The tentative recovery of Dutch exports is faltering. This is mainly due to supply problems. Companies spend a lot of time streamlining their flow of goods, preventing them from taking advantage of the pick-up in demand.
The monthly Corona Export Monitor by evofenedex and credit insurer Atradius reveals that 45 per cent of exporting companies are still suffering from the impact of corona on sales. On an annual basis, this amounts to an estimated turnover loss of more than 20 per cent. Some 17 per cent of companies actually expect an increase in turnover, averaging 13 per cent over the whole of 2021.
Shortage of raw materials and high costs
Many companies believe the recovery could be faster. Demand is now picking up, but supply problems are more frequent. There is a shortage of certain raw materials and of semiconductors and computer chips, causing prices to rise. Exporting companies also have to dig deeper for international container transport. "Sometimes factories even have to close for a day because they cannot continue work. This makes it harder for companies to take advantage of increasing demand," observes Bart Jan Koopman, director at evofenedex.
Agile supply chain
Evofenedex expects the problems in the chain to continue for some time. The business association urges companies to plan ahead, and have a plan B if a supplier cannot deliver. "Once again, the importance of an agile supply chain has been proven," says Johan Kerver, manager of Supply Chain Management at evofenedex. "This requires good cooperation between the sales and logistics departments. Not to mention the possibilities of reshoring and nearshoring to get a better grip on your flow of goods."
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