Unlocking the Full Potential of Supply Chains

    Why it’s important to have robust data recovery tools

    Despite all the due diligence and backups, no system is 100% fail-proof. This is why your business must have reliable recovery tools that can help recover damaged files, important emails and even complete databases, making sure your organization can be back on its feet as soon as possible.

    A company’s data can be worth tens of thousands of dollars for a small business and much more for a larger organization. Using such software is the perfect safety net when prevention fails.

    Modern supply chains are a complex web of interconnected, intertwined digital ecosystems, each supporting the other. Look around you, and everything from how your workstations perform to how your data is being managed consists of several different suppliers and vendors, beyond what might be evident to you on first glance.

    You may have bought your web domain from an American company, but your hosting servers are in Europe. You probably bought your cloud infrastructure from AWS or Google, but your data is being stored in a remote village in Norway.

    Beyond what is visible lies a plethora of vendors and suppliers that work together like clockwork to make sure your business infrastructure remains up and running.

    The rest of this article is locked.

    Join Entrepreneur+ today for access.

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    Chongwei Chen

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  • Daymond John on Navigating Supply Chain and Tariff Issues | Entrepreneur

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    Daymond John is an original Shark Tank shark (the 17th season premieres September 24), the visionary CEO behind the iconic global fashion brand FUBU, the founder of The Shark Group, a philanthropist and so much more.

    Following his fired-up talk at Entrepeneur‘s Level Up conference in Las Vegas, we caught up with the man to get a quick hit of inspiration and advice to shake off the end-of-summer blues and get back into the mindset of drive and success.

    What questions should founders ask themselves before launching/fundraising?
    Start with the hard questions. Why am I the right person to solve this problem? Do I really know my numbers, my market and my customer? And am I willing to eat, sleep and breathe this business when the cameras are off and no one’s clapping? Too many people want to raise money just because it looks sexy. But if you can’t show proof that you’ve tested, hustled and gotten traction — even on a small scale — you’re not ready to take someone else’s cash.

    Related: The Most Important Part of Starting a Business: Daymond John

    Shameless plug: my book, Power of Broke, is also my philosophy. Don’t think you need millions to get started. In many cases, being limited by capital is an entrepreneur’s true competitive advantage. Some of the best businesses were born from taking small, affordable next steps — selling one product, testing one ad, talking to one customer.

    Why is a founder’s personal brand important, and what is your advice for developing it in a way that bolsters your business?
    Your personal brand is your reputation. It’s what people say about you when you leave the room. Today, people don’t just buy your product — they buy into you. That doesn’t mean you’ve got to be loud on social media or try to be someone you’re not. It means you’ve got to stand for something. Be authentic, be consistent and tell your story. FUBU worked because it wasn’t just clothes — it was me, my community, my mission.

    But also use what is in front of you. When I started FUBU, it was me and my friends, a sewing machine and ambition. We didn’t know anything about manufacturing and infrastructure. It’s different today, and for the better. There are companies to help inform and teach entrepreneurs of all ages about how to make their products more turnkey by working with companies that understand exactly how to do it.

    Related: These Are the 3 Things That Make Daymond John Want to Give You Money

    What are some of the biggest issues entrepreneurs are facing today?
    From what I’ve seen from my companies and companies I’ve invested in, the biggest issue has been supply chain uncertainty. Some of these recent tariffs caused some companies to go from profitable to unprofitable overnight. Plus, the back-and-forth on what tariffs are still in play causes confusion and makes everything slow down.

    That’s why I’ve been working with Alibaba.com and why I’m headed to its annual event, CoCreate. They’ve created this community and platform of vendors to allow entrepreneurs to cut through the noise and find solutions. We need more events like this to better highlight that there are answers to entrepreneurs’ questions. You just need to know where to go to find them.

    What are the keys to staying energized and engaged when constantly working your butt off?
    Look, being an entrepreneur is like running a marathon at a sprinter’s pace. You’ve got to pace yourself, because burnout is real. For me, it comes down to a few things: I protect my health, I surround myself with the right people, and I remember my “why.” The late nights and early mornings don’t feel as heavy when you’re chasing a mission bigger than yourself. And you’ve got to celebrate the small wins along the way — because if you’re always waiting for the big exit, you’ll never feel satisfied. But everyone has to find their own system that works for them.

    Daymond John is an original Shark Tank shark (the 17th season premieres September 24), the visionary CEO behind the iconic global fashion brand FUBU, the founder of The Shark Group, a philanthropist and so much more.

    Following his fired-up talk at Entrepeneur‘s Level Up conference in Las Vegas, we caught up with the man to get a quick hit of inspiration and advice to shake off the end-of-summer blues and get back into the mindset of drive and success.

    What questions should founders ask themselves before launching/fundraising?
    Start with the hard questions. Why am I the right person to solve this problem? Do I really know my numbers, my market and my customer? And am I willing to eat, sleep and breathe this business when the cameras are off and no one’s clapping? Too many people want to raise money just because it looks sexy. But if you can’t show proof that you’ve tested, hustled and gotten traction — even on a small scale — you’re not ready to take someone else’s cash.

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    Dan Bova

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  • Energy Fuels Sets Stage For US-Made Rare Earth Magnets Powering AI And EVs

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    Energy Fuels Inc. (NYSE:UUUU) shares surged after the company announced a memorandum of understanding with Vulcan Elements to build a U.S.-based supply chain for rare-earth magnets.

    Under the deal, Energy Fuels will supply high-purity neodymium-praseodymium (NdPr) and dysprosium (Dy) oxides to Vulcan later this year for testing and future magnet production. The oxides will be refined at its White Mesa Mill in Utah using mineral concentrates from Florida and Georgia.

    Rare-earth magnets are essential for satellites, defense systems, artificial intelligence infrastructure, robotics, and electric vehicles. By securing domestic sources, the companies aim to reduce U.S. reliance on Chinese supply chains. After validation, they expect to negotiate long-term supply agreements.

    Also Read: Rare Earths Are The Energy Transition’s Hidden Bottleneck, Study Shows

    Energy Fuels operates the only U.S. facility capable of processing monazite mineral concentrates into separated rare-earth oxides. The company began commercial-scale NdPr production in 2024 and is piloting heavier oxides, including Dy and terbium, to expand output.

    Vulcan CEO John Maslin said the agreement will onshore one of the most important supply chains for America’s future economy and security. Energy Fuels CEO Mark S. Chalmers described it as a first step toward developing a secure Western rare-earth magnet industry.

    Energy Fuels has rallied more than 146% in 2025, fueled in part by Cathie Wood’s investment push into nuclear power as a cornerstone of the future energy mix. Her ARK Invest thesis has drawn fresh attention to the company’s uranium and rare-earth operations, which position it at the crossroads of clean energy and advanced technology.

    Energy Fuels is uniquely placed to supply nuclear fuel for power generation and rare-earth materials vital to AI data centers, defense systems, and electric vehicles. This dual capability has strengthened the stock’s bull case.

    Price Action: UUUU shares are trading higher by 17.84% to $12.88 at last check Tuesday.

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    This article Energy Fuels Sets Stage For US-Made Rare Earth Magnets Powering AI And EVs originally appeared on Benzinga.com

    © 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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