In an already turbulent supply chain environment, the Ukrainian-Russian War will compound the problems already felt from the pandemic for many ecommerce business owners. While increased pricing and delays to shipping are expected, the inventory shortages for Ukraine and Russia’s top exports may be even more detrimental to businesses. As the global events keep piling on top of each other, many business owners are becoming curious to how they can make their business more supply chain resilient.
Largest impact will be Metal, Raw Materials and German manufactured products
Ukraine is one of the largest exporters of corn, wheat and sunflower oil which are all expected to be the hardest hit. In addition though, Ukraine is also a top producer of neon which is used to make electronic chips used in cars and computers. These chips were already suffering supply chain dilemmas prior due to labor shortages from the global pandemic; and with war occuring on the land it’s harvested from, we are sure to see impacts to the supply available for the foreseeable future.
While Russia is one of the largest producers of nickel and copper, which are extensively used in electronics, manufacturing and the construction of homes , they also supply Germany with oil and gas for manufacturing. Factories in Germany may also see a slow in production due to increased sanctions and energy restrictions as a result from this war. Another consideration many are taking into effect as well is that, Germany is home to many technology companies servers which are at risk due to the increased cyber attacks.
Germany relies on most of its oil and gas supply for manufacturing from Russia
Factories in germany may see a slow in production due to increased sanctions
Auto, auto parts, plastics and electronics are all top exports of Germany and will be affected
Technology companies that house servers in Germany may be impacted by cyber attacks
The materials and products impacted by the war, surely paint a grim portrait of what’s ahead for the supply chain. While we may have no relief in sight, and there are other ways businesses can gather supply chain resistance during this time of crisis.
Supply Chain Resilience
Supply chain resilience is not just being able to navigate the negative effects but also the ability to be proactive and pivot when supply chains face uncertainty.
In an increasingly unfamiliar and uncertain time, it is more important than ever for business to be able to react, adjust and adapt to the supply chain dilemmas through dedicated management and planning.
Business owners can take these steps to move towards a more resilient supply chain model today:
1.Identify the potential strategic leverage points in your supply chain
- In increased supply chain stress, companies may need to start prioritizing expenditures
- If there are multiple ways to acquire your products, having a detailed document of options will also allow your team to pivot when global events arise on the drop of a dime
2. Increase risk awareness and identify vulnerabilities
- Mapping your risks and vulnerabilities in your supply chain will help you understand which global events may impact you worse than others
3. Create more operational efficiencies
- Ultimately, being able to track and monitor your inventory through cloud based applications allows you not only to predict and solve for disruptors ahead of time but can also allow you to create shorter production cycles and time to market ratios than those that are operating off paper
Face uncertainty with certainty and clarity.
The world is full of disruptions that affect your day to day operations in your ecommerce business. Especially to your supply chain. From pandemics and war to changes in technology and consumer behavior we can anticipate the supply chain problems will only continue to be a more relevant concern going forward. Building actionable plans, incorporating technology and making sure you are staying ahead of your vulnerabilities is the best way for you as a business owner to face uncertainty with certainty and clarity.