Best Practices in Uncertain Times

Business Hates Uncertainty

Investment in capital equipment, hiring, compensation, mergers and acquisitions, strategic planning—essential business processes have been thrown into uncertainty and businesses are reacting. Reacting by doing only what is absolutely essential for survival until the dust clears. Whatever your take may be on why this is, we are laser-focused on what to do–and not do. The key issue for going forward is: what is absolutely essential for survival?

Uncertainty Is Risk

Costs have been rising throughout the post-pandemic inflationary period. It looks like they may continue to rise. Inflation, which stabilized briefly, is rising again. The cost of money in the form of business loans and mortgages is rising again. Rising costs lead to higher prices just to maintain existing margins. Will we lose market share to more efficient competitors—or those who are willing to cut margins or even incur temporary losses in a race to the bottom? What if they can outlast us? What if costs and inflation become an uncontrollable spiral?

We’re all part of a much larger economic ecosystem. In present times, it feels like we have very little control. But we do have some. How are those race-to-the-bottom competitors cutting costs?

Here’s how:

• cheaper materials
• working a reduced labor force harder
• cutting corners on processes
• reducing or even eliminating quality and compliance controls

Every one of these tactics adds risk to an already uncertain situation. And risk varies based on the business.

Food and Durable Goods

In the food industry, the risk is sickening customers which could lead to a temporarily damaged reputation and short-term loss of business. Automotive manufacturing would suffer similarly, with less reliable products. We have seen this before, and the losses, although significant, are recoverable.

Healthcare

Ramifications of these tactics in healthcare are much more serious—and we have also seen this in the past. The key to prevention isn’t only in process and quality control—it’s also inefficient product tracking and accurate recall of defective products.

Manufacturing, whether in food, machinery, pharmaceuticals or medical devices, can be accurately tracked using barcodes–barcodes that work right. Barcodes that work right are the backbone of supply chains. They register the timing and location of every step in the supply chain from manufacturer to distribution center to end user—and every waypoint in between. Barcodes secure the supply chain against unexpected appearances of counterfeit products. But the barcodes must work right.

Control In Uncertain Times

The good news is that we have complete control over that, but only if we are wise enough to see that quality is sacrosanct. Quality is not a cost—it pays for itself. Whatever your product costs to manufacture, and however you strategize to control those costs in hard times, If the product doesn’t get to its intended market, or if it arrives late or adulterated, it’s a total loss. A total loss on that shipment, on your hard-earned reputation with business partners, a risk of future business and possibly the survival of your business. Barcodes keep things moving, from manufacturing to supply chain to end-point inventory and replenishment. Business always has its good and bad cycles, but the product must be manufactured and moved. Barcodes are like oxygen. Barcodes that work right.

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