The Case That Could Reshape Procurement & Supply Chains

📱Apple & the war-torn minerals in your phone

Dec 18, 2024

Hey Procurement Legend,

Welcome back to The AI Procurement Blueprint: PULSE. A round-up of some news and stories that caught my eye. I spend a bunch of time scouring the web, scraping stories, and interacting on X to find this information and bring it to you. It’s great fun for a Procurement and Supply Chain Nerd.

PS. Thanks so much to the flurry of pain subscribers who are now getting exclusive AI content every weekend, such as in-depth prompts to use, guides, or inside information that will let them massively progress beyond the traditional procurement pros…in what will be a competitive jobs market.

Stop Struggling with Procurement Contract Management

Daniel Barnes

December 14, 2024

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Obviously, it’s Christmas next Wednesday so I won’t be posting anything next week. I’ll likely be finding a quiet corner, sipping from a large glass, as I seek a couple of quiet minutes from the over-emotional children in my household (Autism and a aversion to noise can be hard over Christmas)!

But…I’m also looking forward to it. Christmas is my favourite time of year and since having Children, it’s only made it better.

I just released the latest video on the World of Procurement YouTube video. I think for many of you, this one will be super helpful and please share your thoughts, ideas, and challenges over in the YouTube comments:

Anyway, enough of that…let’s get to the content.

The biggest mistakes in procurement often hide in plain sight: failing to question the origins of your materials.

Ignoring the roots of your supply chain can lead to catastrophic consequences. For Apple, it’s meant facing criminal charges over alleged sourcing of conflict minerals from war-torn regions. For you, it could mean being blindsided by reputational risks or ethical pitfalls that derail your organization’s growth. When we overlook the “small details” of procurement—like the journey of a single mineral—we risk everything from operational disruptions to legal battles.

How do you avoid this? Simple: Question everything. Make transparency your default.

Conflict Minerals Case: Core Details

The Democratic Republic of Congo has filed unprecedented criminal charges against Apple in France and Belgium, alleging systematic use of conflict minerals from war-torn eastern regions. The case centres on Apple’s alleged involvement in sourcing tin, tantalum, and tungsten (3T minerals) through supply chains linked to human rights violations, illegal mining, and potential war crimes. Key allegations include:

Deliberate procurement of minerals from conflict zones
Systematic laundering of minerals through international trading networks
Potential financial support of armed groups through mineral purchases
Violation of international corporate responsibility standards

This lawsuit represents a landmark challenge to tech industry supply chain practices, potentially establishing new legal precedents for corporate accountability. Apple has consistently denied wrongdoing, emphasising its robust mineral sourcing protocols and third-party auditing processes. The case could have significant ramifications for:

Global technology supply chain transparency
Corporate accountability in conflict regions
Mineral traceability standards
Potential financial and reputational risks for multinational corporations

The ongoing legal proceedings will likely draw international attention to the complex dynamics of mineral sourcing in regions experiencing prolonged conflicts.

Logility Sale Exploration

Did you know that Logility, a leading supply chain software firm, is exploring a potential sale? This news caused its shares to jump nearly 11% to a 52-week high.

This move highlights the increasing value of supply chain optimisation in a volatile global market. Logility’s software, designed for planning and efficiency, reflects the growing demand for technologies that bring resilience and adaptability to supply chains. For procurement professionals, this reinforces the importance of staying informed about industry shifts that could reshape operational landscapes.

Advice: Keep an eye on this deal—it’s a bellwether for innovation in supply chain technology.

AI Fueling Stock Market Growth

AI is not just a buzzword; it’s fueling the next wave of economic transformation.

The Nasdaq Composite’s impressive growth in recent years has been significantly driven by the AI boom, with the index reaching new highs in 2024. Key factors include the remarkable performance of AI-related stocks, such as Nvidia, whose market cap soared to $3.32 trillion, and strong gains in sectors like communication services and IT. The S&P Kensho Artificial Intelligence Enablers & Adopters Index also outperformed broader markets, rising nearly 27.5% in the first half of 2024.

This growth signals a fundamental shift in market dynamics, one procurement professionals can’t afford to ignore. AI’s ability to enhance productivity and drive innovation will redefine how organisations approach procurement and supply chain management.

Advice: Start integrating AI-driven tools into your workflow now. Early adoption pays dividends. Don’t listen to the people on LinkedIn saying AI won’t have an impact…those of us who are deep in the AI tech side (especially those building it), can see the massive impact it’s going to have!