The risk of a lengthy recession in the UK is now a distinct possibility and the pound dropped to its lowest level in nearly 40 years…
And while this poses a major challenge, it also presents an opportunity for businesses that are able to take advantage of it.
For many businesses, the chain of production can involve a complex network of other companies creating goods and services, on which they depend. The chain is constantly evolving, so it’s critical to keep up with new technologies, changes in the market, and new ways to produce goods.
Companies that can adapt their production methods and find new ways to produce goods can increase their chances of surviving a recession and coming out of it stronger.
IT’S TIME TO REVIEW YOUR SUPPLIERS
First and foremost, you need to take a close look at your suppliers and review their operations. During a recession, it’s paramount that you focus on quality over quantity and make sure that you’re getting the best possible product at the cheapest possible price. If you can find quality suppliers who are able to keep prices low, you’ll be in a much better position to succeed during these tough times.
Working with dependable and trustworthy partners is more vital than ever during a recession. It’s also critical to get rid of any partners that don’t see working with you as a collaboration. New business relationships can take time to nurture, so there’s no better time to explore other options.
VERTICAL INTEGRATION OPTIONS
The threat of a recession is when many companies reconsider their growth strategy. Often overlooked in a recession is pursuing vertical integration of the supply chain, potentially acquiring complementary businesses that can provide different products and services to your own, but are higher up or lower down the supply chain.
In the current economic environment, vertical integration is a smart way to boost growth and reduce costs. By consolidating different parts of the supply chain, business owners can improve their efficiency, create new markets and deliver new products and services.