Logistics and Supply Chain Technology Report 2021

中国电信（欧洲）有限公司 C h i n a T e l e c o m ( E u r o p e ) L t d .

Which countries in APAC does your business operate in?

63%

China (incl.H.K)

55%

Southeast Asia

Singapore

46%

South Asia

45%

44%

Japan

40%

South Korea

21%

None of the above

The effects of the global pandemic have led to an increased diversification of risk, as least cost is supplanted by risk-management (‘just-in-case’) processes as the primary motivation behind planning. Businesses operating across APAC have been forced to expand their operations to a broader pool of suppliers as well as distributing manufacturing across multiple countries in order to build redundancy during the post-pandemic recovery period. However, despite successive administrations advocating for near and on shoring in the US, capital investment constraints coupled with intellectual property rights claims have deterred companies from moving so drastically across regions, increasing the incentive for ‘China Plus One’ strategies and continued foreign direct investment in low-cost hubs in Southeast Asia proximate to their current operations to shorten supply chains and reduce single-source dependence.