Interview with Christoffer Beck Hansen

Supply chain management

• How can automated solutions and technology contribute to compliance that supports a greener and more responsible supply chain?

A counter-question could be: How would you stay compliant without them? Human bandwidth is limited when it comes to monitoring everything at all times. Unless you have a very simple value chain or plan to insource everything, you need technology and automated analytical power to assist you. This lets you understand your risks and opportunities and shorten your decision-making process.

• Which trends do you see as crucial for the future of sustainable supply chains?

The term “sustainable supply chain” is very broad. When I hear it, I primarily think of developments aimed at preventing biodiversity loss and climate change.

Data sharing between supply chain partners to reduce uncertainty has always been the holy grail of Supply Chain Management, and it will continue to be, especially in relation to creating “sustainable supply chains.” On one hand, the world is becoming increasingly uncertain, while on the other, we are gaining access to more and more data and technology—such as AI—that potentially enables us to navigate higher degrees of uncertainty, including in relation to sustainability.

Although Omnibus is slightly slowing down the speed of ESG reporting and, following Trump’s regulatory rollback, we will see less regulation in the EU, I still view supply chain transformation as a license to operate. The first major trend is the ability to collect data that documents how sustainable your supply chain is—or isn’t—and to act on that data in time to either mitigate risks or leverage opportunities for competitive advantage.

Regulation or not, it is important to remember that climate change and biodiversity loss are not just numbers representing CO2 equivalents and deforested trees—they are real-world changes impacting life on this planet. In the future, it will increasingly become a question of where it is physically possible to conduct supply chain activities, without your raw materials being lost to drought, your factory being blown away in a storm, or the forest you source your timber from burning down.

Both documentation requirements and real climate change demand enormous transparency and insight. This enables us to set up relevant scenarios, quantify them financially, and make informed decisions in collaboration with our supply chain partners.

Supplier Collaboration/Management

• With a supplier market growing increasingly complex due to a greater focus on sustainability, how important is it to nurture relationships with suppliers?

Essential! Solutions must be found through collaboration and transparency across the supply chain. However, I also think segmentation is important here. We cannot establish strategic partnerships with all suppliers. We must prioritize based on key focus areas and identify where in our network we have the greatest risks or the biggest opportunities.

• Many companies struggle to manage complex supplier networks. How can digital monitoring and automated analysis make it easier to identify risks in the supply chain?

In my current role as a lecturer and educator, I have the privilege of gaining insight into many different challenges across various levels of multiple supply chains. A recurring issue I see is that companies are still practicing how to see in the dark—investing enormous resources in employee time for this. It’s both slow and expensive. The money spent could instead be used to shine the necessary light on the value chain.

The goal is not just to collect a mountain of structured and unstructured data, throw it into a dashboard, and hope someone knows what to react to… The real challenge is closing the gap between merely collecting data and actually generating real insight from it. Even more importantly, it’s about bridging the gap between gaining insight and actually having enough hands and eyes to act on it. Real-time monitoring and analysis—combined with external data, such as deforestation risks in protected forests—not only provide insight but also help direct attention to the right areas. The next step, in some cases, is to use technology to automatically act on insights.

• How do you see supplier collaboration evolving with increasing sustainability and compliance requirements?

In general, Supply Chain Management must be viewed in a broader macroeconomic context than ever before—this trend is clear. Supply chain management has long been a strategic issue, and it received an additional boost during COVID-19. Now, with the growing focus on sustainable development, Russia’s invasion of Ukraine, and Trump 2.0, companies must consider risks throughout the entire supply chain, not just the first few tiers.

Personally, I believe the trend will be closer collaboration with fewer suppliers and an increasing need to know what your suppliers’ suppliers’ suppliers are doing and where.

This is necessary to understand your risk profile, whether in terms of sustainability or securing supply lines. Having fewer suppliers does not mean abandoning dual sourcing—seen in strategies like “China plus 1” during COVID-19. We also see trends toward circular economy and regionalized supply chains, further reinforced by increasing tariffs and trade barriers. “Friendshoring” will become more common—if you can figure out who your friends are…

However, you can’t simply relocate everything to Europe or the U.S. Raw materials are located where they are, and companies still need to bring products to market at prices consumers are willing to pay.

EUDR

• What are the biggest challenges companies face when implementing EUDR?

Understanding what is happening within their supply network. Where are my weak points? Where am I vulnerable? If you don’t know that, you’re playing Minesweeper blindfolded.

• Do you see EUDR as an opportunity for companies to differentiate themselves positively in the market?

Short answer: Yes. But there are many nuances—differences between geographic markets, B2B vs. B2C, customer segments, branded vs. sub-branded products, etc. In general, companies operating in B2B can use compliance as a differentiator through transparency—”If we know what’s happening in our supply chain, we reduce risk for our customers.” For B2C, I fundamentally believe that consumers want to be guided toward more ‘sustainable’ choices. If a company can transparently show where materials come from—ensuring, for example, that the chair I’m about to buy isn’t made from rainforest timber—then it creates value for customers who care about these issues.

But will customers pay for it? Many companies likely ask themselves this question, often experiencing that consumers remain highly price-conscious. It reminds me of battery cage eggs when I was in school: No one wanted to buy them when asked, yet they were the ones being sold in supermarkets. Eventually, concerned consumers lobbied the EU to introduce mandatory labeling, and suddenly, no one wanted them anymore. So, companies should consider whether their current supply chain can withstand full transparency in the eyes of their consumers.

Prduct.com

• What makes prduct.com valuable?

I believe the ability to gain transparency and insight into one’s own supply chain—seeing your footprint all the way to 4th or 5th-tier suppliers—is extremely valuable. When combined with external datasets, this provides the overview needed to quickly identify risks, whether related to EUDR compliance or resilience in general.

A major strength of prduct.com is how data collection is pushed outward into the supply chain—data is generated as each tier adds its piece to the puzzle, forming a fully transparent supply network. This also serves as a litmus test for supplier commitment: Are they willing to share their operations and locations with you—or not? In this way, businesses become more aware of who actually shares their vision for a more sustainable future.