Over the past two years, we’ve all experienced economic challenges as a range of world events have impacted the cost of living just about everywhere in the world. Every facet of society has been affected by current affairs like the global pandemic, ongoing international conflicts, the climate crisis and its accompanying unpredictable weather events, and a range of other issues that we see popping up in our news feeds every day. While we’ve undoubtedly experienced the impact of these happenings on an individual level, it’s important to note that businesses have also needed to adapt in the face of these global events.
How so? For starters, small business owners across the globe have been contending with supply chain issues, mostly resulting from ongoing disruptions to global trade activities. Trying to deal with all of these changes means small businesses must seek alternative methods for facilitating their business operations, including searching for untapped partnerships, establishing a global currency account for making payments to alternative international suppliers, and perhaps even looking for alternative markets to connect with or new industry niches to occupy as a means of diversifying their company offerings.
Let’s take a closer look at just a few ways that you can strengthen your company’s supply chain in this increasingly digital age.
Double Down On Existing Relationships
While it may be tempting to price-shop around, hoping to find the next great deal in a market that’s still reeling from COVID shutdowns, there’s something to be said for committing to those that you are already working with. Relationships based on a known entity and documentable history of rational decisions and performance can be worth their weight in gold.
Fear of the unknown is a natural and formidable enemy, and embarking on new relationships with overseas vendors is incredibly daunting in the current business landscape. While the rates offered by prospective new partners may be more attractive, you’re still facing the same uncertainty concerning supply chain issues, no matter who is on the other end of the transaction. Don’t forget, they’re also subject to the same market constraints as you are.
As a business owner, you need to ensure that you focus on the future and plan accordingly as the market is eventually going to get better. How do you want to be positioned when that happens? Would you prefer to maintain a mutually beneficial relationship with someone already known and trusted, or do you want to chase short-term deals with potentially shaky, unproven relationships?
Commit Long Term
While you should always strive to seek new offers, it’s wise to use these market fluctuations as an opportunity to strengthen relationships where there’s mutual trust and a solid track record of meeting commitments. Your established partnerships should be renewed by seeking long-term concessions and terms on both sides. Ask about wholesale and bulk purchase options, or perhaps partner with other businesses in your niche that may be interested in forming a group-purchase relationship with a particular supplier.
Be more transparent about what you need, and communicate your desires and commitment to being in business for the long term. This makes you more attractive to suppliers because now you’re seen as a stable partner in an increasingly volatile market. Remember, most suppliers crave the same stability as you. Nurture this stability by finding common ground and seeking avenues to expand the partnership moving forward so you reap the benefits when the economy begins to improve.
Support Your Community
Don’t discount smaller, local suppliers as a means to build your foundation. As a small business yourself, you already have a lot in common with other local businesses, which can make it easier to communicate and operate more on a personal level. It’s always easier to work in person, and stronger relationships likely happen because you interact and work with each other’s teams personally instead of only communicating by email.
As community members, you both have vital knowledge of the local market and economy, giving you both an edge when dealing with vendors outside your locality. Chances are you both prefer to establish relationships based on trust and family versus doing business with faceless, global conglomerates only focused on short-term balance sheet results.
Globalise Your Business
While striving to partner with other local businesses and suppliers is an optimal way to begin your startup or increase your brand’s existing footprint, the reality is that you’ll eventually have to start doing business overseas if your goals are to increase revenue exponentially. For this reason, it can be well worth partnering up with international suppliers who may be local to markets that you’re looking to enter yourself.
For instance, finding a decent US-based supplier can potentially allow you to save on shipping and distribution costs if you do decide to expand to a US market. All you need to do is establish a US dispatch centre if necessary or make other considerations for international shipping, alongside slowly building up a brand presence in this new market as well.
Invest In Supplier Relationships That Will Benefit You Moving Forward
Having solid relationships with your suppliers is vital in the current business landscape. As there is still a lot of uncertainty around the future of supply chain management for reasons way outside the control of business owners, you need to ensure that you can operate seamlessly and provide your customers with a reliable service moving forward. With the right relationships in place, you can enjoy more peace of mind knowing that you can deliver what you promise to your customers in an efficient, effective manner.