TradeBeyond’s Retail Sourcing Report delivers research and analysis aimed at informing global sourcing and buying decisions. Packed with actionable facts and analysis, this quarter’s report contains critical insights on the continuing manufacturing shift away from China, the implications of U.S. Federal Reserve policy on global sourcing, and Europe’s Product Environmental Footprint (PEF) legislation, which aims to standardize the way businesses measure the environmental impact of their products.
In addition to extensive sections on economic indicators, shipping rates, and commodity prices, our Q4 2023 Retail Sourcing Report also features a breakout ESG section with updates on the many global due diligence regulations that have been introduced this year to help you stay ahead of these ever-increasing legislations. With traceability increasingly integral to meeting the requirements of these laws, we’ve also introduced a new section dedicated to the topic, which outlines emerging new best practices for implementing traceability into your supply chain.
Key takeaways from the Q4 2023 Retail Sourcing Report:
- The ESG Assurance Index by KPMG found that only 27% of global businesses have robust programs in place to manage ESG disclosures, and 75% of these companies are in the early stages of ESG maturity.
- Nearly all (96%) of the world’s top 250 companies provided reports on sustainability in 2022, compared to only 79% a decade ago.
- Traceability is rapidly becoming compulsory, as governments swiftly develop regulations and standards to encourage transparent and responsible sourcing, especially across Europe.
- Chinese employers are grappling with higher labor costs and labor shortages, which is accelerating the shift of sourcing out of China. Over 90% of North American manufacturers moved production from China in the last five years.
- Since March 2022, the U.S. Federal Reserve has increased interest rates by 5.25%, which is expected to lead to lower factory orders and consumer demand. Rates look likely to remain unchanged through 2024, but inflation remains a global challenge.
- According to McKinsey & Company, 80% of a product’s lifetime emission are determined at the design stage, emphasizing the importance of focusing on eco-design principles.
