Those who act now can thrive in the long run
Politicians and thought leaders have been preaching it for a while: after the pandemic, the economy needs a fresh start. The first virtual World Economic Forum being held under the title “The Great Reset” is an example of this. But the new start can only succeed if companies set out sustainable cost management measures. A tour de force that the future of many companies rests on.
The pictures that went viral around the world were astonishing yet frightening at the same time.
Planes parked in hangars or on the tarmac. Freight trains halted at stations. And from a bird’s eye view, the world’s oceans looked in some places like a game of Battleships: row upon row of them, anchored in ports across this planet.
Reducing costs in Procurement: EMERGING stronger from the crisis
The months of standstill and lockdown have led to some bizarre situations. What can an airline do if it is not allowed to fly? What can a factory do if it cannot produce anything because it is missing parts that it normally sources from all over the world? What can a restaurant do if no guests are allowed to dine? For many companies, this phase has been an economic disaster. For others, it has meant watching from the sidelines, hoping that their industry will not be impacted next. In either case, it is now as important as ever for companies to streamline their operations and drastically cut costs to protect turnover as well as margins.
- Step 1: Determine and leverage your own position
- Step 2: Managing demand and implementing immediate measuresn
- Step 3: Managing demand and implementing immediate measures
- Step 4: Optimizing costs throughout the supply chain in the long-term
The coronavirus pandemic has hit companies hard in some cases, either on top-line, on supply, or both. Whether a company has lost or gained from the crisis, now is exactly the right time to reorganize and optimize cost management. This includes immediate measures as well as long-term strategies. In addition to establishing a stable and cost-effective supply chain, procurement must also anticipate how markets will change in the future and take trends such as digitalization and sustainability into account. This is only possible if the internal arrangements are right, procurement is based on sound analyses, and the best possible use is made of the company’s own position, for example through classic negotiations or auctions. Only those who position themselves correctly now can hold their own in the long-term.
Other interesting contents of the magazine issue:
- Spare Parts Management – Spring cleaning that can pay dividends
- Restructuring and Competitiveness – “The Partners in the Ecosystem Need to Pull Their Weight”
- Performance of Private Equity Investors – Generating Sustainable Profit
- Working Capital Management – How to achieve financial freedom despite the crisis
- People @ INVERTO – INVERTO Office France
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