Value Chain Asia Magazine | Vol.2 Issue No.2 (2024)
“Never a dull day in supply chain and logistics. If you are a professional working in this industry, welcome to our latest issue of Value Chain Asia magazine. We showcase all the noteworthy trends to keep you up to speedwhether it’s understanding changes in technology, mapping economic growth or showcasing companies. In our hyperconnected world, the supply chain and logistics industry is truly where the action is.
I am delighted to be writing this foreword for the third issue of Value Chain Asia’s magazine. As any entrepreneur will share, building something new is hard; plus, I do not naturally have an entrepreneurial mindset or actual experience in a startup, as I have spent much of my career in corporate life. Yet, the vision of creating the community that Value Chain Asia represents, marrying my passion for supply chain and logistics with the love of the written word, has been a dream.
In this issue, our cover story highlights what every supply chain and logistics professional is mulling as the year 2024 has been marked by job losses. Just when most people think that the worst is over, we see mass tech layoffs, companies supposedly rationalizing jobs taken by AI and ChatGPT and consumer demand generally being much slower than expected, given the specter of inflation in all major economies. If companies were spared, the greater economies were not, as most industries marked a change in what was a strong recovery coming out of the pandemic became patchy at best.
Yet, it is not all doom and gloom as we dig into how Southeast Asia markets are picking up the spoils of trade war with our story on how our regional economies continue to attract investments as companies move their manufacturing and production into Malaysia, Vietnam and other SEA countries.
Within industries, we see growth in the use of robots and automation- all welcomed changes in how we live and work. It’s a running joke that the average supply chain professional is numb to disruptions and disasters because the pandemic years were one prolonged crisis- if anything, we have learned that having data and information will help us plan better. Still, research shows companies are unable to ensure resilience to their supply chains, which is evident as their belief in their ability to respond to disruptions is low. With all the data generated and stored, we look at why cybersecurity matters in our industry and recommend areas to look at as a start.
We hope you enjoy reading this as much as we enjoyed putting it together. Contact us to learn how we can collaborate with you to share your topics of interest!
For editorial inquiries, contact editor@valuechainasia.com
Sincerely,
Wee Wee Chia Co-Editor-in-Chief
WHO ARE WE?
FOUNDER, CO-EDITOR-IN-CHIEF
AMOS TAY
SENIOR EDITOR & DIGITAL MARKETING LEAD
LAU BACIA
GRAPHIC DESIGNER
YASMIN ISMONO
CO-EDITOR-IN-CHIEF
STAFF WRITER
MATTHEW PARRA
CHARLENE JOANINO
ALGIN MICHAEL SABAC
TRISHA ANJANETTE BALLADARES
KRISKA GATDULA WEE WEE CHIA
MULTIMEDIA ARTIST
MARK BRANDO BALOLOY
How can supply chain professionals stay releant in their knowledge on tech trends as they progress in their career?
East Asia headways global market on service robot industry
BUSINESS AND ECONOMY
10: Chinese companies turn to SEA amid China’s economic, regulatory challenges
LOGISTICS
16: Integration of new technology for air freight and travel in Asia
23: The cybersecurity value chain in the logistics business
TECHNOLOGY
The top 5 technologies that ushered in supply chain trends in 2024
EXPERT INSIGHTS
40: Kinaxis sponsors research: Finds 83% of supply chains can’t quickly respond to disruptions
East Asia headways global market on service robot industry
BY CHARLENE JOANINO
The delineation of full-pledged manual work labor raises a probe, one that is perpetuated by the prevalent use of the technology on a service robot. In 2024, projections showed that East Asia is expected to grow up to a revenue of USD 8.11 billion, or around 80% of the total revenue forecast in the service robot arena.
This is based on the data of Statista, a business intelligence platform.
China, Japan, and South Korea comprise the highest revenue forecasts. Each amounts to billions of dollars that spawns into varying industries. Wherein, service robots not only assist humans but also leverage efficiency in the supply chain.
“
said Ray Kurzweil, an inventor and futurist.
According to him, a service robot can free up human workers from repetitive tasks. In turn, people can focus more on creativity and the fulfillment of their roles.
Unlike their human counterparts, robots can work around the clock without fatigue, significantly reducing the time required to complete tasks. This 24/7 availability ensures that supply chain operations can continue without interruption, improving the overall efficiency of the system.
Integration across industries
“ The dawn of service robots is upon us, and they have the potential to revolutionize the way we provide services,
The use of service robots has been a game-changer for businesses seeking to enhance efficiency and reduce operational costs. Professional service robots with artificial intelligence (AI) aids in streamlining processes and reducing human error.
Service robots have proven their worth in tasks ranging from doing simple to complex tasks. At the warehouse, they can do order fulfillment to inventory management. This paved the way for the rise of “Robotics As A Service (RAAS)” which automates priority areas in consideration of the dynamic needs of businesses.
For example, the hospitality sector has welcomed robot concierges equipped with cutting-edge AI. They ensure seamless check-ins, room service, and also host other guest amenities.
Meanwhile, service robots have also found their place in the healthcare industry. In Japan, they assist with tasks such as medication delivery, reducing the workload of
Impact of service robots on the workforce
Although the adoption of service robotics industry experiences gradual growth, qualms about how it will affect employment persist. The McKinsey Global Institute underscored that robots could indeed cause job displacement.
However, they also noted that the demand for workers could increase due to economic growth and technological progress. While robots excel in speed and precision, they lack the empathy, creativity, and problem-solving abilities that humans bring to the table.
Service robots can perform repetitive and physically demanding tasks with unparalleled precision which not only reduces the risk of errors but also lowers the likelihood of workplace injuries.
Service robots will have a significant impact on the human workforce, but this impact does not have to be negative. We need to invest in education and training to ensure that workers have the skills they need to succeed in the new economy,
Lee Hsien Loong, Prime Minister of Singapore, shared.
According to the World Economic Forum’s (WEF) “The Future of Jobs Report 2023,” approximately 85 million jobs in Asia Pacific alone could be displaced by automation by 2025. Yet up to 95 million new jobs could be created in the Asia Pacific by 2025 as automation creates new industries and businesses.
Furthermore, the maintenance and continuous development of robotic technology require a level of technical expertise and investment that some companies may need help to sustain.
are driving investment in service robot production and innovation.
said Masayoshi Son, CEO of SoftBank Group
in Japan.
Business continuity
collaboration are becoming widely available,
it’s the perfect time to
restructure factories around collaborative automation
that helps keep workers
safe
and
improve factory economics,
shared by the WEF, an international non-governmental organization engaging in public–private sector collaboration.
On robot density
By 2024, the global service robotics market may reach US$9.59 billion in value. Its growth rate could spike to 6.64% every year until 2028.
The demand for service robotics is ushered by the impending concern on aging population and work preferences. The International Federation of Robotics’ World Robotics 2022 report showed that South Korea has the highest robot density with 1000 robots per 10,000 employees.
Since 2016, China has the highest number of installations in the robots segment across the global market, having a huge stock of robots. Whilst, Japan has experienced a steady growth of 6% annually.
“ “ Enabling technologies for safe human-robot
Asia is at the forefront of the service robot revolution. The region has a strong manufacturing base, a large and growing workforce, and a rapidly expanding middle class. These factors
Alongside the demand for robots, rests the qualms for consistent innovation for business sustainability. Notably, service robots may provide aid during certain disruptions in business operations. During power outages, robots can provide assistance in locating faults on a power grid. By doing so, electricians may be able to repair as needed to restore power.
In some instances, high-tech robots can even have the functionality to render appropriate actions to restore power. Moreover, the robots can also provide algorithms and predictions to enhance preventive measures against possible power interruptions.
For example, the Robotic Process Automation (RPA) enables risk assessment, full-scale automated auditing, and control testing automation. Both are crucial in rendering resilience.
This has been proven in a survey underscored by Metricstream, a business solutions provider.. It was found that about 50% of firms that use RPA leveraged resiliency after the COVID-19 pandemic. Wherein, more than 70% of the respondents had embraced digital workers in at least half of its workers.
In this sense, it overturns the notion that robots pose a threat as well to the engagement of people in business operations. Yet, the absence of empathy and a sense of conscious decision-making could cause adverse effects on supply chain management.
Factoring adoption and maintenance
Innovation and the need for leveraged service provision have fervently driven the roll-out of robots into the market. According to IFR, The Global Robotics Report 2022, the last decade has witnessed a notable shift in the production and deployment of service robots.
As per the report, more than 70% of players in the service robotic arena worldwide are startups and small to medium enterprises, a testament to the entrepreneurial spirit driving innovation in this sector.
Meanwhile, robots are still machines that need maintenance and management of professionals or specialists. In the midst of a competitive market, businesses must be willing to invest in service robot updates if they are keen on using them.
Such is to ensure that their robots remain efficient and can adapt to changing customer needs. Otherwise, businesses might not be able to fully maximize the use of a service robot and may end up incurring losses in the process instead.
V
Chinese companies turn to SEA amid China’s economic, regulatory challenges
BY MATTHEW PARRA
For years, the China Plus One strategy served as a buffer against supply chain disruptions. Western companies adopted such approach to diversify their operations away from China amidst rising operating costs and the country’s escalating trade tensions against the United States (US).
But the tables are now turning. What began as a strategy for foreign firms is now a defining trend for Chinese companies themselves.
China is increasingly directing its investments eastward, focusing on Southeast Asia (SEA). China’s State Council Information Office (SCIO) on April 22 said in a press release that a significant part of China’s non-financial outbound direct investments (ODI) is going to SEA.
ODI are investments made by a country’s entities abroad. These investments are aimed at gaining influence in foreign markets.
In the first quarter of 2024 alone, China’s non-financial ODI reached 242.92 billion Chinese yuan, with investments in SEA experiencing a surge of 36.7% year-on-year, according to SCIO.
“For Chinese companies seeking to expand globally, ASEAN (Association of Southeast Asian Nations) is usually their first stop and an important market for their overseas development,
Eddie Ching, EVP and Deputy CEO of HSBC China said in a webinar in 2022.
Growing opportunities in SEA
The region has a lot to offer to companies seeking to expand or move out of China. Beyond its low labor costs, SEA nations have worked towards making their economies attractive to foreign businesses.
The electric vehicle (EV) industry reflects this trend. For example, Indonesia started offering a $5,000 subsidy for EV buyers in late 2022, while the Philippines provides tax exemptions to EV distributors and owners and prioritizes them during vehicle registration.
Chinese automaker BYD is seizing these opportunities. On Thursday, July 4, BYD opened its first manufacturing plant in Thailand — the automaker’s first in SEA. This move is driven by the country’s tax breaks for EVs and established supply chain, which can bypass US trade restrictions.
Several other Chinese firms have also expanded to SEA, capitalizing on the region’s business-friendly environment and the rapidly growing consumer base.
In June 2022, tech giant Xiaomi launched the first batch of its Vietnam-made smartphones through its local manufacturing partner DBG Technology’s factory in Thai Nguyen province. DBG Technology said such move would open doors for Vietnam-made smartphones to be exported to neighboring markets.
That same year, Xiaomi became Vietnam’s secondlargest smartphone manufacturer for the first time, recording an on-year growth of 67% — the highest among the country’s top five smartphone manufacturers.
Market access is also a key motivation for this shift. Chinese companies are expanding to SEA to reach diverse markets and demonstrate confidence in Chinese brands in the global market.
For example, home appliance giant Midea has invested over 1 billion Chinese yuan in a facility in Thailand to target SEA, Middle Eastern and North American markets. In 2022, it produced 60 million units, leading China in domestic sales and refrigerator exports.
Chinese companies face challenges in SEA
But while the China Plus One strategy unlocks exciting prospects for Chinese companies in SEA, specific challenges arise.
“Supply chain shifts of this size take long periods to complete, often years, but the shift has started already, especially in areas such as the auto industry and electronics, with ASEAN’s share of intermediate goods on an increasing trend, but there is still a long way to go before this reaches an equilibrium,
independent research firm CrossASEAN Research founder Angus Mackintosh said.
MINUTES
Integration of new technology for air freight and travel in Asia
BY ALGIN MICHAEL SABAC
F rom cutting-edge cargo handling systems to making passenger experiences better, the development of technology for air freight rendered innovative solutions. Thereby, transforming the way goods and people move across the continent. The air cargo industry plays a big role in the
global transportation and logistics landscape. In Asia, air freight services not only facilitate the movement of packages, it also connects businesses and consumers worldwide which deeply impacts supply chains.
says Ferwin Wieringa, Global Head of Air Freight at A.P Moller Maersk.
Efficiency and safety
To boost security measures in every Asian travel airport, and freight hub, advance air technologies have been adopted. Automated solutions, such as robotic arms and smart sorting algorithms render swift and precise cargo handling. They reduce the risk of errors, delays, and additional air freight costs.
Additionally, the Internet of Things (IoT) sensors and Radio Frequency Identification (RFID) tags enable realtime air freight tracking and monitoring of shipments which lessens the risk of theft, loss, or tampering.
Advanced X-ray scanners equipped with deep learning algorithms can identify potential threats more accurately. Such is a more effective means of detecting prohibited items. In this sense, a new technology not only enhances passenger safety but also expedites the screening process. It minimizes waiting time and improves overall efficiency. Revolutionizing the passenger experience
Artificial intelligence (AI) has empowered airlines and travel agencies to offer personalized services to passengers. AI-powered chatbots assist travelers in booking flights, selecting preferred seating, and providing real-time information on flight status.
“ “ As it stands, high-tech companies are using a greater share of air freight. Time to market is very critical, and when we’re dealing with high-value goods, air freight is the chosen mode of transportation,
Our leading source of innovation is our people. Our people shouldn’t be spending all their time taking tickets and scanning boarding passes. They’re too talented for that,
says Ed Bastian, CEO of Delta Airlines.
As stated by CBIP Logistics, increasing digital means and automation of the air freight industry will create a rise in dynamic booking to ensure a faster air delivery system. These virtual assistants are available 24/7. Thereby, ensuring prompt customer support. By leveraging AI, air freight and cargo companies have successfully tailored their services to meet individual traveler needs and enhance overall satisfaction, as told by Eastern Peak.
Meanwhile, certain airports in Asia are implementing biometric authentication systems to streamline air travel. Facial recognition technology, coupled with e-gates, lets travelers go through security checkpoints and boarding gates swiftly.
Doing so eliminates the need for physical documents and reduces queuing time. Thus, the seamless integration of biometrics enhances convenience while maintaining high levels of security.
Advancements in air traffic management
Modern communication systems support technology and air freight logistics. For instance, Aeronautical Telecommunication Network (ATN) has revolutionized air traffic control operations in every Asia airport. ATN facilitates efficient and secure communication between pilots and air traffic controllers.
Through ATN, coordination and exchange of critical flight information can be done. Thereby, ensuring enhanced safety and reducing the risk of miscommunication during flights.
The said innovative air freight shipping technology significantly reduces travel time and freight delivery by ramping efficiency and sustainability. Meanwhile, according to MDPI, a publisher of open-access journals, airline companies nowadays are actively exploring using electric propulsion systems. They are also utilizing AI and hybrid powertrains to reduce carbon emissions.
Implications for Investors and stakeholders in Asia
The adoption of a new air freight technology causes an amicable domino effect as it may help streamline workflows and reduce manual labor. Thus, helps increase operational efficiency and cost savings.
Moreover, it improves overall customer satisfaction and enhances the traveler experience, resulting in more demand and repeat business. When this happens, there will be more market opportunities as expansion may be realized through the attraction of more travelers and businesses to the region.
While the integration of any air freight technology brings numerous benefits, there are also challenges and considerations for investors and stakeholders in Asia. The hurdle lies in the initial investment costs. Adopting new
technologies requires significant upfront investments, which may pose financial challenges for smaller businesses or startups in the industry.
Next is the development of technological infrastructure. Some regions in Asia may require substantial infrastructure development to support the integration of new technologies, potentially leading to additional costs and time delays.
Lastly, the transition of the workforce is at stake. Implementing new technologies often necessitates retraining or upskilling the existing workforce, which can be a complex and time-consuming process. Stakeholders must carefully manage this transition to ensure a smooth adaptation to the new technologies.
A dire need for modernization
The integration of air technologies in freight and travel in Asia is reshaping related industries. As Asia continues to be a powerhouse in global air freight and travel, these technological advancements will play a crucial role in propelling the industry forward, meeting the evolving needs of passengers and shippers while ensuring a seamless and enjoyable travel experience.
However, challenges such as initial investment costs, infrastructure development, and workforce transition need to be carefully addressed. By navigating these challenges and leveraging the benefits of technology for air freight and travel across Asia, investors and stakeholders can position themselves towards success in the said industries.
V
From page 12
Intellectual property (IP) protection in SEA is a hurdle for companies. Japanese trading and investment company Mitsui & Co. reported that SEA struggles with issues like counterfeit products and less strict enforcement of patent rights.
Low confidence among Chinese firms in SEA’s IP protection is apparent. From 2022 to 2023, the same report said that Huawei and Alibaba were the sole Chinese firms filing patents in the region, focusing only on Singapore, Malaysia and Indonesia.
The West is also vying for market share in SEA. A 2024 report from The European Union Chamber of Commerce in China sees 21% of Western companies moving their operations to this region due to China’s economic slowdown, high government debt and regulatory challenges.
Another major challenge in SEA is the skills gap. Despite the region’s cheap labor, most countries lack the educational systems to build a skilled workforce. According to an ASEAN study, data on vocational training provided by employers is missing except in Singapore and the Philippines.
This makes it hard for companies to find workers for their supply chain facilities in SEA. Without skilled workers, companies may incur higher operating costs and may need to relocate workers from China to fill key positions.
The approach to staffing varies. Some companies choose to move key personnel from China to ensure
knowledge transfer and maintain leadership, particularly to address the skills gap in SEA.
In 2023, Chinese EV company SAIC Motors appointed two executives from China to lead their operations in Thailand. Their goal is to replicate SAIC’s strategy from China in the Thai market.
Many also actively hire locally to understand consumer preferences and build relationships with local suppliers.
For example, Haier, a Chinese appliance company, hires local managers for its overseas operations. They oversee team hiring and develop regional sales and distribution channels.
Huawei and Alibaba also have research and development centers in SEA. They are staffed primarily by locals and have also been engaging in research with local universities.
What’s on the move for Chinese companies?
The decision to move or diversify ultimately hinges on industry focus. According to the ASEAN+3 Macroeconomic Research Office (AMRO), companies catering to the domestic market are finding inland China more suitable.
For example, China’s chemical industry is moving from the coast to the western provinces driven by less stringent regulations and incentives offered by local governments to encourage the move.
The Regional Statistics Bureau of China reported that annual exports from China’s provinces grew from 1.34
LOGISTICS
The cybersecurity value chain in the logistics business
BY SHANE CHIANG, CEO OF MOMENTUM Z
The role of logistics in today’s economy
The logistics industry is the unsung hero of modern economies, acting as the backbone of global commerce. With the rapid globalization of trade, e-commerce and the just-in-time production model, logistics has evolved from a simple function of moving goods from point A to point B into a complex, technology-driven value chain.
Today, logistics is not just about trucks and warehouses; it encompasses a sophisticated network of interconnected systems that ensure the efficient and timely delivery of products to end consumers.
Whether you are a global giant like Amazon or a small-to-medium enterprise (SMEs) involved in regional trade, logistics is critical to your business’s success. It touches every sector of the economy—manufacturing, retail, healthcare and even the service industry. The efficiency
and reliability of logistics operations directly impact a company’s bottom line, making it crucial to protect this vital component of the supply chain.
However, as logistics has become more sophisticated, so will the cyber threats that target it. The logistics value chain, which includes transportation, warehousing, inventory management and last-mile delivery is increasingly vulnerable to cyberattacks. These vulnerabilities can disrupt operations, cause financial losses and damage the reputation of businesses.
The importance of cybersecurity in the logistics value chain
Logistics companies manage vast amounts of sensitive data, including customer information, shipping routes, inventory levels and financial transactions.
The interconnectivity of global supply chains means that a single cyberattack can have far-reaching consequences, potentially affecting multiple businesses and causing a ripple effect across the economy.
The value chain in logistics can be divided into several key components, each with its cybersecurity challenges.
Transportation management systems increasingly rely on digital platforms for route planning, tracking and fleet management. These systems are vulnerable to cyberattacks that can disrupt deliveries, cause delays and increase operational costs. Implementing robust encryption protocols, secure communication channels and continuous monitoring of transportation management systems can mitigate these risks.
Warehouses also use automated systems and Internet of Things (IoT) devices for inventory management, making them susceptible to cyber threats like ransomware attacks and unauthorized access. Regular updates to software and firmware, multi-factor authentication and network segmentation can help protect warehouse management systems from cyberattacks.
Moreover, last-mile delivery is often managed through mobile applications and cloud-based platforms, which cybercriminals can target to intercept deliveries, steal customer data or manipulate delivery routes. Strengthening the security of mobile applications, ensuring secure data transmission and using end-to-end encryption can safeguard last-mile delivery operations.
Cybersecurity challenges in the logistics industry
Despite the critical role of logistics, many companies in the industry still need to prioritize cybersecurity to the greatest extent possible. This oversight has led to several challenges that expose logistics operations to cyber risks.
Many logistics companies, particularly SMEs, need more awareness of the cybersecurity risks they face. Employees often do not receive adequate training on cybersecurity best practices, making them susceptible to phishing attacks and other forms of social engineering.
The logistics industry is also known for operating on thin margins, often leading to delayed investment in new technologies. Many companies still rely on outdated software and hardware, which makes them more vulnerable to cyberattacks.
The global nature of supply chains means that logistics companies often work with multiple third-party vendors. Each vendor represents a potential point of entry for cybercriminals and the complexity of managing these relationships increases the risk of a cyberattack.
Different countries also have varying regulations regarding data protection and cybersecurity. Logistics companies operating in multiple regions must navigate a complex web of compliance requirements, which can be challenging to manage effectively.
The increasing use of IoT devices in logistics (e.g., tracking shipments and managing inventory) has also introduced new vulnerabilities. Many IoT devices lack robust security features, making them an attractive target for cybercriminals.
Addressing the gaps: Improving cybersecurity in logistics
To address the logistics industry’s cybersecurity challenges, companies must adopt a comprehensive approach that includes people, processes and technology.
Building a cyber-aware workforce is crucial. Logistics companies should provide regular training sessions on cybersecurity best practices. This includes training employees to recognize phishing attempts, understanding the importance of strong passwords and knowing how to report suspicious activity.
Building a culture of cybersecurity awareness within the organization is also crucial. Employees at all levels should understand that cybersecurity is not just the information technology (IT) department’s responsibility but everyone’s responsibility.
Different roles within the logistics industry have varying levels of exposure to cyber threats. For example, employees involved in transportation management may need specialized training on securing communication channels, while those in warehousing may need training on IoT security.
Strengthening governance and policies involves establishing robust cybersecurity policies covering all operations. Logistics companies should also develop comprehensive cybersecurity policies that cover all aspects of their operations. These policies should include guidelines on data protection, incident response, thirdparty risk management and employee conduct.
Regular cybersecurity audits and risk assessments are essential for identifying vulnerabilities and ensuring policies are followed. Companies should conduct
penetration testing to evaluate the effectiveness of their security measures.
An effective incident response plan is critical for minimizing the impact of a cyberattack. This plan should outline the steps during a breach, including communication protocols, containment strategies and recovery procedures.
Conducting regular simulation exercises can help prepare the organization for a real cyberattack. These exercises should involve all relevant stakeholders, including management, IT and operations teams.
Logistics companies must also assess the cybersecurity practices of their third-party vendors. This includes conducting due diligence before engaging with new vendors and continuously monitoring their cybersecurity posture throughout the partnership.
Companies should include cybersecurity requirements in their contracts with third-party vendors. This can include provisions for regular security audits, incident reporting and compliance with industry standards.
Investing in modern security technologies is also crucial. Logistics companies should invest in advanced threat detection solutions that use artificial intelligence and machine learning to identify and respond to cyber threats in real-time.
Implementing secure communication channels, such as virtual private networks and encrypted messaging platforms, can also help protect sensitive data from interception during transmission.
Logistics companies must also ensure that all IoT devices used in their operations are secure. This includes using robust authentication methods, regularly updating device firmware, and implementing network segmentation to isolate IoT devices from critical systems.
Continuous monitoring of IoT devices is essential for detecting and responding to security threats. Companies should use intrusion detection systems and intrusion prevention systems to monitor network traffic and detect anomalies.
Many logistics companies use cloud-based systems to manage operations and store data. Implementing robust cloud security measures, including encryption, access controls and regular security assessments is essential.
Regularly backing up data and having a robust recovery plan can help minimize the impact of a ransomware attack or data breach.
A call to action for the logistics industry
The logistics industry is at a critical juncture where the adoption of advanced technologies and the increasing complexity of global supply chains have made cybersecurity more vital than ever. The consequences
of a cyberattack on logistics operations can be severe, disrupting supply chains, causing financial losses, and damaging reputations.
To protect themselves and their customers, logistics companies must take a proactive approach to cybersecurity. This includes building a cyber-aware workforce, strengthening governance and policies, and leveraging advanced security technologies. By doing so, they can safeguard the integrity of the logistics value chain and ensure the continued success of their operations in an increasingly digital world.
In Singapore, companies may adopt the CSA for more cybersecurity-related concerns with their cyber-safe program and for data-centric companies with IMDA programs.
The road ahead is challenging, but with the right strategies in place, the logistics industry can build a resilient cybersecurity framework that supports the seamless flow of goods and services across the globe. V
Momentum Z is a leading cybersecurity consultancy specializing in tailored solutions for SMEs. They provide comprehensive services that cover Data Protection Essentials, compliance with the Personal Data Protection Act, and outsourced Data Protection Officer services.
Additionally, they help organizations prepare for certifications such as the Cyber Security Agency of Singapore’s Cyber Essentials and Cyber Trust Mark and the Infocomm Media Development Authority’s Data Protection Trustmark.
Their offerings include audits, risk assessments, employee training, incident response management, and ongoing compliance monitoring. Momentum Z’s mission is to empower businesses with the tools and knowledge they need to build a resilient cybersecurity framework and achieve long-term success in the digital landscape.
THE CONTRIBUTING AUTHOR
Shane Chiang is the co-founder and CEO of Momentum Z, a cybersecurity company he established with a focus on providing secure solutions for businesses. He also serves as a director at a defense company. He has held leadership roles at multinational companies, including a cybersecurity startup and CMO of HMD Global for Nokia Mobile APAC. Shane mentors startups at local universities and serves on the board of the Singapore Cancer Society.
Shane Chiang
ABOUT MOMENTUM Z
How can supply chain professionals stay relevant in their knowledge on tech trends as they progress in their career?
BY AMOS TAY
Afew weeks ago, I had an insightful conversation with a senior executive who has spent over 20 years in the industry. He voiced a concern that’s becoming more
common: the fear of losing out to younger talent in today’s competitive landscape. He wondered whether acquiring new skills or knowledge could boost his marketability.
While I’m a firm believer in lifelong learning—because it fosters fresh ideas and encourages new ways of thinking—I caution against learning simply for the sake of keeping up with others. It’s like pursuing an MBA just because it seems like the norm, with the assumption that it will automatically lead to a better job. My advice has always been to focus on leveraging your strengths.
So, what are your strengths? Your strengths are the natural abilities you’ve honed through continuous practice. Here’s a simple exercise: try writing your name with your non-dominant hand. Can you do it as well as with your dominant hand? Probably not. But if you practiced for 10 minutes every day, would it improve? Yes, but it would still never match the ease and fluidity of your dominant hand. The takeaway is that when you focus on something you truly enjoy, learning feels effortless and never becomes a chore.
While there are countless platforms to learn about any subject, staying relevant in the ever-changing tech landscape begins with understanding yourself. How well do you really know your own strengths and motivations?
Here are a few key questions to consider:
1. What drives you the most in your daily work? Is it meeting project deadlines, filling your schedule with meetings, carving out time for strategic thinking, or mentoring others?
2. What do you excel at naturally? Are you skilled at managing multiple projects, handling difficult clients, or resolving conflicts within the team?
These questions form what I like to call a “strengths inventory,” or what Gallup refers to as “Themes.” By identifying and embracing your natural strengths, you can create a personalized learning roadmap that builds on what you’re already great at.
Take a look at this report that shows the top 5 strengths:
A look into the strengths inventory
Consider the theme of Significance. People who excel in this area seek more than just a job—they want their role to make a lasting impact. If this is one of your core strengths, look at your current position and identify areas where you can make an even greater contribution. By doing so, you’ll be choosing to learn in ways that benefit both your career and the organization, ensuring that your efforts lead to meaningful results.
Similarly, the Futuristic theme resonates with those who are energized by what lies ahead and can inspire
others with their vision of the future. If this aligns with your strengths, focus on improving your communication skills to better articulate your ideas and dreams. By honing these abilities, you can guide others toward a shared future while selecting areas of growth that align with your forward-thinking nature.
If Individualization is one of your strengths, you excel at understanding how different people can work together effectively. You recognize the unique qualities in everyone and tailor your approach to each individual. With this strength, you might focus on mentoring—leveraging the protégé effect, where teaching others enhances your own learning. By helping others grow, you sharpen your own skills and deepen your understanding.
For those who are especially Focused, following through on instructions and staying on track are natural abilities. This strength can shape how you approach learning, guiding you to concentrate on areas where your abilities or interests naturally align. By narrowing your focus, you ensure your learning efforts are both efficient and impactful.
Meanwhile, Maximizers see potential everywhere and believe that “best” is just the starting point. If this is your strength, you’re constantly seeking ways to improve. You learn from every task and mistake, always pushing for excellence. Rather than just mastering theories, you focus on applying what you’ve learned to improve outcomes. You set goals, identify areas for growth, and turn each step into an opportunity for continuous improvement. By doing this, you create a micro-learning environment where growth is constant, and progress is ongoing.
There are 34 themes in total, and each individual’s combination is unique. It’s rare to find two people with the same top five strengths, and even if they share the same themes, the order will differ—meaning they apply their strengths in distinct ways.
While learning is essential, true growth comes from self-awareness. Without a clear understanding of your strengths, weaknesses and learning preferences, even the best educational opportunities may not fully deliver. By knowing yourself, you can unlock your full potential, tailor your learning journey and ensure that every experience contributes meaningfully to both your personal and professional development.
As you continue to deepen your self-awareness, let’s explore how you can keep learning—especially as a supply chain professional—while building on the strengths that already set you apart.
Lifelong learning via micro-credentials
An effective way to professionally continue learning are micro-credentials. These are short, focused qualifications that certify specific skill sets. It’s a great way to grow professionally without diving into a full degree program. What’s great about them is how flexible they are-you can fit them into your life, even if you have a busy schedule.
Caroline Steel, who’s a principal consultant at Anthology, mentioned something that stuck with me:
“They have the possibility to break down the traditional barriers to education and make it more flexible for people who may already be working two or three jobs that just need to improve their circumstances,”
So, let’s say you’re really interested in tech-there are micro credentials for things like blockchain technology. Imagine how much it could boost your understanding of how to use it in supply chain management (SCM).
Massachusetts Institute of Technology has a MIT’s Micromasters Program in SCM that dives into emerging tech like machine learning and data organization. It’s designed to reflect the latest industry trends, so you’d always be up to speed.
Reverse mentorship
Now, reverse mentorship is another approach. It flips the traditional mentorship model on its head. Instead of the senior professional guiding the junior, it’s younger, often more tech-savvy employees mentoring older colleagues.
I think this is genius- young professionals are often more plugged into the latest technologies, and the more experienced pros bring the industry knowledge. Safdar Khan, Mastercard’s SEA Division President, said, “This reverse mentoring is a great way for seasoned executives to bridge any knowledge gaps around new technology.” says
PwC China tried this and ran a pilot reverse mentoring program in 2021. It involved 31 pairs ranging from associate to partner grades. It worked so well that by 2022, the programme was formalized to have 100 participants.
Cross-industry collaboration
Something else to keep in mind is how industries are blending together. Cross-industry collaboration is an amazing way to pick up new ideas. By connecting with people in different fields, you can bring in fresh perspectives and adapt new tech to SCM.
For instance, you could learn alot from healthcare, with its advanced inventory systems. The tech industry as well, which is leading the way in data analytics and AI. Siddharth Misra, Minet Global Trading Managing Director, said something that rings true: “By working closely with partners from different sectors, businesses gain insights into alternative approaches, best practices, and new perspectives.”
Strength-based learning
Now, here’s where it all ties back to your strengths. There’s no shortage of ways to learn, but focusing on what you’re already good at-that’s the key. A Gallup study showed that when people focus on their strengths, engagement skyrockets from 9% to 73%
So when you’re looking to learn new tech, don’t just pick something at random. Build on what you’re naturally drawn to. When your learning is aligned with your strengths, not only will the knowledge stick, but you’ll also be able to use it in meaningful ways.
It’s all about making sure your growth is intentional and rooted in who you are. V
The top 5 technologies that ushered in supply chain trends in 2024
BY TRISHA ANJANETTE BALLADARES
The pandemic and the advent of technologies drove a major overhaul in the concept of supply chain management (SCM) and paved the way for new supply chain trends. Wherein, technologies aid in the creation of innovative frameworks that improve supply chain.
In turn, the industry rebounded to a market cap of $21.95 billion in 2023 from $15.58 billion in 2020. Asia, alone, has witnessed accelerating diversification of global supply chain infrastructure as the “China+1” drive gains momentum across Asia-Pacific’s (APAC) emerging markets.
Meanwhile, a KPMG report noted that six out of 10 businesses in 2023 planned to invest in tech to improve supply chain visibility and processes and ensure operational stability.
The recorded global adoption rates across businesses of cloud-based technologies, artificial intelligence (AI), and blockchain were 51%, 26%, and 23%. Data was shared in the PriceWaterhouseCoopers (PwC) 2023 report.
Said technologies are helping replace legacy systems and introduce end-to-end transparency in supply chains. Mainly, from procurement to customer delivery. They focus on visibility, transparency, and advanced automation.
Concidingly, a large consumer base, low labor costs, a huge talent pool, and investor-friendly policies are also luring Western investments in India, Singapore, Malaysia, Taiwan, and Vietnam.
Artificial intelligence
Supply chains are being leveraged to track and resolve potential challenges through AI-powered systems. Such covers concerns on port congestion, inventory management, labor shortages, cybersecurity, and forecasting, among others.
An IDC FutureScape 2024 report projected that 60% of Asia’s top 2,000 firms would leverage Generative AI (GenAI). Said firms will aim to enhance at least one core supply chain process and lower overheads by 5%.
Among the supply chain trends, GenAI is projected to grow fastest between 2023-32 in the APAC supply chain market. The technology alleviate skills shortages, scale agility, and resilience in firms. It will also enforce risk management mandates.
“ If the relevant data is available, AIbased programs can, for example, show a company directly which suppliers could provide missing goods. They also indicate how long it will take for the company’s warehouse to be restocked,
Munich-based IFO Institute Economist Anita Wölfl said in relation to AI and big data’s role in supply chain operations.
AI also enables the automation of redundant tasks, such as manual data entry, processing, and order tracking, to minimize human errors and eliminate labor-intensive workflows.
Blockchain
Blockchain technology promotes multi-level visibility and transparency that boosts supply chain resilience. It offers a trustless ecosystem designed around a public ledger. Wherein, the information stored and encrypted in the ledger is validated by pools of computer networks. The system offers one of the highest forms of security available today. Thus, said technology is ideal for supply chain process integration to improve security, efficiency, and visibility.
According to a Research Dive report, the APAC blockchain supply chain market will reach $4.06 trillion
by 2028 and become a huge global contributor. It added that an increasing number of APAC firms seeking leaner and agile supply chains is driving the demand for blockchain supply chain services, including software in the region.
“Blockchain has evolved from being a buzzword to now being seen as essential to supply chains. The fact that it is a decentralized ledger that is immutable helps to improve material traceability,
Daniel Laverick, VP and Head of Digital & Data at Zuellig Pharma, shared.
Blockchain supports accurate tracing of goods and other parameters, like compliance with ESG guidelines. In short, all parties or companies involved in the supply chain access a single source of truth, which wasn’t possible earlier. Thereby, making the use of blockchain among the supply chain trends to watch.
“
At Zuellig Pharma, we have been working with blockchain technology for quite some time. Tracking individual products and packs is key to this as well. Being able to get a digital identity for each package allows you to see the granularity of where that product has been. With blockchain, we can detect counterfeits in real time and look at enhancing cold chain monitoring. Previously, data sharing was very difficult, but now you can break down those barriers,
David added.
Cloud-based solutions
Businesses using traditional supply chain networks are integrating cloud-based products. This move is expected to tap into data’s value for actionable insights and scalability whilst rendering cost savings.
“
The most obvious benefit of adopting cloud computing solutions is the cost savings from deployment and ease of speed at which a solution can be set up. Unlike in legacy systems, either custom-built or packaged software, there is no IT infrastructure to set up and maintain on-premise, no upfront licensing fees, and no software programs to install and maintain,
Thomas Halliday, APAC GM at AEB, wrote in an op-ed for an online platform.
With the digitization of all data via the cloud, businesses benefit from enhanced data mobility, allowing them to access the supply chain from anywhere. In the process, they also mitigate risks of data loss with backups and prevent supply chain disruptions.
Cloud computing, big data, and analytics tools offer a much bigger scope for optimizing logistical processes. It oversees transport movement and new orders and updates shipping routes.
Supply chain as a service
Appropriate use of Supply chain as a service (SCaaS) enables a company to develop cost-efficient, affordable processes. Whilst, subsequently boosting a company’s bottom line.
The market is expected to almost double in value to reach $247.6 billion by 2031.
SCaaS mainly involves outsourcing SCM processes, in whole or in part, to third-party providers.
Said process paves the way for businesses to prioritize their core capabilities, and improve operational agility. Moreover, SCaaS scales supply chains through access to visibility and variable price structures.
Related initiatives could include asset and contract operations, inventory management, order fulfillment, or transport services. Such makes SCaas one of the most amicable supply chain trends in the industry that helps in customer centricity.
For example, in 2023, India’s B2B SCaaS platform Aksum Trademart raised $1 million. Said firm uses a SCaas model to streamline inventory management for SMEs in industries such as steel, construction, and infrastructure.
“Our
clients can outsource their manufacturing, distribution, procurement, logistics, accounts payable systems, and more to us. The advantages we offer include end-to-end connectivity, improved productivity, lower cost, greater service, heightened flexibility and adaptability, and better asset management,
Sumit Bhatia, Co-founder of Aksum Trademart underscored.
5G technology
Low latency and high-speed connectivity with better accessibility to devices, sets 5G networks apart from other networks. Such features render faster data transfer with improved visibility and better quality of communication especially when connected to
A PwC report forecasts the global 5G industry to reach a value of $13.2 trillion by 2032 as the technology rapidly replaces 4G networks. Concidingly, a Gartner report projected that 60% of communication services providers would offer 5G services by the end of this year.
Another noteworthy feature of 5G is being very effective in real-time tracking for smarter devices. Wherein, faster data transfers let companies more accurately track products in transit, minimizing uncertainties and
Kinaxis sponsors research: Finds 83% of supply chains can’t quickly respond to disruptions
Anew IDC study sponsored by Kinaxis (TSX: KXS) reveals slow progress in making supply chains more flexible and resilient. They underscore optimism towards supply chain orchestration tools as a key enabler for the future.
Said global survey of 1,800 supply chain leaders shows that the average response time is five days. Thereby, hindering progress on resiliency and risk mitigation.
According to research, less than one-fifth (17%) of global supply chain leaders say their companies can respond to disruptions within 24 hours. Highlighting their widespread frustration is a staggering two-thirds (67%) of respondents. They admit that they are not “very satisfied” with their response time.
While the average crisis response time is a troubling five days, the survey shows that performance varies across industries. In the oil and gas sector, for example, 28% of respondents say they can mount a response within a day. Whilst, it is only 15% in life sciences and 14% in aerospace fields.
“
It’s increasingly evident that supply chains have immense influence over the success or failure of businesses. The statistic revealing that 83% of supply chains are unable to adapt to disruptions within a 24-hour timeframe highlights the urgent need for increasing resilience and managing risk management across all industries, especially in Asia,
said
According to him, in this landscape, there lies a significant opportunity for improvement. He added that companies can work on improving visibility and increasing
Phillip Teschemacher, Asia Pacific (APAC) President at Kinaxis.
collaboration. Philip also noted an effort to advance towards orchestration to enable Chief Supply Chain Officers to automate enterprise decision-making.
Respondents in all regions are overwhelmingly dissatisfied with their business’ ability to withstand and respond to supply chain shocks. However, they remain optimistic about technology’s potential to turn the tide. Results show that 97% say better orchestration tools would have a modest 44% or significant 53% impact on supply chain performance.
The study also found that industrial respondents rate their resiliency highest at 47%, while retail, 29%, and aerospace, 27%, rate themselves lowest. Meanwhile, 42% of consumer product respondents rated their supply chain orchestration as mature which was the highest among all verticals.
In terms of technology adoption, 25% of respondents plan to move to new technologies in the next year to improve resilience. Whilst, 33% want supply chain orchestration platforms that offer AI or genAI capabilities.
The research also found that 63% view their supply chain as some form of competitive advantage over the next 12 months, but it drops to 48% across the next 1-3 years. Approximately, 37% said the biggest roadblock to
adopting a supply chain orchestration application was not finding the right vendor solution.
Said sponsored survey by Kinaxis, overall exposes the harsh reality that most are struggling to keep their operations agile and adaptable amid an onslaught of disruptions from geopolitical conflicts, natural disasters, and other volatility.
For more information on Kinaxis’ supply chain management solutions, visit Kinaxis.com.
The research survey happened in December 2023. It was led by IDC across a respondent of 1,800 Supply Chain Leaders. They are from North America (USA and Canada), Europe (UK, France, and Germany), and APAC (Japan, Taiwan, India, and Australia). V
ABOUT
Kinaxis is a supply chain management and sales and operation planning software company based in the Kanata district of Ottawa, Ontario, Canada.
From page 37
Empowering People, Not Replacing Them
The most critical element in this transformation to a data-driven future is the workforce. The integration of advanced technologies into supply chain management does not merely replace human effort; it enhances and empowers it. Effective data management and analysis enable the workforce to make more informed decisions and respond swiftly to emerging issues.
A reliable partner with expertise in data management can help traditional supply chains transition to a more digital future by increasing visibility, simplifying operations, automating repetitive tasks, and empowering employees with the tools and skills needed to leverage complex data sets. Here’s how and what to look out for:
• Increase visibility by combining simple data collection techniques (such as barcodes or scanners) with live tracking features. This enables a better understanding of inventory levels and the whereabouts of shipments, leading to more informed decision-making and faster reactions to any issues that may arise.
• Simplify operations by looking for data management and analytics solutions that can seamlessly integrate with your existing
infrastructure. This eliminates data silos and fosters a more collaborative approach by ensuring a unified view of your entire supply chain, from procurement to delivery.
• Automate repetitive tasks and free up strategic yet time-consuming decision-making by automating repetitive tasks like trade compliance management and real-time inventory tracking. This allows your skilled workforce to focus on higher-level analysis, problem-solving and leveraging data for proactive risk management.
• Invest in solutions that empower your workforce with the tools to generate actionable insights from complex data sets. This enables data-driven decisions that optimize efficiency, minimize risk and maximize profitability.
• Partner with a solutions provider that offers training programs to equip workforce with the data analysis and interpretation skills needed.
The Future of Singapore’s Supply Chain Workforce
The future success of Singapore’s supply chain depends on effective collaboration between humans and technology. Utilizing data-driven solutions will not only help Singapore maintain its global leadership position but
also open new opportunities for growth.
With the government’s goal to boost manufacturing value-added by 50% and establish Singapore as a global hub for business, innovation, and talent in Advanced Manufacturing by 2030, efforts will be made to attract valuable investments, support local businesses, and enhance the workforce in this industry.
Meeting this goal will require a workforce with a diverse set of skills, including the ability to analyze complex data and turn it into actionable strategies. Problemsolving skills with a global outlook will also be essential for navigating the interconnected world of trade. This collaborative approach between government, businesses and individuals will ensure that Singapore’s supply chain workforce is well-equipped to thrive in the data-driven future.
Embracing the Data-Driven Future, Together
Singapore’s supply chain is facing a turning point where incorporating data-driven solutions is crucial for future success. While data-driven solutions hold immense promise, a crucial question remains: can we truly harmonize human intuition with the cold logic of algorithms?
The answer lies in empowerment, not replacement. Equipping the workforce with the tools to translate data
into actionable insight unlocks the full potential of humanmachine collaboration. Imagine procurement specialists leveraging data analytics to predict market fluctuations and source materials pre-emptively. Or logistics coordinators utilizing real-time tracking to anticipate disruptions and optimize delivery routes. This symbiotic collaboration of human and technological strengths is the key to unlocking Singapore’s supply chain potential in the data-driven future.
As Singapore embarks on this transformative journey, having a reliable partner with expertise in data management is essential, and Hitachi Vantara stands ready to support this need. Together, we can ensure that Singapore not only maintains its global leadership position but also opens new opportunities for growth and innovation. By offering a suite of solutions designed to empower the workforce and unlock the hidden potential within data, we can help navigate the complexities of a data-driven future.
The journey ahead is one of collaboration, continuous learning, and adaptation. By embracing these principles, Singapore’s supply chain will remain resilient, agile, and ready to meet the challenges of tomorrow.
The views and opinions expressed in this opinion piece belong solely to the author and do not necessarily represent those of Value Chain Asia. V
