New Zealand's economy heavily depends on its maritime trade routes, vital for the export and import activities that fuel sectors like agriculture, construction, and the wholesale and retail trade. Disruptions to these routes, whether due to natural disasters, geopolitical tensions, or global health crises like the COVID pandemic, can severely impact the flow of goods, delay deliveries, or damage critical infrastructure. Furthermore, such crises can derail businesses' commitments to sustainability goals, including reducing carbon emissions, minimizing waste, and enhancing resource efficiency. Notably, major New Zealand companies have been integrating sustainability measures into their operations. For instance, Fonterra has adopted low-carbon logistics, Zespri utilizes blockchain for supply chain transparency, and Air New Zealand collaborates with local suppliers to reduce carbon emissions.
Our research, which examined 287 studies on supply chains, highlights the tension between maintaining efficient operations and the growing need for resilience and sustainability. This is particularly relevant in the face of climate change challenges. New Zealand's supply chains are vulnerable to a variety of disruptions, prompting businesses to seek ways to diversify suppliers, increase inventory buffers, and secure alternative transport routes. The adoption of technologies like radio frequency identification and blockchain plays a significant role in enhancing supply chain sustainability and resilience. However, the rapid pace of technological innovation could disadvantage those with limited resources.
During the pandemic, the pressing need for survival led some businesses to prioritize short-term tactics over long-term sustainability strategies. To build more resilient and sustainable supply chains, integrating circular economy principles is essential. This approach focuses on minimizing waste and regenerating natural systems. By fostering stronger regional partnerships and reducing reliance on external supply chains, businesses can mitigate global risks and build more self-sufficient ecosystems. The future of New Zealand's supply chains will depend on collaboration among businesses, policymakers, and communities to develop systems that are efficient, cost-effective, resilient, and sustainable. This includes supporting local manufacturing and investing in advanced technologies like blockchain and artificial intelligence, ensuring a gradual and inclusive technological transition.
Source: BNN