we are experiencing unexpected headwinds in on your supply chain, from commodity pricing, tariffs, lack of containers that ended up with skyrocket pricing on sea freight, component shortfall, labor shortfall, and with a Covid Delta Variant that is affecting the whole supply chain in ways we have never experienced before.
The worst problem for many companies is all these issues are resulting in the worst of the problems any company can have: Back Orders. 100s of companies in North America are behind on shipping products that would be sold or, in fact, were sold already. Thousands of retail floor spaces are empty, and customers are being forced to buy other brands, other products or just take the decision of not-to-buy anymore.
These companies are also creating a bigger issue on customer’s perception. Both, the retail floor chains, and the end-customer are building a perception that is working against these companies that will have an impact long-term on their top line of their P&L.
We are all facing a very tough time and, is time to act! If these companies do not made changes on their supply chain finding an improved supply chain, they will continue to dig onto a problem that will not go away. Yes! You are hearing it right, tariffs will not go away (remember that you were expecting the new Government to make that change?), these tariffs will stay longer and, potentially, continue to grow. The cost of commodities will not go down any time soon, the lack of labor force will stay there, and unfortunately the virus is staying much longer that what we could ever imagine.
Companies that keep focusing on piece price and not on the larger impacts will continue to suffer, they need to realize the overall impact on their brands and revenues. I applaud the companies that moved fast and put together plans to minimize that risk.
As a company, we have broken all our internal records helping companies redefining their supply chain entirely, from number of SKUs that we have resource to the percentage of success rate on any project we initiate. We are helping numerous industries, but, in specific Consumer Goods has been our biggest area of growth with nearshoring projects for above $750 Million Dollars that will be implemented in the next 2 years.
We feel very proud that more than 96% of the total spend we search for a new value chain is implemented on new, and better, suppliers that are helping our customers to have a solution to one of the craziest supply chain environments we ever faced.
Our growth with our customers has been exponential this year. We are happy to announce the opening of our European Headquarters in the UK in the next 5 months. This will facilitate our growth with Global organizations as well as providing another point on supply chain benchmark with suppliers in Europe that brings expertise on many levels of manufacturing. Truly excited about the opportunity to be in the UK and Europe in 2022.
Also, we announced today that our Mexican offices are growing in space, headcount, and capabilities, with the incorporation of the first strategic partnership with the top engineering & Business School in Mexico, which will provide the resources, technological capabilities, and engineering to help companies to improve their supply chain.
We have seen that a lot of our customers require an approach with Sourcing, engineering, quality, and supplier development. To those, we continue to help companies to bring entire operations to shelters and build new greenfield facilities which helped us to provide an offering of expertise that should help many companies suffering with their current supply chain.
Our growth and success are based on the trust of our customers, on their relentless focus to improve their supply chain, on their internal alignment with all stakeholders and a remarkable strategic vision. We are growing and improving because of your trust in us.
Lastly, to all our teammates I want to thank for your passion and your dedication. We would not be here unless results are not proven, our customers are coming back with many other projects to us because of the results you are delivering to them resulting on improving their bottom line of their P&L. thanks for the hard work!
For a better Supply Chain!