As we move into 2023, we are addressing high inflation rates, higher interest rates, the possibility of a recession, high energy costs, and geopolitical uncertainties. Therefore, the main challenge as we go into 2023 is to right size our inventory, which now costs more, and have it in the right places so that we can react quickly.
As a manufacturer of specialty chemicals, our challenge is not only to manage the finished goods but also secure the optimum raw material supply. So we are shoring up our existing sales and operations planning process and putting focus on the accuracy on forecasting, real customer demand, capacity matching, and supply.
In 2022, we saw sub-optimal reliability in transportation and communication between transport providers and shippers. This led to increased inventory in transit which was not useful to the consignee, the shipper, or the transporter as it was occupying unproductive space or working capital. So, the focus will be on discipline, both internally and externally, ensuring that what is indicated through forecasts, schedules, and contracts are actually adhered to.
There will always be volatility, uncertainty, complexity, and ambiguity in the supply chain, but collectively this should not be used as an excuse for nonperformance but as an opportunity to differentiate ourselves. To achieve this goal I am encouraging a candid discussion with all parties on the table to seek an operational solution. I think the time is ripe, after all the disruptions that we have had in the last two years, to get together and remodel using our collective experience and the new technologies that have emerged; of course this should include components of ESG and sustainability.