Supply chains and information requirements

Definition

The supply chain encompasses the steps it takes to get a good or service from the supplier to the customer. Many companies strive to have the most optimized supply chain because it usually translates to lower costs for the company. Optimization of the supply chain processes often depends on information requirements - those items of information that need to be collected and processed in order to meet the intelligence requirements of a commander. Information requirements would have a significant effect on the world market and even greater effects on trade, creating significant trade distortion.

Overview

Global Supply Chains are a dominant feature of today’s international trade. They are the primary conduit through which multinational corporations source the inputs for manufacturing from around the world and distribute final products. They depend critically on free and unencumbered flow of goods across borders, with a minimum of red tape, simplified trade procedures, and predictable and low transaction costs. Unfortunately, many developing and transition economies fall far short of these basic requirements for the successful participation in global supply chains. They are often burdened with extensive regulatory and procedural requirements and delays. They also lack experience and technical know how in related information and communications technologies, international standards and best practices. This results in the exclusion or severely limited participation of their national and regional enterprises in international markets, and their eventual failure to thrive. This activity would address the underlying causes of these failures, both internal and external, with a particular emphasis on regional issues. It should build and strengthen the capacity of local and regional experts in the techniques of identifying and removing (or reducing) regulatory and procedural obstacles to trade and the operation of international supply chains. It will provide tools for training for such experts in trade transaction and business process analysis and in the selection and application of international tools and technologies.

GFP and GFP Members' Activities

Under the UN Development Account (UNDA) 7th tranche project, UNECE in collaboration with the other UN regional commissions will enhance the capacity of developing countries and countries with economies in transition to effectively participate in international supply chains by reducing/eliminating regulatory and procedural barriers to trade.

The objective is to increase capacity of national and regional experts from developing and transition economies in the identification of regulatory, procedural and organizational barriers to linking to global supply chains.

Where to start

Join the effort!

The GFP welcomes feedback/additions/tools from practitioners, who either applied the GFP methodology or are using their own instruments. The GFP is particularly interested in collecting and assembling all the methodologies, survey instruments and results developed and used by its Partners, and in including them in a shared set of trade audit tools, posted below.

Please e-mail those to support@gfptt.org and suggest the topic(s) under which they could be included. Please provide any feedback on the methodology to Serguei Kouzmine, its author, serguei.kouzmine@unece.org.

Geographic coverage: 

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