November 2021: What is going on with supply chains?
As a firm focused exclusively on micro-market industrial acquisitions, we at Ilion try to keep our fingers on the pulse of the strategic questions confronting the small businesses that we acquire. Right now nothing is more pressing than supply chain disruptions, and we have put together a perspective that we hope helps you to understand how we think of our role as investors and business owners. Another benefit to writing frequently is that it helps us to clarify our thinking and then remain accountable to do what we said we would or explicitly change our opinion, even when the going gets tough.
We hope you find this memo helpful. The top takeaways are:
Many of the problems facing the supply chain are the result of government policies
However, American entrepreneurs have always found ways to profit in the midst of politically-driven disruption
This time will be no different, but investors must look for and bet on management teams who will be willing to try new things in the face of change
Small businesses in particular will benefit from adopting big company practices and can get ahead of their competition with exceptional supply chain management and a careful sales and operations planning process