purchase order management, inventory optimization, demand planning and other tasks can seem too costly or dif cult to use, “and SMBs likely just won’t bother with it,” Polakoff says. “They keep going along with what they’ve always done because that’s often the mentality of the small/mid-sized company: We know our product, we’re going to manufacture our product, and we’re going to keep enhancing and differentiating the product,” Polakoff says. “Where the supply chain is concerned, it’s just something they have to do.”
The need for small businesses to have access to alternative suppliers has been particularly stark in recent years with supply chain disruptions such as the pandemic, China tariffs, and Russia’s invasion of Ukraine. A transportation management system (TMS) can help and is a crucial source of ef ciency in the supply chain. But “the TMS eld of players has exploded,” Polakoff says, and the array of options can be confusing for SMBs. On the other hand, “one-off tools” to manage global product sourcing,
that a company needs to manage the volume of containers they need to move. Charges are based on the containers moved, ensuring companies pay for the work instead of the presence of the robots. In this arrangement, both the vendor and the client invest in ongoing ef ciencies rather than a vendor being incentivized to sell as many robots as possible, Elazary says. Robotics-as-a-service is a business model “that’s very suitable for mid-sized to small businesses,” says Elazary. inVia focuses on robot productivity and not the quantity. “It aligns incentives,” Elazary says. “I encourage mid-sized to small businesses to look at this business model, because it enables them to concentrate on their business. “The customer is there to move containers,” he adds. “They’re not there to gure out how many robots they need and how to maintain them.” STRONGER DECISION-MAKING The technology marketplace offers an array of widely available platforms to SMBs that “play a dual role in not only providing accessibility to goods and services, but also simplifying historically complex processes,” says Mahdi. For instance, cloud-based platforms help SMBs access freight forwarding and customs brokerage and have supply chain management tools to help track and manage orders. And platforms such as Upwork provide improved access to the global talent pool. “For the rst time, SMBs can recruit top talent and leverage their experience to grow their businesses,” Mahdi says. Meanwhile, he says, Zipfox is democratizing access to supply, starting with Mexico, making it easier for small companies to use simple contract manufacturing in the country as an alternative to China. “You don’t need to be a large business to capitalize on the resource next door,” Mahdi says. “You can make 100 pairs of jeans—it doesn’t need to be a full container.”
WHAT’S AHEAD FOR SMBs?
2022 marked the third holiday season when small and mid-sized enterprises (SMEs) still dealt with the lasting impacts of the pandemic. From global supply chain disruptions to labor shortages and inflation, the holiday season created challenges for U.S. businesses. However, the past three years have also resulted in some unexpected opportunities for SMEs, such as the dramatic increase in online shopping and e-commerce activity. To gain insight into SME business expectations and outlook for 2023, DHL conducted a survey of U.S. SMEs. Here are the key findings, compiled from the nearly 2,000 responses. Supply chain is the top challenge, but inflation is a close second. When asked about expected business challenges in the 2022 holiday season, 46% of respondents said supply chain delays were their biggest concern followed closely by inflation, which nearly doubled from last year with 35% saying it was their biggest concern in 2021.
SME SURVEY WHAT HAVE BEEN THE BIGGEST PRIORITIES FOR YOUR BUSINESS TO OFFSET RISING COSTS DUE TO INFLATION?
11% Eliminate physical stores
17% N/A – not increased
12% Reducing sta
60% Raised item services costs
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