Publication date: 21 Feb 2023
By 2026, 45% of Asian-based Organizations Will Operationalize Integrated Sustainability in the Supply Chain, Enabling a 10% Waste Reduction
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For more information, contact:- Stephanie Krishnan Email: stkrishnan@idc.com
- Michael De La Cruz Email: mdelacruz@idc.com
- Miguel Carreon Email: mcarreon@idc.com
IDC Asia/Pacific Releases Top Supply Chain Predictions for 2023 and Beyond
SINGAPORE, February 22, 2023 – IDC predicts that by 2026, 45% of Asian-based organizations will operationalize integrated sustainability in the supply chain and effectively report impact data, enabling a 10% reduction in waste and improving competitive advantage. This is just one of IDC’s predictions unveiled in its latest report, IDC FutureScape: Worldwide Supply Chain 2023 Predictions — Asia/Pacific (Excluding Japan) Implications .
Sustainability is now on the radar of most Asia/Pacific supply chain organizations, with zero companies in IDC's 2022 Supply Chain Survey reporting that sustainability is not a focus. In addition to consumers, pressure to act is coming from business customers, governments (both national and those of significant supply chain partners — particularly Europe), and financial institutions. As banks increase their sustainable lending portfolios, the financial pressure on businesses in the supply chain is also growing.
"Visibility and the ability to gain actionable intelligence are becoming critical in being nimble and agile and determining the most appropriate trade-offs to meet customer requirements as businesses address both resiliency and efficiency. In addition, with the prospect of a recession, organizations are seeking to integrate supply chain sustainability into the business to ensure efficiency gains are made along with the environmental ones, increasing business sustainability as well," said Stephanie Krishnan, Associate Vice President, Manufacturing, Retail, and Energy Insights at IDC. Krishnan.
IDC's top 10 supply chain industry predictions provide guidance to healthcare leaders on preparing and responding to the major storms of disruptions, big tech flips, and after-effects of the pandemic.
#1: Supply Chain Resilience: By the end of 2024, 40% of Asian-based supply chain organizations will have rebalanced resiliency efforts to reflect the realities of inflation and necessary efficiency to recover 2 percentage points of margin.
#2: Task Applications: By 2025, task-application extensions will account for 40% of all new Asian-based supply chain technology investments in manufacturing and retail.
#3: Logistics Alignment: By 2024, 50% of Asian-based shippers will dynamically align logistics offerings with organizational strategy, achieving a 2 percentage point increase in OTIF delivery across diverse transport channels.
#4: Sustainability: By 2026, 45% of Asian-based organizations will operationalize integrated sustainability in the supply chain and effectively report impact data, enabling a 10% reduction in waste and improving competitive advantage.
#5: Service Supply Chain: By 2027, 45% of Asian-based OEMs will redesign service supply chains based on artificial intelligence, ensuring the right spares are available and positioned to solve 75% of issues prior to failure.
#6: Hybrid Work: By 2026, Asian-based supply chain organizations that enable hybrid work models by redesigning policies, culture, technologies, and facilities will see a 30% improvement in talent acquisition and retention.
#7: Robotics: By 2025, the use of robotics and automation in Asia-based 2000 (A2000) warehouses will have increased three-fold, resulting in task productivity improvements of 30%.
#8: Multishoring: By 2024, 40% of A2000 companies will have implemented more balanced multishoring sourcing strategies to better address risk that result in a 10 percentage point improvement in supply reliability.
#9: Direct to Consumer (D2C): By 2025, 25% of A2000 manufacturers will see a 15% increase in their direct-to-consumer business, prompting them to prioritize investment in last-mile delivery optimization.
#10: Supply Chain Connective Tissue: By 2025, 50% of Asian-based supply chains will have invested in applications to better connect disparate supply chain planning and fulfillment systems resulting in productivity gains of 3 percentage points.
These predictions are discussed in greater detail in the new IDC FutureScape report, IDC FutureScape: Worldwide Supply Chain 2023 Predictions — Asia/Pacific (Excluding Japan) Implications (IDC #AP49341023). Each year, IDC releases its Top Predictions through its IDC FutureScape reports to give a crystal ball view of what is ahead for the rapidly changing ICT industry. These predictions have been used to shape the strategies and business objectives of technology leaders and business executives in the next 1-5 years. To learn more about the IDC FutureScape reports, please click HERE.
For the first time ever, Asia/Pacific Japan FutureScape Reports will come with a complimentary report that provides specific recommendations for tech vendor sales and marketing leaders. Leverage IDC insights to better understand clients’ priorities and enhance your storytelling and go-to market plans, access IDC FutureScape: Worldwide Supply Chain 2023 Predictions — APEJ Implications: Opportunities for Tech Sales and Marketing Leaders (Doc #AP49982822) market presentation HERE. For more information on our role-based guidance, please visit Tech Impact Business Reports | IDC FutureScape 2023.
In case you missed the IDC FutureScape Asia/Pacific 2023 events, you may visit IDC Arena. IDC Arena is IDC’s integrated content hub that takes IDC thought leadership events online, and exclusive analyst essential guidance videos on-demand.
For more information on this IDC FutureScape document, contact Stephanie Krishnan at stkrishnan@idc.com. For media inquiries, please contact Miguel Carreon at mcarreon@idc.com or Michael de la Cruz at mdelacruz@idc.com.
*Asia/Pacific excluding Japan
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