Are you making a good recovery from the COVID-19 lockdown? Planning for business restart after the furlough period will be problematic on many levels. In the absence of demand signals from customers, or the readiness of our supply chain to respond, we need to restart in an effective way.
Emerging from ‘hibernation’ will test the viability of many companies but can also be a time of great opportunity for those that plan smartly.
10 facts that we do know and can plan for:
1. Government initiatives are designed to ensure the speediest recovery possible. It is no longer expected to be a V-shaped recovery but more a Nike ‘swoosh’!
2. Restart will begin at different times in different sectors – do you know yours?
3. Recovery, however, does not mean a return to business as usual. That could be 12 months away!
4. Recovery (for many businesses) will be from a standing start, so early growth rates could be rapid – are you and your supply chain ready?
5. Growth rates during the early part of an economic recovery are statistically up to 50% higher than normal periods. This creates opportunities for smart companies to leapfrog ahead of their competitors. Are you planning strategically?
6. If you do not have a ready demand pipeline to return to, you will need to be fast off the line with your business offering and lead generation programmes. Do you have your programmes ready?
7. The companies that restart most vigorously will be those who can outperform their markets and competitors. This is not about market growth rates – it’s about market share acquisition!
8. We are all in this together – including our competitors. Some of them may be in other countries which are experiencing trade barriers. They may be bigger than us but are they quicker or more effective?
9. A possible medium term consequence of the lockdown could be the on-shoring of supply chain by customers in order to de-risk their recovery. Might there be a ‘buy British’ sentiment in some sectors?
10. Business will never be the same again. This maybe the time for business to re-write the rule book?
One very important thing that all business can and should be doing is managing their demand pipeline and aligning their supply chain activities to fulfil it. Foresite can be a wonderful thing!