SCM C19: Cross-border Supply Chain Management in the aftermath of COVID-19

COVID-19 has fundamentally changed how the global automotive industry, especially the aftermarket communities, conduct their businesses, including the management of supply chains.

COVID-19 has also brought about wider adoptions of many new business practices in cross-border supply chain management, which are made possible by technologies such as: cloud-based computing, advanced live-streaming applications, improved communication networks and devices, and the promise of revolutionary 5G technology.

The profound impact of the coronavirus pandemic has already transformed the traditional supply chain management across the border into an updated business model that can be called as: Cross-border Supply Chain Management post COVID-19, or simply SCM C19.

The focus of SCM C19 is to address the specific challenges to the international buyers who are no longer able or willing to travel overseas for their procurement operations, such as:

    ◆   How to identify and pre-qualify new suppliers

    ◆   How to inspect and audit potential suppliers

    ◆   How to manage QCs such as pre-shipment inspections

SCM C19 also addresses some of the long-standing obstacles in overseas purchases that have been made even more serious by the pandemic:

    ◆   How to lower the inventory cost by avoiding large-volume or high MOQs purchases 

    ◆   How to improve the working capital turnover by cutting short the time from ordering to selling.

SCM C19 provides a general framework for the global aftermarket communities to deal with these challenges and many other new norms post COVID-19:

With SCM C19, business in Europe and the US are still buying from suppliers overseas such as China, and many operations of cross-border SCM are still based on the traditional on-the-ground activities. But the whole process is now supplemented by both the technologies which enable remote and real-time buyer participations and the third-party service providers who are working locally in China and overseas, so that although international buyers are not coming to China personally to meet the sellers face to face, cross-border purchases can still be conducted smoothly and safely across the ocean.

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