Success never equals excuses

In business?Success = Achieved results. However, in the new normal of the post-COVID world, achieving results is more difficult than in the past. We repeatedly hear explanations such as: a company is ready to ship a badly needed part except that a chip is missing because it is sitting on a container ship in the harbor. Is this a valid reason for not performing? Yes, of course, but the truth of the situation is that?Success?≠?(No Results + An Explanation).

I have coined the term “COVID incompetence” to refer to the lack of results that we are currently experiencing in the marketplace. A big part of this incompetence stems from the “bull whip effect” that occurs within supply chains. For example, when COVID first hit, customers decided to buy a little extra toilet paper so they could stay home and not run to the store as often. Although toilet paper usage did not go up, the quantity of rolls sitting on the shelf at people’s homes did go up. Next, when customers learned stores were low on toilet paper, there was a mad rush to buy more. Consequently, the purchasing agents at the store ordered more and more. Because the production capacity was fixed in the short term, the lead-time for deliveries increased. The longer lead-times caused ERP (Enterprise Resource Planning) systems to order even more because the orders had to be placed sooner to get them in time. This created an avalanche because more orders further increase the lead-times.??

The supply chain “bull whip effect” is when a small change in buying habits (represented by slightly moving the handle of the whip), results in huge disruptions downstream.??

Currently, many products are at the tail end of the COVID bullwhip. The bullwhip tail has finally hit sonic velocity. The large number of orders are finally coming in; just as the COVID relief funds have now been fully spent, and The Fed has increased interest rates. Thus, spending has tightened as all of the huge warehouses are bursting with inventory. Consequently, the buying of additional product will stop, and the bullwhip will snap the other direction. (I have no doubt that this will create a recession.)??

Business spending is lagging consumer spending because the personal COVID relief funds were distributed quickly whereas the Employee Retention Credits (ERC) are being released slowly. Many companies have not yet received their refunds. Consequently, many business-to-business sales are still going strong whereas consumer spending has already tanked.

As business leaders we have to swim through these shark-infested waters and achieve the required results. Throughout the last 2 years, GNB has been committed to success and not explanations. We have gone to great lengths to support our customers such as manufacturing the components ourselves instead of making excuses for our supply chain’s missed deliveries. Although we haven’t been perfect, our customer satisfaction ratings are the highest they have ever been. If you are tired of the COVID incompetence, please call GNB. We are a customer-centric organization and are committed to helping our customers achieve success.