Few organisations have faced the challenge of leading a company through an inflationary spike like today. So, what are examples of bold actions that help C-leaders pursue value-creating contributions?
#1 Redesign product and service offerings It is essential to respond to the volatility of commodities, the scarcity of materials, and increased production and servicing costs. Apart from that, the customer’s need cannot be ignored, obviously.
#2 Clean-sheet and agile supply chains Make your entire supply chain visible, as it helps to identify and manage potential drivers of volatility and supply chain risks. Furthermore, a consistent end-to-end planning should be a CEO priority.
#3 Transform procurement to create value, not just to cut costs Procurement leaders can play a company-wide role to help the organisation become more efficient and resilient. How? It involves actions like rethinking logistic and (geographic) sources while investing in technology and process automation.
#4 Anticipate on new challenges Despite having a clear vision and strategy, the operational execution requires rapid adaptation to the demand and supply of the market.
Operational leaders need to innovate in the way they schedule, staff and hire, for example. Even though navigating through the current challenges remains extremely difficult, two things are certain: organisations need to consistently address customer and operational profitability. Weathering through inflationary cycles goes way beyond solely focussing on cost changes.
