Adapting strategies to optimize logistics essential for successful supply chain risk management.

What is it about?

Supply chain risk management is crucial for the consumer products industry, given its susceptibility to uncertainties and risks. This research investigates the relationship between supply chain risks and performance within this sector, based on a sample of 385 entrepreneurs from Small Medium Sized enterprises (SMEs) in the consumer goods industry across ASEAN countries. Supply chain performance, defined as the ability to meet end-customer demands, involves ensuring commodity availability, on-time deliveries, and maintaining sufficient inventory and capacity across organizational boundaries, from raw materials to the final consumer. Using Partial Least Squares Structural Equation Modeling (PLS-SEM), the study establishes a strong correlation between supply chain performance and risks, highlighting the necessity for effective supply chain risk management to enhance overall performance in the consumer products industry. Understanding the diverse economic development, infrastructure, and regulatory environments across ASEAN nations is crucial. Leveraging the ASEAN Economic Community (AEC) for economic integration and regional trade agreements can mitigate supply chain risks and improve performance. Entrepreneurs in the consumer products industry are encouraged to collaborate with governmental organizations, considering the challenges posed by regulatory landscapes, cross-border logistics, and geopolitical risks within ASEAN. Adapting strategies to the specific characteristics of each ASEAN country, optimizing logistics, and addressing cultural nuances are essential for successful supply chain risk management. By aligning with regional and national governments, businesses can proactively address risks, seize opportunities, and contribute to the resilience and growth of the ASEAN consumer products industry.

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Why is it important?

Understanding the diverse economic development, infrastructure, and regulatory environments aLeveraging the ASEAN Economic Community (AEC) for economic integration and regional trade agreements

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