For Asia’s automotive industry, the Covid 19 pandemic has made one thing clear: disruptions can come from anywhere and cause big impacts across the entire supply chain. Resilience is the name of the game for the just-in-time and just-in-sequence industry as automakers and OEM component manufacturers gear up to recover.

62%
of automotive organisations claim to have sustainability targets.
43%
The level of digitalisation in the average supply chain.
33%
of supply chain leaders have or plan to diversify their supply chain by 2023.

Three key trends are emerging as the industry builds up its logistics and supply chain networks for sustainable growth going forward.

Diversification

Sourcing Diversification

Supply chain managers are increasingly looking at strategies such as nearshoring and localised sourcing for their production lines. Apart from securing raw materials and components, adding more sources also allows for faster response times, reduced dependency risks and lower transportation costs.

Sustainability

Sustainability

Automotive supply chains are on the frontline of the shift to eco-friendly business practices and protocols around the world as emissions regulations and commitments grow stronger. The focus on reducing carbon footprints across the board has also caused a paradigm shift towards sustainable sourcing.

Digitalisation

Digitalisation

Technology is rapidly changing the face of global logistics as innovations in data gathering, analysis and forecasting gets more intelligent. With more of the supply chain getting digitalised, professionals are able to make smarter and faster decisions to react to and get ahead of potential disruptions.

Nearly 90% of supply chain managers across Asia are planning to invest heavily in building resilience and agility into their networks. Auto and auto parts manufacturers are now actively looking to leverage the new reality to create new opportunities to fuel growth. Carbon-zero goals and increased consumer awareness are also pushing the needle on the spread of electric vehicles around the world.

Read our white paper Shifting Gears in Asia: 3 Key Trends in the Automotive Supply Chain for an in-depth analysis on the Asian automotive industry and the biggest trends influencing decisions. Find out more on what companies are prioritising and how a strong logistics partner is becoming crucial to optimising automotive supply chains.

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