Supply Chain Trends for Retail Fulfilment Summit

The Supply Chain Trends for Retail Fulfilment Summit highlights emerging strategies and challenges businesses face in the Asia-Pacific region as they adapt to the evolving global trade environment.

Amidst geopolitical tensions and trade disruptions, companies are realigning their strategies to create more resilient and agile supply chains.

A key trend is regional diversification. Businesses are shifting away from overly concentrated supply chains, particularly those heavily dependent on China. Instead, companies are developing dual or multiple supply chains that span different regions, which helps mitigate risks posed by disruptions such as trade wars and natural disasters.

Countries like Vietnam, Thailand, and India are becoming increasingly important production hubs due to their lower labour costs and geographic proximity to China, offering viable alternatives for manufacturing and sourcing.

“About 33% of the APAC-based executives we surveyed are creating parallel supply chains to avoid geopolitical disruptions, and 29% are creating dual supply chains to cater for the Chinese and US markets.” – Asia Pacific Regional Insight 

Reshoring and regionalisation are gaining traction as companies look to build supply chains that are not only cost-effective but also more resilient to external shocks. By relocating production closer to consumer markets, companies reduce their exposure to global shipping delays and rising transportation costs, which the pandemic has exacerbated.

Another crucial factor is the role of regional free trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership.

These agreements enhance market access, lower tariffs, and streamline customs procedures, which are vital for companies looking to optimise their supply chains in the region.

Technology is also at the forefront of transformation. Retailers are increasingly adopting digital tools for inventory management, logistics, and data analytics to optimise supply chain visibility and decision-making.

Governments offering incentives to support innovation, businesses are leveraging technology to stay competitive, enhance efficiency, and ensure flexibility in a rapidly changing global landscape.