1. Today technology is challenging old assumptions
The latest advances offer new solutions for running scenarios, monitoring many layers of supplier networks, accelerating response times, and even changing the economics of production. Some manufacturing companies will no doubt use these tools and devise other strategies to come out on the other side of the pandemic as more agile and innovative organizations. This analysis reveals four broad categories of shocks.
• inherent to a given industry
• the perishability of food
• the associated value chains are highly vulnerable
Shocks inevitably seem to exploit the weak spots within broader value chains and specific companies. An organization’s supply chain operations can be a source of vulnerability or resilience, depending on its effectiveness in monitoring risk, implementing mitigation strategies, and establishing business continuity plans.
2. Reduce Your Marketing Budget Safely
Beyond the immense toll the coronavirus has taken on people’s health, employment prospects and household finances, the turbulence has rattled many corporate functions. Finance teams have begun to put the brakes on spending and protect cash flow.
More selective cuts, on the other hand, can mitigate losses, shore up cash flow and even improve performance over the long term. One retailer, for instance, has identified roughly 20% in savings on digital and direct mail marketing spending with no negative effect on revenue. Laying out a concrete plan for the new environment could lead to a leaner, more collaborative marketing operation.
Before temporarily pausing or shifting marketing activities, it’s critical to understand what aspects of marketing currently drive spending and whether those drivers still apply. Other drivers may have quickly emerged as more important.
Only with that understanding in place can marketing executives draw up a reliable plan and budget. Our observations of what leading marketers have done so far during the pandemic, combined with smart moves made in previous economic crises, suggest a short set of guiding principles.
