Executive Briefings

Heterogeneous Business Objectives among Manufacturers Pose Important Implications to Both Suppliers and Customers in Asia/Pacific

According to the latest study Asia/Pacific (Excluding Japan) Supply Chain Innovation and Investment: published by Manufacturing Insights, an IDC Company, the primary business objective of manufacturers throughout the Asia/Pacific (excluding Japan) region (APEJ) differs dramatically by country. According to the survey findings, which included responses from 280 manufacturers across the region, Singapore-based manufacturers are highly focused on cost reduction activities, while manufacturers in India and China focus their investments in activities that increase customer satisfaction and improve product quality. In Australia, manufacturers place more attention on increasing revenues by entering into new markets. These findings have important implications for both suppliers and customers of the manufacturers in this region.

Dr. Christopher Holmes, Research Director at Manufacturing Insights Asia/Pacific commented on these findings, " The investment focus of manufacturers in China and India will continue to pay long-term dividends to these economies. However, while cost reduction is the primary target of most manufacturers, it may not be a sustainable long-term business strategy. Singapore's continued investment in product R&D should pay off for manufacturers in Singapore in the longer term."

Manufacturing Insights noted that the composition of the manufacturing base in each country influences the type of business objectives that the country is focusing on. However, in general, healthy markets would pay more attention to product improvements and expansion into new markets, while slowing or under-performing markets tend to focus on cost controls.

"Suppliers to these markets should understand the differences in investment priorities of manufacturers in each of these countries", says Dr. Holmes. "Each country will require a different sales strategy as the manufacturers priorities vary."

This survey is the first in a series of reports covering supply chain strategies in the APEJ region. For more information go to:
http://www.manufacturing-insights.com

According to the latest study Asia/Pacific (Excluding Japan) Supply Chain Innovation and Investment: published by Manufacturing Insights, an IDC Company, the primary business objective of manufacturers throughout the Asia/Pacific (excluding Japan) region (APEJ) differs dramatically by country. According to the survey findings, which included responses from 280 manufacturers across the region, Singapore-based manufacturers are highly focused on cost reduction activities, while manufacturers in India and China focus their investments in activities that increase customer satisfaction and improve product quality. In Australia, manufacturers place more attention on increasing revenues by entering into new markets. These findings have important implications for both suppliers and customers of the manufacturers in this region.

Dr. Christopher Holmes, Research Director at Manufacturing Insights Asia/Pacific commented on these findings, " The investment focus of manufacturers in China and India will continue to pay long-term dividends to these economies. However, while cost reduction is the primary target of most manufacturers, it may not be a sustainable long-term business strategy. Singapore's continued investment in product R&D should pay off for manufacturers in Singapore in the longer term."

Manufacturing Insights noted that the composition of the manufacturing base in each country influences the type of business objectives that the country is focusing on. However, in general, healthy markets would pay more attention to product improvements and expansion into new markets, while slowing or under-performing markets tend to focus on cost controls.

"Suppliers to these markets should understand the differences in investment priorities of manufacturers in each of these countries", says Dr. Holmes. "Each country will require a different sales strategy as the manufacturers priorities vary."

This survey is the first in a series of reports covering supply chain strategies in the APEJ region. For more information go to:
http://www.manufacturing-insights.com