These findings from Thomson Reuters\u2019 Global Trade Report formed the basis of the recent panel discussion \u201c10 Global Trade Discoveries about Organizations in Asia\u201d \u2013 and the experience of the three expert presenters.<\/p>\n\n\n\n
For Leonie Ferretter, Partner at KPMG in Trade & Customs, the current pandemic-induced disruption of the supply chain is unprecedented, but it\u2019s likely short-term.<\/p>\n\n\n\n
We will come out of this disruption at some point and our supply chains will return to some kind of normality,\u201d she noted, before delivering the bad news. \u201cHowever, regulatory barriers and issues around complexity of trade will continue.<\/p>Leonie Ferretter, Partner, KPMG Trade & Customs<\/cite><\/blockquote>\n\n\n\n
Shifts in buyer preferences are impacting supply chains<\/h2>\n\n\n\n
Over at Harley-Davidson, their Trade Compliance Director, Shannon Bryant is less sanguine about the shelf life of the current disruption.<\/p>\n\n\n\n
There’s been a definite shift in supply and customer demand and preferences. What customers are buying and the quantities they’re buying them in are different. As much as I hope that when the pandemic is officially over, we see our supply chain woes go along with it. But I think some of those behavioral changes will ripple out for longer than we’d like to see them.<\/p>Shannon Bryant, Trade Compliance Director, Harley-Davidson<\/cite><\/blockquote>\n\n\n\n
Weaknesses exposed and addressed<\/h2>\n\n\n\n
Although the pandemic has not necessarily caused this disruption all on its own, it has clearly exposed widespread underlying fragility in supply chains. This has prompted Asia-based organizations to step back and review their supply chain strategies.<\/p>\n\n\n\n
According to the Global Trade Report, prior to the pandemic, only one in five organizations in Asia had a diversified supplier network in place. Fast forward to the onset of the pandemic, two-thirds of the 200 business leaders surveyed said their organization sought to build resilience in their supply chain using diversification, many of these indicating they will maintain this diversity longer term.<\/p>\n\n\n\n
Trade compliance too has come under the spotlight as large organizations grapple with the challenges to their bottom line and reputation from breaching rapidly changing regulations across multiple jurisdictions.<\/p>\n\n\n\n
Why trade compliance is gaining currency<\/h2>\n\n\n\n
In the experience of Elizabeth Chelliah, Principal\u202fTrade\u202fSpecialist at the Ministry of\u202fTrade\u202f& Industry in Singapore, \u201ctrade compliance has not been given enough due recognition and attention in many companies.”<\/p>\n\n\n\n
\u201cOften the accountant or the logistics player is multitasking, trying to find out what the compliance regulations are.\u201d<\/p>\n\n\n\n
Elizabeth set the scene for the growing urgency to be on top of trade compliance.<\/p>\n\n\n\n
\u201cIn the old days \u2013 in fact not too long ago – when organizations were just supplying resourcing from one country, it was very easy to do because you were just looking after one zone.”<\/p>\n\n\n\n
Business runs a risk by failing to address the importance of compliance knowledge and expertise, she cautioned.
\u201cIf they don’t pay enough attention to it, their company will suffer when there are shortages, and the supply chain is disrupted.\u201d<\/p>\n\n\n\nBut now with globalisation, with parts coming in from so many different destinations and then assembled in one area, you need to be aware of so many more regulations.<\/p>Elizabeth Chelliah, Principal Trade Specialist, Ministry of Trade & Industry Singapore<\/cite><\/blockquote>\n\n\n\n
Enabling transparency in your supply chain<\/h2>\n\n\n\n
Sometimes it takes a crisis to reveal the obvious, Shannon explained.<\/p>\n\n\n\n
\u201cIn the past, we’ve always known that supply continuity was a risk, but the probability felt low. But now that\u2019s taken a much more prevalent spot on everyone’s respective risk maps.<\/p>\n\n\n\n
\u201cThe current challenges we’ve had in the supply chain have really made the business case for some of the supply chain transformation that manufacturers have known was an opportunity and needed to happen someday. But now that business case is here, right?\u201d<\/p>\n\n\n\n
\u201cInvestments in technology and visibility deliver better upstream control and awareness of emerging risk and trends.\u201d
Want to take control and be ahead of the curve? This is the time, like no other, to transform your supply chain and affect real change in trade.<\/p>\n","protected":false},"excerpt":{"rendered":"Supply chain disruption has been singled out as the biggest barrier to global trade in Asia, followed by lack of transparency, and complicated and changing regulations. These findings from Thomson…<\/p>\n","protected":false},"author":201,"featured_media":1794,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[681],"tags":[821,759,809],"insight_job_role":[710,713,714,726,724,730],"insight_practice_area":[],"class_list":["entry","author-zoemartinez","post-1793","post","type-post","status-publish","format-standard","has-post-thumbnail","category-global-trade-supply-chains","tag-free-trade-agreement","tag-global-supply-chain","tag-global-trade","insight_job_role-chief-executive-officer","insight_job_role-chief-financial-officer","insight_job_role-chief-operations-officer","insight_job_role-logistics-customs-manager","insight_job_role-operations-manager","insight_job_role-procurement-manager","hentry"],"acf":[],"yoast_head":"\n
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