We are delighted to say that we have worked within a really interesting mix of sectors. This is unusual. Many consultancy practices specialise in one sector or perhaps two.
The thing is this…. the experience gained from operating at a senior level within SMEs for over thirty years is transferable across sectors. The issues are largely the same with subtle variations. Ultimately, the client will require some form of performance improvement exercise and the methodology to achieve this is well known to 538.
Online retail (or e-commerce) is an exciting sector to work in. It is truly customer focused and leading edge. There is a massive drive to improve the customer experience and to reduce delivery leadtime. This is continually changing the rules of the game for online retailers. The trick is to achieve these service level gains without impacting upon profitability. Knowing your margin inside out is key here.
Wouldn’t it be great if, as a result of the Coronavirus crisis, the UK started to bring manufacturing back home? The key to manufacturing is to understand your operational costs and establishing reliable standard costs. You need your Finance Team to be true business partners with your Ops Team. You need to be monitoring standards every day / week and be alert to any variances away from standard.
A very high proportion of the goods we consume are manufactured in low cost economies and often in China and South East Asia. Importing is therefore all about controlling the Supply Chain – making sure the quality is right before it leaves the port and ensuring that the right stock is in the right place at the right time.
A key success factor is getting your stock profile right – what is moving and what isn’t, what is achieving the right margin and what isn’t, what is on the water and what isn’t, what is going to need an obsolescence provision?
On the sales side, it is all about analysing sales and margin – by channel, by territory, by customer, by product. A sophisticated ‘Margin Management’ system is key to driving better sales and margin performance.
Similar to the previous sector with added complications ie partnering with raw material suppliers to control the flow of materials and minimising WIP (work in progress). You need to be able to react to changes in customer demand so (a) you need agile manufacturing and (b) your S&OP processes need to be slick which requires your Commercial Team and your Ops Team to be working hand in glove. Easy to say, not always easy to achieve.
This is a fast moving and very demanding sector. This sector goes hand in hand with the online retail sector featured above. These guys are the last step in the chain and so they have to be extremely slick in their operations. If there is one little hiccup, which could be entirely outside of their control (motorway accident for example), it can have a massive knock on effect. They are handling huge volumes so saving a fraction of a penny per item can bring significant payback.
This is another really enjoyable sector to work in. This sector is about motivating your teams to perform at high levels in front of customers without supervision. Right first time is vitally important. Another key driver is ensuring your field workers spend more time operating and less time driving / collecting spares from your local depots. It may sound incongruous, but the higher the quality of the overall service you achieve, the lower the unit cost of each service call will be.
Les Thomas FCA, MBA
Email: info@538.org.uk
Telephone: 07977 485726