While the COVID-19 pandemic remains a health crisis for communities across the globe, it also has serious implications for the economy and businesses as they continue to provide vital services or adjust to the changing needs of their customers, suppliers and workforce.
At Vendigital, we are actively supporting businesses, providing immediate advice and insights to help manage their key priorities.
An evolving response
We are working closely with businesses across three stages as they respond to this unprecedented challenge.
Phase 1 – Crisis Response: This is the containment stage where businesses need to react to the immediate impacts from the crisis. Responding hour by hour, day by day to a an ever changing landscape. The primary focus needs to be employee welfare whilst taking decisive actions to safeguard revenue and shore up the cash position through cost out initiatives and government funding.
Phase 2 – Crisis Management: At this point the immediate impact is fairly well understood with businesses looking to find a steady state during the crisis. The focus needs to be on driving improved revenue whilst ensuring the operating model is fit for purpose with a effective and efficient workforce.
Phase 3 – Crisis Recovery: At this stage businesses start to see a return to normal operations. The focus needs to be ensuring they are able to ramp up quickly and capitalise on the market with consideration as to how the crisis has impacted the longer term future for the industry.
Where should businesses focus?
In an ever-changing landscape it can be difficult for businesses to prioritise different or conflicting issues. Here we outline the five key areas essential for any business to focus on during the immediate response, through to the eventual recovery.
Cash
The primary focus is to ensure there is sufficient cash available for the business to continue operating. Businesses need a comprehensive cash model to scenario plan for every situation. With this clarity, clear and decisive actions can be taken to reduce costs or seek additional funding.
Supply Chain
Impact assessment needs to be carried out across the supplier base, identifying critical areas impacting operations. Alternative routes to market or a change to the stocking strategy needs to be communicated and deployed quickly. Where there is opportunity to delay or stop non-essential supply, direct communication is required with the suppliers.
Supply Chain
Impact assessment needs to be carried out across the supplier base, identifying critical areas impacting operations. Alternative routes to market or a change to the stocking strategy needs to be communicated and deployed quickly. Where there is opportunity to delay or stop non-essential supply, direct communication is required with the suppliers.
Operations
The balance of supply and demand is essential to maximise output whilst ensuring the workforce maintains a high utilisation and efficiency. To enable this a new operating model will need to be developed taking into consideration both employee welfare and business performance. Opportunities to reduce overall cost (materials, labour and utilities) need to be part of the new design.
Revenue
A critical review across the business portfolio is required to access revenue and margin performance. In light of this, a revised portfolio strategy needs to be developed to determine areas to safeguard, areas to stabilise and areas that are no longer viable in the current climate. The approach to recovery needs to be considered when making strategic decisions to ensure effective ramp up.
Revenue
A critical review across the business portfolio is required to access revenue and margin performance. In light of this, a revised portfolio strategy needs to be developed to determine areas to safeguard, areas to stabilise and areas that are no longer viable in the current climate. The approach to recovery needs to be considered when making strategic decisions to ensure effective ramp up.
DATA AND ANALYTICS
The use of data and analytics is essential to ensure the right decisions are made. Consolidation of data sets will enable more accurate forecasting, providing clear visibility of historical and projected performance. This will remove ambiguity and enable the leadership team to take action based on meaningful insight.
To support businesses during this crisis, we have developed a COVID-19 insights module to help make informed decisions faster.
Our Insights
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