TradeTech for Greener Supply Chains
Event report
Speakers:
- Angel Donchev
- Dr. Yasar Jarrar
- Sahil Kothadia
- Dr. Shamika N. Sirimanne
Moderators:
- Ines Knäpper
Table of contents
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Knowledge Graph of Debate
Session report
Yasar Jarrar
The potential of technology in the supply chain is generating excitement among participants, as seen in their positive sentiment. For example, Dubai Chamber and Dubai Customs have implemented a virtual freight and logistics quarter, resulting in a significant improvement of approximately 50% in costs and efficiency. This highlights the positive impact of technology on the supply chain industry.
However, some participants believe that the actual implementation of trade tech is still in its early stages, leading to a negative sentiment. This is mainly due to the fragmentation in regulation and understanding of data. There is a clear need for universal standards for supply chain emissions as the existing regulations date back to the 19th century. The rapid progress of technology has outpaced the understanding and updating of regulations, which urgently needs to be addressed. Consequently, there is a negative sentiment towards the slow implementation of effective and universal standards by regulatory bodies and governments.
Participants also anticipate a fragmentation of trade routes, with a neutral sentiment towards the prediction of pockets of excellence in certain trade routes. This implies that some trade routes may be more technologically advanced than others. The successful implementation of trade tech requires cross-border and global connectivity. However, the challenge lies in determining the appropriate platform and governance for these cross-border discussions. The UAE exemplifies a unique approach through the establishment of a cross-border sandbox, allowing for the adaptation and testing of robust regulations. This demonstrates the agility and speed of the UAE in embracing technology and innovation.
The importance of harnessing technology's potential across various sectors, such as trade, healthcare, and education, is emphasized. It is argued that technology can play a crucial role in driving progress and achieving the related Sustainable Development Goals (SDGs).
Addressing the technology skill gap is deemed urgent for the successful implementation of sustainable technologies. For instance, U.S. Steel estimates that it would take approximately 30 years to retrain their staff for the decarbonization of some steel products. Bridging this gap requires concerted efforts to ensure the effective adoption of sustainable technologies.
The significance of scale and the need for reality checks in scaling sustainable technologies are positively emphasized. Participants agree with the notion that scaling sustainable technologies requires careful consideration of real-world limitations. This implies the need for practical and realistic approaches to achieve scale in the adoption of sustainable technologies.
Governments are viewed as key actors in closing the gap between technology disruption and regulation, and there is a positive sentiment towards the idea that governments can drive change through incentives and targets. However, punitive measures are not seen as the most effective approach. Instead, the benefits of adopting sustainable technologies should outweigh any negative consequences.
The inadequate enforcement of regulations is negatively perceived. It is recognized that past targets have often been missed, highlighting the need for stronger enforcement to ensure compliance.
The main challenge in implementing technology in the supply chain lies in surrounding aspects rather than the technology itself. This emphasizes the importance of addressing related issues such as regulation, governance, and skill development to fully harness the potential of technology in the supply chain industry.
There is a positive sentiment towards viewing the additional cost of sustainable options as an insurance against a degrading future. This suggests a shift in perspective, recognizing the long-term benefits and value of investing in sustainable practices.
Government procurement is identified as a significant driver in accelerating the transition towards green practices. With government procurement accounting for a substantial portion of global GDP, it can have a transformative impact on promoting sustainable practices across various industries.
The need for a public-private regulatory global body is positively mentioned. It is argued that the private sector is often more advanced in terms of knowledge and implementation of technology compared to governments. Therefore, involving the private sector in global meetings and discussions is crucial to ensure effective and up-to-date regulation.
In summary, the potential of technology in the supply chain generates excitement among participants. Challenges related to regulation, governance, skill development, and enforcement need to be addressed for successful implementation. The importance of cross-border discussions, universal standards, and regulatory bodies keeping up with technological advancements is emphasized. Additionally, the role of governments, bridging the technology skill gap, and the significance of public-private cooperation are highlighted. The sentiment is generally positive, recognizing the transformative power of technology in promoting sustainable practices in trade, healthcare, and education.
Angel Donev
MERSC, a global supply chain company, is fully committed to making global supply chains greener by leveraging technology. One of their key goals is to become carbon neutral by 2040, and they have already taken significant steps toward achieving this target. For instance, they have recently launched their first vessel that runs on green methanol, a sustainable fuel alternative. This initiative is a clear indicator of MERSC's dedication to reducing carbon emissions in the shipping industry.
To monitor and optimize fuel consumption, MERSC's ships are equipped with approximately 7,000 Internet of Things (IoT) sensors. These sensors provide real-time data on fuel usage, allowing for immediate adjustments and improvements in efficiency. Additionally, MERSC operates an advanced operations centre that utilises analytics to monitor sea conditions and optimise shipping routes. By leveraging technology in this way, MERSC is able to reduce fuel consumption, limit carbon emissions, and minimise the environmental impact of their operations.
In addition to their focus on greening supply chains through technology, MERSC also recognises the need for efficiency in land logistics. They aim to optimise container transport through the use of technology, as there is currently significant inefficiency in this area with excessive empty miles performed by truckers. By implementing technological solutions, such as improved container swapping between customers, MERSC seeks to streamline land logistics and reduce waste.
However, MERSC acknowledges that the barriers to scaling technology in supply chains are not purely technical. Rather, they believe that change management is a significant challenge that needs to be addressed. While technology may be readily available, navigating and implementing changes on a large scale can be hindered by various factors such as legislation and on-ground execution. MERSC emphasises the importance of change management in order to fully leverage the potential of technology in supply chains.
Furthermore, MERSC recognises that well-defined standards and flexible implementation are crucial for managing change and successfully scaling technology. By establishing clear guidelines and allowing for adaptable practices, the adoption and integration of technology can be made smoother and more effective.
MERSC also believes that incremental connection to a global network can create additional benefits and incentives. As more individuals and businesses join the network, the advantages and opportunities multiply, generating motivation for others to connect and engage. By encouraging incremental connections, MERSC aims to expand the benefits of a global network and stimulate further technological advancements.
In terms of consumers' preferences, MERSC has observed that there is a willingness to pay more for greener options. This is evidenced by the fact that 2% of all cargo carried by MERSC is already pre-paid on alternative fuel sources. Furthermore, companies like Apple have actively embraced carbon neutrality, showing that sustainability and responsible consumption are becoming increasingly important factors for both businesses and consumers.
MERSC also believes that penalties and carbon taxes have a role to play in driving change towards greener supply chains. The International Maritime Organization has committed to improving sustainability in the shipping industry, and studies conducted by the Boston Consulting Group indicate that the introduction of carbon taxes can lead to an uplift in the cost of living. By implementing penalties and carbon taxes, a balance can be struck that encourages companies to adopt sustainable practices and contribute to a greener future.
In conclusion, MERSC is deeply committed to making global supply chains greener by leveraging technology. They have set ambitious targets and are already implementing sustainable solutions, such as green methanol-powered vessels and IoT sensors to monitor and optimise fuel consumption. However, MERSC acknowledges that change management issues, such as legislation and on-ground execution, can impede the widespread adoption of technology. To successfully scale technology and drive change, well-defined standards, flexible implementation, and incremental connections are key. Additionally, the willingness of consumers and businesses to pay more for greener options, coupled with the implementation of penalties and carbon taxes, can further incentivise the transition towards greener supply chains. Overall, MERSC's approach demonstrates a forward-thinking stance in aligning supply chains with sustainability goals.
Shamika Sirimanne
The analysis of the speakers' statements reveals several key points regarding the use of technology in trade and its impact on developing countries. Firstly, it is highlighted that the United Nations Conference on Trade and Development (UNCTAD) has been actively working in developing countries for 40 years, introducing digital platforms and customs automation. This has resulted in improved efficiency, reduced bureaucracy, and cost savings in the clearance of goods. Notably, small traders, especially women entrepreneurs, benefit from this automation, as it reduces the hassle they face.
Automation also brings about positive environmental changes. By minimizing the use of paper and reducing the number of trips required for clearing goods, customs automation significantly decreases carbon emissions. The implementation of these automated customs processes contributes to sustainable practices in trade.
However, amidst these positive advancements, challenges in data governance emerge. Questions surrounding data ownership, access, intelligence creation, and profit-making pose significant cross-border data governance challenges. The absence of a universally accepted solution poses a hurdle in ensuring effective and secure data management.
Political support plays a crucial role in implementing trade technology solutions. The successful establishment of a single window system in Rwanda, facilitated by a presidential decree, highlights the necessity for political buy-in to drive technological advancements.
To fully embrace the benefits of trade technology, it is essential to consider sustainability and capacity building. The analysis points out that solutions must go beyond merely providing technology and also focus on sustainable practices. This includes training IT staff and ensuring local adaptation of systems. The importance of nurturing and retaining trained IT staff is emphasized, as the loss of skilled individuals to other countries can hinder progress.
The analysis also highlights a significant disparity in the readiness of developing and developed nations to benefit from new technologies. The readiness index, which examined 166 countries, revealed the United States, Sweden, Singapore, Switzerland, Netherlands, and Korea as the top performers, while many African and Latin American countries ranked at the bottom. This disparity underscores the need for deliberate policy changes and critical investments to bridge the technology gap and reduce inequalities. Countries like India, the Philippines, and Vietnam have demonstrated that deliberate policy changes, investments in research and development (R&D) and information and communication technology (ICT) capabilities, and skills development can significantly improve readiness and capabilities to benefit from new technologies.
Moreover, the analysis emphasizes the dynamic and fast-paced nature of digital technologies, creating a narrow window of opportunity for developing countries. It accentuates the importance of seizing the limited moments when opportunities arise to leverage the benefits that digital technologies offer.
The issue of cross-border data governance is another significant challenge identified in the analysis. The complications surrounding e-bill of landing due to cross-border data issues and different governance systems across the globe are identified. The analysis acknowledges cross-border data governance as not only a trade and human rights issue but also an environmental concern. Building interoperability among various data governance systems is recognized as crucial for effective data management and collaboration.
In conclusion, the analysis highlights the crucial role of technology in improving trade processes and efficiency. It sheds light on the positive impact of automation and digital platforms in reducing red tape, promoting sustainability, and benefiting small traders. However, challenges in data governance, political support, and bridging the technology gap between developed and developing nations remain. To fully leverage the potential of trade technology, a comprehensive approach that includes sustainability, capacity building, and strong policy frameworks is necessary. The analysis stresses the need to expand the dialogue on trade tech to foster innovation and exchange of ideas within the international community.
Moderator
During the analysis, the speakers focused on several key aspects of sustainable supply chains and trade tech. An important theme that emerged was the need for increased visibility and transparency in supply chain operations to reduce inefficiencies. The speakers highlighted the significant inefficiencies in land site logistics, such as empty miles performed by truckers due to a lack of platforms to exchange containers.
Technology, particularly AI, IoT, and blockchain, was identified as having immense potential in improving efficiency and reducing costs in supply chains. The analysis pointed to McKinsey data, which suggests that AI could improve supply chain efficiency and reduce costs by 50%. Dubai Customs was also mentioned as an example of a company that has improved transaction costs and efficiency by about 50% through the use of technology. The speakers emphasized the role of technology in achieving sustainability goals, mentioning its ability to predict future disruptions, understand the length of the transportation chain with sufficient data, and bring about a sustainable revolution.
Government regulations, policy changes, and incentives were highlighted as crucial factors in promoting sustainability. It was mentioned that companies are setting their own nationally determined contributions (NDCs) to work towards sustainability targets set by governments. The analysis also called for the establishment of green regulations and policy changes to further encourage sustainable practices. Penalties and carbon taxes were suggested as means to drive large-scale changes, and the International Maritime Organization was recognized for its steps towards implementing green regulations, despite the existence of unclear terms.
The discussions on data governance revealed that it is a significant issue, particularly in cross-border data sharing. The analysis called for the establishment of clear standards and global compliance incentives, rather than mandates. The need for interoperability between different data governance systems was also highlighted. The speakers emphasized the importance of building interoperability into varying data governance systems and promoting open global conversations on the issue.
Consumer behaviour was identified as a significant driver for sustainability efforts. It was noted that people are increasingly making purchases based on companies' sustainability initiatives. Brands like Apple were given as examples of companies taking note of this trend and making firm commitments towards environmental care and sustainability.
Collaboration was deemed essential for the exchange of information and data in supply chains. The analysis highlighted the benefits of collaborations, such as optimizing transportation, logistics, and scenario planning. It was also noted that companies are increasingly sharing data for a better understanding of their network. The analysis emphasized the need for educational efforts to help smaller companies understand the importance of data sharing and collaborations in supply chains.
The analysis touched on the role of trade tech in making trade more efficient, green, and inclusive. It was emphasized that trade tech needs to be part of open discussions and shared to accelerate its adoption. The potential impact of trade tech on developing countries was also discussed, emphasizing the windows of opportunity that arise but are often short-lived.
Overall, the analysis highlighted the importance of sustainability in supply chains and the potential benefits of technology adoption and collaboration in achieving these goals. It also underscored the need for government regulations, policy changes, and incentives to drive sustainable practices. The challenges of data governance and the influence of consumer behaviour on sustainability efforts were also addressed. The analysis concluded by calling for greater collaboration and the establishment of global regulatory bodies to drive sustainable practices in trade and supply chains.
Sahil Kothadia
During the discussion on sustainable supply chains, the speakers emphasised the need for collaboration and data sharing among companies to achieve greener and more sustainable practices. They highlighted that without visibility beyond Tier 1 supply chains, manufacturers cannot fully understand the environmental impact of their raw materials. By embracing network visualisation, companies can gain insights into potential vulnerabilities and identify more efficient and environmentally friendly paths in their supply chain.
Layered mapping of supply chains, along with considering transportation and wider disruptions, was proposed as an effective strategy to mitigate risks and optimise costs. This approach enables companies to reduce transport hops between tiers and strategically locate warehouses, resulting in reduced carbon footprints.
The potential of artificial intelligence (AI) and predictive analytics in transforming sustainable supply chains was also discussed. With sufficient data, AI can be leveraged to predict and prescribe measures for cognitive supply chain management. Predictive analytics, on the other hand, can estimate the duration of transportation leg disruptions, enabling better planning and risk mitigation.
Collaboration emerged as a crucial factor in the supply chain ecosystem. The speakers argued that when supply chains and the ecosystem collaborate effectively, the impact of disruptions can be minimised. Collaboration facilitates the exchange of critical data and information throughout the supply chain, extending all the way to customers, ensuring greater efficiency and resilience.
The importance of data sharing and collaboration was further emphasised. Companies are now more willing to share information, realising its potential in understanding the complexities of the supply chain network. This collaboration allows for better organisation and planning, logistics optimisation, and scenario planning. However, it was acknowledged that convincing companies to share data requires a significant effort and education, but once they understand the importance of collaboration, they become more willing to contribute.
Furthermore, the discussion highlighted the role of risk-based inventory management in promoting sustainable and greener supply chains. Companies can optimise their investment distribution across the entire supply chain, resulting in better risk management and more environmentally friendly practices.
The urgency of educating companies about the importance of collaboration and data sharing in supply chain management was also emphasised. The speakers stressed that companies need to be educated and made aware of the benefits of collaboration to overcome any reluctance in sharing data. Once companies comprehend the positive impacts, they are more likely to actively engage and contribute.
In terms of GHG emissions control, it was suggested that companies need to start somewhere rather than trying to solve everything at once. One way to do this is by focusing on controlling GHG emissions, specifically through categories such as purchasing goods and services, transportation and distribution, waste management, business travel, and employee commute. The forum also mentioned the discussion of greener steel production by Sahil Kothadia.
The importance of engaging suppliers and working collaboratively to collect and control GHG emission data was highlighted as well. Larger manufacturers were encouraged to support smaller suppliers in their journey towards a greener ecosystem.
To optimise GHG emission control, it was proposed to strategically optimise supply chains and set clear boundaries within the value chain. Scenario planning of supply chains was mentioned as a key tool in understanding greener options.
Regarding policy and regulation, it was agreed that they play a vital role in creating an even playing field and promoting equal opportunities. Companies expressed the need for policies and regulations that are consistent and do not burden them with multiple reporting formats and structures.
A noteworthy observation was the importance of having a well-connected sustainability group that collaborates closely with individuals involved in day-to-day operations. This connection was seen as crucial for effective control of GHG emissions.
Overall, the discussions emphasised the significance of collaboration, education, and data sharing in achieving greener and more sustainable supply chains. The potential of technologies such as AI and predictive analytics was highlighted, along with the role of risk-based inventory management. It was acknowledged that policy and regulation should support companies in their sustainability efforts.
Speakers
AD
Angel Donev
Speech speed
152 words per minute
Speech length
1852 words
Speech time
733 secs
Arguments
MERSC is committed to make global supply chains greener by leveraging technology
Supporting facts:
- MERSC has set a target to become carbon neutral by 2040
- The company recently launched its first vessel that can run on green methanol
- Their ships are equipped with around 7,000 IoT sensors that monitor fuel consumption in real-time
- An operations center utilizes analytics to monitor sea conditions and optimize shipping routes
Topics: Global Supply Chains, Green Logistics, Technology, Carbon Emissions, IOT
MERSC aims to improve efficiency in land logistics by optimizing container transport
Supporting facts:
- There is significant inefficiency in current land logistics with excess empty miles performed by truckers
- The company looks to technology to facilitate more efficient swapping of containers between customers
Topics: Land Logistics, Efficiency, Container Transport
The barriers to scaling technology are not technical, but rather change management issues
Supporting facts:
- We don't have a technology problem. Clearly, the technology is there. We have a change management problem.
- We spoke briefly about policy and briefly about people. But those two elements we need to really solve for.
Topics: technology adoption, change management, global trade, Internet rollout
Defined standards and flexible implementation are important to manage change and scale technology
Supporting facts:
- The Internet provided flexibility for this. It allowed everybody to connect on their own time when they were ready to do so
- First of all, you need to have incredibly well-defined standards.
Topics: internet rollout, defined standards, flexible implementation
Incremental connection to a global network can create additional benefits and incentives
Supporting facts:
- We need to figure out how every incremental connection to this global internet or global trade creates additional benefits so that we can decouple those constraints.
- it will start from a sandbox. It will start from few people connecting and creating outweighed benefits to what they see by using this network and thus creating incentive and exemplar for others to connect and do the same.
Topics: change management, global network, incentives
Consumers and companies are willing to pay more for greener options
Supporting facts:
- 2% of all cargo carried is pre-paid on alternative fuel sources
- Premium for green fuel sources is accepted by the customers
- Companies such as Apple emphasising carbon neutrality
Topics: Carbon Neutrality, Sustainable Consumption, Alternative Fuels
The priority to advance trade tech for a greener supply chain and logistics should be policy that evens out the playing field for everybody
Topics: trade tech, greener supply chain, logistics, policy
Report
MERSC, a global supply chain company, is fully committed to making global supply chains greener by leveraging technology. One of their key goals is to become carbon neutral by 2040, and they have already taken significant steps toward achieving this target.
For instance, they have recently launched their first vessel that runs on green methanol, a sustainable fuel alternative. This initiative is a clear indicator of MERSC's dedication to reducing carbon emissions in the shipping industry. To monitor and optimize fuel consumption, MERSC's ships are equipped with approximately 7,000 Internet of Things (IoT) sensors.
These sensors provide real-time data on fuel usage, allowing for immediate adjustments and improvements in efficiency. Additionally, MERSC operates an advanced operations centre that utilises analytics to monitor sea conditions and optimise shipping routes. By leveraging technology in this way, MERSC is able to reduce fuel consumption, limit carbon emissions, and minimise the environmental impact of their operations.
In addition to their focus on greening supply chains through technology, MERSC also recognises the need for efficiency in land logistics. They aim to optimise container transport through the use of technology, as there is currently significant inefficiency in this area with excessive empty miles performed by truckers.
By implementing technological solutions, such as improved container swapping between customers, MERSC seeks to streamline land logistics and reduce waste. However, MERSC acknowledges that the barriers to scaling technology in supply chains are not purely technical. Rather, they believe that change management is a significant challenge that needs to be addressed.
While technology may be readily available, navigating and implementing changes on a large scale can be hindered by various factors such as legislation and on-ground execution. MERSC emphasises the importance of change management in order to fully leverage the potential of technology in supply chains.
Furthermore, MERSC recognises that well-defined standards and flexible implementation are crucial for managing change and successfully scaling technology. By establishing clear guidelines and allowing for adaptable practices, the adoption and integration of technology can be made smoother and more effective.
MERSC also believes that incremental connection to a global network can create additional benefits and incentives. As more individuals and businesses join the network, the advantages and opportunities multiply, generating motivation for others to connect and engage. By encouraging incremental connections, MERSC aims to expand the benefits of a global network and stimulate further technological advancements.
In terms of consumers' preferences, MERSC has observed that there is a willingness to pay more for greener options. This is evidenced by the fact that 2% of all cargo carried by MERSC is already pre-paid on alternative fuel sources. Furthermore, companies like Apple have actively embraced carbon neutrality, showing that sustainability and responsible consumption are becoming increasingly important factors for both businesses and consumers.
MERSC also believes that penalties and carbon taxes have a role to play in driving change towards greener supply chains. The International Maritime Organization has committed to improving sustainability in the shipping industry, and studies conducted by the Boston Consulting Group indicate that the introduction of carbon taxes can lead to an uplift in the cost of living.
By implementing penalties and carbon taxes, a balance can be struck that encourages companies to adopt sustainable practices and contribute to a greener future. In conclusion, MERSC is deeply committed to making global supply chains greener by leveraging technology. They have set ambitious targets and are already implementing sustainable solutions, such as green methanol-powered vessels and IoT sensors to monitor and optimise fuel consumption.
However, MERSC acknowledges that change management issues, such as legislation and on-ground execution, can impede the widespread adoption of technology. To successfully scale technology and drive change, well-defined standards, flexible implementation, and incremental connections are key. Additionally, the willingness of consumers and businesses to pay more for greener options, coupled with the implementation of penalties and carbon taxes, can further incentivise the transition towards greener supply chains.
Overall, MERSC's approach demonstrates a forward-thinking stance in aligning supply chains with sustainability goals.
M
Moderator
Speech speed
151 words per minute
Speech length
1464 words
Speech time
581 secs
Arguments
MERSC is aiming to become carbon neutral by 2040
Supporting facts:
- MERSC had a naming ceremony of its first vessel that can run on green methanol
Topics: carbon neutrality, greenhouse gas emissions
Global shipping represents around 3% of global carbon emissions
Supporting facts:
- The shipping fuel and ship navigation contribute significantly to carbon footprint
Topics: global shipping, carbon emissions
There are significant inefficiencies in land site logistics
Supporting facts:
- Empty miles are performed by truckers due to lack of platform to exchange containers
Topics: land site logistics, waste management
Understanding of supply chain and its tiers is crucial for reducing carbon footprint
Supporting facts:
- Without visibility of sourcing raw materials, accurate understanding of the carbon footprint is not possible.
- Network visualization helps in understanding potential vulnerabilities.
Topics: Supply chain, Carbon footprint, Greenhouse gases
Effective risk mitigation strategy is based on understanding and mapping supply chain overlayed with disruptions
Supporting facts:
- Disruptions due to geopolitics, natural disasters, or other aspects can disrupt the supply chain.
- Understanding transport layer can help optimizing warehousing locations.
Topics: Supply chain, Risk mitigation, Disruptions
AI and mapping technologies can bring sustainable revolution
Supporting facts:
- AI can predict future disruptions and their impact.
- With enough data, AI can understand causes and length of the transportation chain.
Topics: AI, Mapping technologies, Sustainable revolution
Technology like AI, IoT and blockchain have huge potential in improving efficiency in supply chains and reducing costs
Supporting facts:
- McKinsey data suggests AI could improve supply chain efficiency and reduce costs by 50%
- Dubai Customs has improved transaction costs and efficiency by about 50%
Topics: AI, IoT, blockchain, supply chain, efficiency, cost reduction
Trade tech is in the early stages of development and faces significant hurdles
Supporting facts:
- Regulatory fragmentation and lack of data sharing pose barriers
- Legacy systems approach and lack of standardized regulations contribute to complexity
Topics: trade tech, regulation, development
Regulations need to catch up with 21st century technology
Supporting facts:
- Current systems represent a dichotomy of 21st century technology, 20th century management systems, and 19th century regulations
Topics: regulation, technology
The adoption of trade tech has greatly improved efficiency, cut down on bureaucracy and improved transparency for traders especially for small traders and women entrepreneurs.
Supporting facts:
- The automation of customs and governmental procedures by UNCTAD has led to less time and money spent on goods clearance
- UNCTAD’s digital platforms are active in 102 developing countries, producing positive results
- Reduced hassle for small players at borders
- Introduction of AI and machine learning for risk management and selectivity
Topics: Trade tech, Digitization, Efficiency gains
The digitization process has considerable positive environmental implications.
Supporting facts:
- Customs automation in Timor-Leste reduced carbon emissions by over 15,000 kilograms
- Issuing an electronic investment certificate resulted in a 95% reduction in the number of trips
- In Vanuatu paper use reduction was 99% by digitizing sanitary and phytosanitary applications
Topics: Trade tech, Digitization, Environment
Stability and sustainability of tech solutions depend on local ownership, political buy-in, and ability to adapt systems to local needs.
Supporting facts:
- Political buy-in is essential for the adoption of trade tech solutions
- It's necessary to train IT staff to adapt systems to local needs
- Countries need to own tech solutions for sustainability
Topics: Trade tech, Sustainability, Local ownership
Cross-border data governance is a big issue that needs to be addressed for the success of trade tech solutions.
Supporting facts:
- Questions on who owns, accesses, and profits from data are significant issues
Topics: Cross-border data governance, Data ownership
The challenge of optimizing trade within one border and the problem of cross-border transactions
Supporting facts:
- Trade is inherently cross-border
- Governance of world infrastructure is a complex issue
Topics: Global trade, Cross-border transaction, Data Governance
Skills gap as a major issue in technology adoption
Supporting facts:
- It takes time to retrain staff to new technology
- Slow adaptation to ERP systems among employees
Topics: Skills, Training, Technology
UAE's role as a global trade hub and a sandbox for innovative trade technologies
Supporting facts:
- UAE is connected to about 200 countries in terms of trade
- UAE has established a regulation lab (Reg Lab) to experiment with new technologies
Topics: UAE, Trade, Technology
The global market for frontier technologies including AI, 3D printing, Internet of Things, robotics, blockchain, etc. which was about 1.5 trillion USD last year, is predicted to grow to 9.5 trillion USD by 2030.
Supporting facts:
- Technology and Innovation Report of 2023
Topics: Artificial Intelligence, 3D printing, Internet of Things, Robotics, Blockchain
Frontier technologies like AI, IoT etc. provide benefits such as better predictions, reliability, traceability, reducing delays, risk management, predictive maintenance, optimizing material use, reducing waste.
Supporting facts:
- Technology and Innovation Report of 2023
Topics: Artificial Intelligence, Internet of Things
The readiness to benefit from these frontier technologies differs significantly across countries, with developed countries like the U.S., Sweden, Singapore at the top and African and Latin American countries at the bottom.
Supporting facts:
- Readiness Index from Technology and Innovation Report of 2023
Topics: Frontier Technologies, Inequality
Countries like India, Philippines, and Vietnam have greatly over-performed in terms of adopting frontier technologies., owed to deliberate policy changes and critical investments.
Supporting facts:
- Case study analysis from the Technology and Innovation Report of 2023
Topics: Policy Making, Investments
Collaborations are crucial in supply chains for exchange of information and data.
Supporting facts:
- Without collaborations, processes get siloed leading to disruptions having massive impacts.
- Suppliers need to provide data and information up the chain to their customers.
Topics: Collaboration, Supply Chain, Data Exchange
There are legal and compliance barriers like GDPR when it comes to data sharing
Supporting facts:
- If a supplier is based in EU, they have to get legal involved before providing site location data as it will be stored in a cloud in US.
Topics: Data Sharing, GDPR, Legal Compliance
Collaboration can lead to risk-based inventory management
Supporting facts:
- Investments can be distributed across the supply chain rather than being locked in with 20% of the suppliers.
- Optimization of risk contributes to a sustainable and greener supply chain.
Topics: Collaboration, Risk Management, Inventory Management
The technology for managing change and advancing in global trade tech already exists, the challenge is implementing it
Supporting facts:
- The Internet's growth and adoption can serve as an example
Topics: Global Trade, Technology, Change Management
Standards need to be well-defined and global compliance should be incentivized, not mandated
Supporting facts:
- The Internet provided flexibility and immediate benefits upon connection, motivating the adoption
Topics: Standards, Global Compliance, Incentive
Change on the ground should not be overlooked as legislation and process issues can slow down progress
Supporting facts:
- Obstacles like old trade documentation and terminal operations require time and negotiations to change
Topics: Change Management, Legislation, Process
The benefits of adopting new technologies can greatly outweigh the costs and create a fear of missing out, a powerful incentive.
Supporting facts:
- Example of the Internet rollout which brought immense benefits and incentivized adoption
Topics: Innovation, Technology adoption, Government regulation
Companies and individuals are compelled to work towards sustainability targets set by governments.
Supporting facts:
- Companies are setting their own nationally determined contributions, the NDCs
- Governments are providing incentives and setting targets
Topics: Sustainable development, Government policy, Corporate responsibility
Need for stronger enforcement mechanisms and benefits-based approaches rather than only punitive measures.
Supporting facts:
- Current enforcement is not fully effective
- Benefits-based approaches can be more compelling than punitive measures
Topics: Innovation, Government policy, Enforcement mechanisms
Companies should understand the categories of Scope 3 emissions and start focusing on any area to effectively manage greenhouse gas emissions
Supporting facts:
- Sahil Kothadia explained that companies should understand the categorization of Scope 3 emissions like where they are purchasing their goods from, transportation, distribution, waste management, business travel, employees commuting and work collaboratively with the suppliers to collect their emissions data. They should also consider supply chain optimizations and set clear boundaries in their value chain.
Topics: GHG Emissions, Green Supply Chain, Scopes of Emissions
Too many regulations and reporting formats burden the companies
Supporting facts:
- Sahil Kothadia expressed that there are too many regulations and reporting formats which are burdening the companies and these Sustainability groups within the organizations need better connection with the people who manage day-to-day operations and manufacturing.
Topics: GHG Emissions, Regulations, Reporting Formats
The demand for alternative fuel sources is increasing
Supporting facts:
- Around 2% of all cargo Angel Donev's company carries is already prepaid on alternative fuel sources.
- Companies like Apple emphasizing greatly on carbon neutrality and other sustainability efforts.
Topics: Alternative Fuels, Sustainability, Green Consumerism
Consumer behavior is significantly influencing companies' sustainability efforts
Supporting facts:
- People are starting to make purchases based on companies' sustainability initiatives.
- Brands like Apple are taking note and making firm commitments towards environmental care and sustainability.
Topics: Consumer Behavior, Sustainability, Brand Perception
Green regulations and policy changes are needed to further encourage sustainable practices
Supporting facts:
- Need for penalties and carbon taxes to drive large scale changes.
- The International Maritime Organization has made notable steps, despite unclear terms.
Topics: Green Regulations, Policy Change, Sustainability
The 4% uplift in cost for insurance against climate change should be promoted more as it is a minor price for a better future
Supporting facts:
- The world is increasingly experiencing heat and floods due to climate change
Topics: Climate Change, Cost Uplift, Insurance, Future Sustainability
Government procurement can swiftly switch to green standards, thereby initiating a pace towards a greener future
Supporting facts:
- Director General Ngozi mentioned government procurement being 13-20% of global GDP and can thus influence the shift to green procurement
Topics: Government Procurement, Green Standards, Future Sustainability
Trade tech and digital technologies move fast, creating windows of opportunity for developing countries that are often short-lived.
Topics: Trade tech, Digital technologies, Developing countries
Trade tech needs to be part of open discussions, showcased, and shared to accelerate its adoption.
Supporting facts:
- Trade Facilitation Innovation Day organized by UNCTAD and the Global Alliance for Trade Facilitation
Topics: Trade tech, Discussion, Adoption
Data governance, particularly in the context of cross-border data, is a crucial issue.
Topics: Data governance, Cross-border data
Interoperability between different data governance systems is necessary.
Topics: Data governance, Interoperability
Private sector is more advanced than governments, creating a knowledge gap.
Supporting facts:
- In recent history, the public's private sector is more advanced in what they know and do than the governments.
- Companies like Google and SAP are about ten years ahead of these conversations.
Topics: public-private partnerships, regulation, technology
Report
During the analysis, the speakers focused on several key aspects of sustainable supply chains and trade tech. An important theme that emerged was the need for increased visibility and transparency in supply chain operations to reduce inefficiencies. The speakers highlighted the significant inefficiencies in land site logistics, such as empty miles performed by truckers due to a lack of platforms to exchange containers.
Technology, particularly AI, IoT, and blockchain, was identified as having immense potential in improving efficiency and reducing costs in supply chains. The analysis pointed to McKinsey data, which suggests that AI could improve supply chain efficiency and reduce costs by 50%.
Dubai Customs was also mentioned as an example of a company that has improved transaction costs and efficiency by about 50% through the use of technology. The speakers emphasized the role of technology in achieving sustainability goals, mentioning its ability to predict future disruptions, understand the length of the transportation chain with sufficient data, and bring about a sustainable revolution.
Government regulations, policy changes, and incentives were highlighted as crucial factors in promoting sustainability. It was mentioned that companies are setting their own nationally determined contributions (NDCs) to work towards sustainability targets set by governments. The analysis also called for the establishment of green regulations and policy changes to further encourage sustainable practices.
Penalties and carbon taxes were suggested as means to drive large-scale changes, and the International Maritime Organization was recognized for its steps towards implementing green regulations, despite the existence of unclear terms. The discussions on data governance revealed that it is a significant issue, particularly in cross-border data sharing.
The analysis called for the establishment of clear standards and global compliance incentives, rather than mandates. The need for interoperability between different data governance systems was also highlighted. The speakers emphasized the importance of building interoperability into varying data governance systems and promoting open global conversations on the issue.
Consumer behaviour was identified as a significant driver for sustainability efforts. It was noted that people are increasingly making purchases based on companies' sustainability initiatives. Brands like Apple were given as examples of companies taking note of this trend and making firm commitments towards environmental care and sustainability.
Collaboration was deemed essential for the exchange of information and data in supply chains. The analysis highlighted the benefits of collaborations, such as optimizing transportation, logistics, and scenario planning. It was also noted that companies are increasingly sharing data for a better understanding of their network.
The analysis emphasized the need for educational efforts to help smaller companies understand the importance of data sharing and collaborations in supply chains. The analysis touched on the role of trade tech in making trade more efficient, green, and inclusive.
It was emphasized that trade tech needs to be part of open discussions and shared to accelerate its adoption. The potential impact of trade tech on developing countries was also discussed, emphasizing the windows of opportunity that arise but are often short-lived.
Overall, the analysis highlighted the importance of sustainability in supply chains and the potential benefits of technology adoption and collaboration in achieving these goals. It also underscored the need for government regulations, policy changes, and incentives to drive sustainable practices.
The challenges of data governance and the influence of consumer behaviour on sustainability efforts were also addressed. The analysis concluded by calling for greater collaboration and the establishment of global regulatory bodies to drive sustainable practices in trade and supply chains.
SK
Sahil Kothadia
Speech speed
149 words per minute
Speech length
1961 words
Speech time
791 secs
Arguments
Visibility beyond Tier 1 supply chains is necessary for understanding carbon footprints.
Supporting facts:
- Without knowing where raw materials are sourced from, manufacturers cannot understand their impact on the environment.
- Network visualization can help understand potential vulnerabilities and map out more efficient, greener supply chain paths.
Topics: Supply chain transparency, green supply chain, sustainability
AI-based technologies and predictive analytics can revolutionize sustainable supply chains.
Supporting facts:
- With sufficient data, AI can be used to predict and prescribe measures leading to cognitive supply chain management.
- Predictive analytics can estimate the duration of transportation leg disruptions, leading to better planning and risk mitigation.
Topics: Artificial Intelligence, Predictive Analytics, supply chain sustainability
Collaborations is crucial in the supply chain ecosystem as it facilitates exchange of information and reduces the impact of disruptions.
Supporting facts:
- If supply chains and the ecosystem does not collaborate, disruptions have a massive impact.
- Collaboration helps in providing data and information right up the chain to customers.
Topics: Supply Chain, Collaboration, Data Exchange
Companies are ready to share information and this helps in understanding the complexities of the supply chain network.
Supporting facts:
- Over the last 12 years, it has been observed that companies are ready to share information.
- This collaboration allows for better organization and planning, optimization of logistics and scenario planning.
Topics: Data Sharing, Supply Chain Management, Data Privacy
Collaboration leads to risk-based inventory management and can contribute to sustainable and greener supply chains.
Supporting facts:
- Risk-based inventory management allows for better distribution of investment across the entire supply chain.
- This optimization of risk management contributes to more sustainable and greener supply chains.
Topics: Risk Management, Inventory Management, Sustainable Supply Chains
Companies need to start somewhere in controlling their GHG emissions, they shouldn't try to solve everything at once
Supporting facts:
- Categories of scope three include purchasing goods and services, transportation and distribution, waste management, business travel, and employee commute
- Sahil Kothadia took part in a forum in Munich discussing the production of greener steels
Topics: GHG emissions, Scope 3 emissions, Corporate responsibility
Engaging with suppliers and working collaboratively to collect and control GHG emission data is essential
Supporting facts:
- Suggests that larger manufacturers should support smaller suppliers in contributing towards a greener ecosystem
Topics: Supplier engagement, Collaboration, GHG emissions
Policy and regulation should make an even playing field
Topics: Policy, Regulation
Report
During the discussion on sustainable supply chains, the speakers emphasised the need for collaboration and data sharing among companies to achieve greener and more sustainable practices. They highlighted that without visibility beyond Tier 1 supply chains, manufacturers cannot fully understand the environmental impact of their raw materials.
By embracing network visualisation, companies can gain insights into potential vulnerabilities and identify more efficient and environmentally friendly paths in their supply chain. Layered mapping of supply chains, along with considering transportation and wider disruptions, was proposed as an effective strategy to mitigate risks and optimise costs.
This approach enables companies to reduce transport hops between tiers and strategically locate warehouses, resulting in reduced carbon footprints. The potential of artificial intelligence (AI) and predictive analytics in transforming sustainable supply chains was also discussed. With sufficient data, AI can be leveraged to predict and prescribe measures for cognitive supply chain management.
Predictive analytics, on the other hand, can estimate the duration of transportation leg disruptions, enabling better planning and risk mitigation. Collaboration emerged as a crucial factor in the supply chain ecosystem. The speakers argued that when supply chains and the ecosystem collaborate effectively, the impact of disruptions can be minimised.
Collaboration facilitates the exchange of critical data and information throughout the supply chain, extending all the way to customers, ensuring greater efficiency and resilience. The importance of data sharing and collaboration was further emphasised. Companies are now more willing to share information, realising its potential in understanding the complexities of the supply chain network.
This collaboration allows for better organisation and planning, logistics optimisation, and scenario planning. However, it was acknowledged that convincing companies to share data requires a significant effort and education, but once they understand the importance of collaboration, they become more willing to contribute.
Furthermore, the discussion highlighted the role of risk-based inventory management in promoting sustainable and greener supply chains. Companies can optimise their investment distribution across the entire supply chain, resulting in better risk management and more environmentally friendly practices. The urgency of educating companies about the importance of collaboration and data sharing in supply chain management was also emphasised.
The speakers stressed that companies need to be educated and made aware of the benefits of collaboration to overcome any reluctance in sharing data. Once companies comprehend the positive impacts, they are more likely to actively engage and contribute. In terms of GHG emissions control, it was suggested that companies need to start somewhere rather than trying to solve everything at once.
One way to do this is by focusing on controlling GHG emissions, specifically through categories such as purchasing goods and services, transportation and distribution, waste management, business travel, and employee commute. The forum also mentioned the discussion of greener steel production by Sahil Kothadia.
The importance of engaging suppliers and working collaboratively to collect and control GHG emission data was highlighted as well. Larger manufacturers were encouraged to support smaller suppliers in their journey towards a greener ecosystem. To optimise GHG emission control, it was proposed to strategically optimise supply chains and set clear boundaries within the value chain.
Scenario planning of supply chains was mentioned as a key tool in understanding greener options. Regarding policy and regulation, it was agreed that they play a vital role in creating an even playing field and promoting equal opportunities. Companies expressed the need for policies and regulations that are consistent and do not burden them with multiple reporting formats and structures.
A noteworthy observation was the importance of having a well-connected sustainability group that collaborates closely with individuals involved in day-to-day operations. This connection was seen as crucial for effective control of GHG emissions. Overall, the discussions emphasised the significance of collaboration, education, and data sharing in achieving greener and more sustainable supply chains.
The potential of technologies such as AI and predictive analytics was highlighted, along with the role of risk-based inventory management. It was acknowledged that policy and regulation should support companies in their sustainability efforts.
SS
Shamika Sirimanne
Speech speed
165 words per minute
Speech length
2482 words
Speech time
903 secs
Arguments
Technologies are moving really fast and the reality on the ground is different
Supporting facts:
- UNCTAD has been working in developing countries for 40 years, bringing digital platforms and customs automation
- UNCTAD is increasing automating governmental procedures
Topics: Tech advancement, Digital platforms, Developing countries
Automation using digital platforms improves efficiency and reduces red tape
Supporting facts:
- Reduction in time and money spent on clearance of goods
- Less hassle for small traders, particularly women entrepreneurs
Topics: Automation, Digital platforms, Trade
Automation has significant positive environmental impact
Supporting facts:
- Reduced use of paper, fewer trips for clearing goods
- Enormous decrease in carbon emissions through the implementation of customs automation
Topics: Automation, Environmental sustainablity
Solutions must be sustainable, include training IT staff and going beyond just giving technology
Supporting facts:
- Examples of trained IT staff leaving for other countries
- Importance of local adaptation of systems
Topics: Tech adoption, Training, Sustainability
Data governance is an emerging challenge with no current solution
Supporting facts:
- Questions around data ownership, access, intelligence creation and profit making pose cross-border data governance challenges
Topics: Data Governance, Cross-Border Data
Trade tech can help improve efficiency, green and inclusivity in trade
Supporting facts:
- The Technology and Innovation Report by UNCTAD predicts a market growth of the 17 examined frontier technologies from 1.5 trillion US dollars to over 9.5 trillion US dollars by 2030.
- These technologies can provide better predictions, improve reliability and traceability, provide predictive maintenance, optimize material use, reduce waste.
Topics: Artificial Intelligence, 3D printing, Internet of Things, Robotics, Blockchain, Machine Learning, Big Data Analytics
Deliberate policy changes and critical investments can vastly improve a country's readiness to benefit from new technologies.
Supporting facts:
- India remains the greatest over-performer, ranking 67 positions better due to their R&D and ICT capabilities, and skills development.
- The Philippines and Vietnam have managed to outperform rankings due to their industrial performance and high-tech manufacturing.
Topics: Policy, Investments, R&D and ICT capabilities, Skills development, FDI in high-tech manufacturing, Industrial performance
The nature of digital technologies is dynamic and fast-paced, creating a narrow window of opportunity for developing countries.
Supporting facts:
- Technology is digital, moving fast, combining and creating new things.
- Windows of opportunities for many developing are very small, needing to jump in when they're open
Topics: Digital Technologies, Developing Countries
Cross-border data governance is a significant challenge.
Supporting facts:
- Issue with e-bill of landing because of cross-border data issues. Questions of ownership, access, and profit in a data driven economy.
- Cross-border data is a trade, human rights, and climate change issue.
- Different governance systems exist, such as the US., GDPR, and Chinese governance system.
Topics: Data Governance, Cross-Border Data Sharing
Building interoperability among different data governance systems is crucial.
Supporting facts:
- The US., GDPR, and Chinese governance systems are based on different socio-political values and aspirations.
- Need to build interoperability among these governance systems globally.
Topics: Data Governance, Interoperability
Report
The analysis of the speakers' statements reveals several key points regarding the use of technology in trade and its impact on developing countries. Firstly, it is highlighted that the United Nations Conference on Trade and Development (UNCTAD) has been actively working in developing countries for 40 years, introducing digital platforms and customs automation.
This has resulted in improved efficiency, reduced bureaucracy, and cost savings in the clearance of goods. Notably, small traders, especially women entrepreneurs, benefit from this automation, as it reduces the hassle they face. Automation also brings about positive environmental changes.
By minimizing the use of paper and reducing the number of trips required for clearing goods, customs automation significantly decreases carbon emissions. The implementation of these automated customs processes contributes to sustainable practices in trade. However, amidst these positive advancements, challenges in data governance emerge.
Questions surrounding data ownership, access, intelligence creation, and profit-making pose significant cross-border data governance challenges. The absence of a universally accepted solution poses a hurdle in ensuring effective and secure data management. Political support plays a crucial role in implementing trade technology solutions.
The successful establishment of a single window system in Rwanda, facilitated by a presidential decree, highlights the necessity for political buy-in to drive technological advancements. To fully embrace the benefits of trade technology, it is essential to consider sustainability and capacity building.
The analysis points out that solutions must go beyond merely providing technology and also focus on sustainable practices. This includes training IT staff and ensuring local adaptation of systems. The importance of nurturing and retaining trained IT staff is emphasized, as the loss of skilled individuals to other countries can hinder progress.
The analysis also highlights a significant disparity in the readiness of developing and developed nations to benefit from new technologies. The readiness index, which examined 166 countries, revealed the United States, Sweden, Singapore, Switzerland, Netherlands, and Korea as the top performers, while many African and Latin American countries ranked at the bottom.
This disparity underscores the need for deliberate policy changes and critical investments to bridge the technology gap and reduce inequalities. Countries like India, the Philippines, and Vietnam have demonstrated that deliberate policy changes, investments in research and development (R&D) and information and communication technology (ICT) capabilities, and skills development can significantly improve readiness and capabilities to benefit from new technologies.
Moreover, the analysis emphasizes the dynamic and fast-paced nature of digital technologies, creating a narrow window of opportunity for developing countries. It accentuates the importance of seizing the limited moments when opportunities arise to leverage the benefits that digital technologies offer.
The issue of cross-border data governance is another significant challenge identified in the analysis. The complications surrounding e-bill of landing due to cross-border data issues and different governance systems across the globe are identified. The analysis acknowledges cross-border data governance as not only a trade and human rights issue but also an environmental concern.
Building interoperability among various data governance systems is recognized as crucial for effective data management and collaboration. In conclusion, the analysis highlights the crucial role of technology in improving trade processes and efficiency. It sheds light on the positive impact of automation and digital platforms in reducing red tape, promoting sustainability, and benefiting small traders.
However, challenges in data governance, political support, and bridging the technology gap between developed and developing nations remain. To fully leverage the potential of trade technology, a comprehensive approach that includes sustainability, capacity building, and strong policy frameworks is necessary.
The analysis stresses the need to expand the dialogue on trade tech to foster innovation and exchange of ideas within the international community.
YJ
Yasar Jarrar
Speech speed
194 words per minute
Speech length
3112 words
Speech time
963 secs
Arguments
Excitement about the potential of tech in supply chain
Supporting facts:
- Dubai Chamber, Dubai Customs have a virtual freight and logistics quarter that improved costs and efficiency by about 50%
Topics: Blockchain, Internet of Things, Artificial Intelligence, Trade Tech
Urgency for regulatory bodies and governments to catch up in implementing effective and universal standards
Supporting facts:
- There is a need for universal standards for supply chain emissions
- Existing regulations are dated back to the 19th century
- Tech progress is faster than understanding and updating regulations
Topics: Trade Tech, Supply Chain, Regulation
Emphasizes the importance of harnessing technology's potential in various sectors, including trade, healthcare, and education
Topics: Technology, Trade, Healthcare, Education
The global trade tech cross-border sandbox, as mentioned by Yasar, is a unique approach that UAE is utilizing in order to adapt and test robust regulations in a real-world and fast-paced environment
Supporting facts:
- UAE established something under the Council of Ministers called Reg Lab to experiment new things and issue a one-year temp regulation for new technological ideas
- The agility and speed of UAE is demonstrated by the logistics passport and Dubai Customs Virtual Corridor
Topics: Trade Tech, UAE, Regulation
Yasar highlights the urgency of bridging the technology skill gap for successful implementation of sustainable technologies
Supporting facts:
- Erica from U.S. Steel mentioned that it would take approximately 30 years to retrain their staff for decarbonizing some of their steel
Topics: Skill Gap, Sustainable Technology
Govt. can help close tech disruption and regulation gap via incentives and targets
Supporting facts:
- Governments are setting a sort of target that whether we like it or not, as companies or individuals, people will have to work toward that target.
- The incentives and the punitive measures to push people towards change aren't the best way.
Topics: Government Regulations, Tech Disruption, Incentives, Targets
Benefits should outweigh punitive measures to drive changes
Supporting facts:
- The benefits statement starts outweighing,and that's what probably governments and maybe sandboxes can do.
- When the benefits were 1,000x, then there'll be a FOMO, a sort of fear of missing out rollout here.
Topics: Government Regulations, Incentives, Benefits, Punitive Measures
Enforcement of regulations is currently inadequate
Supporting facts:
- Enforcement is not there yet. God knows the stock take this year in COP28 will show that, bar maybe a few symbolic ones, we probably missed every target we set in France.
Topics: Government Regulations, Enforceability, Emissions
The issue of 4% uplift in cost for more sustainable options should be viewed as an insurance against a degrading future, not as a consumer uplift.
Topics: Sustainability, Climate Change, Cost Uplift
Government procurement which makes up 13% to 20% of global GDP can significantly accelerate the transition towards green practices.
Supporting facts:
- Director General Ngozi talks about government procurement
Topics: Government Procurement, Green Practices, Transition
Time to establish some sort of public-private regulatory global body
Supporting facts:
- Private sector is far more advanced in what they know and what they do than the governments
- Keeping the private sector out of global meetings like this is not effective
- Google and SAP and others would be ahead of our conversations
Topics: Public-Private cooperation, Global regulatory system, Technology advancement
Report
The potential of technology in the supply chain is generating excitement among participants, as seen in their positive sentiment. For example, Dubai Chamber and Dubai Customs have implemented a virtual freight and logistics quarter, resulting in a significant improvement of approximately 50% in costs and efficiency.
This highlights the positive impact of technology on the supply chain industry. However, some participants believe that the actual implementation of trade tech is still in its early stages, leading to a negative sentiment. This is mainly due to the fragmentation in regulation and understanding of data.
There is a clear need for universal standards for supply chain emissions as the existing regulations date back to the 19th century. The rapid progress of technology has outpaced the understanding and updating of regulations, which urgently needs to be addressed.
Consequently, there is a negative sentiment towards the slow implementation of effective and universal standards by regulatory bodies and governments. Participants also anticipate a fragmentation of trade routes, with a neutral sentiment towards the prediction of pockets of excellence in certain trade routes.
This implies that some trade routes may be more technologically advanced than others. The successful implementation of trade tech requires cross-border and global connectivity. However, the challenge lies in determining the appropriate platform and governance for these cross-border discussions. The UAE exemplifies a unique approach through the establishment of a cross-border sandbox, allowing for the adaptation and testing of robust regulations.
This demonstrates the agility and speed of the UAE in embracing technology and innovation. The importance of harnessing technology's potential across various sectors, such as trade, healthcare, and education, is emphasized. It is argued that technology can play a crucial role in driving progress and achieving the related Sustainable Development Goals (SDGs).
Addressing the technology skill gap is deemed urgent for the successful implementation of sustainable technologies. For instance, U.S. Steel estimates that it would take approximately 30 years to retrain their staff for the decarbonization of some steel products. Bridging this gap requires concerted efforts to ensure the effective adoption of sustainable technologies.
The significance of scale and the need for reality checks in scaling sustainable technologies are positively emphasized. Participants agree with the notion that scaling sustainable technologies requires careful consideration of real-world limitations. This implies the need for practical and realistic approaches to achieve scale in the adoption of sustainable technologies.
Governments are viewed as key actors in closing the gap between technology disruption and regulation, and there is a positive sentiment towards the idea that governments can drive change through incentives and targets. However, punitive measures are not seen as the most effective approach.
Instead, the benefits of adopting sustainable technologies should outweigh any negative consequences. The inadequate enforcement of regulations is negatively perceived. It is recognized that past targets have often been missed, highlighting the need for stronger enforcement to ensure compliance. The main challenge in implementing technology in the supply chain lies in surrounding aspects rather than the technology itself.
This emphasizes the importance of addressing related issues such as regulation, governance, and skill development to fully harness the potential of technology in the supply chain industry. There is a positive sentiment towards viewing the additional cost of sustainable options as an insurance against a degrading future.
This suggests a shift in perspective, recognizing the long-term benefits and value of investing in sustainable practices. Government procurement is identified as a significant driver in accelerating the transition towards green practices. With government procurement accounting for a substantial portion of global GDP, it can have a transformative impact on promoting sustainable practices across various industries.
The need for a public-private regulatory global body is positively mentioned. It is argued that the private sector is often more advanced in terms of knowledge and implementation of technology compared to governments. Therefore, involving the private sector in global meetings and discussions is crucial to ensure effective and up-to-date regulation.
In summary, the potential of technology in the supply chain generates excitement among participants. Challenges related to regulation, governance, skill development, and enforcement need to be addressed for successful implementation. The importance of cross-border discussions, universal standards, and regulatory bodies keeping up with technological advancements is emphasized.
Additionally, the role of governments, bridging the technology skill gap, and the significance of public-private cooperation are highlighted. The sentiment is generally positive, recognizing the transformative power of technology in promoting sustainable practices in trade, healthcare, and education.