CEOs In Asia Pacific Concerned About Supply Chain Risks

A large number of CEO’s in Asia Pacific say their supply chains have been under increasing stress over the past 18 months, according to a KPMG 2021 CEO Outlook.

The KPMG 2021 CEO Outlook surveyed more than 1,300 global CEOs about their strategies and outlook over a 3-year horizon. Among almost 500 CEOs in Asia Pacific, 66 percent of CEOs in ASPAC stated their supply chains have been under increasing stress over the past 18 months. It is thus unsurprising that CEOs ranked supply chain risk as their top threat to growth this year.

The Global survey found that 59 percent CEOs in Asia Pacific are more confident about economic recovery compared to earlier this year; however, they are also increasingly concerned by the risk to their supply chains.

Datuk Johan Idris, the Managing Partner of KPMG in Malaysia, says, “Pre-pandemic, risks to the supply chain had been steadily gaining attention due to increasing volatility from trade tensions and climate-driven events but were still considered a low priority for CEOs.

“However, the pandemic brought this issue into sharper focus as organizations struggled to maintain supply chain continuity during worldwide lockdowns.”

Asia Pacific CEOs continue to recognize the importance of building resilient, flexible supply chains. 36 percent have stated an intention to monitor deeper into their supply chain to better anticipate potential problems, while 34 percent will diversify sources of input by adding new locations of inputs to make their supply chain more resilient.

Meanwhile, 14 percent will prioritize reconfiguring their supply chain to provide greater resiliency and more consistent access to achieve their growth objectives.

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