Can Europe do without a supply chain strategy?
By Ibrahima DIALLO
24 May 2024 / 15:02

In the run-up to the European elections, France Supply Chain is calling for the coordination of member states' supply chain strategies. An approach inspired by the council on supply chain resilience set up by the United States in the wake of the health crisis. Called "Supply chain experts", this European strategy would enable the EU to defend its interests, including standards and logistics, in the face of projects such as the New Silk Roads.

Create a supply chain control tower within the European Commission. In the United States, this approach gave rise to the Supply Chain Resilience Council.

Launched on November 27, 2023, it reports to the White House and was initiated by President Joe Biden. This interdepartmental council's mission is to improve the resilience of supply chains for industries and products considered essential and strategic to American national security and the economy.

With the European Logistics Association, of which it is a member, France Supply Chain pleads for an identical ambition within Europe. On May 16 in Paris, its Comex presented the broad outlines of this project to representatives of the main candidates in the European elections.

Frugale and sober

Called "Supply chain experts" and inspired by the American model, this European strategy would aim to "mitigate the effects of crises and support the economic and environmental performance of member states", defends Yann de Feraudy.

For the President of France Supply Chain, this "strategy of integrating supply chain expertise coordinated on a European scale" should be one of the tasks of the next European Commissioner for the Internal Market.

Its remit could also extend to the European Parliament's Internal Market and Consumer Protection Committee. This proposal was favorably received by representatives of the lists for the European elections.

It distinguishes itself from the American model by advocating “the implementation of a sustainably frugal and sober supply chain”, encouraged Marion Beauvalet, of La France Insoumise, Thiebaut Weber, of the Socialist Party, and Bruno Millieme representing the Renaissance list.

Setting a course

The implementation of a supply chain strategy by an ad hoc committee within the European Union would also be a way of giving Europe "a voice, a direction and visibility for its companies", according to Aimé-Frédéric Rosenzweig, supply chain expert with the Renault group.

A topical issue at a time when China is multiplying its initiatives within international standardization bodies (ISO). It is particularly active in the field of logistics standardization, as well as through the Belt and Road Initiative (BRI).

One of the roles that a European Supply Chain strategy could take on for Aurélien Caron, representing the Les Républicains list, is "sober standards to avoid weakening companies".

Coordinating and developing existing facilities

The European Union is not totally untouched when it comes to actions to strengthen the resilience and robustness of its supply chains. In response to the "Chinese BRI", it launched the "Global Gateway" plan in December 2021 (an offshoot of the G7's "Build Back Better World" program).

Since its creation and until 2027, Global Gateway plans to finance €300 billion in infrastructure projects with third countries to improve their trade with the EU. More recently, in May 2023, an alert system was deployed by the European Union and the United States to better manage the semiconductor supply chain.

The management of this system is one of the actions and measures entrusted to the new American Supply Chain Resilience Council. Finally, last March, the European Union adopted a new regulation on the sourcing of critical raw materials.

The consolidation and/or advisory support of these actions within a "Supply chain experts" committee could make sense. France Supply Chain is ready to collaborate and contribute its expertise.

ERICK DEMANGEON

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