Stay Humble Stay Hungry

Higher oil prices have given a boost to government spending in the region. Most companies are producing at full capacities. Sales teams are thumping their chests on showing great numbers. Revenues are up even though the bottom line is under pressure due to supply chain disruptions resulting from the post covid revenge spending, raw materials and commodity shortages and Russia-Ukraine untimely clash.

In some instances supply chain realignments have provided companies with a new found competitive advantage. This is a regional world, pandemic and cold war mentality is reshuffling the supply chains, not only in the energy sector but most of the goods and service industries.

This is a supplier's market right now, especially in the oil exporting world. Customer orientation, service delivery and customer satisfaction are dinosaur concepts in this new world. Companies want to see their bottom line grow with this immense growth in the top line figures. In this race to increase the profits along with persistent cost pressures, companies are forced to, or they have chosen to look away from the basics; CUSTOMERS.

When this post covid pandemic hangover will subside along with the raging war in the east of Europe, businesses would need to unlearn a lot of things. When this realignment of supply chains will begin to settle down, new found chance competitive advantages will fade away. Bad habits picked up by different departments and functions will kill many companies. New competitors will enter the markets, customers will revenge switch from their suppliers. Consumer will have the last laugh.

Logistics departments will have to improve their service to the customer. Sale departments will have to make those sale calls and compete for business. All businesses will soon need what they always need, CUSTOMERS.

There is only one true competitive advantage, satisfied customers. Companies that are forgetting their customers in this supplier's market will find it hard to retain and find customers when the market turns around. And sure enough the markets will turn around soon.