By Phillip M. Perry
High-interest rates and slower economic growth will put increasing pressure on business profits in 2024. The good news is that economists expect the Federal Reserve to lower inflation to desired levels by the end of the year. Robust housing activity, high employment and optimistic consumers will help the nation sidestep a recession.
By Lisa Anderson
The supply chain has become an excuse. Although there has certainly been a slew of supply chain challenges that carry on with baby formula shortages, rail backlogs, computer chip issues, hurricane-induced delays, fertilizer scarcity and China’s zero-COVID policy delays, the supply chain should no longer be the excuse. Only the proactive will thrive in the years to come.
By Lisa Anderson
Inflation continues to plague the world with escalating prices across a spectrum of products and services. The price of oil and gas has continued to rise and supply chain challenges persist, creating inflationary pressures across the board. Even though interest rates are rising, inflation isn’t yet getting under control. Thus, what are the best of the best doing to thrive under these extraordinary pressures?
By Lisa Anderson
Manufacturers utilize less than 20% of the full functionality of their ERP systems. But the key question is, why does it matter? In today’s inflationary and supply chain disrupted business environment, manufacturers need to automate and digitize to “do more with less” and thrive during these volatile times. One important way to achieve this goal is to further leverage your ERP system where it will make a difference.
No matter which ERP system you use or how archaic, there will be opportunities to use additional functionality. In 30 years of working with manufacturers, I haven’t had one example of a client that couldn’t benefit by expanding the use of ERP.
By Lisa Anderson
With record-breaking price increases and lack of material availability, manufacturers are experiencing increasing threats to profit margins and maintaining strong customer service. To add fuel to the fire, they are also now having to consider plans to prepare for a potential recession. It is becoming increasingly difficult to navigate these volatile times, and the most successful are not doing it alone. Instead, they are pursuing collaborative programs with supply chain partners. What is clear is that there will be more winners and losers created than at any other time in history. Thus, it is worth figuring out how to work with your supply chain partners to ensure mutual success rather than mutual demise.
By Lisa Anderson
According to the Wall Street Journal, consumer prices are the highest in 40 years. It certainly doesn’t seem to be letting up. In fact, with the Russia-Ukraine war, there will be continued inflationary pressure on products related to oil, gas, commodities and food at a minimum. Clients and colleagues are seeing record increases in the costs of raw materials, components and supplies. Strong companies are prepared to thrive during these inflationary times. They are resilient and willing to take action as conditions change.
By Lisa Anderson
According to FactSet Insight, revenue growth is predicted at 7.5 percent for 2022 which is substantial when considering it is following record-breaking growth in 2021. Clients and colleagues are seeing record increases in sales revenues and pricing. The companies that have product and can satisfy customer needs are continuing to grow faster than the average as they take market share from the competition, whereas the companies struggling and waiting for supply chain disruptions to ease are deteriorating. The strong are getting stronger, and the weak are getting weaker.
There are several operational and supply chain priorities required to be ready to absorb additional sales. A critical one is to have base planning and scheduling processes with an eye to collaborative and concurrent planning processes with programs such as SIOP/ S&OP (sales, inventory and operations planning), what-if scenario planning and advanced insights into down-the-line impacts. In essence, the best way to say “yes” to profitable revenue growth is to have the ability to rapidly assess capabilities and impacts and be assured of your ability to execute.
