Global Supply Chains – Networks of Tomorrow

Macroeconomic conditions and the pandemic have had a massive impact on the stability of supply chains. For Germany as an export nation, high inflation and currency fluctuations also pose a high risk.

German corporates are addressing this challenge by restructuring their supply chains – the following strategies can be identified:

  • Corporates are responding to supply chain problems and disruptions with increased levels of inventory held.
    Just-in-case models are increasingly replacing the common just-in-time structure.
  • Quality and reliability remain key factors in evaluating suppliers leading to a reduction of supply chain partners.
  • Euro and USD are still the top currencies for invoicing.
  • Sustainability is increasingly becoming an important factor for supply chain evaluation: more and more corporates require their suppliers to prove sustainability compliance as part of the onboarding and see sustainability as a real competitive advantage.

Germany is one of the leading countries in integrating sustainability criteria into global supply chains and sustainability is increasingly becoming a competitive advantage. With our global network, we will continue to support you in building more resilient and sustainable supply chains and in achieving premium pricing opportunities.

Selma Musić | Acting Head of Global Trade Solutions Sales, Germany, HSBC

Shifting supply chain strategies

The factors influencing supply chains in 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

How external factors are impacting risk and financing across supply chains

Trade finance


are funding their supply chains using inventory financing

Digital payments


pay their suppliers via electronic bank transfer

FX solutions


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



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



are currently or planning to invest in supply chain sustainability

Sustainable policy implementation


have implemented environmental policies across their supply chains

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