Historically, companies have looked to sales and marketing as the one most powerful method to boost profits - and it finally appears to be the only way to work. We hear about new sales strategies everyday, but something is missing. 💸
I believe there are three paths to profitability growth for many companies. Even though the most obvious option is of course to drive revenue through sales, the various other avenues remain mostly overlooked - and that is where the true opportunities are.
🔧Optimising Operational Efficiency:
Optimizing operational efficiency is a process that touches all aspects of business operations: From the tools you make use of and the processes you follow to the teams who perform the work. It sounds like a huge overhaul and often is. No wonder many companies avoid it or hire external consultants to help them navigate the maze. But think about this: recent studies have shown that businesses with a digital transformation and simplified operations can achieve 10-15% increase in profits. Could rethinking how we work be the hidden lever for growth? 🚀
💡Effective Procurement:
Effective procurement is usually perceived as a transactional function or at best a cost-cutting tool, but nothing beyond that. This narrow view misses its true potential. Forward-thinking companies that reframed procurement as a strategic asset report savings of 10-20%. But it isn’t all about the numbers. If procurement is aligned with broader business goals, this may enable better risk management and faster response to market changes.
Imagine this: instead of viewing procurement as a necessary evil, what if you viewed it as a hub for value creation? Long-term partnerships with suppliers can lead to collaborative innovations (sharing insights and even co-developing products) that directly impact your bottom line. It involves nurturing a network that not only supplies goods and services but also contributes to your competitive edge. In essence, effective procurement is the hidden gem that challenges the conventional, sales-only narrative of profit growth. With a more nuanced approach to procurement, you unlock opportunities that go well beyond immediate cost savings. Is it time to re-evaluate what procurement can do as a lever for sustainable profit? 📉
At the end of the day, relying on sales alone might be the standard playbook but perhaps that should be rewritten. Instead of focusing on familiar territory, think about the border untapped opportunities in your operations and procurement plans. Isn't it worth a moment of thought to see if a fresh perspective might reveal untapped potential in your business model? 💭