Disruption, Digitisation, Resilience

13 DISRUPTION, DIGITISATION, RESILIENCE : The future of Asia-Pacific supply chains with just 3.2% of those based in Asia. Among Asia-Pacific managers, 46.4% picked the ongoing impact of the pandemic as the driver of their supply-chain strategy. A far greater share of managers based in North America and Europe have pursued diversification and regionalisation of their current supply-chain strategies compared with counterparts based in Asia. Moreover, a far greater share of managers based in North America and Europe have pursued diversification and regionalisation of their current supply-chain strategies compared with counterparts based in Asia. While 24% and 19% of supply-chain managers in Asia said their firms have pursued diversification and regionalisation, the numbers for North America are 48% and 32%, and for Europe 40% and 28% respectively. This has resulted in changes in supply-chain strategy over the past 18 months in Asia-Pacific among the vast majority (77%) of respondents (Figure 4). Four in ten (45%) managers said their strategy has changed, “but the primary strategy remains the same”. A third of managers surveyed, meanwhile, said they “have conducted/are conducting a complete overhaul” of their supply-chain strategy for the Asia-Pacific region, with 22.9% reporting no change. It might first appear surprising that a third of supply-chain managers in Asia-Pacific say they “have not made/are not making any significant changes” to their supply-chain strategies in the region, as compared with North America or Europe, where all respondents reported some kind of change. But there are very different perceptions over the severity of supply-chain disruptions, and the extent of change required in supply-chain strategy and the main drivers for these changes. For example, for 56% and 52% of supply-chain managers based in North America and Europe, concern over the resilience of their existing supply chains is the main driver of their firms’ current Asia-Pacific supply-chain strategy, compared Figure 4: Shifting supply chains Changes in supply-chain strategy in the Asia-Pacific region over the past 18 months Yes, we have conducted/are conducting a complete overhaul Yes, but the primary strategy remains the same No, we have not made/are not making any significant changes Source: The Economist Intelligence Unit 32.6% 44.6% 22.9%