Today's changes are not about development
The business changes that are happening now, all the adaptation that is being talked about and written about, is not about development. Yes, supply chain reconfiguration has happened, and most companies have adapted to it. But how have they adapted?
The business changes that are happening now, all the adaptation that is being talked about and written about, is not about development. Yes, supply chain reconfiguration has happened, and most companies have adapted to it. But how have they adapted? They used to ship through one country, now they ship through eight. Freight transportation used to cost 100%, now it costs 100%+X. And X can be many times more than the original cost. The speed of delivery has decreased accordingly. It's like fixing an old water main. In one place we closed the hole, put a patch, now we wait for the next time where it will burst. That's how we run around, “plugging holes”. The current supply chains are unreliable. In fact, they are just “crutches”. This is, of course, better than nothing, but the result can be a reduction in cargo traffic, failures in production and realization of the final product.
Business can be compared to an elevator in a multistory building. You go up to a certain floor, and then you stop there. First you have to look around at the new level, understand the laws and rules that work here, get used to it, make acquaintances and build relationships. It is at this point that the very competition takes place, the result of which will be a climb to the next floor. Applied to today's business situation: it is obvious that we are not going up. The overall level of business has gone down, we have moved down a floor or several floors. The reasons are many, and mostly understandable. But that doesn't mean there is agreement and acceptance with all of them. That is why we can note a decrease in the sharpness of competition and some calmness, stability of the mood of entrepreneurs. This is not a positive trend. The presence of market competition is very important for the qualitative development of the market.