Amid encouraging gains experienced by manufacturing sectors during June, price increases continue for many of the supplies required to support production, packaging and shipping.
As companies adjust to life altered by the novel Coronavirus outbreak, manufacturing is one of the hardest-hit sectors of the economy. In addition to being asked to adapt their assembly lines to produce personal protective equipment, their supply chains are being challenged from multiple sides. From a Maintenance, Repair and Operations (MRO) and office supplies standpoint, a number of essential items they once relied on are being challenged like never before.
In times of crisis, immediate challenges that jeopardize your ability to operate and serve customers deserve your central focus. While apparent pain points get quick reactions, the underlying business activities that support your ability to function can’t be overlooked.
Indirect Spend presents complex challenges but brings opportunities for increased efficiency and cost control. Managing this expense area becomes more difficult due to the nature of indirect sourcing: smaller average supplier spend, more suppliers, maverick spend, and a more complex stakeholder environment.
Profit hides in Indirect Spend. When it comes to finding and protecting that profit, there are two challenges. The first is recovering profit from under-managed spend. The second: creating a competitive advantage from the strategic management of spend.
The e-commerce explosion is leaving retailers scrambling to differentiate themselves through excellent customer experiences. Think about it. In a traditional store, a brand that focuses on offering deeply personal, nuanced services can do so through interpersonal interactions and amenities. How can you replicate that experience online? In practice, it happens with data and specialized packaging. Secondary packaging is essential here, as the strategy empowers brands to replicate a boutique-like experience when sending packages to customers.