The impact of COVID and other world events like the invasion of Ukraine will see another disrupted year for New Zealanders with continued supply chain and labour challenges. We have summarised a recent article from the Chartered Institute of Procurement & Supply (CIPS)1.

Here are four things that may impact businesses this year:

1.  Labour & Material Shortages

   Supply chains will continue to struggle with shortages of labour and raw materials, substantially disrupting lead times. To lessen the impact on your business, you should plan for these shortages where possible. 

2. Cashflow impacts with increased inventory

   With shortages expected over the coming months, many businesses reliant on finished or raw materials are keeping their stock levels higher than usual. Higher stock levels impact cash flow but may protect your business against the current labour and material shortages.

3. The increased digital focus for purchasing

   COVID has drastically changed the ways many organisations do business and how we consume and purchase goods and services. As more buyers use digital to stay connected, they are also transacting more online. This behaviour change also reflects the way businesses manage their supply chain and will likely result in a transition to more businesses enhancing their digital capabilities in this area. 

4. Increased shipping costs and delays

   Shipping costs have been increasing for a while now, and it is unlikely there will be any reprieve in the short term. Furthermore, New Zealand's geographical isolation and size represent a relatively small proportion of shipping volumes and expenses, so we are a low priority in capacity allocation. These costs are often passed onto retailers and, therefore, the end-user, driving up business costs across the board.

There's never been a better time to review how your business can reduce its costs. With over 50 Suppliers and contracts to choose from, n3 Members can reduce costs on their business's everyday items.

Find out how n3's group buying power can reduce your business costs. 
Talk to n3 today!