We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • ProMat 2023
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • ProMat 2023
    • Upload Your Video
Home » Study finds that cutting supply chain barriers better remedy for global growth than ending import tariffs
newsworthy

Study finds that cutting supply chain barriers better remedy for global growth than ending import tariffs

January 28, 2013
DC Velocity Staff
No Comments

Reducing global supply chain barriers through the adoption of best practices could increase annual world GDP by 4.7 percent, expand world trade by 14.5 percent, and be far more effective in promoting growth than removing all import tariffs, according to a study released yesterday at the World Economic Forum (WEF) in Davos, Switzerland.

The study, conducted by consultancy Bain & Co. and the World Bank, found that even taking "half-measures" toward implementing best practices would be six times more beneficial to global growth than eliminating all tariffs. By contrast, the removal of all tariff barriers would stimulate global GDP by only 0.7 percent and world trade by 10.1 percent, according to the report.

The study affirms the broad consensus that supply chain best practices, while well established in North America and western Europe, are very much alien concepts in other parts of the world, notably in fast-growing emerging markets.

The report, called "Enabling Trade: Valuing Growth Opportunities," identified 18 examples of poor supply chain practices, and defined, in broad terms, how cost overruns, product delays and administrative inefficiencies could be reduced by implementing Best Practices. The 18 case studies cut across multiple regions, countries and industries.

For example, the report noted that adopting electronic documentation in the global air cargo industry could yield $12 billion in annual savings and prevent up to 80 percent of paperwork-related shipment delays. The air cargo industry has struggled for years to convert from paper-based to electronic document transmissions; an international air shipment typically takes six days to move from origin to destination, even though a shipper or consignee is paying a premium price for fast transit times.

Ironically, the cargo spends little of that six-day window in the air. The cargo is on the ground for most of that time as it awaits processing and clearance.

"Supply chain barriers can result from inefficient customs and administrative procedures, complex regulation and weaknesses in infrastructure services," according to a statement issued by the WEF in conjunction with the report's release.

The report recommended that governments create a "focal point" to examine regulations that could benefit or harm supply chains. . It also advised governments to pursue a more supply chain centered approach" to international trade talks to ensure that trade agreements have greater relevance to businesses and consumers. The report called for the creation of more public-private partnerships that would quantify, monitor and analyze all factors affecting supply chain performance.

The overarching objective, according to the report, is to develop a "concerted approach" that can dissolve the many policy silos standing in the way of efficient supply chain outcomes.

The takeaway from the 18 studies is that "clusters of policies" conspire to affect supply chain performance, and that small to medium-sized enterprises tend to face disproportionately higher supply chain barriers and costs, according to the WEF statement.

    • Related Articles

      April container import statistics “significantly” better than expected

      ROI, worker shortage, and cybersecurity biggest barriers to adoption of next-gen supply chain technologies, Deloitte-MHI study says

      Study finds five tips to survive supply chain complexity

    Recent Articles by DC Velocity Staff

    Machine learning makes its mark

    Saddle Creek adds 1.8 million square feet of warehouse space in four markets

    Penske’s 3PL arm to expand brokerage capabilities with new offices in Chicago and NJ

    You must login or register in order to post a comment.

    Report Abusive Comment

    Most Popular Articles

    • Union Pacific agrees to provide more predictable schedules for union rail workers

    • Schneider National opens innovation center at Wisconsin headquarters

    • DHL Supply Chain will expand Locus Robotics fleet to 5,000 AMRs

    • Trucking companies face “modestly unfavorable” outlook heading into 2024

    • E-commerce 3PL gains $100 million funding for its network of Mexican warehouses

    Now Playing on DCV-TV

    B0d646ac 1d71 44f7 9c47 80a0858638b7

    Improve Overhead Access with Custom VRCs

    DCV-TV 4: Viewer Contributed
    Tackling high-reach storage challenges is easy with Autoquip Lifts. We offer a wide variety of design features for Vertical Reciprocating Conveyors, or VRCs, to safely transfer materials from multiple levels based on the client’s specific needs. Don’t know where to start? We can create the perfect hydraulic or...

    FEATURED WHITE PAPERS

    • How to Use Economic Uncertainty to Gain Competitive Ground with Automation

    • Exploring Customized Forklift Solutions

    • Exploring the Future of Labor Management With Capacity Planning

    • Three layers of forklift safety: Promoting operating best practices

    View More

    Subscribe to DC Velocity Magazine

    GET YOUR FREE SUBSCRIPTION
    • SUBSCRIBE
    • NEWSLETTERS
    • ADVERTISING
    • CUSTOMER CARE
    • CONTACT
    • ABOUT
    • STAFF
    • PRIVACY POLICY

    Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing