Disruption, Digitisation, Resilience

the extent one might imagine, suggesting a more considered approach to the pandemic’s supply- chain impacts in the region as well as a more bullish view on globalisation, and an increasing appetite for investments in technology to manage supply chains. As a global bank with a presence in close to 100 markets, we know that the composition of globalisation is changing, but we believe it will endure despite the short-term challenges. The world is increasingly connected, and technology is a critical enabler. For supply chains, technology can greatly help improve resilience. By digitising capabilities and different components of the supply chain, businesses can make strides in various areas including trade facilitation, forecasting and predicting, inventory management as well as manufacturing processes. In the future, there will need to be greater role for collaboration amongst multiple parties — businesses, governments, policymakers, development banks and insurers — as we all have a collective role to play in making sure we are better prepared for the future. Leveraging our global network, advisory capabilities and local expertise, we are committed to advancing a post-pandemic future that benefits all stakeholders and we continue to partner with our clients closely as we navigate changing supply chains. Rajesh Mehta, Asia Pacific Head, Treasury and Trade Solutions, Citi The covid-19 pandemic continues to disrupt trade flows and supply chains. From supply-related shocks and shortages to production stoppages worldwide, as well as policies which restrict the movement of goods, the pandemic has shone a spotlight on supply-chain resilience. It is also accelerating trends that were already under way before the health crisis. Faced with an operating environment characterised by geopolitical tensions, increasing labour costs and heightened uncertainty, businesses were already considering diversifying and shifting their supply chains in response to these factors. Businesses and governments alike are therefore assessing the best way forward in this new normal. There is a pivot taking place from supply-chain optimisation towards one more characterised by resilience. This is critical for Citi’s clients. Whether it be shortening supply chains by localising or reshoring to move closer to end-markets, or expanding into new markets to reduce costs and diversify their supply chains, one thing is clear — there is a need for better balance between resilience and growth. Findings from this research report support this observation. Industries are responding differently to the range of challenges they have faced, with a common goal in mind—making supply chains more resilient. In this quest to ensure resilience, the report also points to some interesting insights on supply chains in the region. Among them is that an extensive overhaul of supply chains is not necessarily taking place in Asia-Pacific or not to PREFACE