Vince Poon is the CEO of Aratum.
Supply chains are the lifeblood of businesses. If you don’t get your product into the hands of consumers, nothing else matters. Supply chain generation responses organize the procedure from start to finish for businesses of all sizes.
A steady stream of new software and technologies is available, adding systems that incorporate artificial intelligence and device learning. According to McKinsey
Business leaders who do make the switch face tough decisions when they want to make their supply chain processes more efficient, cost-effective and resilient. The post-Covid boom in e-commerce makes this digital transformation all the more important—and difficult.
In my delight working with corporations across Asia to modernize their supply chains, I have learned about those key and demanding situations and practices for decision-makers who need to adapt to this change.
Challenges
• Inappropriate technology: In some cases, the challenge may simply be existing technology. Hardware and software systems may not be supported, or software may be compatible and need to be updated. I estimate that about a portion of corporations in Asia still use Excel for source chain management.
• Lack of skills and guidance: Teams need the right skills and guidance from control to navigate the virtual journey. Sometimes, corporate culture resists large-scale replacement, and no one needs to waste time on a complex and costly process without the right and guidance.
• Diverse regions: Countries in a region as varied as Asia also have different currencies, financial systems, compliance rules and languages. Not everyone speaks English, especially those in entry-level jobs such as warehouse operators.
• Geographical barriers: Companies founded in countries such as Indonesia and the Philippines face the additional challenge of operating on many dispersed islands. Land traffic and inclement weather at sea can disrupt each and every step in the chain of origin.
Solutions
• Conduct an audit: The first step we recommend to leaders is to conduct an audit to take a closer look at the overall workflow. While market knowledge shows business owners what consumers want, source chain knowledge shows how things work behind the scenes. Is the chain working well and where are the bottlenecks?Are they located at the end of the warehouse or in the last mile to the visitors’ doors?
Having accurate data on your own supply chain is invaluable for gaining granular insights through close analysis, and for eventual use in AI and machine learning systems as well.
• Adopt scalable formulas: The ideal source chain formula can evolve with your business and grow as it grows. It is intuitive and requires no prior computer knowledge. As a result, workers don’t want to constantly ask for help and are tempted to circumvent the formula because they don’t find it useful enough.
• Start small and grow: The most important thing is that the formula is flexible and adapts to your company’s specific workflows and operational requirements. This is where a modular software technique comes in handy, especially in Asian countries where the speed of progression is high.
For example, you can start with a module focused on warehouse operations and then optionally expand it as needed from the point of reorder to physical stores or for e-commerce. Ultimately, an end-to-end source chain solution will cover manufacturing. , inventory, orders, warehousing, and finance.
It can be tricky to navigate the ever-changing landscape of the supply chain in today’s post-Covid e-commerce environment. But through audits, scalable systems, and a flexible, modular approach, obstacles such as technology and capability gaps can be overcome, in Asia and beyond.
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