{"id":9198,"date":"2017-08-10T11:52:04","date_gmt":"2017-08-10T11:52:04","guid":{"rendered":"https:\/\/ca.syspro.com\/blog\/use-the-recession-to-your-erp-advantage-and-come-out-winning\/"},"modified":"2021-03-04T14:49:47","modified_gmt":"2021-03-04T14:49:47","slug":"use-the-recession-to-your-erp-advantage-and-come-out-winning","status":"publish","type":"post","link":"https:\/\/ca.syspro.com\/blog\/owning-or-running-erp\/use-the-recession-to-your-erp-advantage-and-come-out-winning\/","title":{"rendered":"Use the Recession to Your ERP Advantage and Come Out Winning"},"content":{"rendered":"

South Africans we\u2019re in recession, technically, for the first time in eight years!<\/p>\n

Why? Q1 2017 contracted 0.7%, negative growth for two quarters, trade, catering and accommodation contracted 5.9% with manufacturing, SYSPRO\u2019s target, down 3.7% \u2013 the World Bank reduced SA growth for 2017 to 0.6%<\/span><\/p>\n

.<\/p>\n

So how do you feel?<\/h2>\n

Stay positive or your organization and you will suffer. It’s time to look inward. Spare staff capacity will increase as your order book slows. It\u2019s an opportunity to up relationship activities, preserve existing business, while trimming costs and looking for efficiencies. Slack order books may leave skilled capacity you don’t want to lose or you\u2019ll suffer when the economy recovers.<\/p>\n

Use them and grow them but don\u2019t shelve loyal staff. Try different business models and combine a balance of back-to-basics and innovation. Use systems and creative thinking to help.<\/p>\n

Sharpen the Saw \u2013 Employees<\/h2>\n

Loyal employees deserve our loyalty when the recession is over. Retain your best, honing skills that matter. Use capacity to expose them to new value-adding activities \u2013 suggesting and rethinking existing processes, visiting customers and suppliers to get to know what makes them tick, including what they like and don’t like about your company.<\/p>\n

This shows you\u2019re interested in supply-chain partners who will expose opportunities to improve. Alternatively, tweak your systems to really work for you and your supply chain. Finally don’t cost-cut a culture that works \u2013 trim the fat but not all the fun.<\/p>\n

Relationships and Customer Retention<\/h2>\n

Still think customer \u2013 increase communication or our competitors will fill the gap. Find new ways to wow customers, account manage them; discover giving more of what they want for the same revenue. It\u2019s tough for them too so improving the value-equation with helpful service preserves our revenue and could lead to customer profitability growth long-term. That’s the kind of win\/win we need when ordinary people talk tough times.<\/p>\n

Find reference customers, ask what’s important and how competitors deal with them, compare us vs. competitors and gain the upper hand, enable insights into easy improvements and enjoy a closer, stronger business relationship.<\/p>\n

Oh \u2013 also analyze customers and outplace or recalibrate the non-profitable ones.<\/p>\n

Market\/Build Your Brand<\/h2>\n

Social media, social media! Train staff to spread your story, brand, personality, and value proposition. Think 3Rs to grow your brand:<\/p>\n