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Project Background

Supply chain is the networks among a company and its suppliers to produce and distribute product. It includes a series of steps for the company to produce and deliver the product to customers, such as procuring raw materials or secondary products, move and transform into finished products, transport and distribute the products to customers and end-users. Many entities are involved in the supply chain including producers, vendors, warehouses, transportation companies, distribution centres and retailers. And the functions in a supply chain incorporates product management, operations, marketing, distribution, finance, customer service, etc. In addition to the aforementioned steps and elements in supply chain, the supply chain processes are typically supply planning, product planning, demand planning, sales and operations planning.


Supply chain management is therefore an important process because it optimizes supply chains and increases the efficiency so as to reduce costs and enhance the production and distribution cycle for companies, thus increase the competitiveness of companies in the business landscape. Moreover, supply chains for a company are highly intercorrelated; if one link breaks down, it will cause ripple effect and affect the rest of the chains, causing costly and pervasive impacts to business operations and profitability. Hence it is crucial to establish good supply chain management and identify risks and events that might negative impact the supply chain of a company.

Expected Benefit to SME

  • Industry advise and guidance in the international and regional contexts

  • Professional insight and practical experience sharing tailored to SMEs in Hong Kong

  • Operational and management skills in developing resilient supply chains

  • Technical knowledge for effective supply chain management

  • Increase SMEs’ awareness and business acumen towards macroeconomic trends that affect their supply chains

  • Grasp the overall big picture before delving into the actual supply chain resiliency strategy

  • Help SMEs organize and manage their supply chains more effectively

  • Increase SME's resiliency through technical and practical means

  • Improve SME’s competitiveness through the enhanced enterprise business resiliency, business continuity, risk management and mitigation, and operational efficiency.

  • Prepare SMEs to venture into new business opportunities such as acquiring new sources and supplies, regionalization of processes, and other techniques and strategies that help maximize opportunities

Justifications for the project


Difficulties faced by the target sectors

The current supply chain processes are tightly coupled among different geographical areas with strong interdependencies, hence worldwide or regional issues such as COVID-19 and China-U.S. trade war would severely collapse the ties and induce other unexpected risks such as reverse globalization.


Opportunities identified for the target sectors

 Our project can help build resilient supply chains to improve SMEs’ operations and mitigate risks in order to increase their competitiveness. In addition, not only would resilient supply chains strengthen SME’s operational efficiency, but also prepare them for capturing any new business opportunities with their versatile and adaptable supply chain management capabilities.


Analyse macro events from diverse perspectives

Our project will teach SMEs to analyze macro events from diverse perspectives and help them create new business opportunities with our advised strategies, professional guidance, and technical skills delivered.

Macroeconomic activities

Affect the broad economy of Hong Kong and the world, for instance, COVID-19, China-U.S. trade war, Brexit, protests, and strike within or outside Hong Kong, reverse globalization, economic expansion or recession, and related impacts concerning employment, government policies, financial markets, etc are macroeconomic activities.

Supply chain risks

External risks include demand risk, supply risk, economic risk, social risk, culture risk, country, and governmental risk, foreign exchange translation risk, political risk, technological risk. While internal risks include compliance risk, safety risk, operational risk, business risk, planning and control risks, mitigation and contingency risk, etc. 

Supply chain resiliency

The ability for the company’s supply chain to be prepared and adaptable to unexpected risk events, responding and recovering quickly to potential disruptions for it to return to its original performance.

Supply chain management

Helps SMEs to manage potential risks and resolve issues more efficiently by anticipating, reacting, and recovering from unexpected risks. In addition, a resilient supply chain boosts business continuity through redundancy and backup networks built in the supply chains for smooth business operations.

“Any opinions, findings, conclusions or recommendations expressed in this material/event (or by members of the project team) do not reflect the views of the Government of the Hong Kong Special Administrative Region or the Vetting Committee of the Trade and Industrial Organisation Support Fund.”

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