Inflation is making headlines, reducing profits, and may last longer than expected. It significantly impacts distributors and manufacturers since labor, materials and inventory are the largest expenses, not to mention increasing transportation and logistics costs.
How to Combat Inflation Challenges?
During inflationary times, the traditional play book is to reduce the workforce, cut costs, or as a last resort, increase prices. However, these choices come with serious consequences, and may not be appropriate today.
- Many companies are already having difficulty retaining and acquiring talent. And labor shortages and rising costs have already taken a toll on margins. According to most experts, trying to adjust the workforce to combat inflation in these times is self-defeating.
- In conjunction with the rise in energy and commodity prices, manufacturers and distributors seek ways to offset the negative impact by cutting costs. They either renegotiate contracts or find alternative suppliers. However, this too presents a challenge regarding what can be accomplished in the short term and the impact it will have on business in the long term.
- Many companies have, or will, pass along those costs to their customers through increased prices. This also raises questions. How great should these price increases be? Are they permanent or temporary? Which customers are you at risk of losing? Once again causing you to ask whether the benefits outweigh the risks.
Many traditional inflation fighting tactics create bigger challenges and risks. What to do?
The simple answer is to invest in yourself. With the challenges of containing labor costs, companies can strengthen retention rates and expand automation strategies, particularly those that tackle repetitive, low value added tasks, freeing your current employees to do higher value tasks.
On-demand Webinar: Simple Steps Toward Paperless Quality Certifications
Fight inflation and stay ahead of the competition by automating paperwork
Automate Paperwork to Fight Inflation and Stay Ahead of the Competition
In today’s digital age, the best way for businesses to combat inflation and remain competitive is through digital transformation. Automating your supply chain will strengthen your relationship with your vendors & ease supplier collaboration. Additionally, automated certification transfer will drive value to your customers and streamline your channels to decrease their impact on your team.
In the near future, the number of digital natives in the workforce will surpass those who began their careers before the internet. More than half of all operations and supply chains will be run by Gen Z workers by 2030, meaning infrastructure needs to be digitized if companies intend to attract younger workers.
In the innovation race, some companies have already taken bold steps, while others have taken a wait-and-see approach. The momentum created by the pandemic around digitalization and innovation is widening the gap between the leaders and the laggards. Companies that have adopted innovations are on top of their game and are increasing their competitiveness in the face of rising costs.
94% of global manufacturing companies have indicated that digital transformation helped them keep their operations running during the pandemic and is helping them combat inflation. Companies that used new technology to increase productivity pulled ahead of those who chose to hunker down and wait. And companies that are not improving customer satisfaction and reducing costs with digital innovation are falling behind.
Simple Steps towards Paperless Quality Certifications
The best way to get started with digital innovation is with simple, common-sense steps that don’t require any investment. Where to start on the road to innovation? Consider automating your quality certification management processes.
SmartCert is a cost-effective universal platform connecting buyers and sellers in global supply chains. Whether you’re a manufacturer, distributor, or supplier of raw materials, you can take advantage of this platform to increase your efficiency. With SmartCert, you can.
- Eliminate paperwork: Using SmartCert software, you can cut down on paper costs and storage space. The platform automates the transfer of certificates to your customers and from your vendors. You can scan and upload documents, or our team can do that for you. Once in the system, you can update customer certifications in real-time, and they will remain current throughout the part’s lifecycle.
- Simplify internal processes: With SmartCert, you can reduce duplication and manual steps in the management of certificates. The centralized dashboard of SmartCert makes it easy for teams to build a centralized digital archive while working more effectively and efficiently.
- Achieve the highest level of customer service: Your customers will never lose their paperwork using SmartCert because of its free self-service tools. SmartCert QR codes provide 24/7 mobile access to customers’ documentation whenever they need it.