The views expressed here are solely those of the author and do not necessarily represent the views of FreightWaves or its affiliates.
The opening ceremony for the Summer Olympics in Paris takes place Friday. Thousands of athletes and millions of visitors will spend part of their summer in France to attend the 2024 Games. The past few years, supply chains have looked like an Olympic marathon or sometimes even like a 3,000-meter steeplechase race lined with obstacles.
Besides the complexity of organizing such a massive gathering with 329 events across 32 sports over just 16 days, the 2024 Olympics are expected to significantly impact global supply chains, both positively and negatively. On the one hand, the event is forecast to boost demand for various goods and services, leading to increased production and transportation activities. On the other hand, the influx of people and goods into France will put a strain on existing infrastructure and logistics networks, potentially leading to disruptions and delays.
The Olympics have already created and will continue to create a surge in demand for various products and services, including construction materials, food and beverages, hospitality services, and sporting goods. This increased demand can stimulate economic activity and create opportunities for businesses in the supply chain. The preparation for the Olympics has involved significant investments in infrastructure. Seven billion euros in private funding was invested in long-term infrastructure projects such as transportation networks, stadiums and accommodations. These investments will lead to long-term improvements in logistics capabilities and overall economic development in Paris.
But there are also many challenges and disruptions, as already witnessed by many tourists who are just visiting Paris in the days ahead of the Games. The influx of people and goods into France for the Olympics will lead to congestion at ports and airports and on roads, causing delays and disruptions in the movement of goods. This affects the timely delivery of essential supplies and equipment for the event. Working closely with the Organizing Committee of the Paris 2024 Games since February 2023, CMA-CGM Group and its subsidiary Ceva Logistics are offering a full range of logistics transport solutions for the event. The partnership includes freight services, international transport of goods, customs clearance, storage, delivery, site logistics, special freight and IT systems integration.
Major events like the Olympics often face security threats, which can necessitate heightened security measures and additional checks. This can lead to delays in customs clearance and transportation, impacting overall supply chain efficiency.
The environmental impact of large-scale events like the Olympics is a growing concern as well. Increased transportation activities and waste generation can contribute to carbon emissions and other environmental issues. The organizers of the Olympics plan to power the events’ operations with 100% renewable energy from wind and solar. They are using existing venues, when possible, had new ones built with low-carbon concrete and recycled materials, and brought in thousands of seats made of recycled plastic. This focus on sustainability goes back to 1996, and in 2012, the London Olympics pioneered a new international certification standard, ISO2012, which provides guidelines for any large event to make more sustainable choices, from construction to catering. All furniture and temporary buildings approved for the Games also must have a contractually guaranteed second life, rather than going into a landfill. Further, the Paralympics, which will run from Aug. 28 to Sept. 8, will use the same venues and housing.
Upfront planning and the use of technology can help companies offset the challenges and disruptions caused by such a large event. Proactive planning and coordination with suppliers, carriers and other stakeholders can help identify potential bottlenecks and develop contingency plans. Utilizing advanced technologies like AI, machine learning and real-time tracking can enhance visibility, optimize routes and improve overall supply chain efficiency. Reducing reliance on single suppliers and diversifying supply sources can mitigate the impact of disruptions in specific regions or industries. Implementing sustainable logistics practices, such as optimizing routes, using low-emission vehicles and reducing waste, can help minimize the environmental impact of the event.
The 2024 Olympics present a unique challenge for global supply chains. By anticipating and proactively addressing these challenges, organizers and logistics providers can ensure the smooth and successful execution of the event while minimizing disruptions to the global supply network. But don’t let that keep you from watching the Summer Olympics together with over 1 billion people around the world, and let’s cheer for the U.S. team.
About the author
Bart De Muynck is an industry thought leader with over 30 years of supply chain and logistics experience. He has worked for major international companies, including EY, GE Capital, Penske Logistics and PepsiCo, as well as several tech companies. He also spent eight years as a vice president of research at Gartner and, most recently, served as chief industry officer at project44. He is a member of the Forbes Technology Council and CSCMP’s Executive Inner Circle.
The post Paris Olympics will be a true test of supply chains appeared first on FreightWaves.