Business Beyond COVID-19 – The Global Podcast Series
Welcome to Business Beyond COVID-19, HSBC’s podcast series about embracing business unusual through the global pandemic and beyond. We talk to industry leaders and experts to understand how they are adapting, reshaping and innovating through these extraordinary times.
HSBC hosted a virtual discussion in July with leaders from our Global Liquidity and Cash Management and Global Trade and Receivables Finance businesses in Europe to share a day-to-day viewpoint on their learnings during the pandemic so far, with a particular focus on working capital and supply chains.
Listening time 13min
Key takeaways for business leaders in order to successfully navigate working capital and supply chain challenges during COVID-19:
- Open up dialog between suppliers and buyers
- Strike bargains on most efficient way to accelerate payments through the value chain
- Rethink your contingency scenarios
- Enable quicker and deeper financing in the supply chain
- Blockchain technology can reduce trade settlement from days to hours, lowering risk and having enormous working capital benefits
- This can help the entire supply chain benefit from competitive financing
- Think right-shoring, not reshoring
- Consider the costs and logistical challenges associated with shifting your organisation’s offshore production
- Ensure supply chain is diversified across companies and geographies
- Sustainability is core to success
- Take economic, environmental and social factors into account in all procurement decisions
- Businesses following this approach likely to weather storm of COVID-19 better than their competitors
I think in the cards B2B space, we've seen a marked difference between the priorities of consumers and their suppliers.
What we are doing now is looking at blockchain technology so that suppliers further upstream in a company's supply chain can also have the benefit of enjoying competitive financing.
Building sustainability into your supply chain also improves resilience to other risks.
What are the top opportunities ahead?
Blockchain technology has the power to enable quicker and deeper financing in the supply chain.
Consider how suppliers throughout the supply chain can benefit from competitive financing.
Importance of managing non-payment risk, as this increases with time.
Utilise cost analysis to ensure manufacturing assets are in the right place.
Businesses operating with a sustainable supply chain are better equipped to deal with the challenges of COVID-19.
Actively assist important suppliers with working capital.
Buyers and suppliers work together on most efficient ways to accelerate payments through the value chain.
HSBC is here to support the next generation of companies and their sustainable ambitions.
Keep the dialog with your relationship team open and continue to tell us how we can help you to support your business.