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APICS CEO
Abe Eshkenazi
CSCP, CPA, CAE
| On the Road: Journal from Jakarta If you travel for business, you probably know what it's like to maximize efforts and projects with one trip--especially if that trip is international. Sure, it makes sense from a business perspective, though it can be trying mentally and physically. I was excited about how Asia Supply Chain and Operations 2011 in Singapore concluded. As I set out for Jakarta, Indonesia, where I would spend the second half of the trip, I was a bit worn down. However, our friendly reception by representatives from the Indonesian Production and Operations Management Society (IPOMS), an APICS International Associate, and others energized and motivated me in a whole new way.
Let me start with some background on Indonesia. After a decade of reforms, Indonesia has emerged as a strong middle-income country. According to the World Bank, despite the global financial crisis, Indonesia is one of the few countries to continue posting significant growth. Experts estimate the country's gross domestic product grew by 5.9 percent in 2010 and will grow by 6.2 percent in 2011. Indonesia's primary industries and exports are diverse, and include oil and gas, electrical appliances, plywood, textiles, and rubber.
Yet, Indonesia faces considerable hurdles to its success. Its employment isn't growing at the same rate as its population, which numbers around 240 million. The nation is made up of more than 17,000 islands--making maritime logistics a serious challenge. Plus, its infrastructure and transportation networks are in need of serious upgrades. These things become even greater barriers when you consider Indonesia's neighbors--it's hard to compete with the sophisticated economies of China, South Korea, and Japan.
Sharing perspectives
I was very interested to learn about Indonesia's unique Asian perspective. In the country, there is a huge effort to develop and increase the number of supply chain and operations management professionals. Of course, this is what prompted our visit. I was excited to have the opportunity to meet with executives from a variety of businesses and the dean of engineering from the University of Indonesia, which works with IPOMS to offer APICS education. Overall, I learned a lot on this trip. First, risks are perceived differently across borders. I wrote in last week's Operations Management Now about this, and the idea was underscored in Indonesia. Next, emerging economies have a great need for supply chain education and training. Obviously, APICS can be very beneficial in this arena. Something else I learned was although Asian companies are involved in the same processes--such as sales and operations planning--as their Western counterparts, cultural differences mean both sides must adjust their communications and project management styles. Lastly--and most importantly--I learned that, when reaching out to new partners, there is no substitute for face-to-face interaction. |
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