The manufacturing and supply chain industry in Asia Pacific (APAC) has become a key economic driver for the region in recent years. Nearly half of global manufacturing output originates from APAC, reinforcing its position as a critical driver of the global economy.
Within APAC, Southeast Asia has emerged as a major manufacturing hub, as companies have looked to build resiliency into their supply chain operations. Southeast Asia is one of the key global geographies receiving significant accelerated manufacturing investments for domestic and export production facilities. However, despite this rapid growth, the industry faces challenges such as fragmented supply chains, infrastructure gaps, and a shortage of skilled labor, all of which have affected operations across the region’s diverse markets.
To address these challenges, manufacturers are turning to technologies like AI and machine learning, alongside upskilling initiatives to build a more resilient workforce.
Keeping up with diverse business challenges using AI and automation
The latest State of Smart Manufacturing report reveals that 83% of manufacturers around the world anticipate using generative AI (gen AI) in their operations, demonstrating strong AI implementation within the industry. In Asia, IDC predicts that 20% of industrial operations will use AI and machine learning for vision-based systems and robotic and automation processes by 2026 to achieve higher efficiencies, reduce downtime, and improve worker safety.
While automation has existed for decades, the manufacturing industry has reached an inflection point with the convergence of technologies like AI and more software-defined automation tools.
Together with the convergence of IT and operational technologies (OT), AI can enable smarter, adaptive solutions across the supply chain. Through real-time data analysis, predictive modelling, and intelligent automation, AI equips manufacturers to forecast demand accurately, optimize inventory, and ensure seamless operations. In addition, it helps identify and mitigate potential disruptions before they impact operations.
Transforming supply chain resilience with generative AI
The ability for gen AI applications to generate new rules based on existing data is a game-changer in supply chain design and management due to its ability to automate processes and create seamless end-to-end connectivity.
AI empowers organizations to model various scenarios, identify bottlenecks, and proactively address disruptions. Its dynamic scenario planning capabilities help businesses anticipate challenges and respond with agility. AI-driven simulations further enhance these capabilities by visualizing the effects of external shocks — such as geopolitical events or natural disasters — on supply chains. This enables manufacturers to build redundancy and flexibility into logistics networks, enabling more seamless operations even during crises.
OT solutions like FactoryTalk Analytics LogixAI can make daily operations more efficient by connecting edge to cloud, and predict equipment and maintenance needs to optimize the production process. Meanwhile, digital twin software like Emulate3D can help manufacturers cope with changing demands in a fast-paced environment by creating a more agile design process before cutting steel.
Looking beyond AI as a point solution, businesses should consider the shift towards autonomous manufacturing, with a focus on gen AI as a value-add to existing workflows. Think about how AI can be integrated into the organization’s core processes, systems, and how it can impact decision-making. In a nutshell, AI should be used to assist and elevate the work that humans do.
Manufacturers can start by identifying areas where AI technology can deliver the most value — be it in supply chain optimization, predictive maintenance, or enhancing worker productivity — and integrating these tools seamlessly into their operations. Meanwhile, continue investing in upskilling the workforce to build a culture of innovation and adaptability.
AI may have disrupted the industry, but the true transformation lies in businesses' ability to adapt and evolve.
Originally published in Frontier Enterprise.
