Global Supply Chains – Networks of Tomorrow

Trade remains the bedrock of the global economy, so corporates in the UK and around the world are constantly making supply chain decisions to ensure resilience and adaptability in their business operations.

HSBC Global Supply Chains Research focuses on discovering the latest supply chain trends, the drivers of change, and how corporates are financing trade, managing risk and streamlining payments to achieve commercial success.

This year, we partnered with East and Partners for the third edition of HSBC Supply Chains Research – Networks of Tomorrow. We spoke to over 750 financial decision makers from corporates across 14 markets worldwide*. Over 80% of responses originated from corporate treasurers from organisations ranging from mid-market enterprises to large corporates.

UK companies have openly embraced the changes of this new global operating environment,  and are showing a strong commitment to investing for the future. With a focus on building resilience and improving supply chain sustainability, the outlook for UK business looks bright.

Stephanie Betant | Head of Global Trade Solutions UK

Shifting supply chain strategies

What has been influencing supply chain strategies for UK corporates over the last year?

Inventory management

93%

have increased inventory holdings, more than any other country in our survey

Supplier relationships

81%

are focusing on product quality when assessing suppliers

Macro factors

#1

counter party risk is the top macro factor driving change in supply chains

How external factors are impacting risk and financing across supply chains

Inventory management

77%

are funding their supply chains using inventory financing

Financing the supply chain

91%

prefer traditional trade finance as a source of funding

Supply chain costs

29%

cite currency risk management as their greatest supply chain cost concern

Ensuring supply chain resilience

How corporates are laying the foundations for future supply chains

Digitisation

51%

are looking for bank support to better visualise transactions across their supply chains

Sustainability

20%

are focused on digitisation to support sustainability compared to the global average of 11%

Sustainable policy implementation

74%

are requiring new suppliers to conform as part of their onboarding

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