The Global Value Chain Research Group Lisa De Propris, Paulina Ramirez and Pamela Robinson

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1 The Global Value Chain Research Group Lisa De Propris, Paulina Ramirez and Pamela Robinson Birmingham Business School, University of Birmingham

Global Value Chain Research Production and

Upgrading National Innovation Systems National

Systems Firms Citizens & Communities NGOs &

Institutions Trade Unions Firms Helen Rainbird

2 Global Value Chain Research Production and Consumption Economic Upgrading Social Upgrading National Innovation Systems National Business Systems Clusters Regional Innovation Systems Firms Citizens & Communities NGOs & Civil Society Nation-States Supranational Institutions Trade Unions Firms Helen Rainbird Lisa De Propris Paulina Ramirez Helen Rainbird Pamela Robinson

3 Following the Chain Research & Development Design Primary Production Value-Add Production Distribution & Logistics Retailing Producers / Suppliers Shipping Shipping Shipping Agent / Inter-regional Consolidation Centres Retailer Consolidation Centres Shipping Bulk Loads Retailer Distribution Centres Case Picks VMI (vendor managed inventory) Wholesalers Supermarkets Consumers Picking Centres Complexity of Global Supply Chains: Product Design.. Packaging.. Costing.. Producer / Supplier Management.. Stock Management.. Delivery Schedules.. Just-in-Time.. Pricing.. Promotions.. Customer Service

4 Social Upgrading Corporate Social Responsibility (CSR) Policies Private Labour Codes of Conduct: e.g. Better Buying Multi-stakeholder Initiatives: e.g. The Ethical Trading Initiative (ETI) Base Code International Framework Agreements International Union of Foodworkers (IUF), Coordinadora Latinoamericana de Sindicatos Bananeros (COLSIBA) and Chiquita

the bottom The commoditisation of labour in

5 Employment Conditions Sharing the Value Payment systems Benefits (promotion prospects) Job security (permanent contracts) Safe working conditions Preventing a race to the bottom The commoditisation of labour in developing economies Field work study, February - April 2006

6 Anchoring the Chain Research & Development Design Primary Production Value-Add Production Distribution & Logistics Retailing Place B Place D Place F Place A Place C Place E

7 Place matters Critique: De-territorialisation of production Hierarchy of places Distribution HQ R&D Production

8 Two sets of literature have developed in parallel 1) Role and functions of Multi-national Corporation Localisation and globalisation With MNC as a further development of the large fordist firms Exploration of the economies and efficiencies related to cross-place coordination of production and production-related activities Global Value Chains are the expression of the network production and production-related activities of MNC through market and hierarchy relations

9 2) Drivers of territorial competitiveness and local economic development Since 1980s (post-fordism) Localised industries Clusters and industrial districts have emerged as key models if TC and LED Systemic economies ( agglomeration and localisation economies) Segmentation of the value chain Combination of cooperation and competition to max innovation incentives PLACE MATTERS learning by interacting

10 In reality Clusters and ID, and places more generally are the POINT OF INTERSECTION of the local and the global: Local depending on the embedded comparative and competitive advantages Global network of value adding functions Are the PLACES where MNC anchor their activities We would argue that AT THIS INTERSECTION, WE CAN EXPLORE THE ROLES, POWERS, CAPABILITIES AND OPPORTUNITIES OF THE STAKEHOLDERS INVOLVED IN GLOBAL VALUE CHAINS

11 Learning and innovation in economic upgrading Where does strategic knowledge reside in GVCs? What knowledge flows and what knowledge does not flow within GVCs? Drivers and obstacles to knowledge flows within GVCs? Innovation in GVCs (where, how, drivers, obstacles)

12 Bring together GVC analysis with National Business/Innovation Systems perspective Focus is on firm as source of innovation But firms are embedded in multiple networks which influence learning, upgrading and innovation (i) Firm as part of GVC (lead firm, supplier, buyer) (ii) Firm embedded in national innovation and business systems (i.e. role of national institutions) (iii) firms embedded in clusters and regions (clusters, RISs) However networks shaped by multi-level institutions (local, national, regional, global), therefore institutional analysis needed

13 Bring together GVC analysis with National Business/Innovation Systems perspective NBS/NIS important part of explanation of How firms learn, upgrade and innovate How and where firms insert themselves in GVCs How and to what extent firms are able to learn and upgrade from participation in GVC Overcome obstacles to upgrading Partly explain why Asian firms benefitted more from participation in GVCs than Latin American firms

14 Breeding Ova production Hatching/ Juveniles Growing/ fattening Biotechnology, molecular biology Food; process technologies e.g. automatic feeding systems, computerise control Environmental and ecological management: Water quality and temperature, salinity. Marine science: marine ecosystems, movement: currents & waves Harvesting/ processing Logistics/ transport Most labour intensive: product adapted to demands of various national markets Packaging and transporting frozen products Sales Market knowledge

Main area of strength of Chilean GVC But dependent on food =

systems etc most knowledge intensive part of GVCs.

15 Breeding Ova production Hatching/ Juveniles Growing/ fattening Harvesting/ processing Logistics/ transport Sales Main area of strength of Chilean GVC But dependent on food = 40%+ of costs also dependent on suppliers of nets, IT systems etc most knowledge intensive part of GVCs. Dominated by European firms Chilean competitive advantage is cheap labour in harvesting

Firms Citizens & Communities NGOs & Civil Society Nation-States Supranational Institutions

16 Global Value Chain Research Production and Consumption Economic Upgrading Social Upgrading National Innovation Systems National Business Systems Clusters Regional Innovation Systems Firms Citizens & Communities NGOs & Civil Society Nation-States Supranational Institutions Trade Unions Firms Helen Rainbird Lisa De Propris Paulina Ramirez Helen Rainbird Pamela Robinson

Bullwhip Effect and Inventory - Values, challenges and opportunities of RFID in SCM

Supply Chain Visibility removing Bullwhip Effect and Inventory - Values, challenges and opportunities of RFID in SCM Presented by: Sukyoung Chey Date: 14 th May, 2010 Agenda Bullwhip Effect - What is it?