Overcoming Supply Chain Challenges: ABeam Consulting’s Strategies for Manufacturers to Build Resilience Amid Global Risks
Overcoming Supply Chain Challenges: ABeam Consulting’s Strategies for Manufacturers to Build Resilience Amid Global Risks
ABeam Consulting has published a comprehensive white paper titled “Survey on Procurement and Supply Chain Risk Management in Japanese Assembly Manufacturing Industries Five Barriers Identified from a Survey of 108 Companies and Pathways to Breaking Through Them,” shedding light on the challenges and opportunities in managing procurement and supply chain risks within Japan’s assembly manufacturing sector. The study highlights the increasing importance of effective supply chain risk management amidst the growing complexity of risks such as natural disasters and economic fluctuations.
Despite the critical need for effective risk management, many Japanese assembly manufacturers face barriers in advancing their Supply Chain Management (SCM) capabilities. ABeam Consulting’s survey of 82 companies, including leading executives and managers in procurement and SCM, along with in-depth interviews with 26 manufacturers across Japan, Europe, and the United States, revealed significant challenges in planning, execution, and decision-making. Japan’s recovery in inventory turnover rates post-crises has been notably slower than its counterparts in Europe and the U.S., indicating structural issues in its supply chain strategies.
Key findings from the survey show that approximately 20% of companies experienced profit losses exceeding 20% due to procurement disruptions, while 40% were unaware of the full impact of such disruptions on their operations. The study identified a disparity in maturity levels between companies with advanced SCM practices and those still developing their capabilities. High-maturity companies demonstrated quicker recovery in inventory turnover rates, underscoring the tangible benefits of a risk-responsive supply chain approach.
ABeam Consulting’s analysis identified five core barriers hindering progress toward effective risk management:
- Unclear roles and responsibilities in procurement and inventory management
- Reliance on non-standardized operations
- Insufficient development of human capital in procurement and SCM
- Fragmented supply chain systems and data
- Underinvestment in system development during stable periods
For C-level executives, the findings highlight a pressing need to take a proactive role in fostering risk-resilient SCM. This includes redefining departmental roles to improve clarity and alignment with organizational goals, championing initiatives to standardize operations, and prioritizing investments in talent development. Leadership must also focus on building centralized data platforms to integrate supplier information and enable rapid, data-driven decision-making during disruptions. In Thailand, where adaptability and collaboration are core strengths, these measures resonate strongly with the importance of creating interconnected systems that benefit the entire corporate ecosystem.
In Thailand, where manufacturing industries are facing increasing challenges due to global uncertainties and local supply chain disruptions, the need for adaptive and agile supply chain strategies is more pressing than ever. Thai companies, known for their flexibility and collaborative approach, can particularly benefit from these recommendations. The findings highlight that Thailand’s manufacturing sector should focus on creating interconnected, digital-first systems that will help mitigate risks and enhance operational efficiency.
The study further emphasizes that senior leaders must shift their perspective on SCM from a back-end operational tool to a front-line strategic asset. By driving cross-departmental collaboration, ensuring preparedness during stable periods, and adopting digital transformation (DX) solutions, companies can not only mitigate risks but also unlock new opportunities for competitive advantage in an increasingly uncertain global environment.
By adopting the recommended measures, companies can establish risk-responsive SCM systems that minimize operational and financial risks while enhancing their overall business continuity, customer satisfaction, and societal contributions. ABeam Consulting believes these steps will enable assembly manufacturers in Japan and Thailand to strengthen resilience, recover more rapidly from disruptions, and position themselves for sustainable growth in a volatile market.
At ABeam Consulting, we leverage our extensive experience as a leading provider of SAP solutions in Southeast Asia to support organizations in transforming their supply chains with advanced digital technologies. Our approach focuses on developing tailored solutions that address each business’s specific challenges and objectives, enabling them to adapt to an ever-changing global landscape.
We work closely with companies to connect business processes effectively across domestic and international operations, ensuring seamless collaboration between organizations. Through a comprehensive range of services—including assessment, design, implementation, and ongoing support—we assist businesses in building smart supply chain systems that enhance efficiency, improve accuracy, and optimize costs, driving sustainable growth in a competitive environment.
Click here to see ABeam’s SCM success case studies: https://www.abeam.com/th/en/service_line/scm_en
