Supply chain headlines
- New digital light manufacturing to revolutionise 3D printing. A team of scientists and engineers in Australia have developed a new method for coming common problems associated with 3D printing, reports Science X Daily.
- Carriers fear profit loss from double pricing of GHG emissions. International shipments could soon become subject to multiple pricing instruments relating to greenhouse gas emissions, explains CEPR.
- UK set to raise taxes on giant warehouses. In a move to help fund lower taxes for high street retailers, the UK government has announced plans to apply a higher tax rate to large warehouses used by retailers like Amazon, writes TechRadar.
How to make your business more profitable
If cash flow is king, profit is kingmaker. Improving your profit margins is one of the best ways to increase working capital, keep the business operating, and reach new heights. Let’s look at some of the most effective tactics for growing profitability.
Increase your prices. Hidden costs like freight and sales tax are often responsible for low net margins. A strategic price increase of your best-selling products is a fast and sustainable way to grow profit.
Prioritise high-margin products. Analyse your product portfolio by applying ABC analysis or the Pareto Principle to identify which items yield the highest margins. Allocate more resources towards promoting these products to maximise your ROI for marketing and ad spend.
Trim waste and reduce overhead. Audit your energy consumption and materials usage to find quick ways to reduce your cost of goods sold. Consolidate services and look for more energy-efficient systems to cut unnecessary expenses.
Increase operational efficiency. Replace outdated or inefficient tools and processes with automated solutions to speed up repeatable tasks like order management, purchasing, and stock control. Invest in a good inventory management system, productivity-boosting tools, and a stock-aware CRM software to make operations more profitable.
Invest in cross-sell and upsell. Leverage your existing customer base and increase average order value by offering complementary products through email marketing and in-store or on-page promotions.
Optimise inventory purchasing. Calculate your economic order quantity, optimal reorder points, and safety stock levels to eliminate overstocking and underordering. This will help reduce stockout costs and minimise wasteful spending – supporting a healthy bottom line.
Coffee, cash flow, community – meet Ben Rowe
Ben Rowe, Director and Head of Coffee for Harmony Coffee, a coffee roaster based in York, U.K., specialising in sourcing and roasting high-end coffee beans. Harmony source some of the world's best coffees from 30 producing countries, roasting them to the highest level.
To what tactics do you attribute your success?
"It sounds extremely simple, but authenticity and a sense of community. We chose to talk about the values that really drove us to do what we do, so that we can stay true to them at all points of the supply chain. People know that we're being genuine and really trying to be a force for good in the world."
What have been your biggest challenges in navigating supply chain management, operations, and growth?
"I would say volatility tops it as the biggest challenge. We have to make sure that we buy just the right amount of coffee and that none of it goes stale. If we have a quiet month, it can mean that we end up with a backlog of stock, and if we have a busy month, it could mean running out of coffee completely. Weather catastrophe also has a big impact. As the industry is based around equatorial agriculture, we have to worry about weather constantly, which, as a Brit, is something I'm used to thankfully."
How have you overcome those challenges?
"Constant communication can't be overstated enough. We are always talking with our customers to gauge what demand will be like and make sure we are carrying enough stock. Buying from up to 30 countries means knowing when your coffee in different regions is in harvest. It's impossible to manage this without constant communication."
Do you have any tips for managing cash flow?
"I never put anything on financing. For some, the business is not able to operate without financing some of their assets. But for me, I think it can be such a huge drain on financial resources. Payments add up, and if you aren't able to keep it under control, it means the money in the bank goes down each month rather than up."
What are 3 pieces of advice you'd share with your younger self?
"1. Keep an open mind. Once or twice a year, I learn something new that is absolutely revolutionary to my way of thinking, and takes me to the next level. It's almost always a lesson I could have learned so much sooner.
"2. Be as much help to others as you can be. My company really started to grow once I realised that everyone that I work with has extremely busy lives. The more you can do to help, the more likely you are to make sales and the more likely you are to work with that person again.
"3. Remember to find time for fun. Words I still need to learn the meaning of. Work isn't everything, and you need to find time for yourself, for your family, for recreation and for health. Stay active and healthy."
On the lighter side...
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