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Futuristic Analysis of Key Trends Transforming Regional Supply Chain Model
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By 2025, the Association of Southeast Asian Nations (ASEAN) region is expected to be the next destination for global participants, replacing China, with its geographic proximity, large consumer base, and low costs attracting traders. Cambodia, Myanmar, Laos, and Vietnam (the CLMV countries of the Greater Mekong Subregion) are emerging as an attractive destination for investors. The ASEAN marked its 50th anniversary in 2017, striving to move forward as a single market and production base. Implementation of the ASEAN Economic Community (AEC) will unify ASEAN members under a single cluster, making it an attractive hub for investors. An integrated transport and mobility infrastructure in the region offers a new dimension for the growth of the ASEAN. Trade activities are expected to record tangible advances with the support of participating governments. A growing consumer base, due to urbanization in ASEAN and enhanced by digital penetration, drives online business model adoption by industry players, encouraging the integration of both local and international logistics providers. The top 10 disruptive trends identified in the field of logistics in the region are expected to enhance ASEAN’s position as an international leading business hub. The innovative trends are expected to be interrelated, boosting the growth of the logistics industry in ASEAN. Significant growth is forecast in the logistics industry across ASEAN during the next decade driven by the logistics trends.Development of a logistics master plan in ASEAN countries is becoming a key requirement for the countries’ initiatives to facilitate a Strategic Transport Plan at a regional level as a part of ASEAN Economic Community (AEC) integration. The transport plan and frameworks enhance the growth of cross-border logistics, enabling seamless connectivity and creating opportunities for goods offering effective trade facilitation to stakeholders. This will be further enhanced by the adoption of technology solutions such as eCommerce and app-based crowdsourced logistics platforms, leading the supply chain activities from insourcing to outsourcing, rail and freight transportation. Rising urbanization and uberization trends also boost the growth of start-up companies as part of the supply chain model in ASEAN. Blockchain is a global trend that has influenced ASEAN’s supply chain management. The rise of blockchain in ASEAN is expected to facilitate logistics management and accelerate trade growth along with the support of rapid adoption of digital technology by stakeholders in the region. The logistics industry in ASEAN is forecast to be more agile and anticipatory by 2025, allowing service providers to address the rising demand with cost- and time-effective solutions.
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