Why Diversified Supply Chains are Vital for APAC Manufacturers
Home News Vista Industry Experts Editor's Guest Post Magazines Conferences About Us

Why Diversified Supply Chains are Vital for APAC Manufacturers

Andreas Gunnestrand, President and Regional Manager, tesa tape Asia-Pacific

Why Diversified Supply Chains are Vital for APAC Manufacturers

Andreas Gunnestrand, President and Regional Manager, tesa tape Asia-Pacific in an interaction with Asia Manufacturing Review shares his views on how APAC manufacturers are redesigning their supplier ecosystems to reduce geopolitical, trade, and single-country dependency risks, what roles does regional supplier diversification across ASEAN, India, and emerging APAC markets play in strengthening supply chain resilience and continuity, how manufacturers can balance cost efficiency with resilience when transitioning from single-source to multi-regional sourcing strategies and more.

Andreas Gunnestrand, President and Regional Manager of tesa tape Asia-Pacific Pte. Ltd., an affiliate of tesa SE, is in office since 2023. He has over 19 years of experience of working in Asia. His passion for creating successful international teams driving sustainable growth has given him opportunities to understand and contribute to countries like Korea, China, Japan, and currently Singapore. He graduated from the University of Gävle, Sweden, where he studied Engineering and Industrial Economics.

How are APAC manufacturers redesigning their supplier ecosystems to reduce geopolitical, trade, and single-country dependency risks?

For many years, supply chains were designed around efficiency. Concentrating production in one place made sense because costs were lower and global trade moved predictably. That model worked in stable times. It does not hold up when volatility becomes the norm.

Over the past few years, geopolitical tensions, regulatory changes, and logistics disruptions have shown how quickly a concentrated supply base can turn into a point of failure. When too much depends on one location, small disruptions escalate quickly.

Manufacturers across Asia Pacific are therefore rethinking how their supplier ecosystems are structured. The focus is shifting toward reliability, flexibility, and trusted partnerships rather than purely cost efficiency.

What we see consistently is that proximity is a decisive factor. When suppliers, engineers, and production teams are close to each other, problems get solved faster. Operating across Asia Pacific has shown us that being present near manufacturing hubs makes a real difference when conditions change.

What role does regional supplier diversification across ASEAN, India, and emerging APAC markets play in strengthening supply chain resilience and continuity?

For a long time, companies could afford to rely heavily on one sourcing location. That kept operations simple and costs predictable. Today, that approach carries significant risk. When supply chains depend too much on a single country, disruptions travel quickly through the system. A delay at one point can stop production somewhere else entirely. This is why manufacturers across Asia Pacific are diversifying their supplier base across ASEAN, India, and other emerging markets.

Diversification creates breathing space. When companies have multiple sourcing options, they can adapt when regulations change, logistics slow down, or demand shifts unexpectedly. Another important factor is proximity between suppliers and development teams. When engineers can sit down with partners and work through problems directly, development cycles move faster and adjustments happen in days rather than weeks.

From our experience, this kind of collaboration makes a real difference. This is why, Customer Solution Centers in markets such as Thailand and India play an important role within our regional setup, allowing engineers and customers to test ideas together where manufacturing happens. In fast-moving industries, that proximity is often what keeps projects moving when conditions become uncertain.

How can manufacturers balance cost efficiency with resilience when transitioning from single-source to multi-regional sourcing strategies?

Single-source supply chains were built for efficiency. They reduced procurement costs and simplified operations. That worked when supply chains were predictable. The past few years have shown the limits of that thinking. What looks efficient can become fragile very quickly when disruptions occur. When supply is concentrated in one place, the entire system is exposed.

Many manufacturers have learned this the hard way. Production stops, deliveries are delayed, and customer trust is tested. At that point the cost savings that once looked attractive disappear very quickly. This is why resilience cannot be added later. It has to be designed in from the beginning. Companies are now qualifying backup suppliers, building production capabilities in multiple locations, and connecting supply lines across regions. It requires more discipline and sometimes higher upfront effort. But when disruptions happen, those companies keep running while others struggle to recover.

Across Asia Pacific, we increasingly see resilience treated as an operational discipline. Companies that embed flexibility and reliability into sourcing decisions protect their ability to deliver, even when the market moves against them.

Also Read: How Sustainability Drives Growth in Southeast Asia

In what ways are digital technologies such as AI-driven supplier intelligence, predictive analytics, and supply chain visibility platforms enabling smarter sourcing decisions?

For a long time, supply chain planning relied heavily on historical data and experience. That approach worked when conditions were relatively predictable. Today, the environment changes too quickly for that alone. This is where digital tools become critical.

AI-driven analytics and supply chain visibility platforms allow manufacturers to detect disruptions earlier and respond before problems spread through the network. When companies can see supplier performance, logistics delays, or demand shifts in real time, they can adjust sourcing decisions much faster.

The real value of these technologies is not the data itself. It is the ability to move from reacting to anticipating. From our experience, integrating real-time information into planning processes significantly improves decision-making. Within our operations, data-driven demand forecasting helps teams adjust production and inventory more quickly when market conditions change. That does not eliminate uncertainty, but it gives teams the clarity they need to act sooner rather than later.

How are regional trade agreements like RCEP and bilateral FTAs reshaping sourcing strategies and supplier network expansion in the APAC manufacturing landscape?

Cross-border manufacturing in Asia Pacific has always been complex. Different regulations, tariffs, and customs procedures created friction when companies tried to build regional supply networks.

Agreements like the Regional Comprehensive Economic Partnership are beginning to change that. By lowering tariffs and aligning regulatory frameworks, they create a more predictable environment for companies operating across multiple countries. One particularly important development is the harmonization of rules of origin under RCEP. This simplifies compliance and allows components to move more freely between markets while still qualifying for preferential trade treatment.

For manufacturers managing complex supply chains, that matters a great deal. It becomes easier to build supplier networks that span several countries rather than concentrating everything in one place. What we see across the region is that companies are acting on this opportunity. They are expanding partnerships across ASEAN, India, and other emerging markets to create supply ecosystems that are both cost-efficient and flexible. Trade agreements do more than facilitate trade. They give manufacturers the framework needed to design supply chains that remain stable even when disruptions occur.

What operational and risk management frameworks should manufacturers implement to assess, onboard, and scale reliable regional suppliers effectively?

Supplier risk management used to receive less attention when supply chains ran smoothly. Today it sits at the center of operational stability. Resilience does not happen by accident. It is built through disciplined processes and consistent standards. Manufacturers are implementing multi-tier supplier assessments, diversifying sourcing locations, and continuously monitoring supplier performance. Backup suppliers are no longer optional. They are part of the baseline.

Communication is equally important. Problems become disruptions when they are discovered too late. When suppliers and manufacturers share information early, companies have time to respond before delays escalate. Sustainability and regulatory compliance are also becoming critical parts of supplier evaluation. Weak links in these areas often create operational risks further down the line. From our experience, clear standards and independent benchmarks help maintain consistency across complex supplier networks. Supply chains only prove their strength when disruptions occur. That is when disciplined frameworks show their value.

How will resilient, regionally connected supplier ecosystems impact long-term competitiveness, production continuity, and growth for APAC manufacturers in an increasingly volatile global environment?

For many years, efficiency was the primary benchmark for supply chains. That is changing.

In a volatile environment, resilience becomes just as important as cost. Companies that rely on rigid supply structures struggle when disruptions occur. Those with diversified and regionally connected supplier networks recover much faster.

Proximity between suppliers, engineers, and manufacturing teams also plays a major role. When partners work closely together, problems are solved faster and innovation happens closer to the production floor.

Operating across Asia Pacific has shown us that trust and collaboration between regional partners often determine how quickly companies recover when disruptions hit. When those relationships are strong, supply chains regain stability much faster. This is why resilient supplier ecosystems are becoming a competitive advantage. Companies that design their supply networks for flexibility will continue to operate and grow even when conditions become difficult. Those that do not will feel every disruption when it arrives.


🍪 Do you like Cookies?

We use cookies to ensure you get the best experience on our website. Read more...