We all know instinctively that better information leads to better decisions. It’s always easier to navigate in the day, rather than at night. Despite this, too many decisions continue to be made on gut feel and anecdote, despite the risk that a bad decision could leave the company floundering on the rocks.
Almost every route to higher revenues depends on a reliable and predictable supply chain. When asked about whether their supply chains meet these standards, most company executives answer “no”. Whether you are the CEO, CFO or the Supply Chain Director, knowing that your supply chain weaknesses could suddenly derail this quarter’s numbers, keeps you awake at night! If 2020/21 has taught us anything it is that managing long term risk, sustainability considerations and the financial impact of an inefficient supply chain, can make the difference between enterprise success and failure.
There are few things more consistent in business than the rule that companies need cash to grow. Cash is far more important than profit in the short term so working capital deserves special attention. Pretty much all businesses who have survived the pandemic now meet the definition of “growth business” and are now caught in the cash paradox. Whether 2020/21 was a historic year because Covid boosted sales or you saw a big dip below previous levels from which a rebound is expected – the story of 2021-22 will centre around growth.