The war in Ukraine has changed the way we do business. Learn how the conflict has impacted the global economy and what businesses can do to adapt.
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By: Stella Ivanova, Head Of Supply Chain At Elica Processing
Our company headquarters is in Bulgaria, close to Ukraine, and we are doing a lot of business in this currently war-torn country. So, I thought I would share with you my experiences during the past months. In the beginning of the war, there was quite some chaos in terms of supply. As most companies, we were not prepared, and there was a period of uncontrolled market. Prices were increasing literally every hour. And even with those high prices, there was a high deficit of materials on the market, especially metals, which are our primary raw material. So, we had to make some changes.
CHANGING COURSE
The last two years have been hard due to COVID. We have a wide range of materials we purchase from all over the world, complicating the supply chain even beyond the current insecure economic situation. We are planning 6 to 9 months ahead, and for some materials even up to one year. This advanced planning gave us a kind of sustainability to go through these 2-3 months of ”blind market spot” and prevented us from taking the wrong decisions.
Initially we struggled somewhat with delays of materials of already confirmed orders. So, we adapted our approach and started acting proactively and search for backup solutions with a better delivery time and the same high quality that we always provide to our customers. In the chaos of the market, we followed flexible strategies for each separate project, ensuring that our customers would receive their machines in a reasonable period.
Currently, some of the prices of raw materials (metals) have started to go down. Still, the prices of all other materials with a high added value, are going up due to the constant increase of operational expenses. Speculations in the market are extensive. Unfortunately, we cannot avoid them, but we are following a methodology which is helping us to minimize them for our business.
INSECURE TIMES
Before the war had begun, we had already successfully made all the deliveries to our clients. And we are now ready to restart all negotiations and continue with each project. The problem is that our partners and customers feel insecure regarding the future of their investments. They just don’t know what will happen tomorrow. Therefore, we are all in a stand-by position and this is not ideal. On the other hand, our sales representatives, production department and assembling teams will try as possible, to re-organize their schedules and fit in for future export to Ukraine.
The EU assisted with some funding and that is good because it encouraged the people to continue with their work on the fields despite the situation. However, the truth is that the farmers need all harbours re-opened as soon as possible. Otherwise, all the effort and help will be worthless.
OUT OF THE BOX SOLUTIONS
Like all professionals, we must evaluate the situation from different aspects. Yes, we all suffer and lose a lot in our businesses, no doubt about that. It is easy to close deals in perfect conditions, but partner relations are built in challenging situations like the current ones. We are using this period to establish a sustainable supply chain for ELICA, where the place has only suppliers who are ready to share the risks and profits with its partners.
More specifically, we are dealing with the current challenges by working closely with our suppliers and giving them priorities so that they can modify their planning program according to our needs. Also, we increased our search range and started using our suppliers’ contacts who can connect us with new suppliers from their countries, even if it is not in their scope of production. In this way, we find alternatives and individual solutions for our customers in the short term.
ABOUT ELICA PROCESSING
Nearly 20 years the machines and technologies under the brand of ELICA are being designed and manufactured in Bulgaria, in the town of Silistra. The combination of an ambitious young team and the pursuit of innovation keeps creating newer and better solutions on the market.
ELICA Processing’s main expertise is delivering grain, seed, and food turnkey solutions. The company’s portfolio includes transport equipment for handling and storage of bulk material, processing equipment for cleaning, calibrating, and treating grain and seeds, dehulling systems for sunflower seeds, as well as laboratory equipment.
The challenge for the company is to create products that at the same time meet customers’ needs, regulatory requirements, and good manufacturing practices. Over 15 design engineers take care of realization of our clients’ individual requirements. By delivering equipment that features high performance, smart automation, and stylish design, we successfully maintain the reputation of ELICA Processing as a reliable business partner.
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