2021 saw a rise in shipping and oil costs, along with major supply chain issues due to disruptions, shortages, COVID challenges, and Brexit. Now, in 2022, the war in Ukraine has worsened global retail problems, impacting 86% of SMB supply chains.
The resurgence of Omicron in China has also led to predictions of a significant impact on the supply chain throughout the summer. Small businesses are feeling the strain, with a survey revealing that larger companies have an advantage in procuring inventory.
The survey found that smaller businesses struggle to meet minimum order sizes and pay premium prices, affecting their ability to secure inventory. It’s important for SMBs to openly discuss challenges with suppliers and explore creative solutions within their network.
Furthermore, the survey showed that many retail SMBs have been dropped by vendors due to their size. Diversifying vendors and building strong relationships can help mitigate supply chain disruptions.
With costs on the rise, 50% of SMBs have increased retail prices to offset expenses. Communicating these changes to customers authentically is crucial for maintaining trust and competitiveness in the market.
While there is no one-size-fits-all solution, small businesses can take proactive steps and adopt strategies to navigate the ever-changing retail landscape.