As the third quarter draws to a close, you are no doubt looking to fourth quarter estimates; indeed, you may already be forecasting for 2020.
In many industries, Christmas season will have a huge impact on yearly totals as the surge in retail sales brings increased activity to warehousing, shipping, distribution, even technology operations.
There are several essential factors that will bring results, from companywide measures to actions taken by front-line employees.
Company Wide
Look at past performance with a wide-angle lens: how did the company do during the last three quarters, last year at this time, even the last five years? What industry trends are at play, and what is the state of the economy as a whole? There is a great deal of information available but remember that past performance is not a reliable indicator of the future.
Use sophisticated demand planning software to set sales goals, plan inventory orders, strategize production schedules and prepare logistics. Prop up lagging sales or bolster robust sales with heightened marketing and advertising efforts. Ensure a prominent and positive web and social media presence. Within the company, this is an ideal time to review operating procedures and encourage cooperation among departments.
Each Department and Product Line
Every department or product line within the firm should be scrutinized. Examine overall performance and efficiency, finding ways to maximize income, minimize expenses and reduce the tax burden. This is a good time to review regulatory changes and ensure each segment of the company is responding appropriately to maintain compliance. Assess the supply chain of each product line, constantly evaluating vendors and streamlining logistics.
Systemize or automate work cycles and outsource tasks where appropriate. Measure the performance of each product line, too: consider venue (in stores versus online, niche versus mass markets), buyer demographics, and appeal to other businesses as well as to general consumers.
Front-line Employees
Retail operations have long understood that the Christmas shopping season is more than just a months-long buying frenzy; it is an opportunity to define your firm. Seasonal special offers can attract new customers. Friendly faces, reliable customer service and consumer-friendly policies will win customer loyalty that lasts year-round, perhaps for years to come.
Spend the fourth quarter ensuring the satisfaction of existing clients while actively pursuing new customer leads; holiday parties are ideal for informal networking. As the year draws to a close, have accountants become more aggressive in collecting receivables and have purchasers negotiate better terms on payables. Focus on increasing efficiency, but never at the expense of morale. Keep your employees happy and they will keep your clients happy too.
