The new year is in the starting blocks. It is high time to review the year 2021, plan for the coming business year and define new goals. Only those who are clear about which goals they want to achieve and with which means they want to achieve them will have economic success and grow as a company.
In 2021, as in 2020, the corona pandemic has turned our everyday business life upside down. Worldwide lockdowns and delays at borders have created major hurdles for the economy. The ongoing lack of resources and the associated price increases in many product segments will probably continue to accompany us next year. This makes it all the more important to carefully plan your further sales activities now and to secure the material you need and the best possible purchase prices now.
A critical retrospective
Ehrlich und kritisch mit sich selber zu sein und die eigenen Handlungen hinterfragen zu können, sind Schlüsselwerte für eine möglichst objektive Rückblende im Unternehmen. Sie sollten kritisch hinterfragen, was im vergangenen Jahr gut funktioniert hat und wo Sie hinterher lieber anders gehandelt hätten. Nur so können Sie Ihre Prozesse im Unternehmen sach- und fachgerecht beurteilen und vorhandene Abläufe optimieren.
How to start your optimisation phase
Check your assortment
The end of the year is the ideal time to put your product range through its paces. The first decisive factor in assessing the success of a product is its profitability. In principle, you should increase the marketing of profitable products and remove unprofitable products from your range.
However, assessing profitability alone is not enough. Your overall business strategy can also argue for the continued use of a product that is only moderately profitable. This may be the case, for example, if you as a company want to actively drive weaker competitors out of the market. You should also consider in which phase of the product life cycle your product is currently in. New products are usually not yet profitable in the introductory phase. Profits are only generated from the growth phase onwards. In the saturation phase, you can expect profitability to slowly decline due to competition. You should check whether and how you can improve your figures here by revising and maintaining the product. A relaunch offers you a good opportunity to sell even declining products profitably again.
Every industry is subject to seasonal fluctuations. Cash flow slumps are often to be expected in the summer months. Being aware of the natural fluctuations of your industry helps you not to lose your nerve, to bridge these phases in advance through early planning and creative solutions and to increase your cash flow even in such months.
One method to bridge the fluctuations are special seasonal offers during this period. Here you should ask yourself how the needs of your customers change during this time and how you can satisfy these changed needs with your products and services. This way you are sure to find the right niche for your offer even in seemingly low-turnover months.
Another way to balance out the fluctuations is to offer your customers the option of an advance sale. With special advance sales discounts, you can win over customers for whom you might have to fight harder in a highly competitive market during the peak season - because many customers also plan for the long term and would like to take advantage of savings.
No matter which method you want to use, the right time to plan is essential. Thanks to the early development of a suitable strategy, you can protect yourself from unpleasant surprises.
Secure prices and resources
It is not only the rising prices of raw materials that are a problem for companies. The scarce availability of materials presents many manufacturing companies and traders with enormous difficulties. Many products from the steel, paper and plastics industries have a lead time of several months and even then there is no guarantee that you will receive the raw material you need in sufficient quantities. This problem often threatens to paralyse entire production chains. Having the required resource in stock will be the elementary key to entrepreneurial action in the coming year, just as it will be in 2021. It is therefore essential to secure your required quantities of materials during the pandemic.
The simplest and most effective solution for securing your urgently needed materials is to conclude call-off contracts with your suppliers. By planning your annual requirements precisely, you can secure the materials you need today and always have partial deliveries on call. In this way, you do not have to waste expensive storage space and only pay for your goods on delivery. There is no need for pre-financing for you. The purchase prices are agreed directly when the contract is concluded. So you don't have to worry about price increases.
Erka Verpackungssysteme GmbH will also be happy to submit call-off offers for your packaging materials such as cardboard boxes, strapping bands, film products and other products.
Well planned is half won
With the right planning, the course is set for another successful business year. After that, it is important for you to maintain an overview and keep a cool head even in the event of fluctuations. The erka team will be happy to review your needs for packaging materials in order to support your shipping in the best possible way. We will be happy to submit call-off contracts for your annual requirements to enable you to get the material and the best possible purchase prices today. Contact us now!