As we put the effects of the pandemic behind us, noticeable challenges are currently plaguing the workplace and supply chains. These issues hinder employers from attracting and keeping workers on the payroll. More so, these issues hamper the operations of the business. While some supply chain issues are out of your control, as a business owner, you can manage others.
According to a Yelp report, 60% of businesses in the US were forced to shut down operations permanently as the pandemic lingered. It continues to affect the workforce and every supply chain sector – from sourcing raw materials to service/product delivery.
Below we provide insights regarding these issues:
As a business executive, you may deal with different workplace challenges. However, post-pandemic workplace challenges are relatively new.
According to a report, the unemployment rate has decreased from 6.2% to 4.2% over the last year. It is a staggering reminder that there are more open jobs than qualified candidates. Which can mean two things: top talent is currently employed or are picky about which businesses they want to work.
Competition amongst businesses to acquire and retain top talents is rife. A record 76% of CEOs cite having existing employees as an ultimate management challenge. We are in the era of ‘The Great Resignation,’ as employees plan to look for favorable job placement.
One of the significant reasons top talent is leaving businesses today is that they are not engaged in their duties. This means they are uninspired and uncommitted about their various roles.
According to a report, only 30% of US employees are enthusiastic about their jobs. You should review your HR operations and work towards making your workers have a sense of belonging.
Workers Are Unclear About Business Vision
These days, most employees would want to know your business policies and visions before agreeing to join the team. Thus, they will be willing to jump ship for a business with solid corporate goals, ethics, and values.
We have previously covered why implementing environmental, social, corporate governance (ESG) will give your business a competitive advantage.
Zero Work-Life Balance
As your workers dedicate a chunk of their daily lives to further your business objectives, they also want to balance it at the home front. While the global pandemic festered, some businesses embraced remote/hybrid work, which workers happily embraced.
Workers want to feel valued not only by their immediate families but also by their employers. Remote work provides workers with the flexibility they have always desired.
We have also curated some of the perks that office workers genuinely want. You should check it out.
Zero Opportunity to Grow and Advance
Employees want to have a sense of belonging, whether recruits or experienced hires. If they feel that they will be stuck in one position for a long time, they will be disloyal and jump ship when the opportunity comes.
Career development is a factor that top talent considers before joining a company. Implementing cross-functional duties, mentorships, training, and growth opportunities are essential to encourage them to remain.
Supply Chain Issues
The global supply chain is a booming industry. According to a report, the international supply chain management market is expected to be worth $37.41 billion by 2027. That is not to say the sector does not have issues that we must address.
Disruption in Logistics
As a result of the pandemic, a general logistic disruption affected businesses. Even though we seem to be on the other side of the pandemic, the flow of consumer goods from production to consumers is still hampered by logistical issues.
Thus, these goods pile up in storage, slowing down transportation to their delivery points. When issues like this arise, businesses and consumers pay the price of waiting.
According to a report, supply chain distortion worldwide cost involving shrinkage, overstock, and stockouts is an estimated $1.1 trillion. So, you should take it seriously.
Your supplier plays a significant role in your supply chain management. It is crucial to maintain a cordial relationship with them as they can hasten or slow down the supply chain system.
But first things first, you must look for a supplier that has offered reliable service. Then, you can develop a meaningful relationship with them.
Customer expectations can also contribute to the difficulties that supply chain managers face. Each customer desires a slightly different product or service based on their specifications. This could affect production and delivery times.
When customers are given inaccurate delivery dates, they are disappointed with your service. Even worse, you may lose them to rival businesses.
According to a report, 43% of small US businesses do not track their inventory and only do so using a manual system. You should have an automatic system that tracks the fleets providing supplies and delivering ordered items to your consumers
It is essential to use the right tools to receive requests and communicate according to your customers.
Quality and Sustainability
The quality and sustainability of your products or services can build or destroy your business. You should prioritize how your goods are produced, packaged, and delivered to the end-user.
You should ensure that your products meet regulatory standards and lower your impact on the environment. According to a report, 72% of consumers buy more eco-friendly products than five years ago. You should use this information to your advantage.
Risk management is also a critical factor in supply chain management. Some elements can pose a risk for managers. They include:
- Managing inventory
- Over-reliance on one vendor for most of your supplies
- Unpreparedness for economic events that might impact product supply and delivery.
- Evolving business policies and regulations
To navigate these issues, you need a professional expense reduction specialist.
Expense To Profit is a proven consultancy that improves your business revenue by lowering your daily and monthly expenses. We have helped small and big businesses with foolproof strategies, and we believe we can help yours too.
Reach out to us to see how we can provide impressive expense reduction support for your business needs.
Published by Marc Freedman
Marc currently serves as our Chief Cost Evaluator, expertly advising our client management team on how to help you successfully achieve your business and financial growth goals. A respected mentor to all he consults with, he is an avid collaborator and contributor to the spend consultant community, guiding thought leaders to formulate, design, and install the best operational solutions available to their clients.