Will better supply chain decisions mitigate inflation?
8 May 20236 min read
Summary
- The article states that strategic supply‑chain decisions such as optimised goods processing, inventory management and real‑time data systems can reduce inflationary pressure on pricing.
- It highlights that in Asia, countries with strong supply‑chain control and logistics agility have experienced lower inflation rates, in contrast with those where supply chains remain weak or fragmented.
- The piece concludes that companies must leverage supply‑chain visibility, local sourcing and technology‑enabled processes if they want to build pricing resilience and mitigate inflation risk.
Supply chain decisions relating to inflation have become increasingly important in the global economy and goods market. They link producers and customers worldwide. Inflation is being observed, but its causes and effects are rarely amply considered.
Shortages may raise inflation fears among Asia or Pacific manufacturers. They must be agile and able to adapt to a dynamic goods market and continue to render business revenue. This is in order to meet customer wants and comply with environmental standards.
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“This can be achieved with prudent strategic planning and close collaboration with ecosystem partners, " IDC Manufacturing Insights Research manager Wai Yee Lee stated.
Lee added that manufacturers must recognize the value of having an ecosystem-wide synergy in connectivity, visibility, and traceability for short- and long-term sustainability goals and other new opportunities for the business.
The importance of supply chain management
Recent studies have pointed out that supply chains managed by professionals can help reduce price hikes, even in times of difficulty. Such was apparent in Brunei, where inflation remained at a low 2.5% despite worldwide challenges. Whilst Myanmar and Laos experienced far higher rates at 16.2% and 15%.
The Bruneian government has rolled out its Economic Blueprint. This is to promote diversification beyond oil and gas as well as manage their economy well. It ushers the creation of a good business environment through better trading and export activities.
Asian countries with condition
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