Revitalising supply chains: Singapore as a trusted network connector in the region

GLOBAL developments in the economy and dynamic trade relations have had a widespread effect on industries, forcing companies to rethink business priorities and adapt to changing consumer demand. The supply chain industry, with its intricate web stretching across multiple countries, is particularly susceptible to such global upheavals.

Diversification has become a go-to strategy for many, aiming to mitigate risks by establishing alternative supply networks that include new suppliers, manufacturers, transport and logistics providers spanning one or more countries. A reliable supply chain should feature a seamless, harmonised and optimised plan-to-deliver process, encompassing both domestic and cross border logistics. However, market fragmentation with various level of supply chain maturity, remains a significant challenge, as revealed by KPMG’s interactions with industry players, mainly due to varying logistical infrastructure among countries. This can result in large deviations in terminal productivity, container traffic waiting time or even the type of technology used, which would then lead to lowered inefficiencies and limited success of diversification.

This fragmentation makes it hard for countries to align and pool resources together. This challenge is also particularly more pronounced in Asean as the region is more geographically scattered. Thus, countries today continue to struggle to secure their supply chains, especially when faced with disruptions such as geopolitical conflicts, inflationary pressures and climate change events.