Elly Financial Technologies Limited
54 Poland Street, London, W1F 7NJ
54 Poland Street, London, W1F 7NJ
UK consumers will remember 2021 for empty supermarket shelves and long queues at petrol stations. Last year was also unusual due to the shortages of home appliances, construction materials, cars, and toys. Lack of supplies and shipping delays have become an issue across the world.
Undoubtedly, the pandemic has taken its toll. Global supply chains running smoothly for decades faced a myriad of systematically-linked obstacles. On top of transport disruptions, the energy crisis threw businesses at the brink of survival. In addition, prices rose, and the lack of labour force banished any hopes of returning to pre-pandemic levels.
Below, we discuss supply chain shortages in the UK and how this phenomenon became prevalent in the previous year. We’ll also include practical advice on overcoming the challenges as a small business with smart payment solutions.
In a normally operating market, the demanded and supplied quantities correspond. The balance proceeds when merchants sell item sat rates determined by market forces. As long as the circle remains uninterrupted, prices are stable, and consumer needs are satisfied.
However, if the demand for specific products or services exceeds the supply, a shortage happens. Prices begin to rise, and people can’t procure what they need. Such disequilibrium can get back to normal if the market gets replenished with the lacking product.
Previously, supply chain shortages in the UK were only temporary situations. But due to COVID-19, even experts can’t predict the long-term impact on global supply chains.
The ball started rolling with the increased demand for particular goods that manufacturers couldn’t meet on a short note. So, they had to shift operations and adjust to the market requirements for packaging materials and electronic devices.
What made matters worse was the labour shortage due to the fear of contracting the virus and the high infection rates. Plus, many parents had to stay home and take care of their kids when schools closed down. The most severely hit sectors that suffered massive labour deficits were manufacturing, transportation, and utilities.
Transport waiting times and bottlenecks blew the final stroke. All this led to record prices and supply chain shortages in the UK and a galloping inflation rate. Today, there’s no industry spared from fighting the consequences of the coronavirus.
Consumerism was already at its peak, and supply chains strained when the outbreak pushed them to a breaking point. COVID-19 shutdowns wreaked havoc and inflicted irreparable damage on the global supply chains. For over two years, lingering virus-mitigation measures have limited the efforts of governments and retailers to stabilise the market.
The reason why the crisis was so profound lies in the multifold and complementary factors leading to it. Vital industry players reduced the number of active workers due to fears of spreading the virus at their workplaces. Countries like China with zero tolerance to COVID-19 seized port terminal operations, creating backlogs across the globe.
As a result, the world economy went out of sync, with specific branches going offline during peaks. Plus, the labour shortages put workers in a position to negotiate for higher wages. This event, combined with the delays in shipping, lack of raw materials, and increased prices, might have a detrimental effect on the global market in 2022.
One of the most reasonable steps to combat supply chain shortages in the UK is to control your expenses and downsize where possible. Experts agree that the recovery will require businesses to rely on technology and refashion how they conceive payments.
In short, your company can save money and focus on stocked shelves and satisfied consumers by automating specific processes. Introducing an advanced payment processing device will help you run the store more efficiently. Moreover, you will cut costs on various aspects, including overheads, inventory and staff management.
Contactless payments further boost profitability and reduce expenditure. First, you save time per transaction and improve the cart abandonment levels. Second, customers appreciate streamlined and fast payments, and they are more likely to return to your place.
Finally, businesses can consider offering products or services online or remotely. This approach will eliminate real estate costs, utility bills, repairs, and office furniture. E-orders and processing are also more accurate, thanks to smart POS solutions.
Small businesses need to introduce integrated POS systems to enhance checkout speed and accuracy. These advanced solutions can help you collect payments flawlessly, organise better, keep customers satisfied, and gain a competitive edge. Here’s what else the system can do to diversify your revenues.
Introducing BNPL services into your business can attract customers hesitant to buy due to the high product price. Unlike credit card payments, their purchase will spread over several instalments with low or zero interest. This way, clients get their products right away, and merchants receive the entire amount the next day.
When shoppers pay with crypto, the purchase is final. Sales are also secure as there are no chargebacks. As a result, retailers can pamper new clients and manage cash flow efficiently. Moreover, payments occur within seconds, with minimal transaction fees even for international transfers.
Though battling the lack of supplies and increased demand can be terrifying, it isn’t impossible to win. Elly’s team can work by your side and help you push through and keep your business running smoothly.
We understand that staying on top of your operations and fostering clients’ loyalty is essential. That’s why we created Elly POS, a smart and all-encompassing solution for your small enterprise. Besides having all processes in one place, you can accept various payments, including cards, digital, and crypto. You can also enjoy the benefits of merchant cashback and low fees on transactions and terminal rent.