‘It will not be a regular Christmas for both retailers and consumers’

Nobody really pays much attention to the global supply chain. Until it gets broken. Labour shortages, factories lying idle in China, rampant inflation and ships getting stuck in the Suez Canal are all combining in a perfect storm that could wreck Christmas. Few know more about all this than Rory O’Connor, founder of Wexford-based Scurri, whose software powers over 100 million parcel deliveries per year and has recently raised €9m to keep expanding in the UK market.

How did the supply chain become broken?

It is what the media refers to it as – a perfect storm. Global issues include labour shortages throughout the supply chain, underinvestment in the delivery and supply industry over the course of several years which is now catching up on us all, and the recent Chinese manufacturing issues.

What do China’s idle factories mean for our Christmas shopping?

Numerous Chinese factories were forced to shut down, halting production. Brands who have suffered as a result of this include Apple, Tesla, Microsoft, Intel and HP – mainly those in the electronics sector. Electronics are extremely popular gifts for shoppers each Christmas, but this year customers eager to get the new iPhone 13 may find themselves disappointed.

How bad will it be?

It will not be a regular Christmas season for both retailers and consumers. We have to be prepared to see price increases across certain goods, stock shortage issues and delivery delays. Retailers will also have to be prepared for a huge amount of bulk or panic buying by customers concerned they will not be able to get their hands on certain products closer to Christmas.

When will it be sorted?

Retailers have very little control as there are much larger forces at play – regulation of overall supply chain issues is key but does not look to arrive this side of Christmas.

What was the biggest challenge in your business so far?

Initially, the company focused on a business to consumer model. However, a transition from business to business transformed Scurri. There were a lot of challenges along the way about customer service and, particularly, customer acquisition. The customer acquisition cost was quite high. The average contract value was reasonable, but the frequency of purchase was not that high.

How does a small company grow worldwide from Ireland?

I remember sitting in the shop with my grandmother and customers coming in and out. There was always something in the back of my mind about setting up a business.

In my early career, things had moved on. I had been promoted every couple of years, and I was on the bus somewhat. But there was always something burning at the back to do something myself.

I think consultancy accelerated that. I was looking at other companies, and I knew I could do that. I knew I could create something.

I find that tech companies do have the capacity to grow internationally – particularly if you are looking to solve a problem worth solving and that has been part of the success of Scurri.

Is Ireland small business friendly?

Looking at our tax rates and the agencies in place to aid start-ups in Ireland, it would be easy to say that Ireland nurtures entrepreneurship and small businesses.

Some Small businesses have been decimated by the Covid-19 crisis and are still in recovery. That being said, many new businesses have started in that time and are thriving. It also inspired people to spend more locally and from smaller businesses.

What did your parents teach you about money?

We didn’t have a lot of money when we were kids but my parents were very good at getting value for money, they were frugal because they had to be.

I worked summer jobs/weekends to earn my own pocket money from an early age, which also made me appreciate the value of money and the rewards of hard work.

My parents were also good at living within their means, I don’t ever remember them having many loans or availing of credit which meant that although it may have been a little harder when they were younger, they appreciated it later in life and they have a great life now that they are retired.

I think there is a good lesson in that.