The Supply Chain Year in Stories: August 2024

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. 

"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 finds 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.”

UPS, FedEx and DHL Ranked as Most Valuable Logistics Brands

Despite seeing its year-on-year value decrease by 2% to US$34.6 billion, UPS remains the most valuable logistics brand in the world.

That’s according to the latest research from Brand Finance which, every year, puts 6,000 of the biggest brands on the planet to the test and ranks them across all sectors and countries to produce its Global 500.

The leading brand valuation consultancy also produces more than 100 reports alongside smaller lists for each sector. 

UPS’ big competitor FedEx is deemed to be the second-most valuable logistics brand in the world, followed by Germany’s DHL. 

Brand value is defined by Brand Finance as the net economic benefit that an owner would achieve by licensing their brand in the open market. 

It also examines brand strength, calculated through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity and business performance.

Signs of normalisation in logistics

Brand Finance’s report asserts that the logistics industry is witnessing signs of normalisation following the unprecedented post-pandemic boom. 

Leading firms, including UPS and FedEx, have reported lower shipment volumes and reduced consumer spending compared to the high-demand periods immediately following the pandemic. 

Richard Haigh, Managing Director of Brand Finance commented: "Despite the cooling demand and inflationary pressures we’re seeing this year, the logistics industry is showing remarkable resilience and strategic adaptation. 

"As the market transitions in the post pandemic era, shaped by overcapacity, shifting consumer demands and geopolitical tensions, industry titans epitomise excellence and visionary leadership to remain competitive."

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