Value Chain Asia Magazine | Vol.2 Issue No.1 (2024) by Value Chain Asia

EDITOR’S WORD

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In the genesis of this issue, our team engaged in insightful conversations with visionary supply chain leaders who are at the forefront of redefining the way we approach business products. These discussions were driven by a shared commitment to a sustainable future, focusing on the principles of longevity, reparability, and recyclability.

In a world where the impact of production and consumption on our environment is more pronounced than ever, these supply chain leaders are not merely embracing change; they are spearheading a revolution. Their endeavors are rooted in the principles of the circular economy, where products are not just commodities but contributors to a more sustainable and resilient global ecosystem. The core idea is compelling: products designed with longevity in mind, ensuring durability and reducing the need for frequent replacements. Reparability becomes a pivotal aspect, shifting our mindset from disposability to a culture of repair and reuse. And finally, recyclability closes the loop, transforming what was once considered waste into valuable resources for new production cycles. As we navigate the pages of this issue, you’ll delve into the stories of businesses that are leading the charge in integrating these principles into their supply chain strategies. From innovative design processes to collaborative efforts across industries, these

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leaders are showcasing that environmental consciousness and economic success can go hand in hand. The goal is not just to highlight the transformative power of these ideas but to inspire a collective shift in how we perceive and interact with products. It’s a call to action for businesses to consider the environmental footprint of their offerings and for consumers to make choices that align with a sustainable vision. We invite you to join us in exploring this paradigm shift, understanding the challenges, celebrating the successes, and envisioning a future where the products we use today contribute positively to the world we leave for tomorrow. Here’s to a circular and sustainable future,

Amos Tay Editor-in-Chief

WATCH VCA HIGHLIGHTS

WHO ARE WE?

EDITOR-IN-CHIEF

AMOS TAY MANAGING EDITOR & DIGITAL MARKETING SPECIALIST

CHARLENE JOANINO STAFF WRITER

TRISHA ANJANETTE BALLADARES

GRAPHIC DESIGNER

YASMIN ISMONO SOCIAL MEDIA SPECIALIST

LAU BACIA

ALGIN MICHAEL SABAC

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CONTENTS INSIDE STORY

THE COVER

The fresh produce industry: Exploring Circular economy initiatives that the technology of preservation across make countries in Asia global tropical countries powerhouses

SUPPLY CHAIN

LOGISTICS

10: The 3R in the “Go Green” initiative: Can it improve e-waste management?

20: Revolutionizing supply chains: The power of recovery logistics

13: Top Asian countries with green economy 16: Upcycling clothes in Asia: The dawn of an era of recreating

TECHNOLOGY 32: Top Asian countries with the most sustainable trade policies 33: Green policies in Asia 38: How does cross-border e-commerce by SMEs unlock the global market?

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SUPPLY CHAIN CHAMPIONS

SPOTLIGHT

Technology for sustainability: C.H. Robinson’s VP Stephen Ly talks innovation

Hatch Asia shifts from HR Agency to Talent Management Organization

TRENDS & GEOPOLITICS

HUMAN RESOURCES

44: How can Asia’s agritourism farm stays raise awareness on sustainability?

52: Former FedEx Exec Dr. Siow on AI in Talent Management: ‘It’s starting to tip the balance’ 58: TVS SVS GFS strengthens its SEA presence, onboards Chua

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INSIDE STORY

The fresh produce industry: Exploring the technology of preservation across tropical countries BY TRISHA ANJANETTE BALLADARES

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n tropical countries across Asia, fresh produce is a vital economic cornerstone. Preservation techniques have redefined what ‘fresh’ means in Asian tropical countries. It’s no longer just about taste and appearance. It’s about ensuring that produce remains as close to its original state as possible, from farm to table. From the lush mango orchards of India to the vibrant fruit markets of Thailand and the

innovative urban farms of Singapore, the need for fresh fruit and vegetable delivery in a hot and humid climate render the need for cold chain technology. The global cold chain market can rise to $133.97 Billion by 2027. Cold storage facilities use refrigerators and freezers to slow the growth of bacteria and other microorganisms that can cause food loss during transportation.

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Movement of fresh produce in Asian tropical countries Innovative packaging solutions have greatly facilitated the export of agricultural products from Asia. These packages protect the produce from physical damage, temperature variations, and humidity, which can lead to spoilage. They can extend the shelf life of fresh produce, allowing it to endure longer journeys without compromising quality. Modified atmosphere packaging (MAP) and vacuum packaging are for such purposes. For example, Thailand’s agricultural sector has experienced a significant transformation through preservation technology. The increasing number of supermarkets and restaurants made modern cold food transport available to maintain the quality of fresh produce. Most recent data from Statista, showed that the revenue in the Fresh Fruits market amounts to US$4.56 Billion for 2023. However, the year has yet to end and this can continue to increase. Another is Vietnam. They have ample agricultural and seafood supplies. The cold chain logistic companies distribute fast-moving consumer goods to local people and producers in provinces with industrial zones. Preserved vegetables, packed seafood, and other agricultural products go to warehouses and seaports for export without getting soiled.

Bringing fresh vegetables from farmers to homes A thriving fresh produce retail industry holds significant importance in the economies of Asian tropical countries. The agricultural sector sustains numerous farmers’ livelihoods and substantially contributes to the country’s Gross Domestic Product (GDP). Countries that are in the tropics are known for their high temperatures and humidity, creating the perfect conditions for the rapid spoilage of fresh vegetables and fruits. Without proper preservation, these climatic challenges can render fresh produce unsellable quickly. Implementing robust cold chain technologies plays a crucial role in safeguarding the efficient delivery of goods to consumers and international markets, thereby mitigating potential economic losses.

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For years, we were barely breaking even because we had no way to refrigerate our crops and sold everything locally at low prices. Now, we’re selling in bigger markets where prices are exponentially higher shared by Amit Gupta, who co-owns Elle Farm with Seema Gulati in Haryana, India.

In 2022, Prime Minister Narendra Modi’s aim is to double the revenue of farmers in India. They launched the National Cooling Strategy which is inclusive of cold storage access. India became the first to implement such initiative.

Understanding the cold chain technology Farm-fresh vegetables and fruits require a scale of storage temperatures to reduce the risks of freezing leaves and fruit storage. The cold chain operates under meticulous coordination, with each element working in perfect harmony. Refrigerated storage units, refrigerated trucks, temperature monitoring systems, and trained personnel work harmoniously to safeguard products’ freshness, from fresh fruits and green leafy vegetables to dairy and meat.

A collaborative commitment has been established between Brussels’s Impact Licensing Initiative (ILI) and the Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA). They aim to facilitate better fresh produce sale networks. Said commitment assists small farming communities by facilitating sub-licensed technologies, including cold chain, to improve post-harvest processes and ensure fresh fruit and vegetable delivery. In turn, regions that lack the infrastructure required to support cold chain technologies would benefit. Especially to those facing unlikely change in seasons. “The weather in Mongolia is changing. It is getting colder. Summer is getting shorter, and spring and autumn are coming later. Sometimes, we have heavy snow in September and lose all the vegetables,” Sonintsetseg, a Mongolian farmer and a member of the Asian Farmers’ Association for Sustainable Rural Development (AFA), shared.

The cold chain industry in Asia Asia’s fresh produce industry continually expands its global reach, offering consumers a broader range of fresh fruits and vegetables worldwide. The cold chain, a temperature-controlled supply chain, has made such a feat feasible. Notably, cold chain logistics is highly beneficial for farmers. They can now transport fresh produce to distributors and consumers regardless of distance. There are now innovative packaging for fruit and vegetable coatings, bioengineering, and more. Also, various techniques are now effectively reducing food product deterioration and extending perishable goods’ reach. With cold chains’ refrigerated storage, transportation, and distribution, maintenance of a controlled temperature to prevent spoilage, higher revenue and fresh produce can be guaranteed. V valuechainasia.com

SUPPLY CHAIN

The 3R in the “Go Green” initiative: Can it improve e-waste management? BY LAU BACIA

arallel to the prevalence of mobile technology, Asia pushes to go green. It is in an attempt to

mitigate the rising pile of electronic waste (e-waste) through sustainable practices that inflict less harm on the environment.

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Among these is the Reduce, Reuse, and Recycle (3R) method. One that is at the very core of the Circular Economy that aims to keep resources in use for as long as possible to reduce waste, and regenerate natural systems.

The Association of Southeast Asian Nations (ASEAN) adopted the Framework for a Circular Economy. They aim to expedite the transition towards a low-carbon economy. By ‘going green’ mindset, the circular economy emerges as a viable solution on how to minimize waste in the region. Said sustainable model aims to move past environmentally destructive ways, promoting a more responsible and eco-conscious way of mobile technology production.

Asia’s case Despite rapid modernization and the booming latest mobile technology arena, Asia grapples with the e-waste management crisis. E-waste refers to electronic devices, equipment, or materials that have become obsolete or are no longer in use. In 2019, Asia produced the largest volume of e-waste, amounting to 24.9 million metric tons. Also, the region exhibited the most rapid growth in e-waste patterns

among regions, according to the Global E-waste Monitor 2020 report. A year later, the World Bank estimated about 2.24 billion tons of solid waste generation, globally. It equates to 0.79 kilograms per person per day. Considering that waste generation is continuous, it may lead to an annual waste production of an alarming 73% by 2050.

E-waste crisis escalates in SEA By 2021, the Southeast Asia (SEA) region recorded a staggering 12.3 million metric tons of e-waste. Primarily, the ‘linear economy,’ which uses a ‘take-make-dispose’ sequencing, has taken a toll on the conventional supply chain. The model uses the extraction of virgin resources from the environment to create products. Then, dispose of the end product after use or consumption. Hence, the adoption of a circular economy is being deemed as a significant contributor to achieving the region’s Sustainable Development Goals (SDG).

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To encourage the adoption of CE [Circular Economy] amongst stakeholders, ASEAN needs to consider a holistic approach that addresses opportunities and challenges of CE from both the supply and demand side, ASEAN says.

Significance of the 3Rs in the mobile industry The 3Rs of the circular economy strive to minimize the consumption of raw materials required for production. They also optimize resources’ life cycles through effective recycling measures. With this, the e-waste generation can be substantially reduced if not eradicated. Mobile technology companies must be mindful not to over-extract virgin materials. Wherein, the traditional

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linear economy model has allowed mass production to proliferate, leading to resource scarcity. However, much is still yet to be done to better understand the 3Rs and to achieve a closed-loop system. Said system enables the mobile technology industry to go green.

Reducing By reducing the amount of extracted resources, mobile technology manufacturers alleviate concerns about resource scarcity and ensure the long-term sustainability of their industry’s operations. But to achieve this is no easy feat. Reducing the need for extraction of virgin materials is a complex process. This involves a calculated overhaul of existing production processes and a rethinking of product design. Moreover, it will render the adoption of greener manufacturing practices. Meanwhile, Accenture Strategy’s research indicates that by 2030, the circular economy could offer a staggering $4.5 trillion in economic benefits by reducing waste creating new jobs. As per the report, this transition can help address resource scarcity through the conservation of resources “while driving greater competitiveness.” Continued in page 25

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*Only valid for professionals working in banks, digital wallets, online retailers, retailers, ecommerce marketplaces and governments

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SUPPLY CHAIN

Upcycling clothes in Asia: The dawn of an era of recreating BY CHARLENE JOANINO

rom trash to new, upcycling clothes has ushered the dawn of stringent profitable ventures in Asia. With people leaning toward sustainable solutions to reduce fashion waste, the traditional fashion supply chain was reimagined. Now, repurposing trash offers a unique business opportunity to entrepreneurs.

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According to The State of Fashion 2022, over 80% of upcycled fashion brands in Asia are owned and managed by small and mediumsized enterprises (SMEs), with an estimated annual turnover of $17 billion. This figure is expected to surge in the next five years, with growth projected to exceed 50%.

Mainly, the supply chain for Asian clothing focuses on ethical sourcing, sustainable manufacturing, eco-friendly delivery, and circularity. Ethical sourcing includes strict supplier vetting and transparency through technology. Sustainable manufacturing adopts green practices like 3D printing. “As retailers learn to leverage consumers’ wants and needs for environmentally sound products it looks like the sustainability trend and creation of upcycled products will be here to stay in the retail industry,” said Greg Petro, Forbes contributor and writer who focuses on investments.

The trend of upcycled clothing industry In 2021, the OEC, an online data visualization and distribution platform, estimated that 7 million tons of used clothes were imported into Asia, with the majority going to China, India, and Pakistan. These clothes are sorted, repaired, and upcycled into new products, such as quilts, blankets, and clothing. Asia has become a significant hub for the upcycling of used clothes. At the forefront of the upcycled clothing industry are manufacturers, business owners, and shoppers who are becoming increasingly conscious of sustainable clothing wear.

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Upcycling of used clothes is a win-win for the environment and for our wallets. It’s a great way to reduce waste, save money, and express your unique style.” said Mai Ngo, a Vietnamese sustainable fashion model and vlogger.

Localization of fashion Certain brands from across Asia have adopted the concept of upcycling. For example, LeBelik in Beirut, Lebanon is a fashion brand that uses upcycled fabric to create beautiful, sustainable clothing. Meanwhile, in India, Doodlage works with skilled weavers to create unique products from discarded materials such as cotton, silk, and wool. Japan’s Tenbo is another brand that repurposes fabrics into stylish clothing items. Each of their garments is being made using a special combination of traditional techniques and innovative designs.

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Upcycling is a great way to reduce waste and create something new and beautiful at the same time. It’s also a lot of fun!” said Vivienne Tam, a Hong Kong-American fashion designer.

Another example is Waste2Wear’s ethical sourcing practices include strict supplier vetting and transparency through technology. The company uses a blockchainbased platform to track the flow of materials throughout its supply chain, ensuring that all suppliers meet its high standards for sustainable solutions.

Sustainability and commercialization Driven by the shift towards sustainability, the apparel sector explored ways to usher cost-efficiency. Of which, a study by the Ellen MacArthur Foundation found that upcycling a polyester garment saves 59% of the energy and 70% of the water used to produce a new polyester garment. For example, the Hong Kong-based company Waste2Wear collects and recycles post-consumer textile waste, turning it into new, high-quality fibers and fabrics. These recycled materials are then used to produce various accessories and clothing, including t-shirts, sweaters, jeans, and jackets. Meanwhile, according to the American Chamber of Commerce in Shanghai, approximately 40% of Chinese consumers are now looking for green clothing. In turn, businesses, such as China’s Sinopec Group aimed at repurposing products for reuse and selling.

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Technologies are now converging to make this a reality, from efficient recycling and reprocessing to consumer-driven analytics that help retailers create the products customers will want and avoid producing excess valuechainasia.com

inventory of the ones that would just sit on the shelf – and eventually end up in the landfill Greg Petro shared.

On fashion supply chain management shift Upcycling is making waves across supply chains, business landscapes, and consumer markets. It’s a gamechanger with compelling implications. In particular, upcycling has gained remarkable traction as a strategy to

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curtail the industry’s ecological footprint in the fashion and garments industry. For supply chains, upcycling equals cost reduction and efficiency boost. Breathing new life into existing components and materials slashes production expenses while curbing waste disposal costs, ticking the sustainability box. Moreover, eco-friendly delivery reduces carbon emissions and embraces circular distribution. Repurposing involves product design for disassembly, take-back programs, textile recycling, and sustainable solutions like upcycled clothing. Whilst, digital transformation optimizes production and reduces waste. In turn, entrepreneurs are seizing the opportunity. They’re crafting businesses around recycled goods, offering top-notch products at competitive prices. As such, upcycling clothing is about building eco-friendly brands that resonate with today’s environmentally conscious consumers. V

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LOGISTICS

Revolutionizing supply chains: The power of recovery logistics BY CHARLENE JOANINO AND ALGIN MICHAEL SABAC

revolutionary tide in the form of recovery logistics is sweeping away traditional practices within the supply chain industry.

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Not only does it redefine how businesses operate but also shapes the future of the doing business in Asia.

According to Amertrans Logistics, recovery logistics can help any business get back on track more quickly after a disaster, and any event that can disrupt the normal flow of logistics. Recovery logistics aids in setting up and maintaining basecamp, remote fuel and energy, recovery equipment, project oversight, and transportation. These services help systematically shape recovery operations. The focus is more on optimizing resources and minimizing waste through industrial recovery, recycling, and reusing in the supply chain process.

Asia as the key player and factors behind recovery logistics Taking a panoramic view of the recovery logistics market in Asia, it’s evident that the landscape is moving forward. Wherein, the economic value of this sector is steadily on the rise, propelled by a growing awareness of environmental issues and a desire for more sustainable business practices. Meanwhile, the increasing demand for consumer goods and numerous environmental concerns made recovery logistics a must-consider when it comes to sustainability. Several factors usher recovery logistics movement across Asia. First is the stringent regulations and environmental policies. Business owners are compelled to rethink their strategies to get by these regulations. Governments in Asian countries are incentivizing eco-friendly practices, making these companies adopt recovery logistics for compliance and progressive management.

Second, consumer preferences are shifting to sustainable products and services. Because of this, businesses needs to restructure their supply chains, integrating recovery logistics to meet these evolving demands. Leading players in the industry, such as China, Japan, and South Korea, driven by innovation and environmental consciousness, are spearheading initiatives to optimize the recovery process. These initiatives range from implementing cutting-edge technology to investing in research and development, all geared toward enhancing the efficiency and sustainability of recovery logistics.

Recovery logistics in action The varying geographical landscapes in Asia makes the region prone to natural disaster. Such include typhoons, tsunamis, earthquakes, and other phenomena that are often escalated by climate change. This made recovery logistics a must for both business purposes and social responsibility. Often, said initiative aids in the mitigation of the aftermath. Northern Kyushu, Japan’s case in July 2017 where Asakura City was badly affected by torrential or heavy rains, showcases the importance of last-mile delivery. Sagawa Express, a Japan-based transportation company, frontlined logistical bases management. They worked on the procurement, sorting, and delivery of emergency supplies. In regards, a private sector movement was formed in Japan, called “The Social Emergency Management Alliance or SEMA.” Another notable effort is the engagement of United valuechainasia.com

Parcel Service (UPS) in ushering resilience of Micro, small, and medium enterprises or MSMEs in the Philippines in 2021. UPS, a global logistics services provider, partnered with The Philippine Disaster Resilience Foundation (PDRF). They developed the Katatagan-in-a-Box mobile app that provides tips to MSMEs on business continuity plans. Additionally, UPS rendered logistics support with Php 5 million to PDRF. This is in regard to the Taal Volcano eruption, the COVID-19 pandemic, and Super Typhoon Rolly.

The connection between recycling and recovery logistics Unlike conventional logistics, where goods flow linearly from manufacturers to consumers, recovery logistics operates cyclically and helps keep the supply chain more efficient. Recycling and recovery even help customers to return their items to sellers and manufacturers for recycling. While some people view recovery logistics as a method to recover materials, most of which refer to disaster management. It is a green process that helps in regaining some value in the supply chain. As such, Keyence noted that recovery logistics is just the return flow of return from consumers and waste. Recovery logistics renders a comprehensive strategy. It incorporates recycling as an integral part of the supply chain and has a commitment to sustainability. Recycling forms a cornerstone of the whole process, emphasizing the eco-friendly aspect of the process. Products are designed with recyclability in mind, and post-consumer waste is collected, processed, and reintroduced into the production cycle. This closed-loop system ensures that resources are recovered and reused efficiently, reducing the strain on the environment and promoting sustainable practices.

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Technology: The kingmaker of recovery logistics Advanced technologies are now instrumental in the implementation of recovery logistics. Wherein, the commencement of digitization has immensely influenced the supply chain. Artificial intelligence (AI) and data analytics are being leveraged to optimize supply chain processes, enhance transparency, and track the lifecycle of products. These technological advancements not only increase operational efficiency but also enable businesses to make informed decisions, ensuring a seamless transition to recovery logistics. Moreover, recovery logistics can seamlessly integrate with e-solutions, offering a myriad of opportunities for online businesses. E-commerce entities, in particular, are harnessing the power of reverse logistics to manage returns and excess stock and inventory effectively. Through sophisticated tracking systems and data analytics, businesses can identify patterns and optimize their supply chains. This symbiotic relationship between recovery logistics and e-solutions reduces operational costs. Also, such enhances customer satisfaction, fostering long-term loyalty.

Recovery logistics in action Across Asia, diverse cultures and economies converge, each embracing recovery logistics in unique ways. In countries like Japan, where space has a limit, efficient waste management and recovery logistics are essential. China, on the other hand, demonstrates the colossal scale at which recovery logistics can operate, managing vast amounts of discarded electronics and appliances. These examples illustrate the adaptability of recovery logistics, showcasing its relevance across various contexts. This data shows how important is logistics recovery and redistribution in times of disruption as businesses in

the COVID-19 pandemic period are facing challenges. Often, these are material shortages, drop in demand, lesser manpower, cash-flow issues, and planning issues. As such, the one that is most affected by material shortages are those in the advanced industries. A respondent from an auto company in Southeast Asia told McKinsey that they are facing raw-material shortages from tier-2 companies, including imported chemicals and aluminum. To consumer-facing companies, they are experiencing more on decreasing demand ever since the pandemic hit. The labor-intensive industries are also suffering as they are facing restrictions amongst their workers due to physical distancing measures and protocols. With that in mind, reverse logistics pave the way for reviving the supply chain. Moreover, it aids in regaining the value from the product or dispose of it according to Netsuite. One objective of reverse logistics is to ensure repeat customers in the long run and recoup the value thereof. This is to build customer loyalty and minimize losses to returns.

The process The process of reverse logistics includes various plans and controls. Usually, it also involves managing returns and buying surplus materials and goods. Across different regions in the Asia-Pacific, recovery logistics varies with different economic incentives within their management operations. One example is the use of empty tap containers in the beverage industry. These beverage companies want to revalue their containers by reusing them. It would require them to plan their logistics by managing loads and cleaning containers. Aside from that, in the construction industry, reverse logistics will pave the way for recycling salvaged materials to newer sites. Hence, adapting sustainable practices to reduce waste and to save costs. The food industry also can benefit from reverse logistics as it deals with rejected food shipments by returning them to the supplier, creating a secure, quick, and reliable way to counter challenges in the logistics industry.’

A hero in the making As mentioned above, recovery logistics plays a pivotal role in supply chain management by significantly reducing waste. By retrieving products that would otherwise end up in landfills, businesses not only contribute to environmental preservation but also save valuable resources. This waste reduction translates into substantial costsavings for companies, making recovery logistics a financially prudent choice. By streamlining the return process, businesses optimize their stock and inventory management, mitigating losses and enhancing overall efficiency. valuechainasia.com

Despite all the benefits that recovery logistics can do, business leaders should reimagine their processes and include short-term and long-term strategies to respond to these challenges. One would need to take immediate actions to recover while considering other factors such as the availability of resources and demand fluctuations. Business leaders should implement and enforce protocols, Doing so will help them navigate through the disaster while increasing their bases to mitigate risks. Moreover, they should focus their efforts more on fulfilling the demand from priority customers. Understanding reverse logistics is valuably important as it will open the door to minimizing risks. One of its advantages is to provide an increase in quality control and traceability. This data system will help shipping companies to correct vital information to avoid potential issues that lies ahead. Recovery logistics can also reduce product spoilage and waste and avoid losses in overall revenue, thereby reducing costs in the long run. With these effects, recovery logistics can create a better brand image and retain customers as well.

Shaping a sustainable tomorrow Recovery logistics, with its focus on sustainability, efficiency, and innovation, is reshaping the future of logistics and transportation in Asia. As businesses continue to embrace this transformative approach, the region is witnessing a paradigm shift in supply chain practices.

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The market across AsiaPacific contributed the largest share in 2020, holding more than two-fifths of the market. Moreover, the region is estimated to manifest the highest CAGR of 5.1% from 2020 to 2028 stated by Globe Newswire.

This means that for companies to pursue resiliency and shape their future, they combine reverse and forward logistics. The integration of recovery logistics not only ensures the efficient movement of goods but also paves the way for a greener and more sustainable tomorrow. In this journey towards a circular economy, Asia stands as a beacon of change, inspiring the world with its commitment to reshaping the landscape of transport and logistics. V

Recycling From page 12

Reducing By reducing the amount of extracted resources, mobile technology manufacturers alleviate concerns about resource scarcity and ensure the long-term sustainability of their industry’s operations. But to achieve this is no easy feat. Reducing the need for extraction of virgin materials is a complex process. This involves a calculated overhaul of existing production processes and a rethinking of product design. Moreover, it will render the adoption of greener manufacturing practices. Meanwhile, Accenture Strategy’s research indicates that by 2030, the circular economy could offer a staggering $4.5 trillion in economic benefits by reducing waste. I and creating new jobs. As per the report, this transition can help address resource scarcity through the conservation of resources “while driving greater competitiveness.”

Reusing The second ‘R’, reuse, is just as important. Unfortunately, many of today’s electronic products are leans toward ‘planned obsolescence’ in mind, making them quickly replaceable. In 2018, the Shanghai Consumer Council received 2,000+ complaints about Apple products. Such led the California-based company to address concerns regarding iPhone slowdowns. For years, the tech giant has been accused of deliberately slowing down older iPhone models. France has also initiated an investigation this year into Apple’s alleged planned obsolescence, claiming that the company restricts mobile phone repairs. The Halt Planned Obsolescence Association called on Apple to “guarantee the right to repair devices under the logic of real circular economy.”

The third ‘R’ involves converting e-waste materials into new products, promoting better resource conservation, and minimizing e-waste generation. Several tech companies have launched initiatives to promote smartphone sustainability, designed to extend the life of electronic devices. Major industry players like Apple and Samsung have introduced trade-in programs. This enables the consumers to purchase new phones at discounted prices in exchange for their old smartphones. But, purchasing a brand-new electronic device often appears more convenient than recycling, driven by factors including inadequate recycling infrastructure, planned obsolescence, and a general lack of consumer awareness. While recycling initiatives have been implemented by mobile technology companies for years, the amount of e-waste generated daily calls for a re-evaluation of how mobile technology products are created right from inception.

The game-changer Embracing the principles of the 3Rs within a circular economy empowers mobile technology manufacturers to create durable products, capitalizing on the wave of sustainable consumption and ultimately boosting revenue. In fact, the International Labour Organization projected that this transition could create as many as 6 million new jobs. Moreover, the mobile industry is shifting toward a more sustainable economic model, other sectors like recycling, repair, and rental services could reap significant benefits. Undoubtedly, the concept of a circular economy and its core principles, the 3Rs, prove to be the most effective path in pursuing a greener future for the mobile industry. However, its successful implementation entails a significant change in how we treat our finite resources and the active engagement of companies, governments, and consumers. In the end, there is always an opportunity to improve resource management in the mobile industry, yet the optimal approach is to go green. V valuechainasia.com

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THE COVER

Circular economy initiatives that make countries in Asia global powerhouses BY TRISHA ANJANETTE BALLADARES

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he shift towards a more restorative and regenerative economy has made select countries in Asia strive to embrace a more attractive way of doing business, such as the circular model. Asian countries have become increasingly aware of the concept of circular economy and its benefits as the demand for

goods increases. A circular economy is a system that focuses on reducing waste and exploiting existing resources to reduce costs and minimize environmental damage. This system benefits all parties involved and can help countries in Asia become more competitive in the global market.

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90% of the resources extracted and consumed do not return to the production cycles but become waste stated by the Economist Impact, an online platform tackling sustainability.

The shift into a circular economy In recent years, countries in Asia have begun to recognize the potential of a sustainable economy. It has been especially evident in China and South Korea, which have all taken steps to build a circular economy. As one of the largest economies in Asia, the Chinese government has been actively promoting a circular economy since 2009. The Chinese government has implemented various policies and initiatives to increase resource efficiency and encourage sustainable production and consumption. These policies have included the promotion of green finance, the establishment of green industries, and the introduction of a waste-to-energy system. It incentivizes businesses to adopt restorative economy practices, such as VAT exemptions and refunds. Meanwhile, South Korea’s commitment to sustainability has been evident for some time. The nation has made significant investments in renewable energy, green transportation, and energy efficiency. The government’s roadmap outlines several initiatives to promote its principles. Such includes developing a national resource management system and establishing a Circular Economy Promotion Council. Other countries in Asia are already developing their circular economy framework. These are Japan, India, and the Southeast Asia region.

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Harnessing the potential of countries in Asia Transitioning from a linear economy to a circular economy is not limited to economic benefits. The system also promotes social and environmental sustainability as well as the streamlined management of resources.

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This (circular economy) requires a radical rethink of consumerism and a reshaping of global supply chains the Economist Impact shared.

Mainly, stakeholders may benefit from increased efficiency, reduced emissions, and improved resource management. It can help countries in Asia become more competitive in the global market and attract more foreign investors. “Sustainable product and process designs are important circular economy plans. In such a business model, instead of selling products to consumers, companies can retain ownership of the physical products, and consumers only pay for the use they derive from them,”said Venkatachalam Anbumozhi and Fukunari Kimura in their write-up on Industry 4.0: Empowering ASEAN for the Circular Economy. In the global trade arena, resource efficiency and reduction of waste aid in making countries in Asia attractive to trading partners who are also in search of a restorative economy. Therefore, circular economies also usher more significant trade and investments between Asia and other parts of the world.

Challenges in implementation The circular economy has the potential to help countries in Asia shift to a more sustainable economy and reduce adverse environmental impact. However, several challenges should be addressed to implement circular economy-related efforts successfully. As with any new concept, education, and awareness are crucial. There is a need for greater awareness and understanding of the circular economy. Wherein the propagation of knowledge ensures that the public understands the said economy and its functionality. More importantly, many of the countries in the region have yet to develop a comprehensive legal and regulatory framework. It helps to facilitate the transition to a circular economy. This issue is compounded by the fact that many existing regulations need to be better suited to the needs of a circular system. In this sense, the circular economy may depend on the availability of incentives and subsidies to promote the reuse, repair, and recycling of resources. Such would require governments to create policies, laws, and regulations supporting a circular economy’s development. There is also a need for qualified professionals who understand the principles and benefits of a circular economy. This lack of expertise is a significant challenge for countries in Asia as they try to implement initiatives.

Benefits of a circular economy The concept of the circular economic diagram is based on the idea that the Asian economy should be viewed as a continuous, interconnected system rather than a linear one where resources are extracted, used, and discarded.

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Circular models also aim to renew resources with methods like circular agriculture, which minimizes raw materials, reduces chemicals, and works with the seasons, rather than against them shared on the platform of Global Insights, which is an economics forecasting organization.

Said restorative economy can create more resilient countries in the midst of ever-changing economic landscapes. By reducing the consumption of materials and energy resources needed to produce goods and services, countries in Asia can lessen the negative impact on the environment.

Dr. Uwe Weber, the Team Leader of the SWITCHAsia Network Facility, noted that certain communities allocate budgets for waste management services. He also projected that there would be about a 60% increase in the volume of waste in the next decade. Aside from sustainability, locals can also gain employment opportunities. In turn, market prices may also become moderate in Asia.

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It [circular economy] ensures access to resources and hedge against price volatility while creating new opportunities. It enables us to evaluate the relation between GDP growth and domestic consumption of raw materials or greenhouse gas

shared by the Institut Montaigne, a non-profit think tank.

Whether it is vying for either environmental sustainability, social aspect, or economic growth, a circular economy poses the potential boost and progression of countries. Therefore, it’s no wonder that the said economic model is a growing trend across countries in Asia. V

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SUPPLY CHAIN CHAMPIONS

Technology for sustainability: C.H. Robinson’s VP Stephen Ly talks innovation BY CHARLENE JOANINO

ntegrating technological advancements in supply chain and logistics operations renders a boost in efficiency and resilience. Stephen Ly’s and C.H. Robison’s stance, is a testament that making eco-conscious decisions drives a shift that benefits not only the present but also the future.

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“The pursuit of sustainability is aligned with long-term business viability. By addressing environmental and social concerns, companies can contribute to the overall well-being of the planet and society, ensuring the availability of resources and stable markets in the future,” Stephen said.

Stephen travels across Asia as the Vice President (VP) of Southeast Asia and Global Forwarding Business. Mainly, overseeing the strategy on business expansion, increasing profit while ensuring the deployment as well as optimization of C.H. Robinson’s resources.

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We [C.H Robinson] manage logistics for renewable-energy projects around the globe – from manufacturing to installation to recycling. We support the solar, wind, battery, and electric vehicle industries, and our renewableenergy customers are among our largest and fastest-growing, he added.

Logistics in motion Having an intensive range of experiences in diverse markets, Stephen underscores that the logistics industry has a transformative nature. Wherein, networks unlock doors to business and personal opportunities. “Our team offers more than logistics expertise – they provide a deep understanding of the nuances and complexities of global supply chains that shippers can rely on to do supply chain analysis and design, to recommend and execute optimizations of their supply chain, and to work as an extension of their own team to overcome any challenge, disruption or volatility they may face,” Stephen said. C.H. Robinson provides insights, technology as well as supply chain efficiencies to shippers, ushering sustainability. Among said initiatives is the integration of their Navisphere® into transportation management systems (TMS). They also make use of enterprise resource planning (ERP) systems for online marketplaces.

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Having end-to-end visibility enhances transparency and accountability across the supply chain, enables better decisionmaking and the identification of opportunities for further sustainability improvements, Stephen shared.

Image Source: C.H. Robinson

In regards, he underscored that they embody sustainability in their company values, belief in doing the right thing, and their mission to improve the world’s supply chains and drive long-term business success. Every year, C.H. Robinson engages in billions of digital transactions. According to Stephen, this is because they are the world’s most- connected logistics platform and that they help drive not only innovation but also intelligence across the industry.

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A cornerstone of our business vision involves spearheading digital transformation within the industry. We are actively working towards realizing the supply chain of the future through the implementation of automated, data-driven, and predictive technologies, Stephen said.

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Achieving resilience in Asia Due to varying topographies and weather conditions, ushering business operations in certain parts of Asia can be challenging. Stephen noted that the susceptibility to economic disruptions rendered the complexity of supply chains in the said region. “Building resilience in logistics and supply chain management, particularly in regions prone to natural disasters like parts of Asia, requires a multifaceted approach,” he shared. For Stephen, the world has become more uncertain this post-pandemic, and black swan events are likely to be more frequent. Thus, C.H. Robinson expects the need for resilience and diversification will be critical in 2024.

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Our emphasis on diversification and risk mitigation is a core strategy, and essential for maintaining supply chain resilience amidst global economic and political volatility. For us, as a company, it is about building supply chains that are robust, agile, and adaptive to change Stephen pointed out.

The pursuit of social responsibility Stephen emphasized the growing focus on social responsibility as a crucial part of corporate governance and business strategy. He shared data from the International Data Corporation (IDC), that 45% of Asian-based organizations will operationalize integrated sustainability in their supply chain. Such, he said, is indicative of a larger regional transformation.

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We [C.H Robinson] view that sustainability often drives innovation and efficiency. Companies that invest in sustainable practices may discover new technologies or processes that enhance operational efficiency, reduce costs, and minimize environmental impact, he added.

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According to him, they consider sustainability as an essential pillar of their environmental, social, and corporate governance (ESG). He shares that sustainability sits at the intersection of stakeholder needs and business strategy.

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We have now reduced our emissions intensity by 47%, reaching our goal two years early. Our progress has been driven by our efforts to find efficiencies within our operations and leverage renewable energy, he added.

Creation of strong ties and network management C.H. Robinson leverages seamless communication and data exchange in the logistics ecosystem. This is how Stephen describes their integration of varying initiatives for an efficient and sustainable supply chain in Asia.

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We operate globally, leveraging our extensive network and expertise to provide multimodal solutions for domestic and international logistics. This global presence allows us and our customers to navigate complex supply chain challenges and provide comprehensive solutions Stephen shared.

Their multimodal solutions utilize different transportation modes, covering air, ocean, rail, and truck. By having a broad range of transportation means, they can provide flexibility and scalability in accommodating their clients. They also tailor-fit their approach accordingly to reduce carbon footprint and enhance logistics and cost efficiency. Stephen believes that being able to adapt is key in facing different situations. For him, the dynamic realm of the logistics industry made coping with distinct cultures, nuances, and language variations imperative. “No one company can tackle sustainability alone – it takes collaboration to build resilient supply chains and

Image Source: C.H. Robinson

drive lasting change. C.H. Robinson has always focused on using our expertise and leadership to help our customers, carriers, and the broader industry, and make a positive impact on local communities and our planet,” he said. A recent initiative was their participation in the World Economic Forum and the Smart Freight Centre. Into which they aim to produce a book and claim chain of custody for road transportation. Notably, the framework enables companies to gain opportunities and solutions that cater to emission concerns globally.

Rearing success and societal impact Stephen deems that his experiences in different markets are a culmination of his success as a global leadership awardee. He considers his work in the Philippines as one of the heights of his career. Back then, he successfully transformed a logistics branch into a top-performing business.

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My team’s dedication, hard work, and commitment to excellence were indispensable components of our success. Their performance also highlights the importance of teamwork in driving positive outcomes within the dynamic landscape of the logistics industry,

Now, Stephen is keen on making C.H. Robinson go beyond conventional logistics solutions. Alongside, he recognizes the importance of having an awareness of the impact of one’s action on their company, people, community, planet, and future.

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Looking ahead, our commitment to innovation and shaping the future of supply chains remains steadfast. We are dedicated to expanding our portfolio of industry-leading tools, introducing new functionalities, and enhancing existing services to meet the everevolving demands of the global supply chain landscape, he capped off. V

ABOUT C.H. Robinson is a global logistics company that offers a myriad of services. They engage in multimodal transportation, do customs brokerage and help customers across various industries to cope with industry disruptions and market demands.

he said.

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TECHNOLOGY

How does crossborder e-commerce by SMEs unlock the global market? BY TRISHA AJANETTE BALLADARES

mall to medium sized enterprises (SMEs) are essential contributors to exports and international trade or cross-border e-commerce. In many Asian countries, SMEs account for a significant portion of total employment and are often the primary source of new job opportunities.

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SMEs in Asia are critical in driving economic growth as they comprise 96% of all businesses in Asia. Cross-border e-commerce enables SMEs to expand their customer base and business size beyond their borders.

The tech shift in small to mediumsized businesses

Connecting with customers and suppliers in different countries

The growth of cross-border e-commerce, especially in Southeast Asia, is due to various factors. For instance, digital platforms like Alibaba, Shopee, and Lazada enabled SMEs in Asia to connect with customers and suppliers in different countries.

Cross-border e-commerce has given SMEs in Asia a unique opportunity to expand their business and reach new markets. With technology and digital platforms, it has become easier for small to medium-sized businesses to participate in the global marketplace. Currently, a significant proportion of enterprises by business size entails micro small, and medium businesses. With the rise of cross-border e-commerce in Asia, it has become easier for SMEs to participate in the global marketplace. The ease of doing business has been facilitated by technology. For instance, digital platforms like Alibaba, Shopee, and Lazada enabled SMEs in Asia to connect with customers and suppliers in different countries.

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The COVID-19 pandemic has accelerated the shift towards a more digital world. The changes we make now will have lasting effects as the world economy begins to recover,” The United Nations Conference on Trade and Development (UNCTAD) Secretary-General , Mukhisa Kituyi shared in a report.

With lockdowns and social distancing measures in place, many people turned to e-commerce shopping in SMEs to safely and conveniently purchase essential goods and services. An October 2020 Survey also showed that 51% of Chinese consumer respondents preferred shopping online than visiting a physical store. It also showed that Chinese and South Korean SME merchants have digital capabilities for selling online.

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Digital selling provided an opportunity for these businesses to reach customers locally and globally without stretching operating budgets, but B2B sellers must stay ahead of digital export trends in 2023 to find continued success, Andrew Zheng, the Vice President of the platform of Alibaba, noted in the digital trends report.

In Southeast Asia alone, online orders increased by 102% in 2021 since people are either influenced by social media or looking for a one-stop shop for their needs. Many small to medium-sized businesses have a broader range of products, including food and beverage, skin care products, and household items.

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Shipping and logistics management obstacles While digital platforms have made it easier for SMEs to connect with customers and suppliers in different countries, handling shipping and logistics remains a significant challenge. Logistics is one of the significant hurdles for an SME in Asia. Shipping rates can vary widely depending on the destination country, and SMEs may need more negotiating power from larger companies to secure favorable rates. Another challenge for SMEs are the customs laws and regulations of different countries. It can be particularly daunting for a new SME in the market and may need more resources to navigate the complex regulatory environment. SMEs must also consider the logistics of order fulfillment, including inventory management, packaging, and delivery tracking. These logistical challenges can be overwhelming for SMEs that need more infrastructure and resources than larger companies.

Business solutions Despite the challenges, there are several solutions that may help SMEs. Among those is to partner with logistics providers that specialize in cross-border shipping. Said providers can offer SMEs access to a network of carriers and shipping solutions. These can help them reduce costs and streamline the shipping process.

Another solution is to use e-commerce platforms that offer built-in logistics and fulfillment services. Alibaba’s Tmall Global platform can provide an SME company access to a logistics network that includes warehouses, delivery services, and customs clearance. The platform can be beneficial for SMEs new to cross-border e-commerce. They may need more resources to manage logistics independently.

SMEs in Asia Cross-border e-commerce has been a game changer for an SME company in Asia-Pacific. By leveraging the power of the internet, SMEs can reach new markets and expand their customer base like never before. However, the landscape of cross-border e-commerce is constantly evolving, and SMEs need to be aware of the latest trends and technologies to stay ahead of the game. As traditional markets become increasingly saturated, SMEs must explore new opportunities in emerging markets such as Southeast Asia and India. These markets offer a large and growing consumer base. Likewise, SMEs that can establish a presence early on will be wellpositioned to succeed in the long term. SMEs that can keep up with the newest trends and technologies and surmount the obstacles of cross-border e-commerce will be strategically situated to succeed in the global market. By leveraging mobile commerce and exploring new markets, small to medium-sized businesses can unlock new opportunities and drive growth in the years ahead. V

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TRENDS & GEOPOLITICS

How can Asia’s agritourism farm stays raise awareness on sustainability? BY TRISHA ANJANETTE BALLADARES

ountries like India, Japan, and China have become agritourism hubs, attracting domec and international tourists in agritourism farm stays. According to an analysis, the global agritourism or agrotourism market can reach $141 billion by 2023. The unique blend of agriculture and tourism offers many opportunities to educate and raise awareness about sustainable farming practices.

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In particular, organic agriculture in Asia offers consumers the chance to directly buy fresh produce from farmers. In this sense, agritourism connects the consumer to farm owners. It provides broader leeway for better supply chain management (SCM) through the direct establishment of business rapport and the rendering of consumers’ first-hand experiences on natural farming.

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FT (Farmer-Tourist) refers to the relationship in which local farmers supply their agri-products directly to tourists or they do businesses on their own farms based on tourism Saut Moeun and Masaki Yamada shared in their research at the International Journal of Environmental and Rural Development.

Agriculture SCM and sustainability in Asia The SCM is usually ushered by farmers, entrepreneurs, and various concerned institutions or authorities. Depending on market size, reaching out to consumers renders a stringent effort that could be exhaustive. Mainly, agritourism, is a fine example of an initiative that makes use of the “Business to Consumer (B2C) Marketing Model.” Wherein, the farmers or farm owners directly tap their target market. In this sense, farm tourism caters to

big, mid-sized, and small-scale farms. In Southeast Asia, agrotourism farm stays offer interaction with local farmers that raise livestock, natural farming guides, weeding and seeding, orchard visits, rice harvesting, and horse rides around vegetable gardens. These experiences highlight the importance of responsible resource management and conservation.

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Agritourism is a good way to promote organic farms. Negros has been the training center for farmers from all around the Philippines, and all around the island, there are training centers and tours that show these farmers what they can achieve Ramon Uy Jr., founder of The Fresh Start Organics, said.

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The rise of agritourism in Asia There is a notable increase in agritourism destinations in Asia due to a rising fascination with sustainable lifestyles and a longing for genuine rural encounters. As such, a significant growth rate of 11.5% CAGR between 2022 to 2028 could to happen within the Asia-Pacific agritourism market.

“

Farm-to-table promotes exactly this and delivers a fresh, healthier, and tastier food experience. Travelers can have comfort in knowing where their food came from and are often given a chance to engage with the farm experience according to Drew Anderson, the director of Topo Studio Design, a design and architectural firm, in Singapore.

Meanwhile, on-farm sales may reach the highest agritourism activity by 2027. One of the driving forces behind it is the growing trend of health and environmental consciousness. Travelers are now actively seeking experiences that align with their eco-friendly values. They want to support businesses and destinations prioritizing sustainability and promoting responsible tourism such in leisure farm tours. Said tours empower tourists with knowledge about ecofriendly agricultural practices. Wherein, visitors get to try sustainable farming techniques such as natural farming, permaculture, and agroforestry. A frontliner in this arena is Japan. Despite having a technologically advanced economy, the Japanese people continue to practice and enrich their traditional agricultural culture. Japan actively promotes community-based tourism throughout the country by offering visitors the chance to experience the traditional Japanese way of life in rural regions. This unique form of travel isn’t just viewed as leisure activity, it also caters to the well-being of villagers and their communities.

A lasting impact in agriculture and tourism Asia’s agritourism destinations mostly delve into organic farming. In regards, the best farm stays in Asia offer unique ideas that allow visitors to learn about different aspects of agriculture and the environment while supporting sustainable practices.

Tourists usually witness the delicate balance between agriculture and nature firsthand, gaining a deeper appreciation for the ecosystems that sustain us. Of which, aquaponics farms are a unique agrotourism idea that combines aquaculture with hydroponics. Travelers may also stay with local families who have adopted permaculture principles to design sustainable ecosystems. Meanwhile, knowledgeable guides lead visitors through farms, explaining farming techniques and practices. Tourists can participate in activities that help to protect the environment, such as hiking in national parks and volunteering on agritourism conservation projects. They can even witness pesticide-free cultivation and learn how organic practices benefit the environment and human health. When visitors also purchase food and other products from agritourism farms, they support farmers using sustainable practices. This can also encourage farmers to continuously expand their operations. Tourists can provide feedback on agricultural products and services and help farmers enter a larger agriculture supply chain. On the side, SCM becomes much easier because farm owners can engage in a B2C marketing model. Overall, agritourism farms are a win-win scenario. It’s where tourists enjoy unique experiences, communities are able to preserve their culture, and farm owners benefit from increased income. V

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SPOTLIGHT

Hatch Asia shifts from HR Agency to Talent Management Organization BY CHARLENE JOANINO

hampioning innovative strategies, Hatch Asia (HA) Consulting broadened its operations, venturing beyond Human Resources (HR) to managing talents. Such initiative was rendered last

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year, earning the organization accolades from the Vendors of the Year (VOTY) 2023 in Singapore (SG) and Malaysia.

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“

We’re blessed to be in this position, emerging as winners at the HR Vendors of The Year has allowed us time to reflect on how far we’ve come as an organization, validating the efforts the team put into place in order to transform HA into a Talent Management Organization, so we’re thankful for clients to have

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placed their trust in us, and for all partners in HA to have executed on this vision. We’d like to believe this is just the beginning for us,” said Anirudh Arvind, Managing Partner, Asia.

Annually, the HR Vendors of the Year, an award-giving body, lauds top-performing HR solutions providers across Asia. A total of five awards in different categories were won by Hatch Asia during the VOTY events. In Malaysia, they bagged two silver awards under the “Best Executive Search Firm” and “Best HR Management Consulting Firm” categories. Meanwhile, in SG, they received the Gold Award for Best Mid-Management Recruitment Firm; Silver Award

for Best Executive Search Firm; and Bronze Award for Best HR Management Consulting Firm. As an organization, Hatch Asia uses a combination of the science and art of talent acquisition and incorporation of digital solutions. They also provide insights that rely on researched-backed practices. Said efforts can result in making and improving the overall decision-making of people.

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We stuck to our ethos of always delivering quality work for the organizations we partner with, and we believe this for us, is just the start. To all our clients who place

their trust in us to align talent strategy to organizational goals, we thank you abundantly for doing so!,” Amos shared.

He added that there were setbacks and it’s not perfect. Thus, they were thrilled when they landed their first consulting project in Malaysia and then Singapore. Now, Hatch Asia has become a leading service provider in both Executive Recruitment and Talent Management Services across ASEAN and ANZ. They put emphasis on the opportunity to create a “more inclusive and futureoriented talent strategy for organizations. V

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HUMAN RESOURCES

Former FedEx Exec Dr. Siow on AI in Talent Management: ‘It’s starting to tip the balance’ BY LAU BACIA

or Dr. Choon Neo Siow, who used to work at FedEx as the Managing Director for Training and Performance Enhancement, it’s time for the industry to leverage the power of artificial intelligence (AI) in talent recruitment and management.

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During an insightful interview with Amos Tay, Value Chain Asia’s Editor-in-Chief, Dr. Siow touched upon AI’s role in human resource management (HRM). And also what the industry’s future would look like as it embraces the transformative potential of AI.

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With AI, nowadays, you can collect data on the spot and churn the analysis out on an ongoing basis, literally…You can, then, improve on your test items and predictability almost immediately she shared

Data-driven AI enhances HR’s role and efficiency Dr. Siow emphasized that AI’s data-driven approach will revolutionize the HR industry by driving a smarter and more efficient talent acquisition and management system. According to Dr. Siow, HR’s lack of ethnographic presence in the workplace has often been due to lack of time. AI’s integration into Human Resources (HR) operations can relieve HR professionals of tedious administrative duties. It allows them to focus more on higher-value tasks that are of great importance to talent management and organizational development work. She shared that if HR were to hone their observational and note-taking skills and feed AI with better employee soft data or those that are not numbers but emotionsdriven, their solutions and recommendations could be extremely valuable and powerful. However, this can only happen if they engage in the day-to-day operations of the business. Wherein, it requires a concerted effort and dedicated time.

Additionally, Dr. Siow noted that AI is of big help in talent recruitment. She emphasized its ability to assist test developers in properly curating test items. Also, she underscored the ability to creatively design valid items quickly that could accurately measure a candidate’s strength and suitability for a job. “In FedEx, we would go to our data bank every two years to analyze [if] our [talent assessment] tests are accurate and valid,” said Choon Neo as she looked back at their company’s talent recruitment system.

AI and the issue on human replacement Although AI brings undeniable efficiency, Dr. Siow believes that human intervention remains integral to talent acquisition and management. Such offers insights beyond mere quantifiable data. “I don’t see AI replacing recruiters in the immediate future because you still need the human ability to provide information about context,” she said. From her expert perspective, Dr. Siow admits that AI can do much in the recruiting, selection, and decision-making process. Yet no machine has yet shown an ability to foster relationships or grasp cultural nuances better than a true HR professional in recognizing and dealing with subtleties involved in helping others, such as clients or line managers, accept that decision. Again, this presses the point on how HR’s role might need to change in utilizing a useful AI in the field. When AI captures and deploys instincts based on HR experiences like a person, maybe only then can humans be replaced by it in the HR world.

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HR concerns in AI integration

On AI Bias

As AI language models like ChatGPT surge in popularity, it raises concerns about ethics, privacy, and safety. Dr. Siow highlights the importance of addressing these issues. OpenAI’s GPT-3 architecture, for instance, was fed 570GB of data from a wide range of sources, including books, articles, and websites, among others. This language model birthed Chat Generative Pre-trained Transformer, or ‘ChatGPT.’ It’s a chatbot that performs complex tasks and provides contextually-relevant responses based on given prompts. “ChatGPT and AI can do the research for you. It gets all the information for you. Now, your skill set is very different; your role has been enhanced and your role is to enhance bearing in mind its ethical use,” she also pointed out. In this sense, Dr. Siow notes the importance of treating AI as a supplementary tool for HR professionals as of now rather than a complete replacement. “[T] hinking about how AI needs to be embraced and used in the most valuable way is really the key to moving forward,” she said.

AI bias is a persistent issue that has drawn attention from years back. In 2016, ProPublica, an investigative journalism publication, exposed racial bias in a computer program used by a US court. Said program predicts the likelihood of defendants to re-commit a crime, namely recidivism. In their report, 45% of black defendants are likelier to be “high risk.” This is based on the recidivism algorithm of the Correctional Offender Management Profiling for Alternative Sanctions, or COMPAS program. Approximately half a decade after racial bias was found in COMPAS, concerns about racial prejudice arose. It happened shortly after OpenAI publicly released ChatGPT. Users quickly called out the racist responses generated by the chatbot. Considering said concern, Dr. Siow advocates for a more collaborative approach between HR professionals and AI developers. This is to proactively address ethics, privacy, and security issues.

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Navigating the future The combination of the strengths of AI with the invaluable expertise of HR professionals can strike the right balance in HR-related work. Such initiatives brought about what most experts call the ‘Fifth Industrial Revolution.’ Said period is marked by a resolute focus on sustainability and resilience. The revolution seeks a more collaborative relationship between man and machine in which AI takes on the usual scut work. While HR professionals’ roles charge toward higher-level data analysis and strategic decision-making processes.

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[HR professionals] should now be involved in developing AI tools and deploying [them] in an ethical fashion that benefits not just the company but also the employees Dr. Siow stressed

For her, it is crucial for the HR industry to navigate this new era with a proactive move to co-create HR-AI instruments not faddishly but with great thoughtfulness of their efficacy. While it is expected to bolster efficiency in talent management, addressing AI-related risks and challenges is a must. V

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Rethink Logistics & Supply Chain We help you restructure your talent strategy and identify your next supply chain leader

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https://www.hatchasiaco.com

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TVS SCS GFS strengthens its SEA presence, onboards Chua BY CHARLENE JOANINO

ith TVS Supply Chain Solutions Global Forwarding Solutions (SCS GFS) eyeing a boost in business operations across Southeast Asia (SEA), industry veteran Jessica Chua became its Head of Sales in June. “TVS SCS GFS has significant capabilities in intra-Asia supply chain and logistics and impressive credentials in air freight from Europe. We want to leverage these strengths to make TVS SCS Singapore the partner of choice for companies doing business in Southeast Asia,” Chua shared. She is in charge of TVS SCS GFS’ presence in Singapore (SG) and the expansion of SG’s Sales Team. For her, the autonomy to build effective resources as well as a flat management structure, will make decision-making faster.

On starting fresh Chua decided to pursue the opportunities that come with her appointment at TVS SCS GFS. She considers the shift as a professional and personal career progression means where she pushes herself to the limits and broadens exposure.

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“TVS SCS GFS offered me a Country Sales Leader role which is an expanded position from my former employment. There were mixed feelings of exciting times ahead together with nervousness and anticipation to start fresh in a new environment,” Chua said. Moreover, Chua shared how TVS SCS GFS varied from her previous work organizations. The said supply chain solutions provider has a century-worth of legacy from its beginnings in India. “There is so much scalability in terms of visibility and awareness to let more people know about the TVS brand and our supply chain solutions in the logistics scene in time to come,” Chua noted. TVS SCS GFS’ motto is trust, value, and services in serving its local and major clients. There is a wide range of arenas covered by TVS SCS, from freight forwarding to integrated supply chain solutions services. To date, the largest fraction of their market share covers the automotive industry.

Perspectives on recruitment and technology From Chua’s point of view, there is a need to be resilient and not give up easily. Every day presents itself differently. For her, the important thing is to show up. “Hiring quality talent that meets our cultural and performance criteria is challenging in today’s market situation,” Chua shared in line with her aim to attract more human assets in TVS SCS GFS. She emphasized that TVS SCS wants to attract talents who are passionate about selling and keen on joining the dynamic logistics industry. In regards, Chua acknowledges the use of technology in recruitment and workflows.

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Previously, logistics was seen as a conservative essential service industry. However, this is no longer the case. Innovative technologies and the expansion of international markets have redefined the sector, creating new opportunities for talented and ambitious individuals to make their mark and to build a career in a global industry, according to her.

Such holds true within a highly dynamic and fastpaced environment of people in different time zones who may work long hours. Wherein, technology can

aid in communication across multiple sectors or regions and make the end-to-end supply chain visible. “We have utilized virtual meetings, artificial intelligence, and e-commerce to enhance business continuity,” she shared.

Mindset of a champion Before joining TVS SCS GFS, Chua had worked for giants such as DB Schenker, DHL, and FedEx Express. For her, time management is a crucial element in carrying out initiatives. According to her, if you want to be more productive, you need to be a master of your minutes. Chua encourages the planning of one’s day ahead to achieve effective results. “It’s important to plan so you can reach your goals,” she emphasized. As a a successful woman trailblazer, she also promotes diversity in the workplace. With the apparent male-dominated industry, she noted the need for more women leaders in the workforce. Chua’s work mantra is “Push yourself harder than yesterday if you want a different tomorrow.” V

ABOUT TVS SCS GFS delivers freight forwarding and management solutions. Mainly, providing a comprehensive range of products and services to customers in regards to international supply chain management.

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