My family recently found itself in need of a new vehicle. After 10 years, our minivan had too many kilometres on it and it was time to go car shopping. We had been putting it off due to the rise in prices and supply chain challenges being felt pretty much everywhere. Finally, we decided we couldn’t wait around anymore and had to make a move.
After test-driving last year’s model (the new models weren’t actually available at the dealership yet due to shipping delays), we were placed on a waiting list. They couldn’t promise an exact delivery date. We’re still waiting for our new vehicle as I write this.
Despite the uncertainty around buying it, we felt comfortable in making the purchase because the dealer we went to has been in business a long time and knew how to navigate the supply chain challenges they’re facing. They were honest and up-front with us and didn’t make unrealistic promises in order to make the sale.
Seed processing equipment is very similar. We’re facing shipping delays like everyone else but are finding that savvy seed processors aren’t letting global supply chain challenges stop them from starting the projects they need to keep their businesses thriving. They know that:
Prices aren’t likely going to come down. We might eventually see the cost of some goods come down a bit, but if and when that will happen is anyone’s guess. The longer you wait to see if the cost of something will come down, you’re missing out on the revenue that you could be making by upgrading your facility.
Some price increases could be illusory. Markets are unpredictable. The war in Ukraine has driven down the value of the euro as compared to the Canadian dollar — as much as eight or nine per cent. As a result, our prices really haven’t gone up that much in the grand scheme of things. We’ve been in this business a long time, and our customers trust us to do right by them. We’re willing to pass along some savings that we have on foreign exchange that is helping with with the hit on higher equipment costs.
That brings me to my final point.
A reliable, mature supplier who’s been in the business a long time knows how to navigate the supply chain waters. We’re able to track shipping containers, so we know where a certain piece of equipment is at any given time. We’re not after the cheapest freight forwarder in order to keep costs down. We have a solid shipping network in place that we leverage to ensure cargo gets to where it needs to go as fast as possible.
Navigating today’s supply chain challenges isn’t such a big deal if you work with a good provider who has your back. Don’t wait to move your business forward — there’s no time like the present.
