Dual Payment Solutions Driving Faster Ramp-up of Medical Supply Production
"Our warehouse is empty now!"said Ansell, medical supply MNC officially approved by the Chinese government as one of the designated protective suit brands for procurement. At the peak of the epidemic in China, not only Ansell’s China warehouse was exhausted, but the company had to air-freight in inventories from other warehouses around the world. During the Chinese New Year holiday, their Xiaman plant already started to take emergency measures by summoning 200 workers back to the facility for around-the-clock production.
However, this is still far from enough. With the coronavirus fallout unfolding globally, countries begin to see spiking demand for protective gear, in particular sophisticated protective suits for frontline health workers. That leads to the question of whether China’s medical supplies can continue to support international needs while having to cater its own. According to Magic Tian, Director, APAC Regional Sales, Asia, besides bringing in inventories from other regions and running production on its full capacity, the company already developed its emergency ramp-up plan early on and, with support from HSBC, completed a series of overseas procurement at a speedy pace.
At that time, Ansell’s management raised a request for a faster-than-usual procurement solution that can expedite the purchasing process and customs clearance so that the acquired equipment, raw materials and finished goods can come in faster.
When HSBC Xiamen Branch learned about the request, the Bank immediately organized its product team and operations team for a cross-cutting effort in search of a tailored solution and also consulted relevant regulators on risks of incompliance arising from expedited procurement practices. With regulatory guidance and support, HSBC was eventually able to provide Ansell with two optional solutions professionally crafted to address the company’s concern over post-import payment even when the extended Chinese New Year holiday wasn’t yet over.