he COVID-19 pandemic led to a global shortage of semiconductor chips as demand for electronic devices surged, causing supply chain disruptions across sectors and the global economy. Complex transnational value chains are integral to the globalized production platforms and critical for high-quality exports, contributing to economic growth, job creation, and revenue generation. With value addition at each stage, supply chains must integrate at multiple levels, with several countries working together for efficiency to maximize output.
SDG 9 of the United Nations Sustainable Development Goals (SDGs) focuses on building resilient and sustainable infrastructure and promoting inclusive and sustainable industrialization. Understanding and addressing the commitment to SDG 9 would foster the path to a resilient and sustainable global supply chain.
A multitude of shocks caused by the COVID-19 pandemic changed geopolitical dynamics. Magnified by the war in Ukraine and coupled with climate change-triggered risks, the fragility of global supply chains has been highlighted. In March 2023, the Global Supply Chain Pressure Index fell to its lowest level since November 2008. Existing and emergent geopolitical conflicts, inflation, and climate change weather events indicate that disruptions to the supply chains are here to stay. As we inch towards 2030, the need to ensure that global supply chains remain resilient to withstand and adapt to external factors becomes paramount.
While global supply chains are not directly referred to in the United Nations 2030 agenda, Point 63 emphasizes that “national development efforts need to be supported by an enabling international economic environment, including coherent and mutually supporting world trade.” It is key to recognize that bolstering supply chain management can help organizations achieve their sustainability goals, bring down costs, and contribute towards structural resilience. However, divergent awareness about issues due to narrow geographical perspectives multiplies the overall challenges, impacting the entire global supply chain. The first step is to make the process and global supply chains transparent, laying the groundwork for an economic, social, and environment-conscious future.
The Power of Infrastructure
SDGs recognize the importance of research and innovation in finding solutions to the socio-economic and environmental challenges of the world. A key factor of SDG 9 is infrastructure, which impacts business operations, communities, and livelihood. Infrastructure-supporting technologies like communications, transportation, and sanitation are not universally developed. Under-developed, degraded, or non-existent infrastructure hinders growth and adds risk of the supply chain. This challenge presents an opportunity for businesses to contribute towards sustainable infrastructure and the promotion of innovation across company operations.
Global companies invest in infrastructure development, upgrading existing local infrastructure, and investing in resilient energy and advanced technologies in the regions in which they operate—creating employment opportunities and inclusive economic development. The development of reliable, sustainable, and resilient infrastructure, including regional and trans-border infrastructure to support economic development and human well-being, can further be leveraged by other ecosystem stakeholders to focus on ensuring affordable and equitable access for all.
The other aspect of SDG 9 that relates to global supply chains is innovation. The industry needs to prioritize funding and promotion of innovation and R&D. This would aid scientific research and upgrade the technological capabilities of industrial sectors in all countries. On the policy front, friendly policies toward such things as industrial diversification and value addition to commodities would support domestic technology development, research, and innovation, especially in developing countries.
Collaboration on a Supply Chain for All
As demonstrated during the COVID-19 crisis, empowering technology, science, and innovation has become critical to making economies resilient. The global supply chain, backed by government support and a committed industry, offers a global network that can be leveraged during a crisis—not only supply chain disruptions but also other challenges.
The realization of an integrated, sustainable, and resilient framework for the global supply chain, in line with the UN Sustainable Development Goals, requires a concerted effort from governments as well as industry stakeholders. Discussion, consultation, and collaboration with stakeholders, including policymakers, think tanks, industry, NGOs, and international organizations are needed. This would establish research-backed standards and regulations that address the need gap and ensure impact and opportunities are created for all. Lastly, collaboration among the public sector, industry, and other stakeholders across borders to share data-driven learning and technological advancement is needed to maximize impact.
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Building More Resilient Supply Chains Amid Global Uncertainty
Photo by Sid Suratia via Unsplash.
September 24, 2023
Our global supply chains have not yet recovered from pandemic disruptions and continued global uncertainty isn't helping the recovery. However, the pandemic also taught us about how empowering innovation can make economies and supply chains more resilient, writes Avantika Singha.
T
he COVID-19 pandemic led to a global shortage of semiconductor chips as demand for electronic devices surged, causing supply chain disruptions across sectors and the global economy. Complex transnational value chains are integral to the globalized production platforms and critical for high-quality exports, contributing to economic growth, job creation, and revenue generation. With value addition at each stage, supply chains must integrate at multiple levels, with several countries working together for efficiency to maximize output.
SDG 9 of the United Nations Sustainable Development Goals (SDGs) focuses on building resilient and sustainable infrastructure and promoting inclusive and sustainable industrialization. Understanding and addressing the commitment to SDG 9 would foster the path to a resilient and sustainable global supply chain.
A multitude of shocks caused by the COVID-19 pandemic changed geopolitical dynamics. Magnified by the war in Ukraine and coupled with climate change-triggered risks, the fragility of global supply chains has been highlighted. In March 2023, the Global Supply Chain Pressure Index fell to its lowest level since November 2008. Existing and emergent geopolitical conflicts, inflation, and climate change weather events indicate that disruptions to the supply chains are here to stay. As we inch towards 2030, the need to ensure that global supply chains remain resilient to withstand and adapt to external factors becomes paramount.
While global supply chains are not directly referred to in the United Nations 2030 agenda, Point 63 emphasizes that “national development efforts need to be supported by an enabling international economic environment, including coherent and mutually supporting world trade.” It is key to recognize that bolstering supply chain management can help organizations achieve their sustainability goals, bring down costs, and contribute towards structural resilience. However, divergent awareness about issues due to narrow geographical perspectives multiplies the overall challenges, impacting the entire global supply chain. The first step is to make the process and global supply chains transparent, laying the groundwork for an economic, social, and environment-conscious future.
The Power of Infrastructure
SDGs recognize the importance of research and innovation in finding solutions to the socio-economic and environmental challenges of the world. A key factor of SDG 9 is infrastructure, which impacts business operations, communities, and livelihood. Infrastructure-supporting technologies like communications, transportation, and sanitation are not universally developed. Under-developed, degraded, or non-existent infrastructure hinders growth and adds risk of the supply chain. This challenge presents an opportunity for businesses to contribute towards sustainable infrastructure and the promotion of innovation across company operations.
Global companies invest in infrastructure development, upgrading existing local infrastructure, and investing in resilient energy and advanced technologies in the regions in which they operate—creating employment opportunities and inclusive economic development. The development of reliable, sustainable, and resilient infrastructure, including regional and trans-border infrastructure to support economic development and human well-being, can further be leveraged by other ecosystem stakeholders to focus on ensuring affordable and equitable access for all.
The other aspect of SDG 9 that relates to global supply chains is innovation. The industry needs to prioritize funding and promotion of innovation and R&D. This would aid scientific research and upgrade the technological capabilities of industrial sectors in all countries. On the policy front, friendly policies toward such things as industrial diversification and value addition to commodities would support domestic technology development, research, and innovation, especially in developing countries.
Collaboration on a Supply Chain for All
As demonstrated during the COVID-19 crisis, empowering technology, science, and innovation has become critical to making economies resilient. The global supply chain, backed by government support and a committed industry, offers a global network that can be leveraged during a crisis—not only supply chain disruptions but also other challenges.
The realization of an integrated, sustainable, and resilient framework for the global supply chain, in line with the UN Sustainable Development Goals, requires a concerted effort from governments as well as industry stakeholders. Discussion, consultation, and collaboration with stakeholders, including policymakers, think tanks, industry, NGOs, and international organizations are needed. This would establish research-backed standards and regulations that address the need gap and ensure impact and opportunities are created for all. Lastly, collaboration among the public sector, industry, and other stakeholders across borders to share data-driven learning and technological advancement is needed to maximize impact.
