Read The new paradigm, a UBS e-magazine that brings together insights, from leaders across the firm and beyond, on the top challenges faced by business owners.
This year has been filled with an overwhelming number of challenges in the world—from the geopolitical fallout from the invasion of Ukraine to historic inflation levels. While the Federal Reserve’s path of interest rate hikes to combat inflation and the accompanying market volatility have taken center stage, there has been one group that has been forced to face all of these economic challenges head on—business owners.
As a business owner, perhaps the biggest challenge to your company has been the consistent bottlenecks in supply chains. What was once attributed to supply issues related to manufacturing shutdowns in China in 2020, quickly evolved into a demand-side issue that was ignited by worldwide lockdowns and a pause in the global economy. The pandemic may be fading, but its impact on global supply chains has forced companies to reevaluate their supply chains to correct vulnerabilities that had never been considered pre-COVID.
Beyond hiring a supply chain management professional, we recommend business owners take the following steps:
- Develop a comprehensive knowledge of your supply chain. What suppliers are critical? Who are your key partners? What are your current strengths and weaknesses?
- Select suppliers strategically and collaborate. Be intentional about clearly articulating delivery requirements. Get to know your vendors personally. Communicate frequently.
- Align growth plans with supply chain capacity. When planning your next growth phase, focus on solid demand forecasting. How would a surge in demand affect your supply chain infrastructure and your team?
- Anticipate risks. Develop contingency plans and identify local buffers that may foster resilience. Although domestic suppliers may charge higher prices, you can typically find better quality with greater shipping control.
- Invest in ‘smart,’ automated supply chains. AI driven supply chains offer real-time end-to-end visibility, quick responsiveness, and AI-supported decisions.
The UBS e-magazine The new paradigm brings together insights from leaders across the firm and beyond to tackle some of the core issues that are top of mind for business owners, and to offer solutions to not just overcome these challenges, but to thrive as the economy eventually turns the corner. Some of the additional topics covered include the current state of the M&A market, insights on employee behavior and values, ways to improve employee retention, exit planning, sustainability, and case studies from entrepreneurs.
This article is for informational and educational purposes only and should not be relied upon as investment advice or the basis for making any investment decisions. The views and opinions expressed may not be those of UBS Financial Services Inc. UBS Financial Services Inc. does not verify and does not guarantee the accuracy or completeness of the information presented
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