Key takeaways:
There has been a significant impact on global supply chains arising from the lockdowns in China that had already exacerbated existing constraints on a global basis.
When the port congestion will be easing up, one of the biggest challenges is around the inland logistics in particular, the trucking to get goods from factory to the port itself. Once you get the goods to the other side, you've run into basically a mirror image of the same problem of inland logistics, whether you're arriving in the West Coast of the US, or into the UK.
Supply chain issues to watch out for:
- The world needs to be prepared for more volatile and more expensive global supply chains
- A shift from “just in time” to “just in case” China will always continue to play a very indispensable role in global manufacturing, but you do see increasing dual sourcing from other parts across Southeast Asia itself.
Investment targets:
- As EmergeVest, we are passionate about the secure and sustainable movement of goods, data and funds across the world.
- We are particularly focused on helping Western businesses to enter Asia and be successful, and Asian businesses enter the global stage.
- We're investing in China and across Southeast Asia, as well as planning for a US entry for our flagship portfolio company, which is EV Cargo.
We think it is a great time to continue to invest in private markets. We see great value in our pipeline opportunities. EV Cargo is reviewing a pipeline of 10+ acquisition opportunities and expects to complete 4-5 acquisitions by the end of 2023.
Lessons learnt from supply chain disruptions:
- If you're a retail business, what is more expensive to carry some additional inventory or to miss out on the sale completely?
- The supply chain will carry additional costs overall through inventory and through just the impacts of inflation.
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