Supply Chain Changes After Technology Disruption

Supply chain systems in the agriculture, manufacturing sector, trade sector, and tourism sector have changed due to the change in technology. Along with the accelerator like COVID That makes the behavior of consumers or End-users changes. The greater the multiplicative change. In this article, we will look at the changes in the supply chain in various business sectors and what should Thailand do next to cope with this change?


Major industries in the country are affected and there has been a change in the supply chain, the hardware group that produces electronic devices. Disrupted by modern technologies such as AI, causing the software to be inserted into various devices and become a smart device. These industries will compete with cost leadership, that is, on price. Whether it's competing with China, Taiwan, Malaysia, or a new competitor like Vietnam.

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When faced with an economic recession as well as facing new technologies that come in. These industries have dropped by around 7-8%, but at the same time, there is a surprising amount of growth. Because there is Covid is a catalyst, it is a Digital service that has a growth picture of more than 10%. Growth is in line with the situation of Covid. This causes the behavior of consumers to change to use more digital services. There are a lot of transactions that go through the payment gateway system. Another industry that has made a huge leap in transformation is Digital content, which is a mixture of the supply chains. Whether using content through the digital world or social media Creating content for industries severely impacted by COVID, such as tourism. To create a new dimension in the supply chain in the tourism business, Digital content has grown approximately 11%. New wave industry group known as Data analytics service, with a growth value of 1,300 billion baht, is a component that sees a change in the supply chain.


Digital services are disrupting agriculture, manufacturing, trade, and tourism. These are the changes in the supply chain, a change that the business sector must adapt to. Not only from within the country but also from outside the country. Both the change in technology and the change in consumers caused by Covid and the emergence of new players looking for new solutions, Thai entrepreneurs must think about three issues.


1. How to make every supply chain work together efficiently and working can lead to cost leadership. because the industrial sector, the manufacturing sector the agricultural sector has reached the point where it must find ways to reduce costs to meet the new lifestyle.


2. Differentiation Supply chain, you must ask yourself what to do to offer something different to best meet the needs of consumers.
 

3. The speed of the supply chain must be faster. Because if it's slow, it won't catch up with Newcomers or the competition of new players. entering the economy


The three issues mentioned above are not enough. Still must look at what will come as a product or service that will be the champion of Thailand. That will lead to these supply chains. This is the change of supply chain and doing business in the future.


Examples of changes in supply chains in various industries

1. Agriculture Sector In the past, farmers planted crops and sent middlemen. From the middleman sent through the warehouse and then into the mall. or through middlemen and go to the fresh market. But changing digital tools and consumer behavior has resulted in the cutting of the midstream supply chain. Upstream farmers find ways to deliver products directly to consumers and become more profitable. Technology has come to help these things change. is that farmers can sell products directly to consumers and consumers can buy directly from farmers by using social commerce in trading. Which now has a number in the hundreds of millions of baht. This is a supply chain that has changed to survive. caused by changing consumer behavior Technology changes that are more accessible.

2. Supply chain manufacturing industry in the past produced and then entered the warehouse and from the logistics that are distributed through direct channels, that is, retail or through wholesale, then go to retail and then to the consumer. These things are disrupted like agriculture. That is, the industrial sector can become an upstream that sells products directly to consumers. Not just domestic consumers but able to export abroad with new supply chains. This looks like Thailand is not ready, but there are important players. Coming in from overseas, whether Lazada, Shopee, or JD Central, these businesses are seeing a steady increase in value, in line with higher industry numbers and growing confidence in the digital industry index.

Therefore, both the warehouse and the wholesale must adjust because the former distribution channel has disappeared. Also found entering new platforms that make the downstream business grow by itself. Including exports, there has been a change, which is the supply chain in the manufacturing industry from production to trading through the retail system and to the consumer that has been shortened. Affects both the cost that has changed. Making a difference and changing speed This is a recent change.


3. Tourism business and trading business severely affected by COVID. During the corvids, commercial businesses face problems with Panic. Many businesses must close their services. The delivery platform must be used. Consumer stores must be adjusted in accordance with different accelerator factors. As for the tourism sector, many Establishments must slow down or temporarily close to reducing costs to survive. Both commerce and tourism have adopted the platform to change their supply chain. Whether it is a travel business that has made Digital content as an add-on Content production has grown a lot. People working in Digital content have also grown from 1-2 ten thousand to 40 thousand. This means that these people are working to support the supply chain of the travel service business or continuation business. By using content to create cravings, such as using VR or virtual reality to create travel cravings. Like traveling in a real place, you can buy products as well, but through the digital world itself. When the world opens again, it can draw people to travel in the real world.

The tourism business, when faced with these disruptions, must adjust itself. Because the same tourism that people who book tickets at all may not be. But people will travel in the digital world first, when they are ready, then go on a real trip. As for the retail or trade businesses that used to be the physical world, they will be gradually reduced in size. until becoming digital to complement. Sharing economy will grow, such as Cloud kitchen, which allows restaurant businesses to reduce their stock of raw materials. Therefore, the supply chain in all businesses has changed. It is a change in the economic structure at the bottom of the pyramid with changes that have higher value-added.


In the future, if Thailand allows only the big players to be foreign and we will lose the balance of payments in technology. It is something that Thailand must bear the burden here that we do not have Economic value added in the economy. But if we can make growth in Digital service, Data analytics, Digital content or Software that grows with the economy and is a catalyst in the country or as a mechanism of the country, it will be good. including the gathering of people who work in this group to develop a platform that is owned by Thai people. These developments will create new industrial clusters to complement Digital services serving the agricultural sector. industrial sector travel retail and wholesale that Thai people own the platform, causing the supply chain system to change to have Thai players as important players. so that the players on the top of the pyramid become more Thai not in the hands of foreigners as it is Let's build and support Thai nationality platform for the country's sustainable growth.
 

Robinhood, the delivery platform by Thai people for Thai people Determined to create smiles for entrepreneurs and create happiness for consumers.