Disruption, Digitisation, Resilience

3 DISRUPTION, DIGITISATION, RESILIENCE : The future of Asia-Pacific supply chains Asia-Pacific supply-chain managers are investing more greatly in the digitalisation of their supply chains. Forty-one percent of them have increased investment in digital tools and processes by more than 50% to manage their supply chains, while only 8% and 16% of supply- chain managers in North America and Europe have done so. Asian supply-chain managers have primarily invested in digital tools to enhance customer service and for inventory management. The next pandemic is more concerning than the current one. Almost three in ten supply- chain professionals chose “the next pandemic” as the future shock to supply chains they are most concerned about, followed by one in five picking “a breakdown in the global trade system”. Again, these numbers mask large differences between supply-chain managers based in Asia and elsewhere. While almost 40% of supply-chain managers in Asia are most concerned about the next pandemic, the numbers for both European and North American managers was 4%. likely constrained by the relative paucity of resources—prefer localising their supply chains and shortening them. Asia-Pacific supply-chain managers are far more bullish about the prospects of globalisation and international supply chains than their counterparts in North America and Europe. Supply-chain managers in Europe and North America responsible for decisions relating to Asian supply chains are far more concerned about the breakdown in global trade (both 52%) than those in Asia (9%), and the next economic/ financial crisis (36% and 28% respectively) compared with just 10% in Asia, suggesting that covid-19 has not dampened the region’s economic prospects in the eyes of supply-chain managers based in the Asia-Pacific. Asia-Pacific supply-chain managers are investing more greatly in the digitalisation of their supply chains. Asia-based supply-chain managers also differ from their North American and European counterparts in their views on supply-chain resilience and reliability. While 56% and 52% of supply-chain managers in North America and Europe say increased concerns over the resilience and sustainability of existing supply chains is the top factor driving their firms’ Asia-Pacific supply- chain strategies, just 3.2% of Asian managers say so.