Illustrious Experts Discourse on Global Value Chain Optimization
Global Value Chains (GVCs) have long been put to the test for resilience and optimization. However, recent and ongoing disruptions are calling for rapid transformation. Companies across many industries are currently reevaluating the length and location of their global value chains, which will lead to changes in their geographic footprint. Therefore, both developed and emerging economies will need to anticipate and respond to these changes by repositioning themselves in terms of costs, transportation infrastructure, stability, and other key decision criteria.
This is the gist of the session that will be hosted by the Annual Investment Meeting 2022 on March 30th, 2022, at Dubai Exhibition Centre, EXPO 2020 Dubai, under the title of “Global Value Chain Optimization”.
That said, let’s move on to the logical question: What will this high-level gathering discuss?
Global Value Chains at a Glance!
The AIM 2022’s 2nd FDI & FPI Pillar Session will focus upon the various ways to optimize global value chains (GVCs). By global value chains, the panelists will refer to the full range of activities that economic actors engage in to bring a product to the market, noting that the GVCs does not only involve production processes but pre-production (such as design) and post-production processes (such as marketing and distribution).
Generally, the speakers will be talking about GVCs as a phenomenon where production is broken into activities and tasks carried out in different countries, with the operations spreading across national borders (instead of being confined to the same location). As a result of globalization, businesses are motivated to restructure their operations internationally through outsourcing and offshoring of activities.
But, does the wind always blow as the ships desire?
The GVCs Under Test!
At the AIM 2022’s 2nd FDI & FPI Pillar Session, the panelists will draw the attendees’ attention to the fact that Global Value Chains (GVCs) have long been put to the test for resilience and optimization.
In this context, the session speakers will explain that global value chains have recently grown in length and complexity as companies expanded around the world in pursuit of margin improvements. Over the past 2 decades, the value of intermediate goods traded globally has tripled to more than USD 10 trillion annually.
Even though the businesses that successfully implemented a global model of manufacturing achieved improvements in indicators - such as inventory levels, on-time-in-full deliveries, and shorter lead times - these operating model choices have sometimes led to unintended consequences if they were not calibrated to risk exposure. Across industries, companies can now expect supply chain disruptions lasting a month or longer to occur every 3 to 7 years, and the most severe events take a major financial toll.
Well, so what?
Optimize, Optimize, and Optimize!
Notably, the speakers at the AIM 2022’s 2nd FDI & FPI Pillar Session will stress that these recent and ongoing disruptions are calling for rapid transformation - GLOBAL VALUE CHAIN OPTIMIZATION.
In this context, companies across many industries all over the world are currently reevaluating the length and location of their global value chains, which will lead to changes in their geographic footprint.
Furthermore, with industrial operations becoming more global, driven by market volatility, competitive pressures, and demand fluctuations, operators and manufacturers now continue to look for ways to remain competitive and drive profitability, whether through operational efficiency or taking costs out.
The session panelists will stress the need for end-to-end value chain optimization that helps businesses to redefine their processes, enable deeper collaboration, reduce value leaks, sustain productivity & innovation, and ultimately make better and more robust decisions quicker across the lifecycle of their operations.
AIM 2022’s 2nd FDI & FPI Pillar Session
The Panellists at the AIM 2022’s 2nd FDI & FPI Pillar Session are Sergey Cheremin, Minister of the Government of Moscow, Head of the Department for External Economic and International Relations of Moscow; James X. Zhan, Director, Division on Investment and Enterprise, United Nations Conference on Trade and Development; Philippe Guillaumet, Head of International and General Secretary, MEDports Association; Robert Šimončič, Chief Executive Officer, Slovak Investment and Trade Development Agency (SARIO); Cristián Rodríguez-Chiffelle, Luksic Fellow and Visiting Scholar, Harvard University’s David Rockefeller Center for Latin American Studies (DRCLAS); Yofi Grant, Chief Executive Officer, Ghana Investment Promotion Centre.
They will highlight the fact that both developed and emerging economies will need to anticipate and respond to these changes and reposition themselves in terms of costs, transportation infrastructure, stability, and other key decision criteria.
What's more, the panelists will provide practical insights into how the realignment of GVCs is affecting corporate investment and location decisions as well as what governments, investment promotion agencies, and special economic zones should do to be prepared for the changes ahead.
