Back in Business
Hong Kong has shown positive signs in controlling the coronavirus outbreak. Businesses are returning to a certain level of normalcy, while employees are beginning to work onsite again. Social distancing measures, sanitisation and compulsory quarantines have worked, creating an optimistic outlook on the control of the virus in the city.
As restrictions ease, the job market is likely to see a positive bounce in tandem with the improving economy. As normality resumes, supply chains previously severely disrupted will require workers to operate them again. Still reeling from the pain caused by the trade war, global supply chains experienced further pain from the temporary halt in operations as Covid-19 gripped Asia.
Resuming the Flow of Supplies
The supply chain is pivotal for any well-run business. When managed correctly, a company can expect improved customer satisfaction and improve its financial position. Many businesses understand the benefits and importance, meaning the job market for supply chain will likely be strong.
Companies will begin sourcing products leading to increased opportunities for people in the Supply Chain and Procurement industry. Leaders should consider preparing for an improved situation as the rest of the world follows Asia in recovering from the Covid-19 pandemic.
Even with the US tariffs and businesses looking to other supply chains, China will continue playing a strong role. The weakened RMB to the US dollar will offset some of the tariffs, and with the discussion of a “Phase Two” deal underway, the medium-term risk outlook for the supply chain industry will be stable.
The Digitisation of Supply Chains
The world is becoming increasingly interconnected. Globalisation has allowed business operations to be spread out in various locations for the best efficiency. The rising complexities of a multi-nation supply chain have pushed supply chains to take a digital transformation.
Amazon has hit 1 trillion in market cap in 2020, showing the incredible rise of eCommerce. As consumer spending becomes increasingly online, we can only expect supply chains to follow suit. Customers now expect a factory to home purchasing experience, with great service at the best price.
Lockdowns and home working arrangements have only contributed to the rise of eCommerce. With many analysts predicting an increased number of shoppers and strong revenue for a range of eCommerce platforms.
The requirement of fast and accurate order fulfilment needs an efficient supply chain. Digitisation will optimize the whole process. Businesses will be able to evaluate consumer demand peaks and troughs to analyse the current supply and demand needs. Enhancing warehouse operations and logistics will also be vital. Digitalization can automate orders and pin it against real-time stock, preventing overstocking and result in higher fulfilment levels.
Hong Kong’s Promising Market
Hong Kong has historically been a major trading city, home to one of the 10 busiest ports in the world. Strategically located next to manufacturing hubs with world-class transport infrastructure, the city is poised to continue to play an integral role in supply chains.
The Belt and Road Initiative and Greater Bay Area development will help thrust the Special Administrative Region into further growth as a logistics hub. For businesses, developing a strong supply chain and logistics team will be crucial for future success.
In the second half of 2020, we are likely to see business returning to some level of production and supply chains kicking back into high gear. The continued growth of eCommerce will forecast a strong job market for procurement, logistics and supply chain.
Links International’s recruitment expertise covers the Supply Chain and Procurement industry. Ensure your business is prepared for a resurgence and set it up for success. Find out more about how Links can find you the best talent in this competitive market.
3 Key Takeaways
A return to business operations
Covid-19 wrecked world economies and caused serious disruptions. However, we are starting to see a resumption of business operations in many East Asian cities. Hong Kong has seen a significantly reduced number of coronavirus cases, with the government pondering whether to reduce social curbs. The job market will likely see a bounce as operations return.
The Digital revolution of supply chains
Globalisation and eCommerce are pushing a digital transformation in the supply chain industry. We are likely to see more interconnected supply chains and an emphasis on digitisation to optimise functions.
Hong Kong’s important role in supply chains
As a premium logistics hub and close proximity to manufacturing countries, Hong Kong will continue to play an important role in supply chains. Businesses should prepare by recruiting professionals in the industry to set themselves up for future success.
Related Articles:
- How To Maintain Business Productivity During COVID-19
- When Will HK Employers Receive Their Subsidy Under the Employee Support Scheme?
- What is Employer Branding at a Time of Economic Downturn?
- Onboard- APAC 2020 Q2 Legislation Update
- Redundancy Laws in Hong Kong – What Employers Need to Know
Links International is an industry leader in innovative HR outsourcing with services such as payroll outsourcing, visa application, Employer of Record (EOR), outplacement, recruitment and more! Contact us for more information on how we can help leverage your HR function.
