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.
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.