How Businesses Are Using Collaboration to Create Cash Flow and Increase Profits

What’s one big dilemma facing businesses across the country we keep hearing about ever since the beginning of the COVID-19 pandemic? SUPPLY CHAIN ISSUES. Cargo ships are anchored offshore, waiting their turn to get unloaded. Inventory is sitting in warehouses, waiting to be placed on trucks or railroad cars. Empty shelves are in stores (there’s still a baby formula shortage).

One possible solution?

Collaboration Ecosystems

What if companies, instead of competing ruthlessly against each other, collaborated to their mutual benefit? In so doing, they can reduce costs and eliminate barriers to success.?

For instance, warehousing, distribution centers and shipping are expensive line items in any company’s budget. But what if companies merged those activities by cooperating in storing and delivering their products to consumers??

Collaboration ecosystems can streamline operations, reduce costs and increase profits for all members of the collaborative ecosystem.?

This business model is not new. We have only rarely used it up to today. In fact, the automotive and electronics industries in post-World War II Japan used the collaborative business model to recover after the war.

And this model is no stranger to America. After the Great Depression, Andrew Carnegie found there was no money available to expand his oil empire. He looked around, and he said to businesspeople, “You know what, I need what you've got'. I'll help grow you if you'll grow me.” He gathered 20-30 people, and they agreed to grow each other.

Benefits of Collaboration

There are several benefits to companies that are partners in a collaborative ecosystem:

• Increased productivity
• Increased agility
• Increased equity
• Increased innovation?
• Improved balance sheet

Companies that are in a collaboration ecosystem identify joint opportunities and the business results they want. Moreover, they recognize the resources they have and the ones they need.??

The question to ask is: Are you collaborating to create increased cash and capital in your organization? If not, stay tuned as we explore critical solutions in this LinkedIn Newsletter.?

Lois Sonstegard is the Chief Executive Officer of Build2morrow in Minneapolis-St. Paul, MN. She is a management consultant, executive coach and advisor to C-suite level executives. Lois is a strong proponent of collaboration in the business world. She sees it as a positive and necessary model of modern business. In fact, she acts as a neutral advisor to companies in collaboration ecosystems.?

If you would like to know more about collaboration ecosystems, call Lois at 952 200 6539 or visit her website here .?