Does the carrier strike affect you?
If you are a Retailer, the answer is surely “yes”, to a greater or lesser extent. Here are 4 consequences of the transport crisis that can affect you (and how to avoid it!).
o Learn how to prevent the consequences of the transport strike
o Scarcity of raw materials, closure of activities, extraordinary cuts, price increases…
o And also, all the important dates of the strike!
The first thing to keep in mind is that prevention is better than cure. It is true that it is difficult to guess what situations such as COVID, the current war in Ukraine or the transport crisis will bring; however, there are previous measures that can be applied and avoid, or at least mitigate, its consequences.
Now yes, let’s go with the 4 consequences of the transport crisis that affect Retail (and how to avoid it)
Scarcity of materials
If carriers don’t leave, your goods don’t arrive. It is easy to explain, but very difficult to measure in terms of effects. It does not matter if your company is dedicated to the service sector or if it focuses its activity on technology; If raw materials are scarce, prepare to see your resources dwindle, whether it’s the coffee in the living room or the gasoline your employees need to get to work.
Solution:
Have a Plan B at hand, both at the level of suppliers and the amount of stock. Make sure you locate an extra supplier of the raw materials you need or that contribute to the daily activity of your business. As an alternative, try to keep your stores at a level slightly higher than strictly necessary.
Closure of business
The transport crisis does not affect all sectors equally; not all companies either. For this reason, while some will remain afloat, others will be forced to temporarily close. If you count on the company across the street to lend you a hand in bad times, remember that when it rains, we all get wet.
Solution:
If you depend on other businesses to carry out your activity (collaborations, external contracts, suppliers, consultants, investors, etc.), make sure they are still running before taking your projects for granted.
Strikes and extraordinary cuts (yes, in addition to the transport cut)
When situations such as a general strike occur, it is foreseeable that there will be conflict between the affected parties. This translates into manifestations, imbalances in the usual routines and new setbacks.
Solution:
Do not settle for the current state of things: although it sounds alarmist, consider the possibility of unexpected changes, both for better and for worse.
Price hike
When a service is scarce, a chain reaction occurs that inevitably culminates in an price hike. At Analyticalways we don’t have a crystal ball to predict which industries will inflate, but we do have the predictive technology needed to adapt your inventory to the current ecosystem and optimize assortment.
Solution:
If logistics and raw materials become more expensive, try to compensate your budget by reducing investment in other aspects of your business: automatic expenses that are not currently necessary, dispensable subscriptions, or optimize your supplies so that the blow to your pocket is lighter.
In case you are wondering what to expect in the coming days and when the transport strike will be resolved, we give you the key dates to keep in mind:
March 14 – Transportation strike begins
March 24 – The Ministry of Transport meets to specify aid actions
March 27 – Demonstration in Madrid
April 1 – Implementation of aid
Has all this information about the transport strike helped you? We hope it has!
(By the way, make sure you understand the difference between transportation strikes and supply chain outages, because they’re not the same thing! The supply chain is a whole cog; transportation, one link.)
