There is a saying in English- “A stich in time saves nine”. It means timely action can save lot of pain and losses. It applies more to business because no one know what would be impact of a small issue and how can it make or break a business.
A manufacturer supplying components to automobile business with a business of more than 100 crores recently came across a situation which he could have easily avoided had he taken timely action.
This business lost an order worth 20 crore i.e. almost 20% of his current business turnover. The order was lost due to high price of the components he quoted. It wasn’t a case of the buyer selecting a cheap product based on low price. The buyer was quality and timely delivery conscious and had very stringent norms when selecting a right vendor. Further enquires revealed that the competitor that got the order was really managing their cost well and hence could afford to quote a low price while providing the best quality.
As strategic growth advisors and consultants we have come across many such businesses that have ignored the basic element of knowing the cost of production. The business is going well, they have regular customers and the business is growing and they are having moderate profits so why bother is the normal attitude we have seen. Seldom they realise that they are creating a huge risk for their business.
Today every business is facing immense competition and every industry has new emerging players coming up with latest technologies and products. Therefore it has become MUST for every business to remain competitive. It can be done by having right offerings at right price and convenience offered to the clients.
Therefore not only cost optimisation on an ongoing basis should be adopted by every business but they also need to regularly review their processes & automated to enhance efficiency and productivity as well as review their product portfolio to regularly upgrade their products / services adding functions and features that are in high demand in the market.
In this particular case this manufacturer realised the mistake only after losing a huge order. He not only undertook the cost identification exercise but also a comprehensive business health assessment to thoroughly investigate what is going wrong in his business.
In-Unison has developed a unique 360 degree Business Health Assessment Model. The model covers comprehensive business assessment that identifies the unseen gaps, growth barriers, functional performance and maturity. We also identify the strengths and capabilities that can help tap right opportunities. The model covers further strategy formation on the backdrop of current state analysis and identifying right business opportunities and priorities to work upon..
The assessment has been conducted across many IT, Manufacturing & trading companies where after bridging the gaps, these businesses went on to generated 100 to 300% growth within 12-18 months of conducting the assessment.
If you are really hungry for growth and would like to bridge the gaps so that your business run & grow at ease; get in touch with our experts to schedule the Business Health Assessment.