GetAhead Presents on De-Risking Supply Chains in Asia at Handelsblatt Chief Procurement Officer Summit

Düsseldorf, April 11, 2024 – Mathias Alt, Managing Partner & Founder of GetAhead, contributed to the Handelsblatt Chief Procurement Officer (CPO) Summit with a speech on the topic ‘The CPO as a Navigator in a Multipolar World Order: De-Risking in Asia with a Balanced Country Mix and Proper Timing.

The international environment for procurement leaders has significantly changed following the Corona pandemic and subsequent crises and conflicts. Tensions between major powers like China and the USA have brought neutral states such as India and the ASEAN countries (Association of Southeast Asian Nations) into the forefront. These regions offer new procurement opportunities due to their growth and comparatively lower costs than East Asia.

1. Increased Supply Risks in Asia: The political division leads to rising risks. To build resilience, it is recommended to diversify supply sources, including countries such as Southeast Asia, India, and Japan.

2. Optimal Country Mix and Timing: The right country mix and timing for procurement are crucial. The mix varies depending on the industry. The general trend indicates that Southeast Asia is suitable for short- and medium-term goals, while India is particularly important for long-term objectives. Good timing often means immediately utilizing the advantages of Southeast Asia, while also learning from current investments in India, where massive investments in infrastructure and industry are boosting the demand for domestic products.

3. Focus on Green Energies in Emerging Markets: To achieve sustainability goals, Asian emerging markets are increasingly relying on renewable energies. Vietnam is leading in hydro power, and India is planning a significant expansion in solar energy.

4. Cultural Adjustments to a Multipolar World: Sole competence in China is no longer sufficient. Local knowledge and a strong on-site presence are crucial for developing stable supply relationships in Southeast Asia and India.

GetAhead will continue to closely monitor the economic and political developments in Asia affecting procurement markets and supply chains to western markets. Follow our page on LinkedIn to be notified about the latest news published on our website.