Getting supply chain resilience right in S-E Asia

LEADERS of multinational companies face unprecedented uncertainty in shaping their supply-chain strategies and reconfiguring their companies’ network footprints in response to global geopolitical upheaval.

The dynamics between manufacturing powerhouse China and several major trading partners have accelerated pre-existing production shifts. Technology and relative labour costs are changing, and Covid-19 demonstrated the need for more resilient supply chains, at a time when geopolitical tensions have created more complex considerations for global trade partners.

In addition, CEOs must assess how to establish an environmental, social and governance (ESG)-compliant supply base, while identifying which geographical location will be the engine of economic growth in the coming years. These complex considerations are why over 90 per cent of global manufacturers intend to redesign their supply footprints in the next five years according to a survey by the Boston Consulting Group (BCG).