Afternoon Coffee: China’s global supply chain role may decrease; CFOs vetting future supply chain; Aavenir raises $2 million

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Cao Dewang, the billionaire owner of the Fuyao Glass Industry, has predicted that China’s role in the global supply chain will greatly diminish once the coronavirus pandemic passes, according to a new report from the South China Morning Post. Dewang told the post, “After the epidemic, the global industrial chain will reduce its dependence on China.”

Major economies are reassessing their dependence on Chinese manufacturing after the supply chain disruptions caused by the coronavirus crisis. However, it will be a difficult task for the U.S. and some European countries to shift production home or to other third-party countries after decades of relying on Chinese manufacturing.

CFOs plan to more thoroughly vet their supply chain

A new report from Supply Chain Dive says that PwC has surveyed more than 300 CFOs early in April about their thinking regarding the supply chain in the midst of the coronavirus crisis. Companies are studying where their supply chains are fragile and  where they are overly dependent on suppliers.

The survey reports that 21% of companies see supply chain issues as a “top three concern.” According to the results, 39% also are considering changes to their supply chain the long-term, so as to reduce risk. The report also claims the companies will consider more purposeful site selection and financial health for future product manufacturing.

Aavenir raises $2 million in seed funding

Business Standard reports that Aavenir, a SaaS procurement technology provider of contract management and strategic sourcing solutions, announced it has raised $2 million in seed funding from the venture capital firm Accel.

Aavenir aims to automate business processes using the workflow platform ServiceNow. The startup said it plans to expand its global reach with the seed fund and to accelerate the development of its products. It recently added a sourcing tool.

Verizon Media rethinking disaster recovery plans

The lessons learned from the coronavirus crisis has led many companies to rethink their supply chain structure. According to a new report from ZD Net, Igor Gashinsky, Chief Network Architect for Verizon Media, mentioned in a webinar that the company has had to rethink their entire supply chain.

Gashinsky is reported to have mentioned that even with a business continuity and disaster recovery plan in place, a backup plan had to be created to handle the disruptions to their normal supply chain.

One of the key takeaways Verizon Media has learned is that it is important to shorten the supply chain wherever possible, according to the report.

Finished auto industry faces storage issues

A new report from Automotive Logistics says the U.S. finished-vehicle sector is in “dire need of storage” due to complications and disruptions from the coronavirus crisis. The report quotes Michael Malakhov, vice president, Sales and Marketing of the Missouri-based finished vehicle provider Acertus as saying that vehicles originally destined for rental fleets, fleet management companies or dealerships now have to be rerouted.

“Many large fleet orders had to be repositioned into storage as rental companies were not able to take the delivery because of their own overflowing rental lots, as rental volumes dropped significantly,” Malakhov said, according to the report.

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