By Mark Hildred, Managing Partner
In today’s world, volatility and instability are rife and pose genuine threats to any supply chains that may be essential for your business.
For businesses that import or export, the recent global economic turmoil, coupled with conflicts and natural disasters, has resulted in a great amount of uncertainty.
Domestically, rising inflation and the cost of living have disrupted business in the UK.
If your business is still relying on static financial forecasts that are conducted annually, then how can you hope to keep up with an ever-changing world?
We want to help modernise your financial prospects by teaching you the art of dynamic forecasting.
How can financial forecasting keep up with the modern world?
The sheer volume of information that is accessible can sometimes feel overwhelming, but by learning to utilise it effectively, you can keep track of essential considerations.
In this case, doomscrolling your social media feeds might actually help you.
Supply chains are impacted by more than just economic factors, so being aware of events happening across the world is important.
Understanding how political or geological volatility could disrupt suppliers, buyers, or even trade routes themselves is essential if you want to be ready for all eventualities.
Gaining this greater holistic view of the world can not only be useful for protection, but could be a key to finding new markets or suppliers that are suited to your needs.
You cannot afford to have an irreplaceable part of the supply chain anymore, as events beyond your control could cause major disruption.
Being flexible and knowledgeable can unlock new levels of dynamism that will help your business weather any hardship.
Speaking of hardship, it is definitely worth factoring some nightmare ‘what if’ scenarios into your forecasting so you know what to do when things go wrong.
Can cash flows keep pace with financial forecasting?
When creating accurate financial forecasts, you need to be realistic about cash flows.
If you have known reliability issues with any part of your supply chain, then it is worth considering the long-term impact of this on your cash flow.
Buyers who are consistently slow or late with payments need to be dealt with, as do suppliers who are overcharging you.
Do not be afraid to take your business elsewhere if that means you will actually have a business in a year’s time.
When possible, leveraging technology can be a good way to manage your financial forecasting.
You can create automated processes where data is compiled in one centralised location, allowing you to more easily keep track of money coming in and out.
The better visibility you have over your finances, the more dynamically you will be able to react to any supply chain issues.
Seeking professional advice is always wise when dealing with the ever-changing nature of the global economy.
We are on hand to help you go through your finances and route out anywhere that you are being held back or places where you should be getting a fairer deal.
Our team can also help you plan and prepare for the future to give your business the best chance of survival, regardless of what lies ahead.
To learn more about surviving supply chain struggles, speak to our team today.