The UN Trade and Development (UNCTAD) and the Government of Barbados have recently organized the United Nations Global Supply Chain Forum 2024.
Key Highlights on UN Global Supply Chain Forum 2024
- Key Issue Discussed: The UN Global Supply Chain Forum 2024 highlighted important issues such as issues of climate change, geopolitical tensions, climate change, and their impact on global trade.
- Key highlight of the Forum:
- Launch of “Manifesto for Intermodal, Low-Carbon, Efficient and Resilient Freight Transport and Logistics.”
- Achievements: This forum’s significant achievement was the launch of the UN Trade and Development Trade-and-Transport Dataset.
- It was developed in collaboration with the World Bank.
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About Global Supply Chain Forum
Global supply chain forum is a platform where experts, policymakers, and industry leaders discuss and address challenges related to global supply chains.
India’s related Supply Resilience Initiative
- In 2021, India initiated a supply chain resilience initiative.
- It was a trilateral agreement.
- Objective: The main aim of this step was to counter China’s influence and promotion of more balanced order.
- This initiative was aligned with broader security discussions among the Quad nations.
- These quad nations are India, Australia, Japan, and the United States
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- Objective: To find sustainable practices to reduce carbon emissions, minimize waste, and promote ethical sourcing.
- Policy recommendations: This forum also helps recommend policies to governments and organizations across various nations to improve supply chain resilience and sustainability.
Global Supply Chain
Global Supply Chain is an international network a business uses to produce products or services. It is focused on manufacturing and distribution steps.
- Components: The global supply chain comprises employees, necessary information and resources, and tools for complying with government regulations.
- However, it excludes Research and development or marketing teams.
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Factors Causing Disruptions of Global Supply Chain
The forum highlighted several factors that contribute to the disruptions in global supply chains:
- Climate Change: The effects of climate change, such as extreme weather events, are disrupting transportation and logistics networks.
- Geopolitical Tensions: Political instability around the world is creating uncertainty and hindering international trade.
- COVID-19 Pandemic: The pandemic’s lingering effects continue to cause disruptions in production, transportation, and labor markets.
Ways to Increase Resilience of Global Supply Chains
The forum emphasized the need for a multi-pronged approach to building stronger and more resilient supply chains:
- Sustainable Practices: Use of sustainable practices such as more inclusive, sustainable, and resilient production and distribution networks can play a major role in increasing resilience.
- For example: Incentivizing low- or zero-carbon fuels
- Decarbonization of Shipping: A focus on decarbonizing global shipping, particularly in developing countries with abundant renewable energy resources, is crucial.
- It will help in establishing safety frameworks for new fuels
- Investment in Green Technologies: Increased international financial support and investment in green and sustainable technologies for Small Island Developing States (SIDS) are necessary to enhance their energy efficiency and combat marine pollution.
- Improved Connectivity: Strategic investments in maritime and air transport infrastructure are needed to improve connectivity and efficiency within and between SIDS and global markets.
- Digitalization: Utilizing digital technologies like blockchain-enabled traceability and advanced customs automation systems can optimize trade facilitation, increase transparency, and reduce operational risks.
- Port Modernization: Upgrading ports to become intermodal hubs that integrate energy and digital capabilities can significantly enhance global supply chain resilience.
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June 6, 2024