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How businesses can leverage collaboration, innovation and technology to thrive in a volatile world
Never have global supply chains been more volatile than they are now. The global pandemic, which turned the trading environment on its head, has posed major existential challenges, exacerbated by inflation, energy crises, increasing geopolitical tensions and the rising threat of
climate-related disruption.
Identifying and addressing customer challenges
Such volatility has not only exposed fragilities in supply chains but revealed an urgent need to build greater resilience and improve transparency within them. The seismic shifts in supply chains feel especially distinct in Asia, which accounted for about 40% of global capital flows in 2022, four times higher than in 2000. Companies in the region now need to learn how to navigate these complexities, while still maintaining operational efficiency and meeting
consumer expectations.
Multi-layered challenges call for a multi-layered solution. As such, a comprehensive approach to overcoming these obstacles is essential, and requires a combination of strategic collaboration, technological innovation and a commitment to sustainability. And within these initiatives are more ground-level actions to be taken, including fostering cross-industry partnerships, leveraging data for better decision-making, and adopting technologies such as blockchain for enhanced transparency
and trust.
Enhanced cross-industry collaboration is paving
the way
The importance of visibility and collaboration for companies across Asia-Pacific, a critical hub for global trade and the epicentre of supply chains, cannot be overstated. The region’s interconnectedness, along with overlapping industries, also means companies no longer operate in isolation, but rather as part
of networks.
“Maintaining supply-chain visibility is critical for leaders across Asia-Pacific. And while the challenge seems daunting, no company needs to face it on their own,” says Alfee Lee, head of Uvance, Technology and Solutions, Fujitsu Asia-Pacific. “In fact, collaboration is key here especially as the days of siloed supply chains
are over.”
A joint effort not only helps overcome current challenges, but also paves the way for a sustainable future. To confront shared obstacles such as carbon-footprint tracking and supply-chain resilience, strategic partnerships that bring about a unified approach
are essential.
Harnessing real-time, accurate data to improve
supply-chain visibility
Data can transform supply-chain challenges into opportunities⎯if harnessed and
applied right.
Mr Lee points to one case study featuring Botanical Water Technologies, who use their own technology to harvest, filter and purify water during food production. Fujitsu, tasked with bringing visibility to the vital product, showed exactly how data-driven solutions can bring about tangible benefits
for customers.
The partnership resulted in the Botanical Water Exchange (BWX), which seeks to enable the secure and transparent trading of water. The platform, which relies on Fujitsu’s ‘Track and Trust’ service, utilises blockchain technology to ensure end-to-end transparency and traceability of processes⎯including the refinement, sales, purchase, delivery and usage of the
water product.
By collaborating closely with customers, solutions are tailored to enhance visibility and efficiency across the supply chain. This includes creating ecosystems that enable the tracing of materials and products through various global touchpoints, leveraging unified data management for better market predictions, and implementing proactive
risk-management strategies.
“Maintaining supply-chain visibility is critical for leaders across Asia-Pacific. (...) Collaboration is key here especially as the days of siloed supply chains
are over.”
Alfee Lee
Head of Uvance, Technology & Solutions APAC
for Fujitsu
Blockchain innovation, a foundation for trust in
supply chains
In a world increasingly focused on responsible choices, one of the industries struggling with trust is fashion. Consumers crave transparency. However, tracking complex garment materials across opaque supply chains remains
a challenge.
Enter the tex.tracer pilot project, where Fujitsu’s mission was to create a real-time tracking system using cutting-edge technology. “But how do we guarantee its authenticity?” With blockchain, explains Mr Lee. “We saw the technology as the answer, creating tamper-proof transactions every step of the way, building trust with
every purchase.”
Simplicity in the system design was crucial, as the platform needed to break down the collection of reliable supply-chain data for the apparel industry. Information is obtained from brand owners as they register a garment, with the system automatically emailing companies down the supply chain. The data is verified using mobile geolocation, time stamps and digital handshakes, plus certification and automated checks. If anomalies are detected, the system will reject the data entry. Once verified, the data is stored in a decentralised database to ensure privacy, trustworthiness and credibility.
Following a soft launch in early 2021, tex.tracer has already traced over 30 million items for over 120 brands, and is now in direct contact with over 1,500 active supply-chain partners.1
million items
brands
active supply
chain partners
A multi-pronged approach to sustainable
business growth
There is no one-size-fits-all solution to navigating the complexities of today’s
global environment.
While technology is a key piece of the puzzle⎯blockchain, AI and unified data-management systems can be employed to increase transparency, improve predictive analytics and enhance decision-making and operational efficiency⎯so
is collaboration.
Its power, particularly across industries, cannot be underestimated. With many challenges being common to most companies, supply chains or otherwise, it only makes sense to seek out partnerships and share knowledge, resources and innovative efforts. “Technology is the engine and collaboration is the fuel, and together we can achieve the impossible,” asserts Mr Lee, adding that a collective effort will be more impactful. “Our synergy with our ecosystem of partners brings together the best minds and tech, from blockchain to AI to cutting-edge processors, to solve
complex challenges.”
Together with prioritising sustainable practices as a core business strategy, companies can effectively meet consumer expectations in an ever-changing world⎯not just in the short term, but more importantly, in the long run. Companies adopting a multi-pronged approach combining these strategies can look forward to a future where challenges are reimagined as opportunities for growth
and sustainability.