We are seeing further evidence of the unstoppable rise of e-commerce in
the run up to Christmas. However for the more traditional retail outlets there
is a growing concern that the vital sales boom is not materialising. This in
turn will impact upon suppliers.
Without doubt now is the time to tackle potential problem areas with some
effective housekeeping.
One of the first areas for scrutiny is the level of inventory which is
being carried. Make sure levels of stock turn are satisfactory and that
obsolete stock is not being carried. Rather than face a “fire sale” it may well
be prudent to lighten up now with some innovative marketing strategies.
A healthy cash-flow is essential. With the backdrop surrounding financial
institutions and governments alike, don’t rely on the banks to readily provide
additional finance- it is an absolute priority to maintain positive cash-flow
and this can only be achieved by keeping debtors firmly managed.
Undoubtedly, we will see failures in the early weeks of 2014 – now is the
time to do everything you can to ensure that your company doesn’t become part
of these statistics.
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