Gedeth Network has been at the IV Ibero-American Congress CEAPI, where the importance of transitioning towards more resilient, local and conscious models in the fight against climate change has been discussed. Below, our junior Consultant, Carmen Salvo, shares some key points from the Congress on changes in local Supply Chains.
As a result of the economic slowdown caused by the coronavirus, companies are placing increasing importance on local supply chains. This has encouraged support for local businesses and the creation of new, more sustainable and environmentally friendly forms of business.
The health emergency of the last few months has been a key factor in the move towards a change in supply chains. Many companies that concentrate their production in Asia have faced supply disruption due to COVID-19, forcing them to return to local production and to the development of new value chains that prioritize resilience and regional sourcing.
Business models have also adapted to the new reality: digital commerce is becoming more important every day; and SMEs, taking advantage of this upturn in support for local business, have increased their figures.
More sustainable models
In addition to greater integration at the regional level and the creation of local value chains, the pandemic has marked a turning point in terms of the role of business in the fight against climate change. The new business models that have been implemented in recent months, in which innovation has been key, seek to be more profitable in the long term and environmentally friendly.
The role of companies as pillars of sustainability is essential to achieve the transformation of the current economic model, although it is necessary to implement these elements in all aspects of the production process to achieve the highest level of business resilience.
Thanks to the NextGenerationEU funds, which have assigned more than 700 billion euros for the transition to a more environmentally friendly way of life, Europe is at the head of this transformation. However, sustainable development is increasingly gaining strength in Latin America, where more than 20 billion has already been invested in sustainable, social and green bonds. And loans are already being granted linked to the achievement of certain objectives.
Another of the topics discussed at the IV CEAPI Ibero-American Congress was the importance of public-private collaboration to create value in a sustainable way. Through joint action at the economic, social and environmental levels, the different entities can generate impact and promote actions that contribute positively to society. On the other hand, the investments made should be socially responsible and, in addition, “help to solve certain social and environmental challenges”.
Through the joint work of governments and companies, as well as intelligent investment management, the aim is to create a more resilient business model with local and regionally integrated supply chains.
The companies and institutions that participated in the Congress stressed the importance of making the transition to new supply chains and investments that generate financial and environmental profitability. Thus, value generation would be created through the economy but also through the creation of resilience and socially and environmentally friendly business models.
At Gedeth we know how important it is to strengthen the current business models and transition to new models, through changes in local Supply Chains. If you need us to help you during this transition process, contact us!