So, finally humanity has stepped into the pivotal decade of 2020s. With a great deal of things happening around, from the pandemic attack to detrimental business plans to changing technological behavior in order to adapt with the requirements put forward by the ever-growing needs of the consumers across the world, the world is indeed experiencing terrible days. And, with the arrival of the decisive decade, the perfect time has also intruded when the prima facie business trends will have its grip on the businesses in Asia. The patterns observed by the Asia sourcing agents will be from different fields that will include broader technological revolutions and inventions, the odds and ends of market and demographic changes, and most importantly, the enhancement in power of the middle-class businesses in a majority of Asian countries. If you take the international situation in to consideration, changing security, geopolitical, trade, and climate will be some of the primary concerns that will demonstrate themselves through the market trends as well.
So, here are the Asian trends that will have significant impact on the supply chain management, engagement of employees in work-related environment, sourcing strategies, revenues and expenses, current assets, sustainability ownership, and most importantly, engagement of market and consumer. Read on to know the principal trends.
- Human beings learn several processes and become adept in executing things when they practice. Just like practice makes a man improve in what they do, processes improve when they are leaned out. Yet, whenever new systems in the supply chain management are introduced, they are always initiated from the ground level. Similar steps for calculation are followed by planners every time they think about starting a process sin the supply chain; the procurement agents repeat almost forty percent of the previously executed activities. In short and simple, the same procedures are repeated by the agents in order to start a new process. And,the same things hold true when you take the tasks of logistics builders into consideration.
The issues lie in that fact that on embarking a new supply chain program, the owners of the organization lack an efficient system that can hold the values so that they can have access to the algorithms that were previously calculated and retain the knowledge and calculations they did in the past. So, the new trend that every sourcing Asia agents should include in their strategy is the artificial intelligence tools. With the help of these tools, agents can store their calculations and implement them at the time of requirement.
- As more and more data linking technologies (artificial intelligence and block chain) will increasingly become prevalent in the global supply chains, greater will be the impact of these technologies in the value chain transparency. This will primarily take place due to the two main reasons:
- The data connecting abilities of the data linking tools will subsequently increase the connection between value chain through the enhanced ability to connect, track, and link the data.
- This will, in turn, increase the transparency and tracing capabilities between fields and consumers and then to the post consumers as well.
Therefore, the key aspect to development or various organizations will come into existence only if procurement agents can effectively build new capabilities and bridge the capacities with sustainability knowledge between local and regional businesses. In the next few years, transparency and traceability will allow both topic validation and attribution from fair business to product safety. Within this transparent environment, the managers of value chain will be better able to audit their reputation, including the governance, social, and environmental factors, and you, being a business owner, will be better able to describe your brand and change the way how it was previously perceived.
- The e-commerce markets are gradually shifting from Chinese economy to the Asia economy. On the basis of a recent study, the Chinese e-commerce market represent only thirty-five percent of Chinese economy and the rest of the global economy. With such a consideration, the organizations across the world will be convinced to set South-East Asia as the new superpower market.
The online platforms are also evolving according to changing needs and sustainability of the consumer and purchasing trends. The internet users of South-East Asia will be reaching new heights (crossing a limit of 480 million) in the upcoming years, thereby transforming it into the next fastest-growing region in the world in terms of using Internet. And, the various economic platforms will also be evolving based on this change along with the changes in quality requirements and niche sectors. These are some of the trends that will play out that will rapidly contribute to evolved sustainability aesthetic, accessible information and improved consumer understanding. And, the sourcing Asia agents need to follow these trends that will turn out to be the key learnings and brand differentiating opportunities.
- The procurement market intelligence tools will be another trend organization must follow in order to rise and shine in the competitive market. These tools will aid in improving the credibility by checking the profit margin closely. Nowadays, most of the business among a broad range of industries requires the department’s management to approve requests of various financial issues. The managers must properly analyze the vet suppliers, monitor it, and make various other critical decisions. These decisions, when backed up with solid and reliable data, helps in increasing credibility. Moreover, the department managers can make superior and informed decisions with the help of these tools.
Situations might occur where the company’s procurement, inventory facilities, and supply chain get caught off guard due to a sudden change in the management or the business operations. With the help of market intelligence tools, procurement agents can get instant alerts if there is any change in the supplier’s business. These tools efficiently send out early signs, giving early warnings to disruptions requiring alternative solutions or immediate reactions.
As the above-mentioned trends will ply their parts out, they will continue to mark their impacts on the regional and local markets. Setting goals and corporate policies will become increasingly important for the organizational owners. However, integration of sustainability knowledge with opportunities, empowering local teams and navigating the regional impacts will be the pivotal aspects to follow and integrate into the organizational systems. The Asia sourcing agents need to take a look at these factors.