Chinese Supply Chains Recover Fast, but Supply Chain Reorganisations are Necessary

Two-thirds of Chinese manufacturers, (r)etailers and logistics services providers are already on 80% or more of their capacity. Nearly 60% of the manufacturing companies mention that their upstream supply chain (i.e. supply of components, sub-assemblies) has basically returned to normal; the same applies to 47% of logistics services providers.

 

These results are based on a survey BCI Global conducted among China based manufacturing companies, e-commerce companies and logistics services providers. Nearly 200 companies participated in the survey (last date March 24).
BCI Global is a global leader in supply chain consulting and location advice with offices in Shanghai, Singapore, Atlanta, California and Europe (the Netherlands, London, Frankfurt).

Encouraging

Jeff Wang, director of the Shanghai office of BCI Global: “It is clear that Chinese companies are still recovering from the lockdowns and interrupted supply chains. But more than three-quarters hopes to run their supply chains as normal within two months and that is an encouraging expectation”.
“83% of the companies are convinced that their supply chains need more resilience”, says Patrick Haex, managing partner at BCI Global and Global Head of Supply Chain Solutions. “That is also what our clients are asking right now from us. It demands a comprehensive approach, the momentum to implement is at hand.”
Particularly the developments to enhance the visibility across the whole upstream and downstream supply chain and strengthening the collaboration among all value chain partners is a key priority as Figure A shows. “Building robust end-to-end supply chains is a multidimensional task. It encompasses data driven control towers to monitor shipments, orders and inventory data so that you can pro-actively intervene across the ecosystem. But also moving towards dual sourcing for components, while assuring quality and delivery certainty, are key. As more than 90% of the companies want to reduce their supply chain risks, there is a huge task in front of us to incorporate the required resilience in today and tomorrow’s supply chains” according to Patrick Haex.

Figure A - What do you think your company will focus on in building more resilience in your supply chain? - more answers possible