Financial Services

Disruption, Digitisation, Resilience: The future of Asia-Pacific supply chains

August 25, 2021

Asia

The future of Asia-Pacific supply chains

August 25, 2021

Asia
Chris Clague

Managing editor Asia & Global editorial lead, Trade and globalisation

Chris Clague is managing editor in Asia for Economist Impact. He is an expert in international trade and trade policy and has also advised clients throughout the Asian region on the strategic implications of megatrends and political risk. He was a consultant in The Economist Group's Tokyo office and was the project leader and editor for the Economist Intelligence /Nikkei BP publication The World to 2050 (available in Japanese only). 

Prior to joining The Economist Group, he was a senior consultant and Director of China Operations for a boutique consulting firm that worked with governments and MNCs on issues related to international trade, investment, and commodities. 

Chris holds an MSc in Asian Politics from the London School of Oriental and African Studies (SOAS) and a certificate in International Trade Law and Economics from the World Trade Institute’s summer academy. He provides regular commentary on trade and the Japanese economy to international media.

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Covid-19 has had obvious implications on supply chains, but despite the disruption witnessed in the months immediately following the outbreak, supply chains in Asia-Pacific have proven to be more resilient than initially expected.
Shifts in supply chains were already under way, owing to geopolitical and economic factors, and covid-19 has accelerated some of them. Recent outbreaks of the virus—driven by the delta variant—mean that we have not seen the last of supply-chain disruptions yet, as economic activity across Asia-Pacific continues to be hampered. 
 
This report by The Economist Intelligence Unit, and sponsored by Citi, explores flexibility and resilience within supply chains in the Asia-Pacifific region. It is based on extensive desk research and a survey of 175 supply-chain managers. The report was written by Siddharth Poddar and edited by Chris Clague. Key findings include:
 
  • While supply chains in Asia Pacific are relatively resilient, companies across the board are rethinking their longer-term strategies for the future 
  • Asia Pacific supply-chain managers are investing more heavily in the digitisation of their supply chains since the onset of the pandemic
  • Asia Pacific supply-chain managers remain more bullish about globalisation and international supply chains than their counterparts elsewhere
  • Supply-chain managers in Europe and North America could be pulling back from long and very global supply chains to add more resilience through regionalisation and diversification
  • Larger companies are keen to diversify supply chains and move away from “single sourcing”, while smaller companies prefer localisation 
We would like to thank the following contributors for providing additional insights:  
 
  • Momchil Jelev, head of strategy and supply chain for government affairs and public policy, Asia-Pacifific, Johnson and Johnson
  • Jayant Menon, visiting senior fellow, ISEAS–Yusof Ishak Institute
  • Anirban Mullick, director of business development, Unilever International
  • Jan Nicholas, partner, PwC Hong Kong and Mainland China
  • Stephen Olson, senior research fellow, Hinrich Foundation
     

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