Supply Chain Financing and Trade Solutions Overview

This document is a technical report that outlines the challenges faced by global supply chains due to geopolitical tensions and environmental concerns. It discusses the shift towards reshoring and nearshoring, highlighting a survey indicating that 56% of large corporations are adopting a 'China plus one' strategy, with countries like India, Thailand, Vietnam, and Mexico as potential alternatives. The report details the importance of evaluating supplier reliability and the need for financing solutions such as purchase order financing and supply chain finance to enhance liquidity and efficiency in supply chains. It explains the processes involved in purchase order financing, including the approval process and the role of banks in facilitating these transactions. Additionally, the report presents a case study of Hiho Wheel, illustrating how Citi supported their expansion into Mexico by providing financing and banking solutions tailored to their needs. The document emphasizes the importance of robust trade solutions in navigating local market complexities.