Asian Insiders with a physical presence in most major Asian countries and trusted associates worldwide provides on-the-ground services to identify and establish a suitable Asian supply chain strategy with plus one alternatives.
In recent times of heightened political tensions along with the impact of Covid restrictions, there has been an increased focus on corporate supply chains and their appropriate place in the affairs of nations. Political figures at various levels, trade promotion associations, columnists, TV talking heads and other ‘experts’ have increasingly taken to advocate diversification to industry and individual companies. They suggest that these companies should bring their supply chain activities into line with other agendas such as human rights and environmental, and particularly political. However are these the people who should be giving advice on such matters?
From the very beginning of commerce, at considerable cost companies have learned how to build, maintain and improve their supply chains. Supply chains in raw materials, manufactured components, goods and services are the lifeblood of any firm and can be incredibly complex, crossing multiple borders and constituencies. Boardroom discussions on this topic are about minimising risk at reasonable cost.
An established and functioning supply chain is a valuable asset that did not come about easily. Many functions in a company were involved to build and improve this at great expense in talent, time and cost. In times where many of the products we use are increasingly complex, or produced through complex manufacturing systems, supply chains involve multiple other companies. These require international agreements, complex financial arrangements and real efforts in building trust, compliance and agreed standards between all parties. As these are cemented, thousands of workers livelihoods come to depend on these arrangements remaining in place.
However, disruptive events in recent years should not lead to the ad-hoc dismantling of these arrangements with trusted partners be they in China, Europe, South America or elsewhere. Finding commonly acceptable solutions is the order of the day. Asian Insiders is well versed in such matters.
In more recent times, companies have faced pressure to ensure their supply chains do not include abusive labour practices or unreasonable environmental impact and most responsible companies have taken this on board, although it’s fair to say this is an ongoing process.
However, how should a company with an international supply chain respond when political tensions between nations come to bear? How should they reasonably respond when they face very real financial consequences, and workers all along that supply chain may face job losses? To what extent should a board respond when politicians of various stripes start calling out for economic restrictions, even sanctions?
Ideally a company would seek alternative supply routes and specific partner companies as part of a “plus one” strategic contingency plan. Finding these requires additional effort and adds to their cost base. This is not trivial and can burden most companies.
Asian Insiders with a physical presence in most major Asian countries and trusted associates worldwide provides on-the-ground services to identify and establish a suitable Asian supply chain strategy with plus one alternatives such as:
- Screening of supply candidates
- Meeting shortlisted company management
- Supervising sample production and deliveries
- Assisting in technical and commercial negotiations
- Supervising ramp-up of production and deliveries
- Arranging initial or long-term quality assurance
- Trouble shooting issues that arise (and something always does)
We offer the specific local cultural, business and language skills to allow you to be effective.
Talk to Asian Insiders about your Asian supply chain strategy
Please contact Jari Hietala, Managing Partner Asian Insiders to arrange a call with no obligation. jari.hietala(at)asianinsiders.com