Over the last year or so, running a profitable business has been difficult for many sectors, some more than others. The importance of maintaining financial control and a positive cash flow has perhaps never been more vital to business survival. It goes without saying that to boost the health and performance of your business, you have to keep a close eye on profit, which means clear visibility of the money going in and out of the business. Yet more traditional monthly reporting and manual budgeting over longer periods of time can be damaging for your business because it won’t identify overspend at the point it happens (only later down the line – by which time it is too late to resolve).Read More...
Prolonged delays and cancellations of deliveries, staff shortages and a lack of delivery drivers are just a few of the problems faced by many. As a results, four in five businesses now claim they are seeing price hikes across their supply chain as a result of the supply chain storm. The last 18 months has been tough on lots of businesses so news of prices increases couldn’t come at a worse time.
Facing reduced product lines is just one part of the problem especially as there are no guarantees items will be delivered. This latest crisis really does emphasise the need for sustainable support from the Government to protect those businesses that are reaching breaking point. Cash is king and if price hikes continue, operators will have little choice but to pass on those costs onto customers at a time when businesses are struggling at best.
As we look towards the festive season ahead, a period that many consumer-facing businesses rely on for survival, the picture looks bleak if there is no light at the end of this disruptive tunnel. It really is vital right now that businesses look at ways to claw back operational costs, to avoid overspend and wastage and to make their money go further.
Regardless of the current crisis, supply chain management is all about information and informed decision making. Supply chains work best with complete visibility and inventory. Of course, there will always be blind spots and right now, the current crisis is causing multiple knock-on effects – some unforeseen. It is important that businesses are able to manage their operations in a lean and agile way. Automated eProcurement systems and business operating platforms like ours can help to save time and money by keeping on top of fixed spending limits, managing inventory, finance and reducing wastage. Having access to a wider network of alternative suppliers won’t eradicate the current issues, but the more options you have the better and the right eProcurement technology can help with this.
There is also a strong case for building stronger, strategic and valuable supply chain relationships to reduce vulnerability in the future. Either way, businesses need to start forward planning now to best prepare how they will tackle these growing challenges in the weeks and months to come.
October 5th, 2021