Global Supply Chains – Networks of Tomorrow

Download the Australian report

Discover the latest supply chains trends and how corporates are shifting their strategies.

Trade remains the bedrock of the global economy - having reached a record USD32 trillion in 2022¹ - despite prevailing recessionary concerns and the risks around deglobalisation.

In researching for the ‘Global Supply Chains - Networks of Tomorrow’ report, HSBC teamed up with East and Partners to understand global supply chains and the future of supply chain financing and sustainability.

HSBC has based this report on primary research conducted by East and Partners between August and October 2022, directly interviewing senior management from 787 corporations across 14 markets² in Asia Pacific, Europe, North America, Latin America, and the Middle East, to gather direct feedback about how they are managing their supply chains and interacting with their suppliers.

Australian businesses are realigning their supply chains to ensure diversification across markets - particularly Asia - and shoring up their inventory supply. Many businesses are also building up the resilience of their supply chain through digital solutions and sustainability policies.
Nadia Ladak | Country Head of Global Trade Solutions, HSBC Australia

Shifting supply chain strategies

The factors influencing supply chains in the last year

Inventory management

+34%

average increase in inventory holdings above normal levels

Supply chain markets

29%

Choose Mainland China as the top market to replace or realign their supply chains

Navigating new market conditions

How external factors are impacting risk and financing across supply chains

Trade finance

80%

Prefer traditional trade finance solutions to fund supply chains

Supply chain partners

23%

Are increasing their number of supply chain partners

FX solutions

86%

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

Ensuring supply chain resilience

How corporates are laying the foundations for future supply chains

Digitisation

79%

Choose digital technology to understand their markets and industry

Sustainability

87%

Of Australian businesses plan to invest in energy efficiency initiatives

Sustainable policy implementation

47%

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

Local markets report

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Disclaimer

*The research was conducted in 2022 Q4 across 14 markets – China, Hong Kong, India, Malaysia, Singapore, Australia, Korea, Indonesia, Japan, Germany, Mexico, United Arab Emirates, the United Kingdom, the United States of America.

https://unctad.org/news/global-trade-set-hit-record-32-trillion-2022-outlook-increasingly-gloomy-2023
From August to October 2022, we commissioned East and Partners to directly interview senior management from 787 corporations across 14 markets (Australia, Germany, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, mainland China, Mexico, Singapore, the United Kingdom, the United States of America, United Arab Emirates) to find out how they are managing their supply chains.

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