East Asia 2012 - Chain Reaction: Supplying Asia's Growth (CNBC TV Debate) | Summary and Q&A

TL;DR

The panel discusses the challenges and strategies for managing supply chains in the face of natural disasters, manufacturing renaissance in the US, and financial disruptions.

Key Insights

• 🌱 Redundancy in manufacturing plants and backup suppliers are essential in mitigating supply chain risks.
• 🤩 Infrastructure, skilled workforce, and low-cost utility supply are key factors in attracting investments and ensuring efficient supply chain operations.
• 🏦 Financial disruptions can be managed through partnerships with banks, credit insurance, and investment in regional hubs.

Transcript

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Questions & Answers

Q: How do companies manage supply chain risk?

Companies mitigate supply chain risks by diversifying suppliers, having backup sources, and investing in business continuity plans. Governments can support companies by reducing barriers and improving logistics and customs procedures.

Q: How does the manufacturing renaissance in the US impact supply chain management?

The panel suggests that the manufacturing renaissance in the US is limited, and companies still invest in emerging markets for growth. However, having skilled workforce, infrastructure, and low-cost utility supply is crucial for attracting investments.

Q: How do companies deal with financial disruptions?

Companies manage financial disruptions by partnering with banks and financial institutions, utilizing credit insurance, and investing their own balance sheet into projects. They also focus on building reliable regional hubs and reducing credit risk.

Q: How can government policies facilitate the movement of goods and reduce supply chain costs?

Governments can focus on improving physical infrastructure, such as roads, railways, and utilities, to reduce waiting times and logistics costs. They can also invest in education and skill development to ensure a skilled workforce that can support supply chain operations.

Summary & Key Takeaways

• The panel discusses the importance of supply chain management in various industries, such as healthcare, mobile phones, and manufacturing.

• Companies like GE and indorama emphasize the need for backup suppliers, redundancy in manufacturing plants, and investment in infrastructure and education.

• The Malaysian government aims to reduce non-tariff barriers and improve logistics and customs procedures to facilitate smoother supply chain operations in ASEAN.