KEY TAKEAWAYS:

• Effective supply chain management is critical to the achievement of global and just sustainable development. The overall impact of existing efforts has been limited to date.
• To improve profitability Japanese firms need to reduce their cost structure. Since production and labor costs in ASEAN countries are generally cheaper, many firms will continue to move production abroad.
• Existing examples demonstrate that Japan’s expansion overseas has opened firms up to new supply chain risks and challenges.