Supply-chain managers in Asia have a more optimistic view of globalisation and international supply chains compared to their European and North American counterparts.
Rather than being concerned over the resilience of existing supply chains, supply-chain managers in APAC identified the ongoing impact of the pandemic as the top driver of their supply-chain strategy.
A research commissioned by Citi and undertaken by The Economist Intelligence Unit (EIU), a report titled Disruption, Digitalisation, Resilience: The future of Asia-Pacific supply chains, found that supply chains in APAC have been more resilient than expected despite the supply-chain related shocks due to COVID-19.
Regardless, research finds that the pandemic has resulted in a broader rethink of supply-chain strategies for the longer term. While these changes were already underway, the pandemic accelerated these changes and has led companies to re-evaluate their strategies for the future.
Some interesting findings
- While only 22.9% of supply chain managers have revealed that they are not making any significant changes to their supply-chain strategies, a third of all companies are conducting a complete overhaul of their supply chains with these changes being geared towards the longer term.
- The pandemic has also resulted in a greater focus on the digitisation of supply chains and investments in technology, with 32.5% of supply-chain managers revealing that their companies have increased investment in digital tools or processes by more than 50% as a result of the pandemic.
"While industries are responding differently to the range of challenges they are facing, they are doing so with a common goal in mind – to make their supply chains more resilient,” said Rajesh Mehta, Asia Pacific Head, Treasury and Trade Solutions, Citi.
“Increased investments in technology and digitisation will help companies build resilience while advancing digital trade and supply chains more broadly, areas that have been relatively slow in keeping pace with technological change."
To find out more about why APAC’s more resilient, view the full report by Citi-EIU by clicking here.