San Francisco [US], November 15: PwC launched a new report "Global supply chains: The race to rebalance" at the Asia-Pacific Economic Cooperation (APEC) CEO Summit 2023 in San Francisco, where PwC is once again the exclusive Knowledge Partner.
The report outlines the key considerations businesses leaders need to contemplate to survive in a rapidly evolving business environment, one of which includes supply chain disruption. There's a global race happening right now as businesses look to rebalance their supply chains and seek new suppliers, locations and talent. It's no longer enough to focus on resilience and short-term profitability. Businesses need to transform for viability.
The report further highlights three fundamental questions that we believe businesses need to consider when repositioning their supply chains for growth:
* How to navigate the competitive landscape of supply chain transformation
* How to use next generation technologies
* How to turn Environmental, Social and Governance (ESG) into a value driver for business growth
Raymund Chao, PwC Asia Pacific and China Chairman, said:
"Rarely in history have business leaders dealt with as many challenges as they have in the last three years, each uniquely complex and compounding. And never before have leaders had to respond to them all at once. While Asia Pacific continues to be primed for growth, minor business tweaks like "lift and shift" are no longer enough. A shift from resilience to growth is necessary. A race to rebalance for growth is happening at this very moment."
New markets compete for global supply chains
The report also considers the challenges facing organisations seeking to relocate supply chains given geopolitical uncertainty. Companies seeking to rebalance operations more evenly across the region are unlikely to find a single location that can replace China. Instead, businesses seeking alternative locations in Asia Pacific or Latin America will require trade-offs between political risk levels, workforce profiles, infrastructure capabilities and the regulatory environment.
This is in line with recent PwC analysis that showed 65% of companies surveyed considered labour costs and availability to be the top concern when relocating supply chains. PwC also found via a survey that 56% of companies cited varying supply chain standards without guidelines as the biggest ESG challenge facing their supply chains.
A call for action for CEOs
Despite the global turbulence, Asia Pacific is weathering the storm. Over the next decade, 70% of global growth will come from Asia Pacific. To fully grasp this opportunity, PwC recommends six practical steps that businesses can take to rebalance for growth. For further information, please read the full report here.
Notes to Editors:
About the Report
* Download the full report here
* Listen to our related podcast here
* PwC is Knowledge Partner to the APEC CEO Summit in San Francisco, 14 - 16 November 2023
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