September 26, 2023 | Stamford, CT — Asia’s large corporates are accelerating efforts to make supply chains more resilient to both economic crises like the COVID-19 pandemic and political tensions by sourcing new suppliers from across the region. 

The continued diversification of Asian corporate supply chains is providing a sustained boost to businesses and economies in countries across Southeast Asia and in India. Meanwhile, growing numbers of corporates in Asia are embracing the need for sustainability in their supply chains. 

Nearly 70% of the large corporates participating in the Coalition Greenwich Voice of Client – 2023 Asian Large Corporate Trade Finance Study say they are diversifying their supply chains. By far the most common step companies are taking to build resilience in their supply chains is to source new suppliers both in their own countries and abroad. Approximately 55% of large corporates in Asia are working to diversify their supply chains geographically. The biggest beneficiaries of these strategies are India, Vietnam, Malaysia, and other Southeast Asian countries.

“Corporates in Asia are working through logistical challenges and issues with the reliability and quality of some new suppliers, but they are firmly committed to diversifying their supply chains throughout the region and, in many cases, decreasing their dependence on China,” says Ruchirangad Agarwal, Senior Relationship Manager and co-author of Corporates in Asia Strive for More Resilient and Sustainable Supply Chains.

Seeking Supply Chain Sustainability
Fifty-five percent of the companies taking part in the Coalition Greenwich study are embracing the need for sustainability in their supply chains and have goals for creating sustainable supply chains.
Meanwhile, a growing number of corporates say they would like to introduce sustainability goals but are challenged by a lack of information, expertise or funding. 

“This evolution represents an opportunity for banks to forge stronger relationships with these corporates by helping them understand and introduce sustainability measures,” says Ruchirangad Agarwal. 

Corporates in Asia Strive for More Resilient and Sustainable Supply Chains tracks the prevalence of supply-chain disruptions affecting Asian companies and analyzes the strategies corporates are using to address these disruptions and make supply chains more resilient and sustainable. The report also examines the criteria corporates are using to assess and select trade finance and supply chain providers, analyzes advances Asia’s top local banks are making at the expense of global providers, and looks at how digital platforms are changing trade finance and supply chain management.