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4 Steps to Steer Your Business in 2022

Posted by BMcGoldrick on Dec. 30, 2021  /  Board Blog, News  /  Subscribe 0

by Melissa Freeland, Director of Digital Content Management, ASCM NYC-LI
December 31, 2021

Due to the disruption caused by the COVID -19 pandemic, many more people now understand that we live in a global society and that global supply chains power the world.

1 - Develop a plan

Even in the face of uncertainty, businesses need a goal. And you must develop a clear path to reach the goal. 

• Have more than one plan ready. The environment is volatile. Because of this, you should be ready to change plans. Have a plan A, B and even C (especially in this environment). Try “low”, “medium” and “high” profit plan examples. Or maybe you label them “ideal”, “less-than-ideal”, “not-so-great”.
  
  
• Break them up into time-buckets. As you progress into 2022, you’ll realize your actual profits and compare those numbers to your plans. You’ll observe trends and changes in the consumer environment. You can reference your future plans to decide the next best move that makes sense to your business. Time-buckets can also prevent you from feeling overwhelmed. 
  
  
• 12-month plans tend to be most optimal as they allow you to plan out your activities surrounding purchasing, marketing and sales efforts. If you are unable to develop a full 12-month plan, at the bare minimum go for a 6-month timeframe - but remember to keep in mind lead-times, what that means for purchasing power and seasonal selling opportunities. 

No matter what you call them or the length of time you use, be ready to be nimble and shift at any moment’s notice.

2 - Vendor relationships

• Take a review of the relationships you have with your current vendors and consider how you can strengthen them. A Just-in-Time management strategy does not suit businesses during a global crisis, so working more closely with your vendors will benefit your business. 

Ask yourself the following questions: 

• Who are your top vendors?
• Where does your business fit within your vendor’s capacity? 
• What are your vendor’s contingency plans? 
• How often do you communicate with your vendors? Would a video call develop a more trusting relationship as opposed to a phone call? 
• What is their on-time delivery? 
• How do they stand up to your quality standards? 
• Consider the geographic location of your vendors - are there laws which they must adhere to that you may be unaware of, especially during crises? 
• Do you need a secondary or tertiary source? Is it time to consider sourcing materials closer to your business?

By answering these questions, you’ll be able to identify current strengths with your vendor relationships - and be proud of them. You’ll also be able to pinpoint opportunities where you can take steps to improve. Developing more open relationships leads to trust. As a result of this, your likelihood of hearing when something goes wrong will increase - thereby allowing you to take alternate actions. You will discover things you didn't know about, and it will enable you to develop your own contingency plan to follow when the next surprise comes along. 

3 - Internal relationships
Communicating with internal stakeholders is the most rudimentary and necessary skill that doesn’t take a lot of effort - and is never more necessary than now.

• Everyone who has skin in the game should be keeping each other apprised of major activities and challenges. Marketing, Sales, Product Management, Demand Planning, Procurement, Sourcing, Quality, Finance, etc. Working in silos is a thing of the past. Basketball legend Michael Jordan said “Talent wins games, but teamwork and intelligence win championships.” 
  
  
• Meet often and allow everyone to have a voice. Consistent, open communication across all parties is key to overcoming challenges and successfully reaching a goal. I’m willing to bet several of you can dredge up an example of a time when silos were present (even recent times) and a mission failed or took longer because not everyone on the team was kept apprised. 

4 - Customer relationships

The retail environment has shifted from being business-centric to customer-centric. When quarantines went into effect, the online marketplace increased to levels no one could have predicted. According to statistica.com, US retail e-commerce revenue increased by 19.9% to over $431B in 2020. By 2025, that number is forecast to increase another 20%, well over $563B. Businesses need to continue to find ways to satisfy demand and change the way they service customers.

• Use creative marketing techniques to make it as easy as possible and help your customers find what they’re looking for. 
• Allow customers to place advance orders. Remind them of the benefits of ordering now vs. later. 
• Highlight options: $25, $200 price-points. Is your purchase for a child, teenager, adult? Are you buying for mom, dad, cousin, uncle? 
• Gift baskets are always a hit - try letting your customers build them.
• New variants are causing more caution - consider curbside pickup or delivery options (if you haven’t done so already). 
• Think about your website - does it need to be updated for easier customer experience and ordering? 
• Consider teaming up with another local business for co-branding or co-marketing efforts - when done well, it can work to spread brand awareness and benefit both businesses.
  
  
• Keep your customers apprised of their order status (where possible). Throughout the pandemic, customers have become more aware of the supply chain challenges especially via mainstream media. They tend to be more tolerant of delays. Even an estimated time of arrival is better than a solid promise date. Keeping them engaged throughout the entire process is better than silence. 

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