Transforming Future Value Chains: Innovative Steps for Building Resilience and Sustainability

Jakarta, INTI - In today’s dynamic global economy, disruption is no longer an isolated incident but a continuous reality. Rapid changes in climate, technology, and politics have added to the challenges of maintaining smooth global supply chains. In its report "From Disruption to Opportunity," the World Economic Forum (WEF) and Kearney detail new approaches for creating future-ready value chains that are more resilient and sustainable.

Five Pillars of Value Chain Rewiring

The WEF outlines five key pillars for companies to consider in restructuring global value chains:

1. Globally Connected, Locally Adapted: Optimizing the balance between global networks and local resources.
2. Comprehensive Digital Transformation: Using digital technology to integrate all aspects of operations from end to end.
3. Economies of Skill over Scale: Ensuring the workforce has the right skills to leverage new technologies.
4. Innovative Sustainability: Driving sustainability across the value chain through proactive, innovation-driven approaches.
5. Customer-Centric Value Chains: Adapting supply chains to prioritize and respond to customer needs and expectations.

Key Challenges in Value Chain Transformation

Based on a survey of over 300 executives, WEF reports that the main obstacles lie in the high cost and complexity of upgrading supply chains. Despite nearly 92% of respondents expressing intentions to adopt global-local strategies, only 28% have clear plans to operate in regional hubs by 2030.

These results reflect the substantial gap between strategy and actual implementation. Many companies face challenges due to outdated legacy systems that are costly and difficult to modernize. Only 1% of companies surveyed have achieved complete process automation, primarily due to these legacy barriers, combined with a lack of digital integration.

Digital Transformation as the Key to Efficiency

Digital transformation plays a vital role in enhancing value chain resilience. AI and digital twins—virtual models of supply chains—can help companies design scenarios that predict potential risks and optimize operations in response. However, the WEF notes that larger companies, especially those with extensive legacy infrastructure, struggle to integrate new systems, making transformation costly and complex.

Building Sustainability with New Approaches

Sustainability has become a central focus in value chain transformation. The WEF reports that 45% of companies view sustainability as a primary driver for restructuring. Sustainable initiatives include replacing existing suppliers with more eco-friendly partners and redesigning logistics networks to reduce carbon emissions. Yet, sustainability initiatives come with unique challenges, often resulting in higher costs.

The survey reveals that 66% of industry leaders now prioritize suppliers with strong sustainability credentials, despite the additional costs involved. This reflects a growing trend where companies are more willing to invest in sustainable choices to benefit long-term environmental and social goals. To support these efforts, companies are setting quantifiable sustainability targets for each unit within their value chain.

Collaborative Strategies for a Resilient Value Chain

To build competitive supply chains, the WEF emphasizes the importance of cross-sector collaboration. Government and industry partnerships can create policies that support sustainable practices while optimizing supply chain operations. This collaboration fosters an environment that not only increases resilience but also helps companies remain adaptable to the challenges of global disruption.

Additionally, the WEF report highlights the importance of reskilling and upskilling as part of this collaborative approach. With around 60% of the workforce needing reskilling to meet evolving technological demands, it’s essential for companies to invest in continuous learning opportunities. This commitment to workforce development can help bridge skill gaps and enhance operational agility across supply chains.

With the right strategies, companies can transform value chain challenges into growth opportunities. Digital transformation, innovative sustainability, and cross-sector collaboration are essential pillars for building future-ready value chains that are resilient, responsive, and environmentally responsible. The WEF continues to champion global partnerships to advance these goals and ensure that the industrial sector remains resilient and competitive in the long run.