International Economic Policy

International Economic Policy

Transformational Factors in the Development of Global Supply Chains

DOI:

10.33111/iep.eng.2023.38.04

Анотація:
Abstract: The article is devoted to the study of the relationship between the goals and plans of sustainable development, the problems of regulating the global economy, the trends of de-globalisation, the spread of protectionist policies and geopolitical conflicts, which contribute to the paradigm shift of global supply chains. The article provides a comprehensive overview of their evolution from traditional linear models to interconnected and flexible networks enabled by technological progress and deepening globalisation. The author outlines the current challenges and opportunities that are emerging in response to the changing dynamics of global trade caused by waves of de-globalisation, inflationary pressures and the resurgence of protectionist trade policies, in particular during the Covid-19 pandemic. The article shows how these challenges have necessitated a revision of traditional supply chain strategies and prompted the search for innovative risk management practices in a more uncertain economic environment, which is also characterised by trends in friend-shoring and the gradual completion of the stage of diversification of trading partners in supply chains in response to the growing disruption of global supply chains due to the pandemic. The aggravation of geopolitical conflict and the imperatives of sustainable development are identified as the main drivers of modern transformations of global supply chains. The article examines the issues of sustainable development and related legislative initiatives that necessitate the initiation and establishment of processes for responsible sourcing, minimisation of negative environmental impact and ensuring ethical labour practices throughout the supply chain. The author emphasises that in the practice of international business it is quite difficult to balance the desire for cost-effective supply chains with the need to meet increasingly stringent standards of sustainable development, which calls into question the possibility of achieving both goals simultaneously. At the same time, digital solutions are proving to be a promising way to overcome the problems caused by these challenges. The article explores the potential of technologies such as blockchain, artificial intelligence and data analytics to ensure transparency, traceability and risk mitigation in supply chains. The transformational role of digitalisation in increasing the resilience and responsiveness of supply chains is emphasised. The author describes the disproportionality of threats faced by developing countries in the global economic space. The author emphasises the critical importance of recalibrating strategies and promoting wider stakeholder engagement to overcome the challenges and specific vulnerabilities faced by less developed economies and to develop solutions that will contribute to economic stability and growth in countries with different levels of development.
Ключові слова:
Key words: global supply chains, international trade, international business, risk-based management, sustainable development, sustainable finance, digitalisation, industry 4.0, deglobalisation, protectionism, inflation, friend-shoring, near-sourcing
УДК: 339.9
UDC: 339.9
To cite paper
In APA style
Sandul, M. (2023). Transformational Factors in the Development of Global Supply Chains. International Economic Policy, 1 (38), 77-100. http://doi.org/10.33111/iep.eng.2023.38.04
In MON style
Сандул М.С. Transformational Factors in the Development of Global Supply Chains. Міжнародна економічна політика. 2023. № 1(38). С. 77-100. http://doi.org/10.33111/iep.eng.2023.38.04 (дата звернення: 05.12.2024).
With transliteration
Sandul, M. (2023) Transformational Factors in the Development of Global Supply Chains. International Economic Policy, no. 1(38). pp. 77-100. http://doi.org/10.33111/iep.eng.2023.38.04 (accessed 05 Dec 2024).
# 1(38) / 2023 # 1(38) / 2023
Download Paper
20
Views
4
Downloads
0
Cited by

  1. Ampratwum, Godslove, Osei-Kyei, Robert, and Vivian W. Tam. "Exploring the concept of public-private partnership in building critical infrastructure resilience against unexpected events: A systematic review." International Journal of Critical Infrastructure Protection 39, (2022): 100556. https://doi.org/10.1016/ j.ijcip.2022.100556.
  2. Ballester, Joan, Méndez Turrubiates, Raúl F., Pegenaute, Ferran, Herrmann, François R., Robine, Jean M., Basagaña, Xavier, Tonne, Cathryn, Antó, Josep M., and Hicham Achebak. "Heat-related mortality in Europe during the summer of 2022." Nature Medicine 29, no. 7 (2023): 1857-1866. https://doi.org/ 10.1038/s41591-023-02419-z
  3. Bosselaar, Marit, Bloemen, Irene, Pennink Sjoerd. "The Corporate Sustainability Due Diligence Directive (CSDDD): the position of the European Parliament and potential impact". Loyens & Loeff. https://www.loyensloeff.com/ insights/news--events/news/the-corporate-sustainability-due-diligence-directivecsddd-the-position-of-the-european-parliament-and-the-impact/
  4. Bradley, R., Alderman, M. 2018. "Forget fail fast. How a customised and adaptive strategy can drive your digital supply network. Deloitte. Retrieved from: https://www2.deloitte.com/content/dam/Deloitte/ch/Documents/innovatio n/ch-en-consulting-%20how-a-customized-and-adaptive-strategy-can-drive-yourdigital-supply-network.pdf.
  5. Buckley, Peter J. "Corporate reactions to the fracturing of the global economy." International Business Review, (2022): 102014. https://doi.org/ 10.1016/j.ibusrev.2022.102014.
  6. Colback, Lucy. "How Technology Can Help Redraw the Supply Chain Map." Financial Times, 2022. https://www.ft.com/content/3db177f2-d187-4632-b94d268f9d2598eb.
  7. European Commission. 2022. "EU Taxonomy for Sustainable Activities." https://finance.ec.europa.eu/sustainable-finance/tools-and-standards/eutaxonomy-sustainable-activities_en.
  8. European Commission. 2022. "Proposal for a Directive of the European Parliament and of the Council on Corporate Sustainability Due Diligence and amending Directive (EU) 2019/1937." https://eur-lex.europa.eu/legalcontent/EN/TXT/?uri=CELEX%3A52022PC0071.
  9. Fjellström, Daniella, Bai, Wensong, Oliveira, Luis, and Tony Fang. "Springboard internationalisation in times of geopolitical tensions." International Business Review, (2023): 102144. https://doi.org/10.1016/j.ibusrev.2023.102144.
  10. García-Reyes, Heriberto, Avilés-González, Jonnatan, and Sonia V. AvilésSacoto. "A Model to Become a Supply Chain 4.0 Based on a Digital Maturity Perspective." Procedia Computer Science 200, (2022): 1058-1067. https://doi.org/10.1016/j.procs.2022.01.305.
  11. Goossens, C. et al. 2022. "Banks' Great Carbon Challenge." Bain & Company. Retrieved from: https://www.bain.com/insights/banks-great-carbonchallenge/.
  12. Gregori, Tullio. "Protectionism and international trade: A long-run view." International Economics 165, (2021): 1-13. https://doi.org/10.1016/ j.inteco.2020.11.001.
  13. IBM. 2022. "IBM Supply Chain Intelligence Suite: Food Trust". Retrieved from: https://www.ibm.com/products/supply-chain-intelligence-suite/food-trust.
  14. IEA. 2022. "World Energy Investment 2022." Retrieved from: https://iea.blob.core.windows.net/assets/830fe099-5530-48f2-a7c1- 11f35d510983/WorldEnergyOutlook2022.pdf.
  15. Isaac, Anna. "Exclusive: Nokia and Ericsson Plan Emergency Break-up over Trade War and Security Fears." The Telegraph, 8 June 2019. https://www.telegraph.co.uk/business/2019/06/08/exclusive-nokiaandericsson-plan-emergency-break-up-trade-war/.
  16. Jain, Ash, and Matthew Kroenig. "Ally Shoring: A New Tool of Economic Statecraft." Orbis 67, no. 1 (2023): 21-26. https://doi.org/ 10.1016/j.orbis.2022.12.005.
  17. Kalchenko, T., Oliynyk, V. Geopolitical conflict in the context of global economic crisis, 2019. International Economic Policy, issue 30, 2019. DOI: 10.3311/iep.2019.30.02 [In Ukrainian].
  18. Kearney. 2022. "PRISM: Proactive Risk Intelligence in Supply Management". Retrieved from: https://www.kearney.com/service/operationsperformance/proactive-risk-intelligence-in-supply-management.
  19. Khorana, Sangeeta, Hubert Escaith, Salamat Ali, Sushma Kumari, Quynh Do. "The Changing Contours of Global Value Chains Post-COVID: Evidence from the Commonwealth." Journal of Business Research 153 (2022): 75-86. ISSN 0148- 2963. https://doi.org/10.1016/j.jbusres.2022.07.044.
  20. KOF Swiss Economic Institute. "The KOF Globalisation Index." https://kof.ethz.ch/en/forecasts-and-indicators/indicators/kof-globalisationindex.html.
  21. Kyprianou, Ioanna, Artopoulos, Georgios, Bonomolo, Anna, Brownlee, Timothy, Cachado, Rita Á., Camaioni, Chiara, Đokić, Vladan et al. "Mitigation and adaptation strategies to offset the impacts of climate change on urban health: A European perspective." Building and Environment 238, (2023): 110226. https://doi.org/10.1016/j.buildenv.2023.110226.
  22. Loyens & Loeff. 2023. "ESG Key legal considerations". https://www.loyensloeff.com/esg-litigation-new-version--february-2023---print.pdf.
  23. Marr, B. 2017. "IoT And Big Data At Caterpillar: How Predictive Maintenance Saves Millions Of Dollars." Forbes. Retrieved from: https://www.forbes.com/sites/bernardmarr/2017/02/07/iot-and-big-data-atcaterpillar-how-predictive-maintenance-saves-millions-ofdollars/?sh=7c53e8e57240
  24. Reefke, Hendrik, and David Sundaram. "Sustainable supply chain management: Decision models for transformation and maturity." Decision Support Systems 113, (2018): 56-72. https://doi.org/10.1016/j.dss.2018.07.002.
  25. SBT. 2022. "Foundations for Science-Based Net-Zero Target Setting in the Financial Sector. Version 1.0." Retrieved from: https://sciencebasedtargets.org/ resources/files/SBTi-Finance-Net-Zero-Foundations-paper.pdf.
  26. SupplierWiki. 2020. "Retail Link – How Does It Help?" Retrieved from: https://supplierwiki.supplypike.com/articles/retail-link-how-does-it-help.
  27. Toh, Michelle, Junko Ogura, Hira Humayun, Isaac Yee, Eric Cheung, Sam Fossum, and Ramishah Maruf. "The List of Global Sanctions on Russia for the War in Ukraine." CNN, 25 February 2022. https://edition.cnn.com/2022/ 02/25/business/list-global-sanctions-russia-ukraine-war-intl-hnk/index.html.
  28. UNCTAD. 2020. "Global Trade Update (June 2020)." https://unctad.org/ publication/global-trade-update-june-2020.
  29. UNCTAD. 2021. "Global Trade Update (May 2021)." https://unctad.org/ system/files/official-document/ditcinf2021d2_en.pdf.
  30. UNCTAD. 2022. "Global Trade Update (July 2022)." https://unctad.org/ system/files/official-document/ditcinf2022d2_en.pdf.
  31. UNCTAD. 2023. "Global Trade Update (June 2023)." https://unctad.org/ system/files/official-document/ditcinf2023d2_en.pdf.
  32. Vanderplanken, Kirsten; van den Hazel, Peter; Marx, Michael et al. "Governing heatwaves in Europe: comparing health policies and practices to better understand roles, responsibilities and collaboration", BioMed Central (2021). DOI: 10.1186/s12961- 020-00645-2 URL: https://www.preventionweb.net/quick/51537
  33. WHO Regional Office for Europe. "Heat health action plans", ClimateADAPT (2020). URL: https://climate-adapt.eea.europa.eu/en/metadata/ adaptation-options/heat-health-action-plans.
  34. World Bank. 2023. "Inflation, consumer prices (annual %)". https://data.worldbank.org/indicator/FP.CPI.TOTL.ZG?end=2022&start=2016 &type=shaded&view=chart.
  35. WTO. 2023. "Merchandise exports by product group – annual (Million US dollar)" (data as of 15 May 2023). https://stats.wto.org/
  36. WTO. 2023. WTO Trade Monitoring Updates. "A Year of Turbulence on Food and Fertiliser Markets." 28/02/2023. https://www.wto.org/english/ news_e/news23_e/trdev_02mar23_e.pdf.
  37. Yuan, Rong, Rodrigues, João F., Wang, Juan, and Paul Behrens. "The shortterm impact of the US-China trade war on global GHG emissions from the perspective of supply chain reallocation." Environmental Impact Assessment Review 98, (2023): 106980. https://doi.org/10.1016/j.eiar.2022.106980.
  38. Zamuda, Craig D., Wall, Thomas, Guzowski, Leah, Bergerson, Joshua, Ford, Janet, Lewis, Lawrence P., Jeffers, Robert, and Sean DeRosa. "Resilience management practices for electric utilities and extreme weather." The Electricity Journal 32, no. 9 (2019): 106642. https://doi.org/10.1016/j.tej.2019.106642.
  39. Zinchenko, V.V. "Alterglobalism as a transformational model of sustainable development, internationalisation and effective transformation of society and education systems", Philosophical Horizons of the Present. Collection of scientific papers (2018). Kherson: SHEI "KhSAU", 2018. – 324 p. [In Ukrainian]