Optimizing supply chains: The power of a systemic approach

In an increasingly interconnected global economy, supply chains have evolved beyond isolated, industry-specific structures. Instead, they operate as part of a broader, dynamic ecosystem known as the “citizen supply chain.” In the first of two conversations for our Energy Transition Talks series, CGI Vice-Presidents Charley Wark (Global Industries) and Helena Jochberger (Global Industry Lead for Manufacturing) join Peter Warren to explore how this concept redefines traditional supply chains by emphasizing their collective role in sustaining daily life and ensuring economic stability.

What is the citizen supply chain? A new model for global commerce

Traditional supply chains are typically structured around specific industries, such as manufacturing, retail or energy. However, the citizen supply chain shifts the focus to how industries work together to meet individual needs. From banking and healthcare to energy and logistics, every sector plays a role in a unified system that ensures the efficient delivery of essential goods and services.

This deep interconnection means that disruptions in one sector inevitably affect others. Charlotta Wark highlights this interdependence:

"Instead of analyzing supply chains from a corporate perspective, we place the citizen at the core, examining what must happen across industries to maintain societal stability."

Why supply chain resilience can’t wait: A call to action

The increasing frequency of disruptions from geopolitical events, pandemics and resource shortages underscores the need for supply chains that are more resilient, adaptive and transparent. Organizations must move beyond siloed strategies and embrace data-driven collaboration to anticipate and mitigate systemic risks.

Key developments shaping modern supply chains:

  • Friend-shoring & reshoring: Organizations are rethinking production and sourcing strategies to reduce dependence on volatile regions. This includes reshoring (bringing production back home) and friend-shoring (relocating operations to politically aligned nations) to enhance supply chain security.
  • Data transparency and interoperability: A highly interconnected supply chain requires real-time data sharing across sectors to improve predictability and risk management.

Helena Jochberger highlights this shift:

"Supply chains are undergoing a fundamental transformation. What we once considered stable structures are now evolving into dynamic, data-driven ecosystems that require continuous adaptation."

The future of supply chains: Embracing the citizen-centric model

The shift toward a citizen-centric supply chain is not just a necessity—it’s an opportunity. By prioritizing collaboration, sustainability and resilience, organizations can drive economic stability, improve service delivery and future-proof their supply chains for long-term success.

Businesses can take proactive steps by enhancing supply chain transparency, investing in predictive analytics and fostering agile ecosystems that can withstand disruptions. Adopting friend-shoring, reshoring and interoperable digital platforms will also be key in securing future supply networks.

To stay competitive, organizations must rethink traditional supply chain strategies, focusing on cross-industry partnerships, data-driven decision-making, and digital innovation. This approach strengthens operational resilience while supporting the broader goal of sustaining economic and societal stability.

Listen to other podcasts in this series to learn more about the energy transition

Read the transcript

1. Introduction to the citizen supply chain
2. Defining the citizen supply chain

Peter Warren:

So, this is an interesting concept that we've come up with called the “citizen supply chain.” Maybe we'll start with you, Charley. What is it, what does it mean to you and what does it mean to our audience?

Charley Wark:

Yeah, we’ll start by just defining what the supply chain is, or a supply chain is. Of course, every company has a unique supply chain to be able to create their goods from step A to the finished product or landing on the doorstep if it's a consumer product. Every company has a unique supply chain, and every industry has a supply chain that looks familiar to the industries. A typical manufacturer of, let's say, sweaters, has a supply chain that looks like another industry; however, it looks similar because it's highly complex. So, every company supply chain is truly unique. So, if we start in that corner, then what is then the citizen supply chain?

Well, the citizen supply chain is really, if you take the citizen, somebody living in a country, rather, and think about what needs to happen, what industries need to come together and work in order for that citizen to have their everyday life functioning (in the way that we flip a switch and the light comes on, we open up a refrigerator and it's full of food, we order something online and somebody from DoorDash delivers our goods at our hands).

Or, even if we feel like getting entertained, if we go to the local movie theater and watch a movie. So, if you think about the complexity of being able to have the supply chains all work in unison to be able to uphold our everyday life and the comforts that we have become used to. Now, this doesn’t even mention all the supply chains that have something to do with the public sector, like government, municipalities, etc.

Instead of looking at what a supply chain looks like from a company perspective, we start with putting the citizen in the center, and we look at what needs to happen for our everyday lives to function in the societies where we live and operate (because we also do business in the same societies).

3. The citizen supply chain’s impact on Manufacturing

Peter Warren:

So, Helena, building on that great definition from Charley, how does that impact manufacturing? How did we come up with this? In our roles, you focus on Manufacturing, I focus on Energy & Utilities. We have our friend Andy in banking, and so on. So how did this sort of come about? Why are we looking at this? Why does this matter to a manufacturing organization, for example?

Helena Jochberger:

Yes, absolutely. I think we're living in quite uncertain times, so things we used to know, also in the value chain, have changed significantly. Therefore, every industry needs to have a responsive and resilient supply chain. Now, how does that look in manufacturing? I mean, we are one of the most heterogeneous industries. On the one hand, we have discrete manufacturers that produce effectively a product, a car or an aircraft. On the other hand, we deal with process manufacturers like big steel companies, chemical companies, heavy energy intensive manufacturers, and both have their very dedicated supply chains, as Charley just said.

And, of course, when you look now take, for example, the discrete industry, so the car industry, it's a very complex supply chain, it's global supply chains and sometimes we have seen that throughout the pandemic or other events, this gets disrupted. And then it's the question, of course, how do we anticipate that? How do we make sure that our criticalities that we have down in the chain can deliver as promised? For example, when you take the aerospace industry, you have large OEMs that have up to 9,000 suppliers that are directly engaged in producing parts of an aircraft. So how can we make sure? A with the means of data, and B also with the means of risk management, and I know, peter, you and I, we talked a lot about multi-tier risk management in the supply chain. So, it's A to combine the risk with B combining the data, and I think this brings us a little bit directly to the core of our discussion.

4. The supply chain as an ecosystem and a web

Peter Warren:

I agree with you on that. We've been using the word supply chain, but it is really an ecosystem, and we've even coined the term a supply web. I mean there's a complex mix of things. Moving forward here to the complexity that Charley pointed out beyond, as the citizen looks at it, for a variety of things and we tend to simplify. Today I am an employee of ABC company. I'm doing this, but when I go home, I'm a citizen doing stuff, taking consumers' things.

So maybe back to you, Charley, this whole concept of the web, how the citizen is getting these things in the complex fashion back to them. How does that play out? How would you see data playing into that? How do you see people managing that? I mean, it's a magical thing happening on its own, but as things shift it is also under threat.

Charley Wark:

Yeah, absolutely, and I think, number one. When we talk about data, it's also about having access to and really sharing the data that your company has because of the importance of being able to function in this supply web. So, when it comes to data, of course, the transparent, different technical solutions of having ecosystems for the industry so you operate in that can share the data, that's super important.

But I just wanted to add another thing. When it comes to the citizen—and Peter you touched upon how it is like when we go to work, we are, of course, part of the company supply chain that we work for function in a good way in the societies where we live also become a really important component in all of the other industries, Because when we go back to work, we are part of another industry that it needs to work for that industry's supply chain to be resilient. So it's definitely a give and take.

Charley Wark:

It's one thing as a citizen, I'm relying and depending on all the other industry supply chain to function in this fantastic, unified way, but it's the other way. It's also giving the other way right. The companies also need me to have a good, stable life as a citizen for their supply chains to be secured. Stable life as a citizen for their supply chains to be secured. But one thing that we haven't talked so much about but it's also, I think, what's important is that every industry, every company also realizes the importance of their existence in the citizen's supply chain, in the citizen supply chain. I think that is also in today's day, in uncertainty and when things are shifting in the world, I think that becomes even more important.

5. The interdependence of essential services

Peter Warren:

I think where you were going is that you know it's also important for people to have health care. It's not just the physical goods; it's not just the electricity. I need to have a health care, I need to have a working government, I need to have a functioning police force and fire and so on All the things that a military is well, unfortunately, to have the ability to say that I am having this life and these things are interdependent and interwoven and as we start to pick at any one of those threads, it affects all of them, and I think you've got some good stats here. I think both of you have some good stats to reference it. But one of the gentlemen I was talking to a little while ago, an economist, was saying that it takes about five months when disruption happens. Whether it's something major like the war in Europe, or whether Ukraine, or whether it's Brexit, it takes about five months for people to adjust to the shift. But how do either one of you see that happening?

Charley Wark:

There was a report that came out in the World Economic Forum their forum, their chief economist outlook in February that said that 94% of the people that they interview predict an increased fragmentation of the supply chains in the future. That will most likely lead to phenomena such as friend-shoring, e.g., when a company who has offshored parts of their supply chain to other countries will move some, maybe production to a more quote-unquote friendly country. And we can see examples of this. For example, apple just recently moved a lot of their manufacturing to India from China. That's a type of friend shoring.

Charley Wark:

And then another term that also was quoted in this report was re-shoring. So not reassuring, even though it's related right now, but re-shoring means that a lot of companies, for example European companies, they look at bringing their production home from offshored nations, for example, back into Europe. Of course, we see the same happening in the US, where part of their supply chain or the move is that the shift is that the movement has started to go back to the US.

Indeed, these things are happening at the same time. I think the importance again you touched upon it but the transparency between and how all of these supply chains are connected, to understand how the moves that one company is making on their supply chain will affect all the other supply chains.

6. Looking ahead to part two of the conversation

Peter Warren:

That's really good. We'll pick up part two on this discussion with Helena and we'll talk about how we see some of this affecting direct clients of ours, what they're doing, and we'll come back to you in part two. Thank you, everyone. Bye-bye.

Charley Wark:

Thank you.