How to combat recession with operations

Filed in archive General on February 14, 2009

Coupa, provider of on-demand procurement solution has published a whitepaper with the title "10 Secret Strategies To Recession-Proof Your Business". I took a look at it and found some interesting points which I share with you here (Note: Not all of the strategies were at the same level, some of them were really marketing based):

Secret #1. Really Monitor Non-Payroll Spending: An average business does a poor job of tracking how much money it is spending on non-payroll expenditures. There's just too many other things to do. So most businesses use the reporting from month-end close to track what's already happened. But by "driving their business from the rear-view mirror" all too often there are nasty surprises.

Secret #6. Ask Your Suppliers For Advice: : Suppliers are very likely an untapped resource full of valuable business advice. So go seek them out. Many will happily brainstorm with you on how you might stimulate demand for your product or service. And some will have cost-cutting ideas too. Building good supplier relationships will pay off in bad and good economic times.

Secret #9. Innovate and Use Your Savings to Fuel Growth: The best companies continue to innovate during a recession. They know individuals and businesses have to buy goods and services even in tough times, so there's still a market out there. Reaching it may require a change in tactics however. In a recession, generally, people are looking for a product that is better, more cost effective, and even smarter. Innovation is the path to serving those needs. You can apply the innovation principle to product development and service delivery, but also to your marketing and sales tactics. A common turn-of-phrase we hear during downturns is: "We used to sell on value-add, but now we sell on saving money." Take the time to adapt your message to your customer's shifting focus on the
economy.