As we see the big players like Amazon dialing back on warehouses and staff following a boon resulting from the pandemic. We must wonder what to anticipate as we progress into a new year facing economic decline. In the third week of January, we should hear reports of holiday sales, typically reflecting the largest sales period of the year. One may rightly anticipate that the Amazon trend will spread. It is leading to a decrease in sales both online and in-store moving into the first quarter of 2023.
As sales volume decreases, your ability to qualify for better shipping rates becomes an issue. That’s when you’ll find you need the savvy skills of experienced carrier contract negotiators to secure better rates through the next year.
If businesses were to plan sales volume and production around history alone. They’d predict a very prosperous holiday season; however, one must always consider the economy and its influence over purchasing decisions. Gloom and doom tend to have a tremendous impact on spending behavior and have completely changed the course of Amazon’s growth.
The lesson here from the ten-thousand-foot view is that businesses can’t afford to make snap decisions where millions of dollars are at stake. Working with a logistics advisor to plan growth, expansion, and adjustment to economic changes is a wise plan for avoiding significant profit loss.
Add to this challenge that it has become increasingly difficult to find people willing to work. This is a widespread problem spanning many industries. Businesses cannot find people to deliver products, impacting their regular schedules of delivery to customers. This tends to reflect negatively on the business as it erodes customer loyalty over time.
What can a logistics advisor offer your business?
- Experience across many different industries allows them to recommend a solution proven to work for your type of business.
- They will uncover waste and show you how to reduce it to realize greater profits, whether due to theft, breakage, bottlenecks, or loss.
- It can negotiate better contract rates with any of the common carriers as they are familiar with areas that are flexible for negotiation.
- They will help you set up a system to track your inventory for better records and accurate data.
- They may facilitate third-party shipping, contract manufacturing, or other solutions to solve basic problems.
Waiting around to see what will happen is never a sound solution. If there’s one thing the pandemic showed us it is that creativity and thinking outside of the box are key survival skills for challenging times. We have all been through economic downturns before and know they can take much longer to overcome than the pandemic, historically some lasting a decade. Finding ways to be profitable may mean tightening the belt but it also means evolution which ultimately will make your business stronger. Only the strong survive the turmoil and will find a way to thrive in the coming years of challenges presented in many different costumes.
Cutting Expenses
As the new year approaches, many households are looking for ways to cut back on their expenses. With economic uncertainty looming and a growing awareness of personal finances. There are many families are seeking out creative solutions that can help them save money while still living comfortably.
Scaling back on spending is one approach that can be beneficial in reducing costs. Making informed decisions about where your money is going each month will give you greater control over your budget. It allows you to prioritize what matters most to you and your family. From cutting down on impulse purchases to re-evaluating subscriptions. There are several strategies that can help you decrease unnecessary expenditures and save more money this coming year.
