Global trade and supply chains are going through a massive shock. Because COVID-19 has led to lockdowns, suppliers in the chain are temporarily ceasing production, and logistic providers can no longer transport goods as seamlessly, particularly across borders.

As the situation changes daily, it’s critical that you work closely with your suppliers to help your business survive the crisis. Below is a list of things to consider.

Work With Your Suppliers

• Assess how changes to the supply chain will impact your business.
• Will suppliers deliver your outstanding orders, which may be more then you need in light of changing consumer demand?
• Will suppliers deliver less product than you ordered?
• When will suppliers deliver?
• Determine if you can get better pricing or payment terms. For example, delay payments 30, 60, or 90 days.
• If possible, negotiate new supplier agreements that are mutually beneficial to you and your suppliers.

Global Operations and Supply Chain Disruption

Global manufacturers are managing through the disruptions to their supply chains. This disruption will impact your business. It’s crucial that you have a big picture view of the current situation. PricewaterhouseCoopers (PWC) reports that companies are taking several actions in response to the crisis. For example, updating customers about delays and adjusting customer allocations. Click here for the full PWC report.

Use This Time To Help Your Business Last, Grow and Thrive

Recently I interviewed Maryanne Rose, founder of SpenDifference for my upcoming book, Get Investment Ready: A Complete Guide to Preparing Your Business for Growth or Exit. Maryanne shared how she used an economic crisis to spur her business’ success and create a supply chain solution for restaurant chains.

SpenDifference: Solve a Big Problem and Find Your Ideal Customer

Maryanne Rose founded SpenDifference in 2007 and opened for business at the height of the 2008 recession. Her company offers an end-to-end supply chain management solution for mid-market restaurants.

That year, inflation was looming while sales were softening, which put the restaurant industry in a tough situation. Also, there was over-capacity—too many seats—in the marketplace. The top fifty big chains had a competitive advantage in costs due to the tools and pricing available to them. The next 200 chains were significantly smaller, leaving them with less leverage, resources, and expertise to manage their way through the economic challenges. All of the expertise was in the top one hundred restaurant chains.

Maryanne says, “We put together a solution that no one else was doing in the restaurant industry. The economic downturn forced restaurant companies to look at other ways of doing business, and our solution provided significant impact to their bottom line. One of our first client’s told us we saved his business from bankruptcy and allowed it to survive during the eight years of the great recession.”

She modeled her business after the big Quick Service Restaurant Cooperatives (QSR Co-op) food distributors, which were exclusive and closed systems. “Many CEO’s understood this model. The economic benefits of it allowed us to present a plan that was open, yet still delivered significant savings and strategic advantage,” she says. “Our average save was 5-6% and went as high as 12% for one customer. Our solution solved a problem, bringing dollars to the customer’s bottom line during an economic crisis.”

Today, SpenDifference manages more than $1.8 billion in spend, managing mid-market restaurant chains that pay $10 to $200 million. The company’s ideal client is a restaurant chain with a minimum of $50 million in disbursements preparing for growth. It is searching for a full supply chain solution, yet does not have the cash to invest in internal infrastructure.

Does your company offer a product or service that fills a customer need in a dramatically changing marketplace? Is there a segment of the market that could benefit the most from your product or service?

SpenDifference identified and responded quickly to the economic change of the 2008 recession and the resulting need in the marketplace. Their cost-saving solution also improves company profits during times of economic growth and allows mid-market restaurant chains to compete with top companies in the industry.

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Do one thing: Send me an email to let me know your questions and how I can help you through the current business crisis. I would love to hear from you. Renita.wolf@poewolfpartners.com

Thanks for reading.