Maine Pointe in East and South Asia
According to the OECD Development Center's 2019 Outlook Report, Growth in the ESA region is expected to be moderate in 2019 as geopolitical tensions, tariffs and trade wars hit economies across the region.
A slowdown in the Chinese economy poses a major threat. China is predicted to show 5.9% average annual GDP growth in 2019-23, down from 7.3% in 2012-16. However, the Chinese government’s readiness to stimulate domestic activity and a resurgence of investment are reassuring signals for domestic demand. Improving the relatively high level of corporate debt-to-GDP ratio and wealth inequality are challenges.
Despite this setback the Southeast Asian economy as a whole is forecast to continue to grow by 5.2% in 2019-23, faster than the rate posted in 2012-16. Investment and government spending are likely to offset substantial weakness in trade. India’s medium-term growth is projected to be 7.3%, surpassing the average of 6.9% in 2012-16.
While this is a fairly positive outlook, countries will need to have robust policies in place to ensure to mitigate supply chain risks, overcome geopolitical uncertainties, strengthen export performance in the face of greater protectionism. In addition, the pace of monetary policy in advanced economies, along with geopolitical tensions and the trends in global oil prices, need to be carefully monitored.
With a new era of global uncertainties and tensions upon us, the question here is: How prepared is your organization to respond to shifts in regional supply chain dynamics?
We can help
Having worked in twelve countries across East and South Asia, Maine Pointe’s industry and practice specialists have a wealth of experience helping clients across the region and beyond achieve accelerated, sustainable improvements in EBITDA, cash and growth across their procurement, logistics and operations functions. We have local experts in countries across the region with the cultural knowledge and industry expertise to break through functional silos and optimize the business through Total Value Optimization™.
What Maine Pointe achieves
Our engagement successes in East and South Asia include:
Working across four global divisions of a multibillion-dollar conglomerate (Asia, US, EU, UK), we helped rapidly improve supply chain and operations capabilities and delivered $125M in EBITDA and $150M in cash across the organization > Read more
We conducted analyses in Asia, Eastern Europe and India for a worldwide leader in food processing and distribution and produced a sourcing plan that improved the cost of quality and quality itself. As a result, our client switched 50% of its required volume to direct sourcing from low-cost countries, saving 27% on the delivered cost of quality product > Read more
Working with a US-based manufacturer, we helped negotiate with new and existing suppliers in China to drive 5% savings in the light of a 25% commodity increase > Read more
We helped an apparel and specialty footwear manufacturer negotiate with new and existing suppliers in Asia to improve product time-to-market, quality and supplier optionality and achieve a 5% cost reduction in year one with a further 9% in the following two years > Read more
I am happy to report that our savings targets were exceeded. We were supported by a strong Maine Pointe team - from the initial analysis to the end of the project - and their practical and linear approach to the project has laid a solid foundation for future improvements within the organization. Accordingly, I would not hesitate to recommend Maine Pointe.” CEO Global Manufacturing
Maine Pointe took us to a place we didn't know we could get to. Within the turn of a season, they gave us what would have taken 3 to 4 years to achieve." CEO, Global Food Processor
I would like to commend you for doing an outstanding job on our recent engagement to implement a Management Operating System and fast track a strategic procurement initiative to drive operational improvement in our business. The objectives were to drive double digit percentage improvement in our EBITDA by achieving 10% savings in our manufacturing costs and more than 5% savings on our raw material spend. I am pleased to say we met those objectives on time and within budget. Maine Pointe’s Total Value Optimization (TVO) and procedural approach, coupled with an accelerated schedule, were the key reasons behind our decision to move ahead with the engagement.” CEO Global Specialty Chemicals