hit the lowest level since President Trump was elected. Oil prices hit the lowest price in 30 years. COVID19 is exponentially growing. Emerging markets are having the worst start to a year since the asset class come into being in 1988. Latin America Currencies keep hitting lows against the dollar. Mexico, as one of the Countries that rely on oil revenue, saw their currency fall more than 20%.
All this news is our daily morning reads so far this year, the situation is screaming recession, while thousands of people lost their jobs in a more accelerated way than this editor note was published.
What does this mean for companies in terms of their supply chain?
Companies may shrink on resources, meaning some of your resources will be spread thinly onto many activities. At the same time every time you have conversations with companies to make solid investments, to take risks, to go beyond what you asked them to do, or provide better service the answers you are getting is that the economic downturn are affecting and thus may be difficult for them to “risk” what they have already built or have. Does this sound familiar to you?
I am sure that the opportunities in Emerging markets will become more difficult to find, at least the supply opportunities that will result in strategic partnerships.
In the Higher scheme of things, the Supply Chain will not have the resources to invest unless they feel comfortable with the proposal, and the certainty that the opportunity they have in front represents. In a nutshell, suppliers will not make additional investments unless the business proposal is a great or, even, extraordinary fit, and this is even more remarked on emerging markets such as the ones where you are looking for best pricing solutions.
India, Mexico, Vietnam, Thailand and Taiwan are examples of Countries where relationships are one of the most critical items when you close a deal. Having a person that you trust is not only ideal but necessary. Having people speaking the same language, understanding the risks associated with running a business, being empath to what they live on a daily basis, considering all the external factors such as local economy and government environment, all these factors become crucial to build a successful business relationship when an economic downturn such as the one we are experiencing happens.
Many global organizations try to build the relationships and provide that level of confidence to the suppliers in these countries, more than 80% of them failed. Why? Because global organizations do not have the experience from local business people that is required to have an honest and candid conversation with business owners in those countries, their trust is never achieved, and the result is that you are coming back to square one.
The global expertise on dealing with Suppliers during economic or social downturns will not get the job done, the reality is that businesses will get closed when you have a person that you can speak transparently and you can trust, and this is the reason why our team members are local business people, they are experts on Global Purchasing, they had been part of Senior Management roles on local and global businesses but more importantly they had been Owners of businesses in the areas where they live, where they are ready to help you. They will convey your requirements and guide all the conversations step by step, they are going to be emphatic at the time they have conversations with business owners because they understand the culture, the environment and the difficulties they are facing. This is the utmost and biggest differentiator at the time a business is closed. Having people that are local, that have the same culture, business understanding will boost your chances from 20% to more than 75%!
That is the difference maker for you, your resources and your company, we can help you improve your chances more than 300% with several local experts, business owners and purchasing professionals that will provide you a benchmark to compare between different suppliers and regions,
This is the help that Seeking Supplier will bring to you. Contact us! We are here to help you.