ReSChape new joint webinar
Yesterday, ReSChape participated in a joint webinar co-organized alongside our sister projects, TWIN SEEDS and RETHINK-GSC. The webinar delved into the impacts of globalization on European supply chains, covering social, economic, and environmental challenges, and the necessity for a redefinition towards greater resilience and sustainability. The speakers and participants engaged in conversations surrounding three research projects that aim to improve the sustainability, resilience, and social inclusivity of European supply chains.
In the first place, Roberta Capello from Politecnico di Milano, the lead partner of the TWIN SEEDS project, introduced the project focused on establishing sustainable and inclusive trade patterns. TWIN SEEDS specifically investigates the geographical restructuring of value chains with the goal of fostering sustainable and inclusive trade patterns. The project examined the effects of the COVID-19 pandemic on Just-in-Time (JIT) businesses, their trade relationships, employment productivity, environmental concerns, and inequalities. The findings highlighted the intense competition among firms and nations for jobs and income due to JIT production systems and the geographical specialization of labor within the EU. It was also noted that Europe’s response to the pandemic lagged behind that of the US, and challenges arose in the high-tech sector during and after the reshoring process. Furthermore, the discussion emphasized the importance of regional policies in addressing the employment impacts of JIT production restructuring, as well as the significance of establishing a conducive investment environment and fostering strong coordination between trade and industrial policies. The EU Cohesion Policy was highlighted as a tool to promote fairness and interregional equality.
Secondly, Márta Bisztray from KRTK – Institute of Economics presented the Rethink-GSC project. The project’s objective is to comprehend the evolving nature of global value chains, emphasizing the significance of intangibles and knowledge flows. The team is currently carrying out a survey at the firm level across various countries to measure the impact of disruptions on the relationships between suppliers and buyers, as well as to identify any temporary or long-lasting effects. The survey, which targeted medium-sized and larger manufacturing firms in Denmark, Germany, Austria, and Hungary, indicated that domestic and EU markets are the primary sources of procurement. Nevertheless, there is a noticeable presence of Asian suppliers, with a projected shift towards the EU as a more prominent sourcing region in the future. Both COVID-19 and geopolitical events like the Russian-Ukrainian conflict have led to temporary disruptions, particularly affecting larger firms. Responses to these disruptions include changing or adding suppliers, reflecting a trend towards diversification. Firms perceive varying levels of disruption risk, with concerns about supplier quality issues, political interventions, and geopolitical tensions. Despite a decrease in face-to-face communication during the pandemic, it remains crucial for establishing trust, cooperation, and exchanging knowledge with suppliers. Many firms are expanding their supplier base and seeking more information from them, while also striving to comprehend the connections between firm strategies and performance.
Finally, Dimitra Kalaitzi, from Aston University, delivered a presentation on the ReSChape project. Finally, Dimitra Kalaitzi from Aston University, presented the ReSChape project, aimed at reshaping supply chains for positive social impact amidst uncertainties and disruptions. The main objectives of the ReSChape project include exploring and understanding these changes, proposing strategies to reshape supply chains, and developing innovative tools and policies. The presentation focussed on the social sustainability requirements from focal manufacturing companies cascade down to lower-tier suppliers using specific supply development strategies and activities. The research is motivated by the new sustainability norms, such as remote work and the four-day week, and the resulting policy interventions, like the Supply Chain Due Diligence Act in Germany. The presentation showed strategies for improving social sustainability in lower-tier suppliers. Companies use various methods such as direct control, incentives, monitoring, certification, audits, knowledge sharing, and collaboration to cascade down social sustainability requirements. The findings from a survey of manufacturing companies in Europe showed that countries have different preferences for supplier development approaches. Germany and Italy prefer direct control, Spain prefers delegating to first-tier suppliers, and the UK and France have a mixed approach. The least preferred option is delegating to third-party companies. Dimitra also touched upon the importance of regulations such as the Corporate Social Due Diligence Directive and the forced labor regulation and acknowledged the need to investigate the impact of circularity within value chains and knowledge flow in supply chains.
The webinar emphasized the importance of monitoring, auditing, collaboration, and knowledge sharing in building resilient supply chains and addressing the social impact of supply chains by putting people at the center.
A Miro board collected comments and suggestions from participants regarding three projects.
