Rethinking business using global supply chain with technology

THE difference in business performance between companies with optimised supply chains and those without is vast. Supply chain is an integral and influential component that supports the overall business direction and is often a good indicator of business resilience.

Companies that are part of the global commerce network, in particular, can expect their supply chains to be put to the test in terms of their ability to navigate a variety of challenges - from fluctuating demand, stringent compliance standards and border crossing-related obstacles.

Singapore-based companies enjoy immense benefits from a highly pro-business environment, but external factors are forcing many players to review their supply chains. These factors contributing to a slowing economy include global trade tensions and competition from neighbouring countries. High operating costs in Singapore is also an issue of concern.

Relaxed regulatory environments and free trade zones are popping up across Association of South-east Asian Nations (Asean) as member states rush to capitalise on new economic benefits amid the current US-China trade war. Companies in Vietnam and the Philippines are becoming attractive business partners by offering more affordable last-mile delivery options, thanks to cheaper warehouse rental and lower labour costs. And while infrastructure is an edge Singapore currently boasts over rivals, its neighbours are quickly catching up.

Between cost, capability and competitiveness, investing more in the supply chain - particularly in technological implementation - could allow local companies to enhance many key aspects of their businesses.

MEETING NEW CUSTOMER REQUIREMENTS - AND MORE - WITH IOT

Companies operating in the digital era should quickly come to terms with the new business norms, namely speed, quality and transparency. Taking these factors into account, the supply chain is playing a more critical role than ever in ensuring customer satisfaction. In order to stay competitive, companies must deliver higher-value services at lower costs and embrace technology to bridge the gap.

Enter IoT - key to better quality control and inventory management. Although the implementation of IoT in the supply chain is still in its infancy, its potential to create operational efficiencies and profit opportunities might be endless.

Very soon, companies may be able to, with a few clicks, check on their goods at any stage, including storage temperature, freshness of the products and when the goods will reach the customers.

This level of insights not only contributes to better-quality goods and overall business transparency, but also enables companies to have more control over product distribution and forecasting, all of which add up to higher customer satisfaction.

With IoT underpinning Singapore's Smart Nation vision and Industry 4.0, local businesses may operate smarter, plan better and make more informed decisions if they strategically apply IoT to their supply chains.

TECHNOLOGY ENHANCEMENTS OF A GLOBAL SUPPLY CHAIN

Establishing a digitalised and connected logistics network through a worldwide technology platform is another strategy that could propel local businesses to the global stage.

Until recently, single worldwide technology platforms weren't available to companies with international operations, resulting in disconnected, inefficient networks separated by language, currency and culture.

By stripping away those information barriers, unified global technology platforms create hyperconnected supply chain solutions that generate visibility and value.

Worldwide real-time technology creates a single, distributed and authoritative supply chain "truth", breaking down silos for shared planning, quicker cross-functional problem-solving and smarter solutions.

With automation tools, companies can handle routine functions, eliminate visibility gaps and may save valuable staff resources for exception incidents and higher-level strategic planning.

With all aspects of the business integrated and communicating, the business operation stays central while information and product flow seamlessly across the network to satisfy customers.

But this is only part of the picture - quality services and local expertise complete the fully flexible, efficient and responsive supply chain.

LEVERAGING ASEAN'S DIGITAL PUSH

The different stages of technology adoption among Asean member nations can hinder the development of an integrated supply chain, but government initiatives across the region to boost research and development of technology are changing that. Singapore companies stand to reap tremendous benefits through close monitoring of the region's digital agendas to inform supply chain strategies and investments.

Collaboration between Singapore and the Asean business ecosystem is critical. The proximity to key manufacturing hubs, such as Thailand and Vietnam, creates a golden opportunity for Singapore to establish a robust, cost-competitive and connected business network that supports cross-border expansion plans.

By taking into account the various government initiatives designed to accelerate digital adoption and large-scale infrastructure development, businesses can strategically design the different nodes of their supply chain to pave the way for higher volumes of goods movements through the region.

Given the supply chain's impact on business success, companies should consider proactively building an integrated and digitalised supply chain, versus passively making adjustments in reaction to external business forces along the way. Companies vying for the top spots in the global competitiveness race, in particular, may find valuable opportunities for cost savings, operational efficiencies and higher customer satisfaction by continuously optimising their supply chains - with the help of technology.