No Perfect Route: Building Supply Chain Resilience Across China and Southeast Asia
New Statista research and expert insight on what it takes to build real-world supply chain flexibility. When was the last time your logistics plan actually went to plan? In logistics, disruption is expected. But while many operators are taking the opportunity posed by more route options and modes through Southeast Asia, new research suggests ...
Building resilient supply chains across China and Southeast Asia is a complex task, according to new research from Statista. While there are more route options available, logistics systems are not keeping up with the demand for greater flexibility. The region's trade between China and the Association of Southeast Asian Nations (ASEAN) reached US$1.05 trillion last year, leading manufacturers to spread out across the area and require more freight options.
However, only 87% of logistics decision-makers have increased their use of multimodal routes, while 92% describe diversified routing as only partially implemented across their networks. The research reveals that diversifying route options is only the first step in building supply chain resilience; capacity availability, ready commercial arrangements, handovers, and decision-making authority are also crucial.
In the past year, 69% of logistics leaders reported that chokepoints significantly affected their operations, leading many to react to each crisis rather than planning for them by increasing safety stock or using last-minute airfreight options. Successful players in the region have an agile network that can recognize when current routes won't work, identify the right alternative, and activate it quickly.
However, there is no single perfect route that works for every corridor; the ideal route changes daily. To improve supply chain resilience, organizations should focus on increasing the maturity of their network and processes to buffer selectively, diversify deliberately, and prepare a response to disruption. The Supply Chain Resilience Maturity Model introduced in the study identifies five stages of resilience capability, ranging from reactive response to proactive orchestration.
Most organizations fall somewhere within this spectrum, and understanding where they sit is the first step towards improving resilience.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.