Just after Sept. 11th I decided to outsource all of my business’s trucking to a 4PL. Volume that required using 185 different carriers was transitioned to one 4PL. It was a risky decision at the time – a new concept for my company and a new service for the selected provider. The President of that company and I shook hands and agreed to work together, improving our work process, professionalizing the dispatching activity (no more cargo tendered in exchange for donuts), and reducing our business complexity. The decision allowed us to eliminate the cost of the dispatching team and put the savings to work employing new staff in mission-critical departments.
Just like Sept 11th, the coronavirus has thrown even the most well managed businesses into a tailspin. Companies are either swamped with work arranging air charters of PPE or handling sharply reduced volumes of general business. Or, dealing with both changes at the same time. Now is an excellent time to work on the business of your business. It’s time to clean out the garage, tackling deferred projects and trying out new ideas that will improve your business.
Use this opportunity to improve your product or services. Experiment with new business lines that compliment your core offering. If you are a domestic provider, expand into international. If your company is an ocean freight forwarder, explore expanding into air services or customs brokerage. Warehousemen can expand into transportation services and vice versa. If you sell via distributors, consider selling direct to consumer. We offer risk and opportunity analyses that can help you evaluate any of these expansion opportunities as well as a suite of business start up services.
Review current business systems and processes for ways to upgrade and be more efficient. New digital applications, fueled by venture capital, can expand your capabilities at low SaaS prices. Outsourcing peripheral activities like trade compliance or transportation procurement and RFQ management to experts like Baker will save money while freeing management to focus on core activities.
Pivot to take over a new kind of market or address a new need. Just as September 11th transformed our psyche and national security requirements, the pandemic may transform how we feel about health and safety. The transition from bricks and mortar shopping to e-commerce with delivery services and curbside pick-up will continue. WFH may remain common. The best changes will become permanent. Think of ways your business can benefit from the changed environment.
Over past economic downturns, I’ve reflected on advice I first heard at my college commencement. The speaker said to follow the advice on a Hellmann’s mayonnaise jar: Keep cool, but don’t freeze. That’s still good advice. It’s time to clean out the garage and work on the business of business. Let us know how we may support your company’s growth.
Kind regards,
Lauren Pittell
Founder