In an IDC InfoBrief titled ‘Building the Future of Supply Chains: AI-Driven Orchestration for Asia/Pacific Success’, 99.7% of supply chain leaders in Asia-Pacific identified agility as critical to their success. Yet, the region fraught with challenges — from cultural differences and language barriers to diverse regulations and uneven infrastructure — makes achieving agility feel like performing ballet while wearing concrete boots. 

What’s really preventing the region’s supply chains from effectively responding to shifting demands and disruptions? How can companies maintain supply chain stability amid geopolitical tensions, labor issues, and increasing extreme weather events? Could artificial intelligence (AI) be the solution to these problems? 

The IDC InfoBrief explores these challenges deeply and highlights methods and solutions businesses in the region are using to build stronger, more responsive supply chains. 

What’s troubling APAC’s supply chains? 

According to IDC, 99.5% of supply chain leaders in APAC consider visibility a top priority. Yet, most companies still lack the right systems to achieve complete visibility, leaving gaps in their supply chain operations. Over 35% say legacy IT systems lack flexibility and scalability, which prevents them from responding quickly to market changes and disruptions. 

Supply chain leaders also face difficulties getting clear visibility into their sales and retail partner data. Supplier constraints and issues integrating new SaaS tools with older ERP systems slow down their operations. 

When examined closely, APAC supply chains resemble a dial-up internet connection in the age of streaming — consumers expect instant access, but all they see is a spinning wheel of delay. 

The promised land of AI 

Nearly 23% of supply chain leaders surveyed in the IDC Infobrief consider artificial intelligence (AI) as a crucial technology. About 30% believe AI significantly boosts productivity and cuts costs. Businesses across APAC are gradually adopting AI and noticing clear benefits: 

Real-time visibility and better forecasting 

AI consolidates data from procurement, inventory, logistics, and fulfillment into one real-time view. It uses predictive analytics to spot disruptions early, allowing companies to act proactively.  

For example, Swire Coca-Cola in China faced challenges from demand volatility and complex production needs across its 24 factories. By implementing advanced forecasting and production sequencing powered by AI, Swire Coca-Cola reduced production changeovers by 5.2%, decreased changeover times by 6%, and significantly improved market responsiveness. 

Solving IT integration issues 

AI-powered cloud solutions help connect legacy ERP systems smoothly with newer software. Silk Logistics Holdings (SLH), an Australian logistics company specializing in port-to-door services, faced difficulties with manual processes and legacy systems that hindered productivity.  

SLH adopted AI-powered warehouse management tools, automating billing, standardizing workflows, and optimizing operations. This dramatically reduced customer onboarding times and improved operational efficiency, enabling SLH to scale effectively and maintain high customer satisfaction. 

Strengthening supplier relationships and reducing risk 

AI helps improve collaboration with suppliers by centralizing data and automating performance monitoring. Mahindra & Mahindra’s Spares Business Unit in India managed 100,000 SKUs across multiple centers, facing frequent stockouts and excessive inventory.  

By implementing AI-driven forecasting and inventory solutions, Mahindra improved forecast accuracy by 10%, reduced inventory excess, and increased service levels and revenue by 10%, significantly cutting customer response times by 40%. 

Supporting sustainable practices 

Companies can now track carbon emissions in real-time, optimize energy consumption, and reduce waste using AI. IDC found that 27% of APAC companies have already seen sustainability improvements through AI-driven methods. 

Get AI-driven supply chain management with Blue Yonder 

Blue Yonder is the world leader in digital supply chain transformation. Retailers, manufacturers and logistics service providers worldwide rely on Blue Yonder to optimize and accelerate their supply chain from planning through fulfillment, delivery, and returns.  

Blue Yonder’s AI-driven supply chain platform and multi-enterprise, multi-tier network enables more accurate forecasting and dynamic management of capacity, inventory and transport. Blue Yonder helps businesses navigate modern supply chain complexity and volatility with more resilient, sustainable supply chains to delight customers, scale profitably, and run flawlessly. 

Want to find out more? Download the IDC InfoBrief today.