• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • Bedfordshire
  • Milton Keynes
  • Northamptonshire
  • Awards
  • Knowledge Hub
  • Contact Us
  • About Us
    • Sustainability
    • The Podcast
    • ATB TV
All Things Business

All Things Business

First For Local UK Business News

  • Education
  • Professional Services
    • Legal
    • Finance
    • Recruitment & HR
    • Creative Marketing
  • Property
  • Environment
    • Wellbeing
  • Industry
    • Industry
    • Manufacturing
    • Motors
    • Logistics
    • Technology
  • Events
    • Events
    • Food & Drink
    • Sport
  • News

Effective operations safeguard future for business

Finance, News | November 2, 2020

Effective operations safeguard future for business

Economic recovery remains uncertain with COVID-19 restrictions continuing to change. With one-third of UK businesses telling us they have closed, suspended or reduced the capacity of their operations, Oliver Bridge, Business Consulting Director at Grant Thornton, looks at the role operations can play in safeguarding a company’s future.

The regular COVID-19 restriction changes bring added challenges to business leaders navigating their organisation through the global pandemic. The impact of new restrictions varies between sectors and there is no one-size-fits-all approach to creating an effective operations strategy. However, there are three main concerns we see from mid-market business leaders; having the ability to continue delivering, financial flexibility, and operations supporting business continuity.

Delivering to stakeholders

Many businesses have had to change their model as a result of lockdown and are likely to continue with the new model once the pandemic is over. Even those intending to return to their pre-COVID-19 model are entering a market where customers’ needs and expectations have undergone a radical transformation.

In light of these changes and anticipated further restrictions, it is vital to review assumptions about the nature and scale of future operations.

For example, is the business looking to diversify into more stable sectors or to spread risk by using assets to supply a broader group of customers? If so, are operations set up to support the future strategy and deliver for clients and stakeholders?

With a clear understanding of future operational requirements, consider whether any new divestments or investments are necessary. The current disruption means there may now be opportunities to pick up businesses with assets and capabilities that can help meet future needs.

Flexibility in your cost base

Minimising the need to raise debt, either to survive ongoing disruption or to seize new opportunities, means retaining cash in the business. A serious effort to drive down costs, with a strong focus on operational efficiency, could be the starting point.

Some of our manufacturing clients tell us their customers are buying in smaller volume and that producing smaller batches is reducing efficiency. If this is the case in your business, optimise output to reflect current levels of demand.

This does not have to result in lowering profits. Removing non-profitable products from production and selling only to profitable customers optimises output at a level that delivers higher profits. Make sure you pass rising costs on to customers.

Business continuity

The pandemic has exposed the risks inherent in complex, global supply chains. A common strategy is to source from suppliers closer to home, to improve resilience and establish a clear understanding of where supply chain risk lies. One solution is to use specialist software, such as Llamasoft. The AI-powered platform provides transformative insights, such as early warning of supply partners at risk of failure, allowing for timely action to protect the supply chain.

Get ready for recovery

Changing restrictions mean significant uncertainty is likely to be a feature of the trading environment for some time. Leaders need to be planning now and looking to operations to play their part in supporting future strategy, strengthening the business’s cash position and enhancing resilience.

For advice on planning the future of operations contact
Grant Thornton at www.grantthornton.co.uk

Northamptonshire

Related stories

  • Northamptonshire
    May 26, 2022

    Planning application for saints’ new high performance centre approved

    Northampton Saints are delighted to confirm that West Northamptonshire Council Planning Authority have approved the Club’s application for the construction of a…
  • East Hunsbury Primary School Northamptonshire
    May 26, 2022

    New Headteacher for East Hunsbury Primary School as tributes are paid to retiring Head after 21 years’ service

    “Be kind, work hard, believe” – that is the message to children at East Hunsbury Primary School from new Headteacher Kathryn Pennington,…
  • Windfall tax on energy companies: Chancellor and business secretary need to stand their ground against the windfall tax siren calls – MHA comments Northamptonshire
    May 23, 2022

    Windfall tax on energy companies: Chancellor and business secretary need to stand their ground against the windfall tax siren calls – MHA comments

    Following the growing calls to impose a windfall tax on the profits of energy companies, to address the cost of living crisis,…

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Stay up to date on All Things Business

Subscribe to our monthly newsletter to receive the latest business news.

Online Edition

Northamptonshire edition, click here
Milton Keynes edition, click here
Bedfordshire edition, click here

Most Read

  • Howes Percival A trio of new partners in East Mids among five senior promotions
  • East Hunsbury Primary School New Headteacher for East Hunsbury Primary School as tributes are paid to retiring Head after 21 years’ service
  • centre:mk Centre:mk welcomes brand new Ted Baker store to Milton Keynes
  • Windfall tax on energy companies: Chancellor and business secretary need to stand their ground against the windfall tax siren calls – MHA comments Windfall tax on energy companies: Chancellor and business secretary need to stand their ground against the windfall tax siren calls – MHA comments
  • Workplace Wellbeing Why It's So Important Workplace Wellbeing: Why it’s so important

Footer

REGIONS

Northamptonshire
Milton Keynes
Bedfordshire
 

COMPANY

About Us
Contact
Awards
Podcast
Knowledge Hub
Sustainability
Request A Copy

Northamptonshire Office

1 Queensbridge, Northampton
NN4 7BF
Tel: 01604 267677

Milton Keynes and Bedfordshire Office

The Pinnacle, 170 Midsummer Boulevard, Milton Keynes,
MK9 1BP
Tel: 01908 030688

London Office

25 Bedford Square
London
WC1B 3HH
Tel: 0208 1760176

Follow us on

  • Facebook
  • Instagram
  • LinkedIn
  • Twitter

All Things Business is a publication produced by All Things Management Ltd. Registered in England No. 9590677


Privacy Policy