EXECUTIVE INSIGHT
Q . WHAT WERE THE STRATEGIES OR PLANS THAT REALLY STOOD UP TO THE STRESS CAUSED BY THE PANDEMIC AND WHICH WERE THE ONES THAT REALLY FELL BY THE WAYSIDE ?
» We deal with a number of companies at Lytica and we were able to see which ones have our strategies for better pricing . We ’ re able to see which ones ran into problems with supply . It seemed to me that the companies that had really thought through their business processes and had those in place in an effective way not only did better on pricing during that period of time , but also did better on the risk side of it and were able to get components . Probably the paramount thing that got the more successful companies through was having good , strong supplier relationships and good strong supplier relationship management .
That was one element that really stood out . The other one gives your supplier some insight into your true demand and working with them in terms of trying to secure the supply and being reasonable in terms of recognising what they were doing for you and how hard these companies were working to try and get you supply . Maintaining a positive relationship through very difficult times I saw as attributes of the customers that were more successful .
Those companies that treated their suppliers more brutally didn ’ t fare quite as well . Companies that treated their customers poorly during the pandemic are also suffering compared to those that had good customer relationships .
Q . HOW DO YOU ANALYSE STRATEGY AND MAKE SURE THAT YOU HAVE THOSE KEY DETAILS WHICH ARE SURE YOUR STRATEGY IS EFFECTIVE ?
» Business process is critical to us getting through the next few years . If I look at a procurement organisation and look at how people communicate what they ’ re trying to do , hey say , let ’ s have an effective cost reduction strategy , let ’ s have a good supplier relationship strategy .
I think everyone has had situations where they have had difficulty explaining something relatively simple to some people and everybody comes away with a slightly different understanding of what it was you were trying to tell them .
When you talk about the devil in the detail , you really need to analyse your process and see if everything that ’ s being
20 August 2024