Global Supply Chains

Global Supply Chains – Networks of Tomorrow

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

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.

In Singapore, we observed that disruptions to global supply chains and the resulting logistical challenges have caused just-in-time inventory management to give way to just-in-case. Nearly 5 in 6 (84%) Singapore corporates have held excess stock over the last two years, with an average increase of 33%.

At a time when "supply chain resilience" is increasingly heard on earnings calls, 2 in 3 (66%) Singapore corporates are looking to reduce their number of suppliers, up from 63% in 2022.

The challenges of contingency, demand forecasting and logistics during the pandemic have contributed to increased inventory levels. A topic that corporates are increasingly discussing is the need to get the balance right between stocking up for just-in-case scenarios and the cost of doing so. The model of having everything arrive just in time is unlikely to come back entirely.

Iain Morrison | Managing Director & Head of Global Trade and Receivables Finance, HSBC Singapore

Evolving supply chain strategies

What has been influencing corporate supply chain strategies over the last year?

Inventory management


are holding excess stock due to the logistical challenges

Supplier relationships


are planning to reduce their supplier base in the next 12-24 months

Risk management


view currency risk as the key supply chain management cost concern

The factors influencing supply chains in the last year

How are financial decision makers financing trade, managing risk and streamlining payments across their supply chains?

Trade finance


are funding their supply chains using traditional trade financing

Digital payments


pay their suppliers via purchase order

FX solutions


will use forwards to hedge FX risk in the next 12-24 months

Ensuring supply chain resilience

How are the foundations for a more digital and sustainable supply chain being developed?



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



are investing to make their supply chains more sustainable

Sustainable policy implementation


have implemented measurable policies to require their suppliers to adhere to certain sustainable metrics

Global report

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