Executive Contributor | Keith Wright | Business
This intriguing idea says that small actions matter and they link to a much bigger picture. Imagine a line of dominoes falling one after the other; one small push starts a big chain reaction.
In this article I want to apply this idea to your business, focusing on the area of procurement – essentially how you get your supplies.
Domino 1: You take a closer look at your supply base → you decide to simplify and reduce it → this move saves you money → you now have extra cash to pump back into your business.
Domino 2: With fewer suppliers your business is leaner → it is more simple → it is also cheaper to run.
Domino 3: You have better control of your new, simpler supply chain → this leads to improved ESG → this is good for your team → your investors → and your customers.
Domino 4: Your service contracts get a boost too → this means quicker delivery times → flexible ordering → more products always in stock → improved stock management → and improved cash flow.
Domino 5: With products always ready, your customer service gets better → this means happy customers → who come back → buy more → spread the word → and your market share grows.
Domino 6: The quality and range of what you offer gets better too → helping you reach more customers → reduce complaints → and grow your market share even more.
So, a small tweak in your procurement strategy has set off a butterfly effect, which has ultimately lead to:
More money. Lower costs. Better cash flow.
Fewer customer complaints. Top-notch service. Improved ESG.
Happy investors. Better stock management. More customers. Greater market share.
Quite the transformation, isn’t it?
So even if the Butterfly Effect isn’t your thing, it’s worth asking, “What difference can procurement make in my business?”
Keith is the founder and Managing Director of K Wright Consultancy, a professional