Business leaders focus on omnichannel, diversification, and employees to build back better from the pandemic.
- Investments into omnichannel a key business priority for over 46 per cent of business leaders in Southeast Asia in the next three to five years
- As part of their omnichannel strategies, seven in 10 businesses are set to increase their online or ecommerce presence in the near future
- Further digitalisation in supply chains and a stronger focus on sustainability and ESG commitments expected to gain traction in the new normal
Nearly two years into the pandemic, business leaders in Southeast Asia are set to build back better by investing in a robust omnichannel approach, diversifying their supply chains, and focusing on employees and business continuity, according to a new industry report released today.
In particular, the Building Back Better from the Pandemic: A Look into Supply Chains in the New Normal report revealed that 40 per cent of business leaders have already invested in omnichannel strategies as a way to future proof their businesses. Nearly half (46 per cent) of businesses in the region have also earmarked a comprehensive omnichannel strategy as a key business priority in the next three to five years.
This is in line with the expectation that while ecommerce is expected to stay, consumers will also start to get back to traditional brick-and-mortar shopping as social restrictions begin to ease. Having an omnichannel approach thus allows businesses to ensure a consistent presence and a seamless customer journey.
Commissioned by TMX, the report analysed current sentiments of over 250 business decision makers and senior executives in the fast-moving consumer goods, logistics, ecommerce, retail, and manufacturing industries across Southeast Asia.
Insights from the report also highlighted that businesses today recognise that the diversification of any part of the value chain – whether it be third-party logistics providers (3PL), vendors, or shipping routes – is key in helping them chart the way forward from the pandemic.
As such, over half (52 per cent) of these businesses have started to diversify their supplier base, with another 35 per cent of businesses actively assessing their reliance on third-party vendors.
James Christopher, President – Asia, TMX said that the insights showcase how businesses challenges as a result of the pandemic over the last two years have provided valuable learnings for business leaders to improve their supply chains and operations moving forward.
“It is no longer news that the pandemic has brought about seismic shifts to the industry. Across the region, we have seen supply chains being pushed to new limits amidst a backdrop of fast-changing consumer demands and behaviours. However, insights from the report show that there are silver linings to what we have experienced.
“Business leaders have been able to identify the areas in which improvements and investments are needed for their businesses and supply chains to become more resilient. Even with the new Omicron variant today, businesses are better prepared to overcome potential disruptions. We expect that the next few years will be marked by further digitalisation in supply chains, diversification, and growth in the industry,” said Mr Christopher.
Referencing additional insights from the report, Mr Christopher added that beyond operational and supply chain needs, businesses are also focused on ensuring the well-being of their employees and that they are kept engaged through upskilling. The latter, in particular, is a key priority given the tightening labour and skills market that the industry is facing.
He shared, “Businesses are feeling the talent pinch, especially now that the skills set needed by the industry is different. No longer are businesses in the industry just looking for talent that can introduce new digital technologies and solutions in supply chains.
“They are also looking for those who take the initiative and possess the leadership and critical thinking skills that are crucial in navigating the businesses through periods of disruptions and uncertainties.”
Looking ahead, insights from the report also revealed that business leaders are expected to build on the wave of digitalisation with synchronised physical and digital supply chains that provide full end-to-end operational visibility.
At the same time, sustainability is set to move up on the agendas of business leaders, as they acknowledge Environmental, Social, and Governance (ESG) commitments are now a necessity to establish their social license in the business landscape.
“As the world comes out the other side of the pandemic, now is the best time for businesses to already start putting some of these key lessons into practice. Using the valuable insights gathered from the last two years, the team at TMX is looking forward to working with businesses in the region to optimise their supply chains and business operations,” said Mr Christopher.
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