Benefits of global value chains to my business
Article co-written by Claudius du Plooy
Global value chains are a popular way for businesses to increase efficiency and productivity, decrease overhead and deliver quality products at the lowest price possible. Rather than being the sole producer of their Canadian exports or relying entirely on the foreign market, more and more businesses are beginning to outsource certain components of their products or services. These components include everything from concept to R&D, production, marketing, distribution and even consumer support.
The popularity of global value chains have increased for three reasons.
- Easier access to markets and increased ability to establish connections as a result of international trade agreements,
- Increased access to information and technology,
- Decreased global transit costs, which ultimately incentivizes businesses to look outside of their borders for suppliers and production.
So why should you consider introducing global value chains to your business? They have three major benefits:
- Create new opportunities to streamline your processes,
- Increase your market share,
- Build mutually beneficial partnerships with people you already do business with.
For example, if a business already uses your product as part of their value chain, you can become their exclusive supplier through increased productivity and binding agreements Ultimately, this means more business for you.
If historical market data teaches us anything, it is that local and global businesses that focus on increasing their bottom line through efficiency and productivity are the ones with the most success. Find out how global value chains can help your business grow. Contact the Du Plooy Law team today to learn more.