The Asia-Pacific is a massive region with political and financial regulations that are as diverse as its landscape. On top of that, the rate at which several countries within the region are developing means that goods are now traveling from west to east, and not just from east to west. Jonathon Wright of Accenture writes an article talking about how “Dynamic Operations” can ease the flow of goods in APAC supply chains.
Wright conceptualizes Dynamic Operations as “a loose-knit group of networks (for design, sourcing, manufacturing, distribution, commercialization and other purposes) whose flexibility can help a company navigate unpredictable markets. Processes at any node can be modified or, if necessary, reinvented.” He says that four capabilities make Dynamic Operations possible:
- Agile execution
- Adaptable structure
- Insight to action
- Flexible innovation
Due to the varying levels of infrastructure maturity in different parts of APAC, it may be better to take a decentralized approach to operations. Centralization makes sense in Europe and North America where regulations are a bit more similar, but in APAC, it is more important that your individual nodes are able to react to changes and roll with the punches. Fostering bonds with suppliers and dual-sourcing are ways to improve overall versatility, though enterprise IT should always be the backbone of operations.
To learn more, and read some interesting stats about APAC, you can read Wright’s original article here: http://www.manufacturing.net/articles/2014/05/new-models-and-concepts-needed-for-asia-pacific-supply-chains