Optimising ASEAN supply chains
Experts discuss building resilient, digital and competitive supply chains at ALSC ASEAN
Throughout the day at the inaugural Automotive Logistics & Supply Chain ASEAN conference in Singapore, experts in automotive supply chains and logistics shared valuable insight into how firms can build resilience and embrace digitalisation to gain a competitive advantage in South-East Asia, as well as on the global stage.
October 28
Panel: Managing transformation in technology, skills and infrastructure to make ASEAN supply chains fit for the future
ALSC ASEAN wrapped up with a final session on the tools, skill and partnerships needed to adapt and thrive in today's rapidly changing automotive landscape. For this last panel discussion, the panel consisted of: Sanjeev M A, director – logistics, supply chain and digital transformation, international markets group at Ford Motor Company; Tuan Vi, vice president, SCM & logistics Asia Pacific at Schaeffler; Rahul Singh, global head of software, autonomous mobile robots at Aumovio; and Luis León, VP of sales at Ascent Global Logistics.
Key takeaways
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- Ford has a global vision called "Flow, Innovate and Thrive" which encompasses end-to-end transformation from supplier partners through innovation, with a focus on managing uncertainties.
Ford developed a transformative control tower project post-Covid that started with a 67-68% prediction accuracy and has now improved to around 85%, helping manage their global supply footprint more effectively.
Digital transformation, data analytics, artificial intelligence and data mining are expected to become essential strategies for supply chain companies in the next five to ten years, with a key focus on understanding and extracting value from information.
Automation is not about replacing jobs, but about creating more efficient and intelligent roles by providing better data and decision-making opportunities for employees.
Companies like Schaeffler are leveraging local talent in regions like Vietnam to develop global software solutions, creating offshore development centres that serve worldwide needs.
Supply chain professionals are seen as critical change agents who can influence everything from logistics design to manufacturing, with an emphasis on simplifying complex processes and maintaining a clear, adaptable mindset
Discussion points on core tensions
- While the traditional discussion around automation has been framed as a trade-off between standardisation and flexibility, panellists argued that while standardisation is required for automation, the intelligence layer on top of that automation can be highly flexible.
- Ford's Sanjeev M A highlighted a critical tension between technological implementation and human adaptation. He emphasised that transformation isn't just about technology and processes, but fundamentally about people, the key being maintaining an equilibrium between skill sets, technology and human capabilities.
Quotes from the session
Digital transformation, data analytics, mining, artificial intelligence will be absolutely applied to supply chain in general...The key value for companies like us or our customers is in how we understand and the value that we can get from the information that we're receiving." - Luis León, Ascend Global Logistics
I think speed can only come with simplification. I hope then we can find ourselves one day on certain kinds of collaborative exchange platforms where all the information is more or less accessible." - Tuan Vi, Schaeffler
How you maintain an equilibrium between all the skill sets, technology, people... I think that's critical and that's what is going to take us forward." Sanjeev M A, Ford Motor Company
October 28
Panel: Competition and partnership in the South-East Asian supply chain
The penultimate session of the day saw supply chain and logistics leaders explore how best to leverage the individual strengths and growth of ASEAN countries while facilitating regional collaboration, cross-border flows and supplier partnerships. On the panel were: Dr Susanne Lehmann, managing director of Volkswagen Group Malaysia; Rizal Prasetyo Kusuma, senior vice president, automotive supply chain and production management at Infineon Technologies; Thapawee Kongcheep, director, automotive, Asia Pacific at DSV; and Ruud Vossebeld, director, business development at INFORM GmbH.
Key takeaways
More industry collaboration is needed, even with competitors, particularly on standardising processes like customs documentation to improve efficiency.
- The automotive supply chain is shifting from a just-in-time to a just-in-case model, with companies building strategic buffers and seeking closer engagement with suppliers to understand critical needs.
Logistics providers like DSV are creating collaborative spaces that optimise transportation, improve cargo visibility and help companies make more informed decisions during potential disruptions.
AI and digital technologies are emerging as powerful tools to improve supply chain efficiency, with potential applications in processing customer inquiries, handling tender requests and speeding up communication processes.
The ASEAN region needs significant infrastructure improvements, including developing more ports, creating better transportation linkages between countries and addressing unequal distribution of logistics capabilities across South-East Asia.
Discussion points on core tensions
The panel highlighted a fundamental challenge in supply chain collaboration: how much information companies are willing to share with partners. There's a critical question of trust – how deeply can a third party be allowed to understand a company's supply chain, and how can a company identify truly strategic partners?
- Panellists also discussed the challenges of creating region-specific requirements, highlighting technical differences that complicate supply chain integration. For instance, even basic technological standards vary significantly – such as communication systems in Chinese cars using WeChat instead of WhatsApp and different charging connectors that don't align with US or EU standards.
Quotes from the session
We have to embrace the uncertainty and we have to believe that we have the ability to make things happen in this region." - Thapawee Kongcheep, DSV
I want to use these skills that we have developed in the crisis now for our normal operations, daily life, but not in a crisis mode. I want to take them into a predictive mode of working together and as a partnership in order to prevent crisis, not tackle them. This is what we should learn out of the crisis." - Dr Susanne Lehmann, Volkswagen Group
I think digital twin thinking is really coming up now, where the digital world can help the physical world in improving the supply chain's way of working." - Ruud Vossebeld, INFORM GmbH
As we are all face the cost issue, I think South-East Asia is still a location where the cost is manageable." - Rizal Prasetyo Kusuma, Infineon Technologies
October 28
Volkswagen Group - Collaborate and integrate to compete in ASEAN
As the audience returned from a networking break, Dr Susanne Lehmann, managing director of Volkswagen Group Malaysia, took to the stage to discuss the carmaker’s development in Malaysia and the wider region.
Key takeaways
Volkswagen has one factory in Malaysia and multiple national sales companies across ASEAN countries, including Japan, Korea, Taiwan, Australia, New Zealand, Singapore, Malaysia, Vietnam, Thailand, and the Philippines.
The ASEAN region is characterised by significant heterogeneity, with vastly different economic growth, development, and regulatory environments across countries.
Volkswagen and Audi currently face challenges with high pricing, as most of their cars are imported as completely built units (CBUs), which makes local production significantly more expensive - potentially two to three times costlier than in large-scale factories.
The company is strategically planning to become more regional by localising production, leveraging a significant €26 million ($30.27m) investment until 2029, and bringing regional entities like aftersales warehouses and data centres into Singapore and Malaysia to generate greater cohesion in the Asian region.
The automotive landscape in the ASEAN region is complex, with each country having its own schemes, regulations and timetables for different vehicle types (ICE, hybrid and electric), making long-term planning extremely challenging.
Discussion points on core tensions
- Dr Lehmann explained that the cost of importing Volkswagen and Audi vehicles to the ASEAN region as CBUs makes the cars "way too expensive" so the company is pursuing a "more regional" strategy, localising production to reduce these prohibitive production costs and become more competitive in the local markets.
- A running theme across several sessions at ALSC ASEAN, Dr Lehmann also touches on issues surrounding regulatory complexity in the region, with fragmented regulations and tax structures highlighting the intricate balance Volkswagen must strike between global standardisation and local market adaptation in the diverse ASEAN automotive ecosystem.
Quotes from the session
It's really nearly impossible to make plans that are reliable and that we can trust to last a little bit longer than for one year, so we have to have regulations hopefully that are standardised not only for one country but for all of the ASEAN countries. - Dr Susanne Lehmann, Volkswagen Group
October 28
Panel: How to build more resilient ASEAN supply chain and logistics
After two insightful keynotes to kick off the conference, the audience then welcomed the day's first panel to the stage for a discussion on building resilience within automotive supply chains in the ASEAN region. Panellists included: Praveen Durairajan Prakash – global component and supplier quality director at VinFast; Eric van Steen – vice president, supply chain at Bridgestone Asia Pacific; Julio Bellota – vice president, commercial – logistics, South East Asia – APAC at DP World; and Dr Michael Nikolaides, senior vice-president production network, supply chain management, logistics at BMW Group.
Key takeaways
Localisation and diversification of supply chains are critical strategies for improving resilience, particularly in response to increasing tariffs, as companies look to reduce dependency on single sources of supply.
The automotive logistics industry must fundamentally be faster and more agile, recognising that the world is changing at an incredible pace and supply chains need to adapt quickly.
Suppliers should prioritise transparency by sharing bad news early, which allows companies to develop backup plans, understand potential risks and take proactive measures to maintain supply chain resilience.
AI can be a powerful tool for improving supply chain management, in ways such as increasing forecast accuracy by analysing historical data and cross-correlations.
Building a resilient supply chain requires three key dimensions: partnership and transparency, economic efficiency, and the ability to move faster.
Emerging markets like South-East Asia require a nuanced approach to supply chain management, with companies needing to invest in local capabilities, understand regional regulatory complexities and develop flexible manufacturing and logistics strategies.
The transition to electric vehicles presents both challenges and opportunities, with different countries in the ASEAN region having varied regulatory approaches and requirements for local content and industrialisation.
Discussion points on core tensions
- Panellists discussed the importance of diversifying supply sources, moving away from single-source models. This means not just having multiple suppliers, but ensuring those suppliers are genuinely geographically diverse. For instance, having two suppliers in the same state could still pose a risk during a natural disaster.
- VinFast's Prakash emphasised the critical importance of transparency, stressing that suppliers should not just present good news, but proactively communicate potential risks or challenges. The key is understanding potential issues in the supply chain, especially at lower tiers where OEMs might have zero visibility.
The panel unanimously agreed that the industry needs to get faster. As BMW's Dr Nikolaides noted, the world is rapidly changing and the automotive supply chain must get faster to adapt to it. This involves working more closely with suppliers and partners to optimise processes and enable quicker reactions.
Quotes from the session
Listen to the pain points. Create partnership and act locally. Think globally." - Julio Bellota, DP World
While we invest and take risks, suppliers also invest and take risks." - Praveen Durairajan Prakash, VinFast
The general theme and solution which we have to realise is that we have to get faster – the complete industry, the supply chain, everything – the world just changes in incredible speed and we have to get faster." - Dr Michael Nikolaides, BMW Group
Localisation has been part of the strategy from the start, but now, particularly with the tariff layer on top, it becomes even more of a focus area." - Eric van Steen, Bridgestone
October 28
BMW Group impact on the ASEAN region
In the second keynote session of the day, Dr Michael Nikolaides, senior vice-president production network, supply chain management, logistics at BMW Group, gave the audience a look into BMW Group's production network, supply chain and logistics operations across South-East Asia and the ASEAN region.
Key takeaways
BMW is strategically transforming its global sales approach by developing a "fourth pillar" beyond its traditional markets of Europe, China and the Americas, with a specific focus on growing market share in the ASEAN region where the company already has a local production footprint.
BMW has developed an innovative "IKEA principle" for regional production, where it deconsolidates supply chains and creates car "kits" that can be assembled locally to meet specific country regulations, which helps the company navigate complex and divergent regional manufacturing requirements.
The company currently operates seven small-volume plants worldwide, with four in the ASEAN region, and employs a flexible business model that ranges from fully-owned plants (like in Thailand) to partnership arrangements (like in Vietnam), all aimed at growing market share and increasing BMW's presence.
BMW is committed to maintaining its core strategic principles of technology openness and premium quality, ensuring that regardless of where a BMW is manufactured, customers receive the same high-quality product and that the local manufacturing process also helps develop skills in the region.
The company's logistics and supply chain teams are primarily focused on two key objectives: increasing efficiency by reducing costs and shortening lead times.
Discussion points on core tensions
- Dr Nikolaides touched on some of the challenges BMW has faced with non-homogeneous regulations across ASEAN countries, as different countries require varying levels of local production; he shared his belief that more standardised regulation across the region would be beneficial for all parties.
- He also acknowledged that small-scale production in different countries comes with higher costs, but noted that there are significant benefits to local production such as reduced tariffs, customs and taxes – something OEMs will have to take into account when considering regionalisation.
Quotes of the session
If you have more homogeneous and integrated regulations, we could find ways, I'm convinced, where everybody is benefiting and that would bring... a huge leap forward in our business." - Dr Michael Nikolaides, BMW Group
October 28
Why the supply chain is strategic for Stellantis in India & Asia Pacific
And we're off! The very first session of the day came from Ashwani Muppasani, chief operating officer at Stellantis India & Asia Pacific, in which he shared insight into the critical role that supply chain and logistics are playing for Stellantis across the wider India and Asia Pacific region.
Key takeaways
Supply chain is often underappreciated, but it is critical for manufacturing, as even a single missing part can halt production.
Supply chain professionals often feel underappreciated, typically only receiving recognition when something goes wrong.
Stellantis is positioning itself as a niche player focused on profitability, with India projected to become the third-largest automotive market in the world by 2030, growing to approximately 6 million units.
Currently, 80% of vehicles Stellantis manufactures are imported, with only 20% produced within the region; this comes with significant costs and leaves the company subject to foreign exchange fluctuations.
The company is leveraging AI models and historical customer data to predict demand, with the goal of designing, engineering, and launching vehicles locally instead of importing from other regions.
When choosing supply chain partners, Stellantis values innovation, transparency, and strategic long-term relationships that can adapt to the constantly changing automotive industry landscape.
Discussion points on core tensions
Muppasani stated that volume is not the target for Stellantis, instead focusing on driving profitability and inviting questions as to whether traditional growth strategies are suited for today's landscape, or if a more targeted, margin-focused approach is more appropriate as OEMs operating with narrow profit margins look to optimise efficiency and minimise cost wherever possible.
Muppasani's comments surrounding the import of goods to the India and Asia Pacific region highlight a broader discussion on the benefits of regionalisation as a strategy to reduce costs and potentially improve resilience, compared to the existing model which relies heavily on imports, thus leaving the supply chain open to the threat of disruption in today's volatile geopolitical climate.
Quotes of the session
Everybody's focusing on the front lines – sell, sell, sell cars – but nobody understands every dollar that you drop and you lose out of supply chain, and every day that a vehicle sits in your vehicle processing centre, you're paying for it from your profits." - Ashwani Muppasani, Stellantis
October 27
What to expect from ALSC ASEAN
After exciting events across the globe this year, from Bonn to Detroit, the Automotive Logistics & Supply Chain event series now comes to Singapore. Over the course of the day, industry leaders from Asia and beyond are coming together to explore the strategic advantages of the ASEAN region, discuss common pain points and how to overcome them, and exchange ideas to push the sector forward and foster a more resilient, digital and competitive automotive supply chain.
These three areas – resilience, digitalisation and competitiveness – are crucial to the success of modern supply chains and therefore underpin the day's agenda. Delegates can expect to hear from a range of experts offering different perspectives on ensuring resilience in a panel discussion entitled "How to build more resilient ASEAN supply chain and logistics". The panel for this session features: Praveen Durairajan Prakash – global component and supplier quality director at VinFast; Eric van Steen – vice president, supply chain at Bridgestone Asia Pacific; Julio Bellota – vice president, commercial – logistics, South East Asia – APAC at DP World; and Dr Michael Nikolaides, senior vice-president production network, supply chain management, logistics at BMW Group.
And on the topic of digitalisation, a panel session entitled "Managing transformation in technology, skills and infrastructure to make ASEAN supply chains fit for the future" will see another four experts discuss the tools, skill and partnerships needed to adapt and thrive in not just today's market, but also tomorrow's. They'll touch on developing areas such as digitalisation, advances in AI and the EV transition to give the audience an idea of how supply chains in South-East Asia can keep pace and continue to innovate. Sitting on this panel are: Sanjeev M A, director – logistics, supply chain and digital transformation, international markets group at Ford Motor Company; Tuan Vi, vice president, SCM & logistics Asia Pacific at Schaeffler; Rahul Singh, global head of software, autonomous mobile robots at Aumovio; and Luis León, VP of sales at Ascent Global Logistics.
Then moving to competitiveness, a third panel discussion entitled "Competition and partnership in the South-East Asian supply chain" will explore how to best leverage the individual strengths and growth of ASEAN countries – including Malaysia, Singapore, Thailand, Vietnam and others – but to facilitate regional collaboration, cross-border flows and supplier partnerships. The panellist taking part in this discussion are: Dr Susanne Lehmann, managing director of Volkswagen Group Malaysia; Rizal Prasetyo Kusuma, senior vice president, automotive supply chain and production management at Infineon Technologies; Thapawee Kongcheep, director, automotive, Asia Pacific at DSV; and Ruud Vossebeld, director, business development at INFORM GmbH.
But that's not all. The day will kick off with two fascinating keynotes offering a look inside the supply chains of two major automotive OEMs as Ashwani Muppasani, chief operating officer at Stellantis India & Asia Pacific, explains why the supply chain is strategic for Stellantis in India & Asia Pacific, before BMW Group's Dr Michael Nikolaides shares insight into the group's impact on the ASEAN region.
Then later in the day Volkswagen Group Malaysia's Dr Susanne Lehmann will give another keynote presentation providing a look behind the curtain at the carmaker's development in Malaysia and the wider region, including multi-brand production, integration and planning across regional and global supply chains, increasing digitalisation, creative collaboration with suppliers and investment in the right technology and people.
With global disruption highlighting the need for resilience and ASEAN countries such as Vietnam rapidly developing into leaders in the next generation of automotive manufacturing, understanding trends and challenges in South-East Asia will paramount to achieving global success over the next decade. Don't miss out on this opportunity to take part in this vital discussion over the future of the region – there's still time to register to attend ALSC ASEAN, taking place on November 28 at The Westin Singapore. View the agenda here, and register now here.
