A shallow dip into the Condev’s case
From 2018, 2019 to 2021, Condev’s revenue climbed from 100m to 142m then to 181m, whereas the profits were around 0.5m and negative 0.3m for 2021.
Very great sales deploitation during the tough time!
Why did the business fail to make money?
The liquidation signalled low financial and operational resilience.
There could be many internal and external contributing factors, like the ruthless market environment, inflation etc.
And Condev’s supply chain had not been supportive enough. The weakness could be around:
· Material costs
· Logistics costs
· Costs on delays
· Subcontractors managements
· Risk management (against the negative impacts from Pandemic, weather and war)
· Contractual protection
· And more
From Condev’s financial reports, the weak supply chain could be there for 10+ years.
Then, there is also thinking: would it make a difference if Condev had quit some projects when balancing between the winning of projects and the profitability + viability of the business?
Typically in Australia, many companies are of very capable owners/managing directors/CEOs. They brought the businesses to life, led the teams going through years of growth and expansion, conquered difficulties and accomplished great successes throughout the life of the businesses. Esp. many of them are so talented on sales! When things sell well, the issue of big costs is covered by profits.
Unfortunately on the other side, buying and shipping are really not fancy. Most people did them personally and have a feel as to how things are. Being misled by the low threshold, people of different levels of SC understanding could easily arrive at the point: it is how it is.
Among many negative things, Covid-19 pushed the 'supply chain disruptions' right in front of people. Many companies shrank, paused, were sold or collapsed in the last 2 years. They didn't have enough resilience to sustain tough fluctuations.
Supply chain disruptions, is it really a god-send external factor that not much we can do?
I remember around 12 years ago, after i strung together a company’s SC functions to make things lean and effective, the owner hushed often the colleagues mentioning the savings i introduced (as if i didn’t know…). The naughty owner, however, gave me the 2nd corner office of the two.
A dollar saved, is a dollar earned.
🔆 This is Camel's vision: Australian businesses should enjoy effective supply chain as humans enjoy the support of their spines.
With healthy SC, we could take it 'for granted' like how we 'ignore' (or trust) the spine, plan and focus efforts on other strategic goals as business development & sales, with the understanding on what your SC can support to happen.
Would you like to know how effective your SC is?
🍊 We offer free checkups (for Australian businesses only for now).
If you hope to grab this oppo., pls register your interests from home page.🍋
Comes to supply chain, Camel could be your ally to get over the difficult time together.
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