Why Firms like Puma and Dyson are Moving Operations to APAC
It’s well documented that the global supply chain industry is experiencing a profound digital transformation, with companies seeking innovative ways to enhance their operations.
In conjunction with this, the Asia-Pacific (APAC) region is rapidly emerging as a formidable leader in tech talent, positioning itself at the forefront of innovation and challenging the traditional dominance of the US and UK.
Already, major organisations like Puma, Under Armour and Dyson are moving key operations to APAC, highlighting the distinct shift from West to East that is currently taking place.
This is further emphasised by research from Zero100, which reveals a dramatic shift in the demand for digital skills and underscores the urgency for Western companies to adapt.
The leading supply chain intelligence firm discovered that, in APAC, more than a quarter (26%) of supply chain roles demand digital expertise, compared to 19% in Europe and just 15% in North America.
This gap widens even further when looking at jobs posted by Western companies operating in APAC, with 27% demanding digital skills compared to a mere 16% back home.
"Given the revolution we are witnessing, it’s essential that Western companies revisit their Asia talent strategies,” says Anne-Laure Descours, Chief Sourcing Officer at Puma.
Shedding light on Puma’s activities in APAC, she adds: “When we established our sourcing team in Hong Kong, it wasn’t a cost decision – it was a capability decision. It’s primarily about the skills people bring and what they contribute to running the business effectively.”
Emerging tech transforms operations
Historically viewed as a hub for low-cost labour, APAC is now the epicentre of digital supply chain expertise, outpacing Western counterparts in both skill acquisition and technological advancement.
This seismic shift is more than offshoring, but rather signifies a redistribution of power with significant implications for the future of work.
What’s more, the digital skills gap isn't limited to basic data entry.
Zero100 found that APAC job postings are three times more likely to require cutting-edge capabilities in automation, analytics and software engineering.
The region's focus extends to AI, machine learning, big data and cloud technologies – critical components for building resilient, future-proof supply chains.
“Digital technologies such as AI are transforming the speed, productivity and agility of supply chain operations in many industry sectors,” explains Geraint John, VP Research at Zero100.
“Our analysis shows that manufacturing, logistics and retail companies in APAC are leading the way in terms of rapid innovation and deployment of AI, data analytics, robotics and automation.”
The equation for successful digital transformation goes beyond technical expertise, requiring a strong foundation in soft skills as well.
Across the APAC region, job descriptions increasingly seek communication, problem-solving and change management, capabilities that enable individuals to effectively translate business needs into technological solutions.
Although communication skills remain more prevalent in the US (52%) compared to the UK (33%), APAC is rapidly closing the gap.
Western firms risk falling behind
The rise of APAC's digital talent pool presents both challenges and opportunities for Western firms.
What’s evident is that, to remain competitive, companies in the US and UK especially must rethink their talent acquisition strategies and embrace the evolving landscape.
Zero100 contends that this talent shift is more than just a matter filling roles; it marks a 'brain gain' for APAC, with top universities producing world-class graduates and Western-educated professionals returning home to lead global supply chains.
This trend signifies a critical inflection point for the global supply chain industry and reminds Western companies of the need to adapt swiftly or risk falling behind.
“Western multinationals are actively hiring and developing talent in APAC countries to digitally transform their supply chains, driven by a deep talent pool and lower costs in the region,” continues Geraint. “This has contributed to the emergence of a ‘digital divide’ between East and West that threatens to grow over the next few years as economic power shifts steadily eastwards.
“To counter this trend, Western companies need to ramp up the digital skills and capabilities of their employees in the US and Europe. As part of this effort, they must also ensure that tech learning is shared effectively between APAC-based teams and those elsewhere in the world.”
******
Check out the latest edition of Supply Chain Magazine and sign up to our global conference series – Procurement and Supply Chain LIVE 2024.
******
Supply Chain Digital is a BizClik brand.
