Confidence is growing that the end of the Covid pandemic is now in sight. The time is right to survey how the commercial and operational landscape has changed and to determine how your business model needs to be adjusted to address the new realities. The recent experience of companies varies from sector to sector. For some, such as those involved in home delivery, the pandemic has brought considerable growth. For others, such as those involved in manufacturing, traditional retailing or hospitality, reduced demand and challenges within the supply chain have made life extremely difficult.
Of concern now, is the likelihood of reduced consumer spending as interest rates rise, taxes are raised, and energy costs increase impacting on consumer demand. It will also be some time before the availability of labour returns to something like normal and shipping costs reduce to pre pandemic levels. In addition, companies are now faced with the need to respond to the call for sustainability and planned legislation with regards to carbon emissions. For many companies, it is now clear that the business models that worked prior to the pandemic are no longer fit for purpose and need to be reviewed.
Areas of possible focus include:
- Reviewing sources of supply to improve availability and resilience
- Reviewing stock holding policies for both raw materials and finished products
- Reviewing current infrastructure in the light of changes in sales volumes
- Seeking ways to reduce headcount through increased automation and improved operational efficiency
- Reviewing the mix of fixed and variable costs within the supply chain
- Reviewing the use of contractors to ensure they represent the best service choice and value for money
- Adjusting service levels in the light of changing demand
- Achieving a sustainable operation
Davies & Robson has provided support to companies through the industrial turmoil of the 1970’s, the technological revolution of the 1980’s and the financial crisis of 2008 providing analysis and advice on how best to structure supply chains in response to changing demands. If you would like to know how we could assist your organisation we would be delighted to talk to you on 01327 349090
