Resilient Global Value Chain
Three levels of a commercially managed - economic supply chain -resilience:
The TAA Southern Link is a world leading innovative initiative designed to be the Gateway for the Southern Hemisphere in the same way that Singapore was to Asia. With the objective to become an Southern Hemisphere digitally enabled economic technology “Trade Centre’ for Asia (China), South America and Australia Pacific Islands within the Pacific Rim.
Show casing Aotearoa New Zealand as a world leader in Cross Border eCommerce within the increasingly developing digital e-commerce world.
Businesses that might operate within TAA Southern Link hubs would be those that operate within ecommerce supply chains (B2Be/B2C and B2B2C) either operating as ‘near shoring” supply buffers or by adding value to products involved in tasks around reconfiguring, branding, and adding value to products prior before re-shipping out across to Asia/Australia, South America and further afield.
To mitigate risk and transfer equal value across Aotearoa New Zealand, there will be six authorized TAA Southern Links “Hyper Trade Hubs” located at ocean/air and inland ports.
TAA Southern Link Hubs:
- Will play a vital role in enabling a regional strategy to use the hubs to help existing operations establish cost optimized facilities, and to attract new employers to the area that require a TAA Southern Link strategy to enable their global supply-chain.
- Will differ in their procedures, cost structure and outreach to enable Global/National supply chain operators and their companies to access their Hub. Therefor this gives foreign investors and manufacturers a competitive choice.
- Kiwi manufacturers will be supported remotely (Certification /Compliance/MPI Transitionary Facility in place outside of the proposed hubs example) by their respective regional TAA Southern Link hubs with the same benefits.
It is important to note, many kiwi manufacturers are decentralized outside of the proposed hubs or main urban centers and located close to raw source or existing manufacturing sites. Here remote management will work smoothly to ensure future global value chain within their business are catered for.
- A Māori, Private enterprise /local Government Partnership supported by central Government, with its coordinated and unified focus to empower Aotearoa New Zealand’s economy.
- Technology will be key in harmonizing global value chains. The proposed digital capability (Blockchain) will enable the combination of data from multiple sources, ensure trust among partners sharing information through robust security features or harmonized proprietary and open-source software to work seamlessly across borders.
For example, the European Union has put in place such an initiative with a €700 billion ($780 billion)-plus recovery and resilience facility,4 while Germany invested €7.6 billion ($8.6 billion) in a digital hub initiative5 that includes infrastructure for data, making use of common platforms and increasing resilience. Noting the Southern Link TAA will use Block Chain, Blockchain within itself is distributed ·
Blockchain is immutable. Thus, ensuring cyberattacks in the future are mitigated. This blockchain initiative fits within MBIE initiative: Future of business Aotearoa New Zealand The US government is heavily involved in blockchain to ensure resilience in Supply chain. ‘The international trade industry sees blockchain technology as a tool that may affect every aspect of international trade—from manufacturing to shipping and distribution, and even customs clearance. Wide scale blockchain implementation is years away, but when it comes to the international trade environment, the U.S. government should actively engage in such implementation now in order to endorse systems that adhere to global standards and promote economic growth and fair-trade practices worldwide. Blockchain technology is promising to revolutionize supply chain management; with proper government and industry support, this technology may also improve the international trade environment as well as compliance and enforcement capabilities.
TAA Southern Link future Blockchain/Cloud
The TAA service Southern Link and integrated logistics ecosystem can be a foundation for Australia and New Zealand as a regional solution for the building of a sustainable and Resilient Global Supply chain for manufacturers/essential goods and raw materials for Public and Private co-operation and partnership. For Aotearoa New Zealand, the TAA Southern Link allows the enablement of ‘Supply Chain Resilience” afforded to larger economies that are investing in permanent supply chain office and long-term funding for “onshore’/’friend shore’ manufacturing (US/EU/UK/AUS).
The Southern Link Global Value Chain Road Map” is a proposed way of creating and capturing the identified value by structuring, coordinating, and integrating the activities of what was previously individual ad hoc access to offshore markets. This implies considering business not as isolated entities, but as part of an ecosystem that includes other business but also consumers workers, communities, the environment, and society as a whole. Relate these activities effectively to an autogenous operation (TAA Southern Link) with the aim of developing a network of activities that create fundamentally:
- New commercial export markets.
- Supply Chain Resilience.
The success of which would need a complex mix of policy and actions to solve multi-dimensional challenges. Including a shift of investment (both Public and Private) towards infrastructure and services. The TAA Southern Link favors the Strategic Long Term Low Risk Value Chain Model with 4 trajectories empowered with technology:
- Reshoring – will lead to shorter, less fragmented value chains and a higher geographical concentration of value added.
- Diversification- Will lead to a wider distribution of economic activities.
- Regionalisation- Will reduce the physical length but not fragmentation of supply chains.
- Replication- Will lead to shorter value chains and rebuilding of production stages.
One of the concerns Aotearoa New Zealand faces is the size of our own market and the scale and affordability to pursue a ‘supply chain resilience’ initiative as identified within this business brief. Does NZ’s smaller and less diversified economy increase the potential impact of disruptions and justify greater investments in resilience?
This concern is elevated due to the risk of ongoing loss of international connections to Aotearoa New Zealand given our countries relatively small market.
De – risk NZ’s smaller market by unifying and growing the potential size of the prize within Oceania and espousing the unique value (Australia and New Zealand) that the TAA Southern Link can only achieve.
The Te Aoutanga Aotearoa Southern Link should be endorsed as a rising star government initiative that can play an important role in NZ’s economic recovery bringing jobs investment designed to boost trade innovation and prosperity whilst enabling resilience in Supply Chain.
By presenting the importance and relevance of the Southern Link TAA as a future Oceania Regional/Manufacturing and Fulfilment Hub. The road mapping of relevance goes hand in hand.
Resilient Global Value Chain
Resilient Global Value Chain within Strategic Long Term/Low Risk
