Organizations are seeking to integrate supply chain sustainability
IDC predicts that by 2026, 45 per cent of Asian-based organizations will operationalize integrated sustainability in the supply chain and effectively report impact data, enabling a 10 per cent reduction in waste and improving competitive advantage.
Sustainability is now on the radar of most Asia/Pacific supply chain organizations, with zero companies in IDC’s 2022 Supply Chain Survey reporting that sustainability is not a focus. In addition to consumers, pressure to act is coming from business customers, governments (both national and those of significant supply chain partners — particularly Europe), and financial institutions. As banks increase their sustainable lending portfolios, the financial pressure on businesses in the supply chain is also growing.
“Visibility and the ability to gain actionable intelligence are becoming critical in being nimble and agile and determining the most appropriate trade-offs to meet customer requirements as businesses address both resiliency and efficiency. In addition, with the prospect of a recession, organizations are seeking to integrate supply chain sustainability into the business to ensure efficiency gains are made along with the environmental ones, increasing business sustainability as well,” said Stephanie Krishnan, Associate Vice President, Manufacturing, Retail, and Energy Insights at IDC. Krishnan.
IDC’s top 10 supply chain industry predictions provide guidance to healthcare leaders on preparing and responding to the major storms of disruptions, big tech flips, and after-effects of the pandemic.
Supply Chain Resilience: By the end of 2024, 40 per cent of Asian-based supply chain organizations will have rebalanced resiliency efforts to reflect the realities of inflation and necessary efficiency to recover 2 percentage points of margin.
Task Applications: By 2025, task-application extensions will account for 40 per cent of all new Asian-based supply chain technology investments in manufacturing and retail.
Logistics Alignment: By 2024, 50 per cent of Asian-based shippers will dynamically align logistics offerings with organizational strategy, achieving a 2-percentage point increase in OTIF delivery across diverse transport channels.
Sustainability: By 2026, 45 per cent of Asian-based organizations will operationalize integrated sustainability in the supply chain and effectively report impact data, enabling a 10 per cent reduction in waste and improving competitive advantage.
Service Supply Chain: By 2027, 45 per cent of Asian-based OEMs will redesign service supply chains based on artificial intelligence, ensuring the right spares are available and positioned to solve 75 per cent of issues prior to failure.
Hybrid Work: By 2026, Asian-based supply chain organizations that enable hybrid work models by redesigning policies, culture, technologies, and facilities will see a 30 per cent improvement in talent acquisition and retention.
Robotics: By 2025, the use of robotics and automation in Asia-based 2000 (A2000) warehouses will have increased three-fold, resulting in task productivity improvements of 30 per cent.
Multishoring: By 2024, 40 per cent of A2000 companies will have implemented more balanced multishoring sourcing strategies to better address risk that result in a 10-percentage point improvement in supply reliability.
Direct to Consumer (D2C): By 2025, 25 per cent of A2000 manufacturers will see a 15 per cent increase in their direct-to-consumer business, prompting them to prioritize investment in last-mile delivery optimization.
Supply Chain Connective Tissue: By 2025, 50 per cent of Asian-based supply chains will have invested in applications to better connect disparate supply chain planning and fulfillment systems resulting in productivity gains of 3 percentage points.
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