As global supply chains shift in response to geopolitical pressures, sustainability demands, and rising regionalization, Southeast Asia has taken on a new strategic significance. Few have witnessed this transformation as closely as Daniel Karlsson, Partner at Alarar Capital Group. We sat down with him to explore how Alarar Capital Group is helping clients navigate this complexity, from strategic market entry to cross-border execution, and why a deep operational mindset is now indispensable.
Daniel Karlsson’s consulting journey is deeply intertwined with the evolution of Asia’s supply chains. He began his career in Shanghai in 2005, where he opened and led the China office for Applied Value, a US- consulting firm. At the time, China was experiencing an unprecedented export boom, particularly in the automotive sector, a sector Karlsson focused on extensively. “It was a front-row seat for globalization,” he recalls. “China was rapidly becoming the backbone of global sourcing.”
In 2010, Karlsson co-founded Asia Perspective with two former colleagues to help Nordic clients navigate complex supply chain and go-to-market challenges across Asia. The firm started without any clients but quickly grew, expanding beyond China as interest in Southeast Asia accelerated. “By 2019, it was clear that not everything would continue to go through China,” Karlsson explains. “We saw early on that Vietnam, Indonesia, and other markets were gaining traction and so we set up offices accordingly.”
As demand increased, the client base expanded to include European, U.S., and eventually Asian companies scaling within the region. This geographic growth was matched by a broadening of services from procurement and production support to restructuring and ESG integration.
In 2023, Asia Perspective was acquired by Alarar Capital Group and became its management consulting division. Since then, Karlsson has helped shape its evolution into a strategic partner not only for Western firms entering Asia, but increasingly for intra-Asian expansion. “Today, we advise Chinese companies entering Indonesia, or Vietnamese players moving into Thailand. It’s no longer just West-to-East, it’s Asia to Asia.”
“We’ve always been centred around Asia,” Karlsson reflects. “But the definition of what that means and what clients need has changed significantly over time.”
In today’s volatile environment, supply chains are being rapidly reconfigured. Rather than one-time shocks, companies now face a continuous churn of geopolitical, regulatory, and logistical pressures from COVID recovery and war-driven energy price spikes to tariffs and export restrictions.
“Regionalization is no longer theoretical,” explains Daniel Karlsson, Partner at Alarar Capital Group. “The speed of change, combined with unpredictable external events, has made regional supply chains a strategic necessity for most of our clients.”
Karlsson clarifies that the shift away from China as the sole manufacturing hub predates COVID and trade tensions. As early as the 2010s, clients began exploring Southeast Asia as a complementary sourcing base, prompted by rising costs in China, regulatory barriers to low-tech industries, and a growing desire for diversification.
“Clients weren’t reacting to headlines,” he says. “They were responding to real business needs: more flexibility, better access to markets, and reduced risk.”
This shift is part of a broader movement that Alarar Capital Group identifies as re-globalization, not a retreat from global trade, but a restructuring of it. According to ARC’s 2024 Sourcing Survey, more than 70% of companies are actively pursuing multi-country sourcing strategies, seeking redundancy, resilience, and regional agility. Instead of relying on a single hub, businesses are rebalancing footprints across Asia to mitigate shocks and serve end-markets more efficiently.
Southeast Asia has emerged as a focal point for this transition, particularly five key markets:
Karlsson emphasizes that this regional realignment is not about “leaving China,” but about building options. “Most of our clients still maintain a strong footprint in China,” he says. “The goal is to complement – not replace – with Southeast Asia.”
Supply chains are no longer linear, and neither are their risks. One of the most urgent challenges facing Alarar Capital Group’s clients, particularly OEMs, is achieving visibility not just into Tier 1 suppliers but all the way down to Tier 3 and 4.
“It’s not just who’s assembling your product,” Karlsson explains. “It’s where the fabric comes from, where the buttons are made, who supplies the semiconductors or the casing. Especially when shifting production to new markets, understanding the full supplier ecosystem is critical.”
This is particularly relevant in countries like Vietnam, where many garment and electronics producers still import large volumes of inputs from China or third countries. Alarar Capital Group supports clients by mapping these dependencies, identifying chokepoints, and assessing alternate sourcing strategies.
Speed is another major pressure point. “You’re expected to reconfigure operations, meet ESG standards, and onboard new suppliers, often simultaneously,” Karlsson says. “Managing all of that effectively requires structure, foresight, and the right capabilities in place.”
To address this, Alarar Capital Group provides detailed, data-driven diagnostics evaluating supplier concentration risk, energy security, labour availability, and infrastructure capacity on a per-country basis.
“No two clients have the same needs,” Karlsson adds. “There’s no set menu. Each supply chain challenge must be addressed with a customized approach, aligned to the client’s specific product, market, and strategic goals.”
As supply chains become more fragmented, digitization and sustainability are no longer “nice to have”, they are essential.
“Many of our clients are moving toward end-to-end visibility using AI, predictive analytics, and scenario planning,” Karlsson says. “It’s not just about efficiency, it’s about staying competitive when skilled labour is scarce, and market access can change overnight.”
International players like Google and Nvidia are investing in AI research centers across Southeast Asia, accelerating local adoption of digital tools. European and American companies are pushing for real-time transparency across supplier tiers, carbon footprints, and compliance metrics. At the same time, sustainability regulations and investor pressure are forcing a shift in sourcing behaviour.
“Clients are demanding greener supply chains,” Karlsson confirms. “But Southeast Asia is uneven in its readiness.” Vietnam and Malaysia are making meaningful progress with solar and wind development. Meanwhile, Indonesia, despite its scale is still heavily reliant on fossil fuels.
Alarar Capital Group’s management consulting team works closely with clients to assess where ESG commitments can realistically be achieved and where trade-offs may be required. The firm integrates regulatory insight, country-level energy data, and supplier sustainability audits into its sourcing strategy support.
One of the most significant changes in recent years is the shift in who is driving regional expansion.
“Historically, it was always Western companies setting up in Asia,” Karlsson says. “Now we’re seeing the reverse – Asian companies expanding into other Asian markets.”
This includes Chinese manufacturers entering Indonesia, Vietnamese companies establishing operations in Thailand, and intra-ASEAN partnerships that bypass traditional global value chains altogether. Karlsson attributes this to a combination of rising regional demand, increasing infrastructure investment, and shifting political dynamics.
“Asia is no longer just the world’s factory,” he says. “It’s a web of interconnected economies with cross-border ambitions.”
Alarar Capital Group has adapted it’s consulting offering to meet this change helping Asian firms assess market entry strategies, localize operations, and navigate regulatory landscapes. The firm’s regional footprint and operational depth make it a trusted advisor for companies moving not just from West to East, but across the entire Asia-Pacific corridor as well.
Alarar Capital Group’s Management Consulting division sets itself apart through what Karlsson calls a “deep operational orientation.”
“We’re not only a PowerPoint firm,” he explains. “Our teams go onsite. We sit next to the client’s team. We implement the solutions we propose.”
This hands-on approach is underpinned by three core advantages:
“Our experience across thousands of client engagements gives us a robust methodology,” Karlsson notes, “but we also continuously incorporate new tools, whether AI-driven supply chain mapping or ESG analytics to stay ahead”.
“I’ve worked with some of our clients for more than a decade,” he reflects. “We’ve helped them expand, restructure, weather crises and it’s that continuity that builds real value.”
Alarar Capital Group’s consulting division is uniquely positioned to support companies through the next chapter of global supply chain transformation in whatever shape it takes.
Author:
Daniel Karlsson
Partner, Alarar Capital Group
Author:
Anna Sahlberg Carlsson
Marketing Manager
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