The global supply chain will get a lot worse before it gets better.
We are seeing a longer lead time in logistics. The global shortage of dockworkers, warehouse workers, and truck drivers, coupled with the law of demand and supply are driving costs up.
Major ports all over the world are facing major congestion. Tens of thousands of containers are stuck on docks and vessels are on hold. Take Shanghai for example, the strict lockdown and testing protocols in the city of over 28 million people to curb the Covid outbreak has a far-reaching impact on the logistics industry. There’s a long lead time at air freight warehouses at Shanghai Pudong Airport and the port, Shanghai-Ningbo. The domino effect continues to compound issues of global supply chains.
A sobering truth but it is not all doom and gloom. After all, disruptions can present opportunities.
Whether you are in eCommerce or B2B, young startups are encountering similar challenges. Dealing with the ebb and flow of business is all part of the journey, and those who stay agile and focused can emerge stronger.
Being flexible is not only a mindset but an attitude that must be adopted by every member of the team. We started 2022 with an ambitious plan but come March, everything changed. The war in Ukraine was devastating. Nick and I had to make hard decisions and we pivoted, with the support of our entire team.
Fast forward to May, and we are in a good position despite the hurdles. The race is far from over. With a potential downturn ahead, we have to change our strategy and review our short-term goals without losing sight of the long-term game.
Organizations that stand the test of time aren’t those with the most impressive balance sheets. Of course, working capital is important but those with strong cohesion cultures can outpace the rest. They are ones in which employees have a sense of belonging, see value in their contribution, and are committed to organizational goals. Hiring the right talents who are team players, and supportive of one another cannot be overlooked.
3. Prioritize operations
This speaks to companies that are in the eCommerce space like Accel Club. Our commitment to customers is a priority, and that means ensuring quality, variety, and speed. Focusing on operational excellence is a key to our success.
Investing in people, streamlining processes, and building a strong foundation is the cornerstone to weathering a bad storm.