Retail column

Getting the goods

Planning, sourcing, communication – Michele Trzuskowski on how she tackles supply chain issues from sussing out your weakest supplier with long lead times to using online wholesale portals

We’ve all been through a multitude of issues over the last several years due to the pandemic. From shutdowns, to boosters, to rising inflation, and supply chain issues, who would have thought there would be so many variables to running your small business.

As we slowly seem to be approaching the end of the more serious health ramifications from Covid-19, we are still seeing deep supply chain disruptions and higher prices.

I recently read that many small business retailers believe that larger companies have an advantage over them in the current supply chain crisis because the larger chains have more buying power they get preferential treatment.

Therefore, they also have prioritised vendor status while smaller retailers are limited in resources and their ability to switch vendors.

While that may all be true, I’m in the camp that says smaller retailers still have a fighting chance because we are more nimble and agile than our larger counterparts, and in most cases better positioned to manage local supply chains and niche products. Still, supply chain challenges are continuing to be a hurdle to overcome.

As we all navigate this strained supply chain, along with rising freight costs and inflation, I believe focusing our efforts on planning, sourcing, and communication is key to leveraging our businesses through these crazy times.

Planning

With the disruption we are all facing it’s important to take a hard look at your bottom line. With all the extra surcharge fees and increased freight, along with

Sourcing

Sourcing goes hand and hand with your planning efforts. Use the last two years as your indicators. What product categories had difficulty with replenishment? What items are no longer being produced. I had several manufacturers discontinue either dinnerware or glassware lines due to overseas factory issues. In addition, I lost sales as customers didn’t want to wait more than six months for

Many customers found that Amazon couldn’t supply them any quicker than we could.

The goods just weren’t available

wholesale price increases, the cost of goods sold is going up and in some cases way up. It’s truly important to understand the numbers, even if they’re not perfect. This way you can better guide your decisions on pricing, mix, and overall strategy. Being informed is essential because it is not business as usual. You may need to ask yourself if it makes sense to stockpile certain products or place commitments with items that have a longer lead times. Obviously, this needs to be done carefully and strategically because small businesses are always resource constrained which is why solid planning really is key.

Waiting for product

Retailer Michele says she has had customers waiting over nine months for some flatware.

products that in the past, they were able to get in a matter of weeks.

Therefore, assess your vendors. Who among them may be your weakest link and can you find an alternative supplier for that product category? In addition, determine whether there are certain materials that may impact your suppliers. For example, stainless steel used for flatware comes primarily from China and India. Because of all the Covid shutdowns, sourcing this raw material that then goes to Italy or France where it’s forged has been increasingly delayed. I’ve had customers waiting over nine months for some flatware – who could have ever imagined? In other words, where are your risks and what can you do about them.

You may need to diversify and find some other vendors.

About T is for Table

T is for Table is a luxury independent boutique, with a focus on tabletop, in West Palm Beach, Florida. Open more than 20 years, it offers an experiential and inspirational space dedicated to helping customers tell stories, create traditions and celebrate life. The boutique offers everything from fine pottery, china, glass, serveware and table accessories, to home décor, jewellery and body products, and delivers a custom service with its custom engraving, home visits and gift registries. www.tisfortable.com

Using some of the online wholesale portals such as Faire or Abound really helped us in this area. I had access not just to local suppliers but smaller European vendors as well.

Communication

Regular communication isn’t just essential with your vendors, but also with your customer base. Higher costs are hitting consumers everywhere. They won’t be surprised if your prices have gone up too. I’ve had to endure many conversations about the additional surcharges we experienced and that I’ve had to raise prices for certain categories. Authenticity and honesty matters. Many customers found that Amazon couldn’t supply them any quicker than we could. The goods just weren’t available. We do a significant part of our business with custom orders. I had to be very realistic with delivery timelines to give realistic expectations.

It’s important to remind your customer the value you provide – do this often and consistently.

There is no one size fits all answer to our environment, but customers are still buying and spending – make sure you remind them where to shop. It’s not too late to act.