How Overcoming Supply Chain Challenges Can Help You Build a High-Revenue Sole Proprietorship

Most of us didn’t think much about the supply chain until the pandemic. Today, even the smallest business owners remain in control of sourcing inventory and materials to maintain their competitive advantage.

To catch up on the supply chain issues affecting small businesses today, I recently spoke with Radu Palamariu, author of From Source to Sold, an overview of supply chain best practices, and managing director for Asia. Pacific and Europe for Alcott Global, a 30-person executive search firm that hosts quarterly events recognizing talented supply chain professionals and has built a community among supply chain industry players. Alcott Global also offers learning solutions and a technology database for the supply chain.

Elaine Pofeldt: Many e-commerce entrepreneurs have had a hard time working with their supply chain during the pandemic and are still running into issues. What advice would you give them to avoid shortages, given that they are not as big as Walmart?

Radu Palamariu: The problem with being small is that you are agile and can adapt quite quickly. Try to concentrate, find and be creative to find this type of solution. There is no point in trying to negotiate with the big logistics companies. They won't even care with you, because you don't have the volumes.

Elaine Pofeldt: Is there a resource you would recommend for accessing the economies of scale that large aggregators have?

Radu Palamariu: Google. It's safe to assume that the technology solution you need already exists. Also look at large aggregators. Take Shopify for eCommerce. Basically, you have all the systems you need from Shopify, from inventory to billing to how they pay you.

Elaine Pofeldt: It seems like someone can get into e-commerce quite easily without a big team if they know the supply chain.

Radu Palamariu: Literally, a friend of mine sells toilets, but stores the stock in a warehouse in Singapore, which is just an island. They come from China, Malaysia and Indonesia. It usually takes up to two months to order one in Singapore. Still, as he has it in a warehouse in Singapore, it takes one to two or three days and for some people that's important, so he didn't even necessarily make sure he got the best or the cheapest .

Elaine Pofeldt: Is this a sole proprietorship?

Radu Palamariu Yes.

Elaine Pofeldt: So maybe this approach to inventory is the next frontier for individual businesses.

Radu Palamariu: There is a futurist who says that the factory of the future will be a man and a dog. The man is there to feed the dog. The dog is there to make sure the man doesn't touch any buttons. This is close to my heart, because this is where we are heading towards automation at scale.

In the small business context, you need to be clear about the problem you're solving, the cost. Is it the cheapest? The fastest? The best quality? The most reliable? Be selective about what you actually offer and don't try to be “vanilla” and please everyone. Sell