WATCH: Lenovo & Standard Chartered on weathering supply chain disruption
The Covid-19 pandemic caused major disruption for many industries, but with lockdowns implemented around the world, supply chains certainly bore the brunt of this disruption.
Although managing and financing supply chains has always been a challenge for corporates and financial institutions, the disruptions caused by the pandemic shone exacerbated these ingrained issues. While the initial disruption affected the manufacturing process for many businesses, the post-pandemic effects have been more widespread, affecting the logistical chain too. And with global interest rates rising, the cash conversion of corporates is being stretched.
In addition, as globalisation continues, the challenges faced by treasurers have become even more tricky to navigate; supply chains are more dispersed, political conflict wages between Russia and Ukraine, and many economies are bracing themselves for an impending recession. Whether small are large, each of these disruptions is having an impact.
Meanwhile, corporations continue to look to create efficiency gains within their business to improve their bottom line. One corporation that found itself juggling these competing challenges was tech giant, Lenovo. Grappling with the disruptions saw the company find a solution in digitalisation.
“We went through [a period of] digitalisation at the beginning of the pandemic. With people working from home, we started implementing electronic processes, prior to that our supply chain financing was done manually. Going the digital route meant that our financing solutions became a lot more automated and efficient,” says Joseph Chua, head of global treasury operations at Lenovo.
Full visibility of the supply chain in an automated way means that everyone is working towards the same goal and is always on the same page. Lenovo accomplished this by using TASConnect, a secure supply chain finance platform that provides end-to-end automation and visibility of organisations that was launched by Standard Chartered’s SC Ventures this year.
“TASconnect creates an ecosystem between the anchors, the suppliers, and the financing institutions in a fully automated and digital way. Our approach was to develop a technology that was tailored to the anchor so that the implementation of the technology is easy,” says Gautam Jain of SC Ventures.
According to Chua, as the need for better efficiency within the treasury increases, the solution is to embrace digitalisation.
01:57 The effects of the Covid-19 pandemic on the supply chain
05:23 The challenges faced by treasury functions
06:44 The importance of full visibility of the supply chain
07:44 How do you supply full visibility
08:37 What is TASConnect and its purpose
13:01 How do businesses benefit