If you’re in the retail business, one of your worst nightmares is being stuck with boxes and boxes of unsold inventory taking up space in your warehouse. Wasted stock can be a huge cost to your bottom line and pose serious risks to your business. For eco-conscious brands, a lot of unsold inventory is also detrimental to the environment, especially if the products are textile-based. Of the more than 100 billion items of clothing produced each year, some 20% go unsold leftovers are usually buried, shredded, or incinerated (Forbes). Businesses that end up in an overstock situation generally use traditional bulk manufacturing which requires products to be made and then warehoused until they are shipped. While there is a risk of costly unsold inventory, bulk production can also be economically effective if a product is proven to be a best-seller.

On the opposite side of the spectrum sits on-demand manufacturing – a process by which goods are produced only when they are needed and, in the quantities, required, eliminating the cost and effort of storing and managing inventory. Although on-demand products are not produced at economies of scale, businesses can more easily and quickly test and go to market with new products and designs.

Previously, businesses would need to choose one method or the other but with recent advancements in technology in the past decade, retailers can get the best of both worlds through hybrid manufacturing. An economically and environmentally sustainable solution, a hybrid approach blends the cost-effectiveness of bulk production with the risk-free per-order fulfillment process of on-demand manufacturing.

How Hybrid Works
Before adding any new item to product lines, experts recommend testing them through on-demand manufacturing to ensure viability. An on-demand approach gives retailers the freedom to sell more SKUs and products that they might not think will take off en masse. Once retailers know a product has the potential to move into mass production, the switch can be made. Eventually, when interest wanes and the product becomes more evergreen but to a smaller audience, retailers can realize ongoing value by going back to an on-demand approach.

Why Utilise a Hybrid Approach

Adapt to trends quickly without risk. Culture is now manufactured on-demand and consumers are setting trends on social media. Because buyers are now changing the way we capitalize on culture, it is affecting how brands produce and manufacture products on-demand. With a hybrid approach, brands can quickly mockup a design and add the product to their online store without prepaying for costly order minimums by first using on-demand manufacturing.

Improve cash flow. When a business utilizes a blend of on-demand and bulk manufacturing for its products, it can more easily optimize its cash flow. For bulk products, they can get a higher per product profit margin due to economies of scale. For on-demand products, they don’t have to pay for costly inventory or order minimums, freeing up a business’s cash flow.

Shift toward sustainability. Being eco-conscious is no longer a consumer marketing trend, it is a real practice many businesses are implementing in their business model. Because on-demand manufacturing allows companies to produce only what consumers order, it eliminates unnecessary production and harmful waste—saving both the business’s bottom line and the environment.

Be better prepared for economic disruptions. When COVID-19 disrupted supply chains across all industries last year, many retailers were forced to shut down and were left with boxes of unsold inventory. When utilizing on-demand manufacturing in a hybrid approach, it is important to look for a provider that manages a distributed supply chain network. This type of fulfillment process allows on-demand manufacturing providers the ability to carry a large number of product SKUs in more than one facility, therefore orders of that product are able to be fulfilled in multiple locations.

Source: Global Trade Magazine

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Jakarta. Bangkok Bank, Southeast Asia's sixth-largest lender by assets, saw ample opportunities to bridge more Thailand businesses to invest in Indonesia and bring the two economies closer following a landmark deal that saw the lender acquire Bank Permata, one of Indonesia's largest lenders last year. 

“Bangkok Bank is pleased to help bring investment into Indonesia as well as help Indonesian companies seeking gold opportunities across Asean and beyond," Chartsiri Sophonpanich, president of Bangkok Bank and president commissioner of Bank Permata said, during a media visit to  Berita Satu Media Holdings on Thursday. 

"With the synergy between Bangkok Bank and PermataBank and our international network, we will work together to create opportunities for our clients to do more in Indonesia,” Sophonpanich said, referring to the local lender by its trade name.  

The G20 Ministerial Meeting on digitalization was held today in Trieste and chaired by Minister for Economic Development Giancarlo Giorgetti and Minister for Technological Innovation and Digital Transition Vittorio Colao. Undersecretary of State for Economic Development Anna Ascani also attended the meeting.

The Italian Presidency placed the issue of the digital transformation of productive activities towards sustainable economic growth at the heart of the debate, with a particular focus on micro, small and medium-sized enterprises, social inclusion, governance, and the development and application of innovative technologies.

Building on the achievements and commitments of past Presidencies and acknowledging the impact of the Covid-19 crisis on the economy, employment, and the wellbeing of our societies, Ministers recognized their responsibility to work together to increase the overall positive effects of digitalisation, building on common objectives and converging on action principles as a means to accelerate the digital transformation and reflect on how to reap its benefits, while addressing the challenges ahead. The work of the DETF (Digital Economy Task Force) was enriched by a multistakeholder approach through the organisation of dialogue forums and consultations with engagement groups.

G20 Members signed a Declaration that identifies 12 actions to accelerate the digital transition:

• Digital Transformation in Production for Sustainable Growth. Ministers commit to leveraging digitalisation for an economic recovery that intends to be resilient, strong, sustainable and inclusive, in the three dimensions of “people, planet and prosperity”, leaving no one behind. Ministers recognise that companies have to be prepared for the “new normal” and for further technological shifts, in order to cope with future challenges towards a sustainable, open, shared and more innovative economy. They acknowledge that there is a need to increase efforts on developing a human-centered approach to digital economy that also takes into account the needs and perspective of traditionally vulnerable groups. Ministers therefore commit to take action towards reinforcing industrial policies and international cooperation for the digital transformation of production for sustainable growth, in a way beneficial to all.
• Leveraging Trustworthy Artificial Intelligence for MSME Inclusiveness and Promotion of Startups. Ministersreaffirm their willingness to implement trustworthy Artificial Intelligence (AI). They acknowledge the need to bolster the AI capabilities of MSMEs, including their capability to use data, access finance, share opportunities, and build a talented and skilled workforce.
• Measurement, Practice and Impact of the Digital Economy. To support an inclusive and multi-stakeholder dialogue on measurement, Ministers affirm that the 2020 Roadmap can help ensure that measurement of the digital economy remains a priority in G20 countries and in International Organisations, and that adequate resources are devoted to its implementation. They value the contribution of sharing good practices, also in relation to monitoring digital economy developments beyond the G20 itself, especially with regard to the measurement of AI and the digital gender divide.
• Consumers Awareness and Protection in the Global Digital Economy. Ministerscommit to take action to raise awareness, educate and support consumers, including through digital literacy programs, with the aim of preventing the detriment of consumers and ensuring consumer protection regarding product quality and safety, privacy and personal data protection, and unfair commercial practices, with particular consideration for vulnerable consumers. They also stress the need to promote stronger international cooperation, including between consumer protection authorities. Furthermore, the Presidency opened the dialogue on distributed ledger technologies, such as blockchain, and produced a G20 Report on Blockchain in Global Value Chains to increase knowledge on transparency and accountability of products for the benefit of consumers.
• Child Protection and Empowerment in the Digital Environment. Ministers are pleased to include the protection and empowerment of children in the digital environment, for the first time, among the priorities of the G20 Digital Economy. They stress theshared responsibility of different stakeholders, especially the providers of digital services and products, in creating a digital environment that both empowers and protects children. To promote a safe, secure, inclusive, transparent and beneficial digital environment for children, centered around age-appropriate and high-quality online content, Ministers are guided by the G20 High Level Principles on child protection and empowerment, drawn from the OECD Recommendation, which can be instrumental to guide policies.
• Encourage Innovation for Smart Cities and Communities. Ministers welcome the Italian Presidency’s Report of G20 Practices of Innovative Public Procurement for Smart Cities and Communities, as a tool to increase and share knowledge.
• Connectivity and Social Inclusion. Ministers affirm their commitment to bridge connectivity gaps, and encourage the goal of promoting universal and affordable access to connectivity for all by 2025. They believe that enhanced collaboration and exchange of practices at international level and interaction with stakeholders can contribute to our connectivity and social inclusion goals.
• Data Free Flow with Trust and Cross-border Data Flows. Building upon and recognising the work and achievements of the Japanese and Saudi Presidencies, Ministers acknowledge the work of the OECD on Mapping Commonalities in Regulatory Approaches to Cross-border Data Transfers, which identifies “commonalities, complementarities and elements of convergence” across different approaches. Such commonalities can foster future interoperability.
• Digital Tools for Public Services. Moving from the 2018 G20 Digital Government Principles, developed under the Argentine Presidency, Ministers focused on how to guide and improve the digitalisation of public services to better meet the needs of citizens. They therefore commit to pursue and ensure the quality, diffusion and accessibility of digital public services, and to foster better skills for civil servants.
• Digital identity. The importance of easily usable, reliable, secure, trusted, and portable digital identity solutions is recognised as a means to guarantee secure access to digital services to citizens and businesses, protecting their privacy. Reference is also made to the potential of digital identity in emergency and humanitarian aid contexts. 
• Agile Regulation. The role of agile regulation in fostering innovation and economic growth, as well as in controlling and preventing possible negative impacts of technological progress on society and on the planet is acknowledged. The contribution of the Survey on agile regulation across G20 Members is welcomed as a useful tool to share experiences and common approaches to more agile governance and regulatory models for innovation.
• Transformation of the task force into a permanent Working Group. Ministers commit to continue working towards digitalization for resilient, strong, sustainable and inclusive recovery while tackling inequalities. In this regard they welcome the transformation of the Digital Economy Task Force (DETF) into a Digital Economy Working Group (DEWG).

Source: The G20

Original published date: 05 August, 2021

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Indonesia has launched a risk-based online single submission system for business licensing on Monday, a long-delayed milestone that the government had hoped would improve the ideas of doing business in the country and boost investment.

"Business licensing that is integrated, fast, and simple, determine our competitiveness to attract investment," President Joko "Jokowi," Widodo said during an inauguration event for the Risk-Based Online Single Submission (OSS) System at the Ministry of Investment and Investment Coordinating Board (BKPM) office in Jakarta on Monday.

Jokowi said the new risk-based OSS system provides service standards for all levels of government that issue permits at the central and regional levels. The system defined clearer responsibilities of the licensee and made licensing services more integrated, Jokowi said.

“I also want to emphasize that risk-based OSS services are not meant to castrate local authority," the president said.

BKPM data showed domestic and foreign direct investments in Indonesia grew 10 percent reached Rp 443 trillion ($30 billion) in the first six months this year compared to the same period last year.

Minister of Investment and the Head of BKPM Bahlil Lahadalia said the new risk-based OSS system could link investors with ministries or agencies, local governments, administrators of special economic zones (KEK), and the Free Port Free Trade Zone (KPBPB).

The OSS system can accommodate licensing process for 1,702 kinds of businesses, including 1,349 already registered in the  Indonesian Standard Classifications of Business (KBLI), which have been implemented in the risk-based OSS system, minister said.

Source: JakartaGlobe

Author(s): Novy Lumanauw, Triyan Pangastuti

Original published date: 10 August, 2021

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The Cambodian business community is eager to work with small- and medium-sized enterprises (SME) across the country to list a curated selection of high-quality offerings on Amazon.com, the well-known US e-commerce platform.

Cambodia Chamber of Commerce (CCC) director-general Nguon Meng Tech said the two sides discussed the mechanisms for exporting Cambodian products to the US via Amazon, the preparation of quality and standard requirements, and the use and necessary particulars relating to barcodes.

“I have advised all Cambodian entrepreneurs who are producers to get in touch with amazon.com directly to benefit and set standards that meet their requirements,” he told The Post on August 11. “We can sell our products on the Amazon.com platform, which is the largest online system in the world.”

Bilateral trade between Cambodia and the US remained resilient in the first half of 2021, clocking in at $3.8402 billion, or a 32.8 per cent surge from the $2.8917 billion booked in the same period last year, according US Census Bureau data.

Cambodian exports to the US during the January-June period were valued at $3.6376 billion, climbed 32.4 per cent year-on-year, while imports were to the tune of $202.6 million, rising 40.3 per cent, on August 7.

Author: Thou Vireak

Images credits: AFP

Source: The PhnomPenh Post

For full article, please read here.

Original published date: 11 August 2021

The Ministry of Industry of Thailand expects Thailand to become a leading country with robotic and automation technology by 2026, following investments in robot-based production systems. The country is emphasising robotics, automation and system integration (SI) development in a move to eventually produce technologies of its own. During this period, the investment value for automation and robotic systems has been around 116 billion baht.

There are also 74 SI-related businesses registered with the Center of Robotic Excellence (CORE). According to the ministry, 25% of factories use automation and robotics technology. More domestic production of robots will also reduce imports of robotic technology by 12%. The government has been promoting robotic and automation systems under the Industry 4.0 scheme (the fourth industrial revolution), which encourages factory operators to blend digital technology with data analysis.

At present, only 2% of Thai industries are considered to be Industry 4.0 using advanced technology in their operations, according to the ministry. Some 28% are in Industry 3.0 with less high technology and 61% in Industry 2.0. Only 9% are in the stage of Industry 1.0, the lowest level of technological development.

Officials believe the ongoing Covid-19 pandemic, which has led to a rise in remote work and automation to avoid crowding at factories, will encourage many countries to adopt more advanced technology. The Board of Investment is offering 50% corporate income tax reduction lasting three years to promote investment in technology upgrades and production efficiency improvements.

Source: Bangkok Post

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