(Dec 5): Prolonged global supply chain disruptions in recent years have in no uncertain terms laid bare that logistics can cause immense disruption. Due to Asia's high growth prospects, these supply chain bottlenecks could derail the potential of the various national economies throughout the continent. 

As an open economy, Malaysia is highly vulnerable to supply chain disruptions triggered by global geopolitical events and natural disasters. To safeguard the competitiveness of the economy, the Ministry of Investment, Trade and Industry (Miti) is dedicated to ensuring the resilience and security of the national industrial supply chain against future challenges.

In addition to government support, the onus is also on executives throughout Asia to ensure business continuity is not left at the mercy of incidents beyond their control. This need to stay agile in the face of unprecedented disruption has also driven rapid technological advancement. 

Decision-makers are increasingly looking to leverage advanced technologies to drive supply chain resilience. Breakthroughs in cloud computing, the Internet of Things and artificial intelligence (AI) have enabled the automation of many core functions. More critically, they have also equipped businesses to be more efficient at data collection and analysis. 

A well-connected enterprise-wide network is crucial in order to identify threats and security gaps across the supply chain. Once identified, high-priority supply links can be bolstered, and a comprehensive plan can be implemented to minimise disruption.

AI, in particular, has greatly benefited companies looking to streamline enterprise resource planning (ERP). A well-configured AI-powered ERP solution can be tailored to meet the business’s needs, aligning with specific objectives and industries. 

These AI-backed ERP tools offer real-time inventory management, demand forecasting, predictive maintenance, customer personalisation and automated procurement.

Automation holds immense potential for businesses across Asia-Pacific as the AI era approaches. 

The Southeast Asian industrial automation solutions market is expected to reach US$2.3 billion (RM10.2 billion) by 2030. This growth is driven by the rising adoption of robotics in manufacturing, government initiatives promoting automation and increased investments in transforming traditional production facilities.

Malaysia is among the Southeast Asian countries that is set to witness strong growth in the coming years and offer significant growth opportunities for market players.

Ultimately, it’s not just about automating tasks, but effectively leveraging AI to improve business processes via data, empowering better decision-making for both frontline employees and top executives. 

This, in turn, increases customer satisfaction through quicker delivery times and improved product quality.

Beyond visibility, data management is another pillar of a resilient supply chain. Here, AI plays a critical role in helping executives navigate the complexities of big data with precision and agility. 

With AI, business leaders are able to automate tasks such as collecting and cleaning up data, enabling more accurate demand forecasting through predictive analytics. 

Consequently, this leads to better customer personalisation and more efficient inventory management. 

AI also aids in compliance and governance by identifying anomalies, flagging potential risks, and ensuring adherence to data protection laws.

The future of resilient supply chains lies not only in technological advancements but also in collaboration. 

Sharing data — such as market trends, availability of resources, and predictions of future disruptions — among governments, partners, providers and even competitors can build a future-proof ecosystem, enabling companies to better navigate uncertainty.

Miti aims to implement proactive measures to mitigate potential supply chain disruptions, including the creation of a platform to enhance traceability and strengthen the resilience of Malaysia's industrial supply chain. 

The ministry also intends to introduce initiatives offering centralised access to guidelines, funding opportunities and support programmes, while promoting knowledge sharing among industry stakeholders. It stressed the importance of agile strategies to manage and recover from supply chain interruptions.

Given that the global supply chain serves as the backbone of the world economy, with interconnected systems supporting each other, such a collaborative approach will not only benefit individual companies but also reinforce the Asian business landscape. 

It will encourage innovation and build resiliency within the supply chain industry in a world filled with disruptions. Embracing of digital transformation, supported by AI and data-driven initiatives, will lead to a future marked by resilience, agility, efficiency, and success for businesses that continue to stay on the cutting edge of technology.

Vincent Tang is the vice-president (Asia) at Epicor, which provides industry-specific enterprise solutions for businesses in the automotive sector, building supplies, distribution, manufacturing and retail.