Two years ago, supply was the number one problem for the AV industry. A few issues linger, but for the most part, supply is now a background issue. So: What should businesses do? What's the right strategy for the post-pandemic era?
This is the basis for our just-published Macroeconomic Trends Analysis (META) report, "The Future of Supply Strategy." Our answer? Get lean again--nearly as lean as you were pre-pandemic.
Now, this answer isn't "right." There is no "right" answer. In the full report, you can see all the data we pull together, along with the academic research, competitive landscape analysis, and logic that leads us to this conclusion. Crucial factors include the rarity of pandemics and supply chain robustness from other players in the market. There are counterpoints too, like rising geopolitical risk.
Nuance is vital. Leanness and robustness come in many forms; the data and discussion can help you tailor your company's strategies to mitigate the biggest risks and reduce the greatest costs.
We're finally moving past the disruption of the pandemic era. With supply in better shape, it's time to reassess strategy and optimize for the new era. Our latest report explores the current conditions, data, and research, and concludes that returning to leanness is a good guiding principal. But it's a complicated decision, so careful consideration of all the evidence as well as company-specific details is essential to maximizing your odds of success.
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“Get lean again – nearly as lean as you were pre-pandemic…”
That’s always good advice. Most reading this are too young to remember Jack Welch, the legendary CEO whose mantra was “change – before you have to”, that succinctly said in five words more than most MBA seminars do with thousands and thousands. Thinking like Jack is why companies that did fine during the recession, well they “never let a crisis go to waste” (to borrow a phrase we’ve heard in the political realm). Those healthy, often larger companies took advantage of the recession/disruption to wring inefficiencies out of their own organizations. And they took a hard look at all their suppliers and asked, “how can we get a better deal from our suppliers?” Because their suppliers were all suddenly facing a buyer’s market not a seller’s market. That phenomenon is of course why it takes the smaller companies (including most suppliers) longer to come fully out of the recession – due to price stickiness, and other facets to the dynamic, that Peter alludes to here. Looking forward to the AVIXA report.