Global Supply Chains – Networks of Tomorrow

Global Supply Chains – Networks of Tomorrow

For the last three years HSBC has examined how corporate treasurers and senior managers are reshaping their supply chain and working capital strategies in response to global economic changes, sustainability policies and digital enhancements.

This year, we’ve expanded the scope from just Asia Pacific to include globally strategic markets – Germany, the United Kingdom (UK), United States of America (US), United Arab Emirates (UAE), and Mexico. We spoke to 787 corporate treasurers and senior managers across 14 markets from large multinationals to local organizations, online and traditional retailers, and both HSBC customers and non-customers.

With the pandemic receding, China’s economy has once again emerged with strong resilience, underpinned by faster-than-expected consumption and labor market recovery.

Strengthening supply chain resilience is nevertheless imperative to businesses of all sizes, who are mostly concerned about counterparty risks while aspiring to expand to new markets. Notably, about 42% of the surveyed corporates in mainland China plan to keep or increase the number of supply chain partners, much higher than the Asia and global averages of 34% and 36% respectively. Their top strategic priorities around digitization and sustainability also remain important.

Corporates in mainland China have been deploying strategies to combat uncertainties. With the market rebounding strongly and confidence levels picking up, we are seeing the growing ambitions of corporates in expanding to new markets and re-connecting with the world with even more trade partners. HSBC is thus well positioned to support clients in their exciting and resilient business endeavors.

Eric Yuan | Head of Global Trade and Receivables Finance, China, HSBC

Shifting supply chain strategies

The factors influencing supply chains in the last year

Factor driving change in supply chains

Counter party risk

is the top macro factor driving change in supply chains

Factors for assessing suppliers


think payment and financing terms is a key factor for assessing their suppliers

Inventory management


Mainland China's corporates are holding excess inventory

Navigating new market conditions

How external factors are impacting risk and financing across supply chains

Trade Finance


are funding their supply chains using traditional trade finance

Digital payments


pay their suppliers via purchase order or electronic bank transfer

FX solutions


will use forwards to hedge FX risk

Ensuring supply chain resilience

How corporates are laying the foundations for future supply chains



are looking for bank support to access and optimize working capital of supply chains

Sustainable policy implementation


are investing to make their supply chains more sustainable

Focus area for sustainability


invest in energy efficiency

Market differences

How do corporates in Mainland China differ from other markets.

Increasing supply chain partner counts


mainland China corporates are looking to increase the number of supply chain partners.

Hedging using natural currency


Corporates in mainland China were involved globally in using natural currency hedging


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