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KPMG Supply Chain Seminar and Roundtable Meeting

Date: 15/21/22 April 2021 Time:14:00 – 17:30

Date: 15/21/22 April 2021 Time:14:00 – 17:30

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Agenda

Date: 15/21/22 April 2021

Time:

14:00 – 14:30 Register 14:30 – 17:30 Roundtable Meeting

Location:

KPMG Shanghai Office 23F, Tower 2, Plaza 66, 1266 Nanjing West Road, Jing’An, Shanghai
Fee: Free
Contact: Jessie Jiang Tel:+86 (21) 2212 4250 E-mail:js.jiang@kpmg.com

Background

Multinational enterprises (“MNC”) who operate global trade are facing increasingly complex and changeable international trade environment.

On one hand, the rise of trade protectionism and trade friction has been increasing globally, which brought instability of international rules.  Such change may lead to increase of operating costs, and even result in temporary stagnation of supply chain.  Smooth operation of enterprise could be unexpectedly interrupted and future strategic development plan could be stunted.  Moreover, the continuous recurrence of the COVID-19 pandemic has set numerous obstacles to the free flow of goods and personnel across borders and will have a profound impact on the global layout of supply chain in the future.

On the other hand, many countries are more focused on establishing bilateral and multilateral trade policies. These measures are aimed at promoting free flow of goods, services, personnel, capital and information between countries or within regions, making full use of the advantages of countries/regions, so as to achieve the purpose of trade regionalization.  In this regard, it is particularly urgent for MNCs to optimize the existing supply chain layout, take advantage of free trade policies based on future development strategies, reduce operational and tax costs and avoid possible trade barriers.

For multinational enterprises with existing global layout, in such a complex international environment, the efficiency of supply chain will face many challenges. From the conventional integrated supply chain to the flexible supply chain, it is necessary for MNCs to reevaluate the efficiency of global supply chain and optimize them from a new point of view.

For local enterprises that focus on “Go Out” strategy, it is particularly important to rationally plan the layout of procurement, production, processing, logistics and other functions. In the situation of coexistance of numerous trade agreements and trade barriers, it is necessary for domestic enterprises who are ready to stretch out to the global market to think carefully about a forward-looking layout and leave room for potential adjustment at any time in the future, as well as global tax implications (including tariffs and income taxes, etc.).

Different from purely a business point of consideration on efficiency and profit and loss, KPMG professionals think that research and planning on non-commercial rules and policies should be prioritized for many enterprises at early stage. Moreover, such work can provide decent guarantee and protection in terms of objective feasibility and flexibility. As a global consulting firm, KPMG has worked with many local companies to analyze their business needs and design global supply chain layout throughout the implementation. Over the years, KPMG has come up with multiple one-stop solutions for “Go Out” and multi-point solutions for “Go in”. KPMG would like to share and discuss with you the following aspects based on past successful cases:

  • Overview of trade regionalization policy
  • Introduction to decentralized supply chain
  • Case sharing

Schedule

“Go out” Session –Domestic Companies (April 15th)

Along with the growing business of domestic companies, more and more of them have expanded its focus onto global market, expecting to evolve into one of the MNC, utilize its advantage, refer to international experiences, strengthen traditional weakness, and eventually become bigger and stronger. We are excited to see this trend and understand the obstacles how complicated global situation and countless incoterms have hindered the expansion of traditional companies. We will be focusing on how to “Stabilize” the early stage, and “Accelerate” the developing stage. 

“Readjustment” Session – MNC (April 22th)

MNC established its global supply chain network long time ago, which cannot adapt to current situation and lacks flexibility. Due to the advancement of trade environment, more and more MNCs have realized that the concept of “One Stop” or “Centralized” supply chain arrangement is facing growing challenges from emerging industries and technologies. However, a complete restructure does not seem to be a practical solution. Hence, the current issue is how to minimize the necessary adjustment, revisit the reasonableness of import supply chain of local subsidiaries and spread the overall supply chain risk. As such, we have collected and organized tailored cases to address to all attendees. 

English Session (April 21, TBD)

Considering that there are quite a few foreign management personnel in local subsidiary, we have planned to organize English session to meet such demands and share our thoughts and experiences. We will set up an English session if the number of attendees meet the minimum requirement (over 10 registering companies). Look forward to your attention.

Centred in development and focused on global future, KPMG China supply chain team is looking forward to our heated discussion. 

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