The last 18-24 months have drawn our collective attention to financial turmoil, economic loss and growing unemployment around most regions of the world.
Your own organization has likely trimmed inventory levels to meet the new demand realities; purged your “redundant” personnel and attempted to pare back debt requirements within your company. But are you prepared for possible growth?
- What will you do when the corner turns and the economy starts to grow again, even if at a more measured pace than the past?
- Do you have plans in place for addressing the stresses that will be placed on your suppliers, employees and business infrastructure to build back to even a modest level of growth?
Now is the time to take advantage of the slowdown and prepare your partners, people and infrastructure for the next big thing. I will cover each of these important categories in individual installments.
Partners
Whether you consider your suppliers strategic partners in your business or simply cogs in the business machine wheel, you will rely very heavily on those organizations for your future success. Take stock now to analyze the capabilities of your most critical suppliers to your business:
- How much have they downsized due to the lack of demand for their products/services?
- How quickly will they be able to ramp back up to full production when demand may double from historical levels in a timeframe of less than a quarter?
Maybe I’m drooling with optimism here, but you need to know your key suppliers will be prepared. If you are a supplier, take the opportunity now to inform your customers of your plans for addressing various business demand growth scenarios.
Collaboratively both buyers and suppliers need to map out a path to success when the financial freefall ends and growth resumes. You both will be better positioned to capitalize on the growth cycle if you have well-thought through plans for each potential growth/retraction scenario.
Coming up next: People
