In supply chain headlines
- Top challenges revealed for US Food & Beverage industry. A new state-of-the-industry report by Expert Market revealed rising operational costs to be the top concern among companies (27%), alongside labour shortages (23%) and economic uncertainty (20%).
- Food sales driving UK retail revenue growth. Retail sales were up 4.1% YoY in August, but the autumn Budget could mean more cautious consumer spending on the way, writes Retail Week.
- Researchers suggest new transistor type could 'change the world of electronics'. Scientists say a new material has been developed that could transform electronics and withstand billions of electrical cycles without wearing out, explains Live Science.
5 essential rules for recutting your budget
In business, budget cuts are often unavoidable. And because they can affect staff satisfaction, productivity, and revenue, they require careful consideration. If youâve been tasked with recutting budgets to save some cash, consider these five principles:
1. Cash flow is king. Stay focused on the number one goal in business â maintaining sufficient cash flow. View all of your budget decisions through the twin lenses of profit margin and sales volume. Staff machinery, product lines, sales channels â protect everything that generates the profit and revenue.
2. Beware one-way doors. Sometimes you need to make bold decisions with cost-cutting, but itâs important not to lose what you canât get back (staff expertise, for example). Although the saving is the same, you might be better off asking five employees to reduce their hours by 20% rather than removing one high-value, full-time worker.
3. Be systematic. Approach your costs holistically before you make changes. Consider everything from operational costs, inventory commitments, technology costs, marketing outlays, staff costs, utilities, and financing costs.
4. Narrow your focus. Shedding product lines or so-so sales channels can save money and offer a surprising upside: better performance on the remaining activities. Spending your attention on a smaller number of important tasks â rather than stretching yourself thin â typically yields better results.
5. Renegotiate (where you have leverage). Renegotiating with suppliers is pretty stock-standard advice, and wonât always work if your pitch to them is âplease lower your prices just becauseâ. Youâll get the best results where you have some form of leverage â perhaps a guarantee of certain purchase volumes, or a longer commitment period on your contracts. You might be surprised, however: sometimes the prospect of simply remaining a customer is leverage enough.
Blending luxury and morality â meet Guillaume Drew
This week we sat down with Guillaume Drew, the Founder and CEO of Or & Zon â a luxury handcrafted goods business based in France. He spoke to us about the unique challenges of balancing luxury and sustainability in a competitive space. Here's what he had to say.
What was the inspiration for Or & Zon?
"I embarked on this journey out of a deep appreciation for artisanal crafts from various cultures and the desire to support these artisans while providing customers with unique, ethically-made products."
How do you differentiate your brand in a busy market?
"Our brand finds its uniqueness in the delicate balance of luxury and sustainability. We differentiate ourselves through an emphasis on ethical sourcing, sustainability, and the preservation of traditional crafting techniques. The connection we foster with independent designers and artisans worldwide provides an exclusive collection of handcrafted products."
What have been your biggest obstacles? How have you overcome these challenges?
"Running a business in a niche like ours brings a myriad of challenges, including creating a robust supply chain for a variety of unique items and establishing authenticity and transparency in sourcing. We overcame these through efficient chain management and meticulous direct sourcing, ensuring that our customers receive first-rate, ethically crafted products."
Is there any business advice you'd give to your younger self?
"Looking back, my advice would be:Â a)Â Invest time in understanding and sourcing from artisanal communities;Â b)Â Embrace technology and ecommerce early on; and c) Stay true to your vision and values, even if they challenge conventional norms."
What resources or thought leaders have inspired you?
"I've found books like The Lean Startup by Eric Ries and podcasts like The Art of Authenticity truly enlightening. Rooting for thought leaders like Blake Mycoskie and Yvon Chouinard has also helped shape my worldview."
What are your predictions for the future of luxury goods?
"One clear trend we're observing in our industry is a growing demand for products championing sustainability and ethical production. As consumers become more conscious, I predict that even more luxury businesses in the near future might pivot towards responsible business models."
On the lighter side
