Survey: Companies Lagging the Industry in Digital Transformation
July 21, 2021 | ACN NewswireEstimated reading time: 2 minutes
Almost half of the respondents, around 46.6%, believed that their own companies fell behind the industry average when it comes to utilizing digital tools as part of business processes, according to a survey conducted by AIBP and Oracle from March to April. The survey counted 193 professionals*, mainly from IT, innovation & business backgrounds in manufacturing and supply chain companies across the largest economies in Southeast Asia: Singapore, Indonesia, Malaysia, Thailand, Philippines & Vietnam.
The manufacturing industry plays a significant role in the local economies of Southeast Asian countries, contributing more than 20% of Gross Domestic Products in markets like Singapore, Indonesia, Malaysia, and Thailand. Recent US-China trade tensions have also increased expectations of how manufacturing can contribute to markets like Indonesia and Vietnam. Concurrently, local governments are focused on uplifting local manufacturing capabilities by implementing policies to encourage and support initiatives towards Industry 4.0
The survey also found that 46.6% of respondents believed that the top priority of implementing digital solutions should be to drive operational efficiency in a bid to reduce costs, while 16.6% feel that it should be used to increase or create revenue opportunities.
The COVID-19 pandemic has seen supply chain disruptions across industries - while some companies struggled to come to terms with unusual fluctuations in supply and demand, other companies were better prepared. Thossaporn Petporee, SVP and part of Charoen Pokphand Foods digital committee outlined how Charoen Pokphand Foods have been ahead of the curve when it comes to digital transformation because of their experiences navigating past disruptions like African swine fever and Avian Influenza. "Each time a pandemic hit, we prepared ourselves better. In our farms, we have the highest level of biosecurity and AI to identify animals across the farm and sales areas. We do well because we keep up to date, keep challenging ourselves." The recent pandemic has led them to develop innovative online solutions like Vet Online and chatbots which are made available to the farms across their network to allow for the diagnosis of animal diseases remotely. Charoen Pokphand Foods saw a net profit increase of 41% in 2020.
Companies from the Manufacturing and Supply Chain industries continue to innovate. In 2020, 3 out of 10 winners of the annual ASEAN Enterprise Innovation Awards were from the Manufacturing and Supply Chain industries, including Kalbe Farma and Astra International. Both companies embarked on digital transformation projects which involved the integration of their ERP across business units to allow for a more connected supply chain; enabling real-time feedback from across the entire value chain.
"There is an urgent need to reorganize one's supply chains in the wake of 2020 and the recent Suez Canal blockage, and manufacturers in the region are rightly realizing that what they have in-house is not enough when creating robust and resilient logistics processes that keep the business moving efficiently," said Michael Lim, GTM Leader, ERP & Digital Supply Chain, Oracle. "With new capabilities upgraded onto Oracle Fusion Cloud Supply Chain Management each quarter, we are helping our customers streamline logistics to fulfill orders faster, cheaper, and more sustainably to deliver the operational excellence they desire."
*The survey was sent to professionals working in 1,600 publicly listed companies and/or subsidiaries of MNCs in Indonesia, Malaysia, Thailand, Philippines, Vietnam & Singapore. These companies represent the following sectors: Consumer Durables, Non-Durables, Electronic Technology, Process Industries & Producer Manufacturing.
Suggested Items
ZESTRON Academy Launches 2024 Advanced Packaging & Power Electronics Webinar Series
05/01/2024 | ZESTRONZESTRON, the leading global provider of high-precision cleaning products, services, and training solutions in the electronics manufacturing and semiconductor industries, proudly announces the launch of its highly anticipated webinar series on Advanced Packaging & Power Electronics, a webinar series on the latest innovations, cleaning, and corrosion challenges.
NextFlex Convenes the Hybrid Electronics Community at Binghamton University
05/01/2024 | NextFlexBinghamton University hosted the NextFlex hybrid electronics community on April 18 for a day of expert presentations, breakout sessions on technology and manufacturing topics, and networking.
HQ NextPCB of HQ Electronics Debut on the International Stage for Electronics Manufacture at IPC APEX 2024
05/01/2024 | PRNewswireHQ NextPCB of HQ Electronics, a leading Chinese-based multilayer PCB manufacturer and assembly house showcased its industrial prowess on the international stage for the first time at the IPC APEX Expo 2024.
GPV’s Q1 2024 Interim Financial Report Shows Strong Navigation in Uncertain Times
05/01/2024 | GPVDanish-based GPV recorded an expected drop in sales to DKK 2.3 billion for the first quarter of 2024. The decline also affected the operating profit, which was DKK 155 million compared to DKK 179 million in the same quarter last year, although the EBITDA margin was maintained. In general, demand has been softer in 2024, but GPV continues to invest for the long-term and expects the trend to turn in the second half of 2024.
All-Inclusive: PRIDE Industries Helps Employees With Disabilities to Succeed
05/01/2024 | Sandy Gentry, IPCPRIDE Industries is the leading employer of people with disabilities and those with other barriers to employment in the United States, including veterans and former foster youth. The company offers job training, placement, on-the-job coaching, and skills development for independent living. It has held IPC membership since 2000. Read more about this unique business and its connection to the electronics manufacturing industry.