Ways to improve your company’s position during turbulent times

The U.S. economy is currently experiencing one of its most turbulent stretches in recent memory.

With many obstacles to the MWD industry — $100+ a barrel oil, a fragile dollar, reduced consumer confidence and stock market instability — it has become particularly challenging for many businesses to sustain past years success.

The following are best practices that could assist in improving your current position:

Workforce

Re-evaluate the workforce and weed out low performers
Use margin per employee with productivity analysis to right size
Establish new training on systems, customer service and products
Develop business and leadership skills of managers
Improve your hiring process and acquire top talent from struggling competitors
Eliminate overtime

Operations

Identify lower/slower performing branches, customizing strategies for those locations
Cut overhead expenses and search for efficiency gains through process re-engineering
Explore outsourcing opportunities and strategic alliances
Improve your supply chain “partnership” through:

Pushing inventory responsibility up or down the supply chain
Evaluating and negotiating supplier pricing
Re-negotiating rebate programs
Challenging supplier fuel surcharges methodology

Customer service and profitability

Assess customer needs, modify strategy and continue lean work
Perform margin analysis by salesperson, customer, product line, etc., for appropriate actions
Assess customer pricing models:
Charge for extra services
Reduce delivery fleet
Assess overnight special delivery frequency
Modify invoices fuel surcharges
Drive value, not price
Adjust international sales royalties for exchange rates
Assess outside sales people contribution
Explore private label opportunities
Reduce walk-in business counter hours

Finance

Concentrate on the basics, create multiple scenarios and strategies for the year
Monitor scenarios, implementing corrective actions immediately if projections are missed
Perform breakeven analysis to determine levels of cost reductions required
Assess global trends and opportunities
Re-evaluate expansion plans
Look for down market acquisition opportunities
Evaluate real estate tax appeals based on current market changes

Consider some of these best practices with your leadership team to help manage in this tumultuous economy.

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