Businesses continue to face unprecedented challenges in our post-pandemic world. The aftermath of this trying time is filled with businesses that, although able to survive, continue to struggle with issues surrounding technology, rising prices, and inventory, to name a few. However, business owners need not face these difficult issues alone. To that end, we’ve compiled the top three post-pandemic challenges faced by businesses today and how a CFO can help overcome them.
1. E-commerce Integration
The world of e-commerce has grown exponentially, especially since 2020 when more businesses were forced to close brick-and-mortar stores and bring their products and services online. In 2022, having an online presence is vital to most companies’ long-term success. But with it comes additional considerations, risks, and challenges.
The right technology is crucial when it comes to e-commerce. Challenges arise in many facets, but one of the largest is when the e-commerce platform doesn’t integrate properly with the rest of the company’s technology stack. When there is no integration or there is not a proper integration, it can affect the accuracy of your inventory, numbers, and statistics, potentially creating serious long-term problems.
How a CFO Can Help
CFOs have a wide range of experience when dealing with financial issues, including those that arise in the e-commerce world. A CFO can help navigate the nuances of your e-commerce platform and ensure it is collecting the data you need to make more informed decisions going forward. With a CFO’s help and proper integration with your CRM software and inventory management system, you can minimize order errors, enhance your customer’s shopping experience, and safeguard your inventory’s accuracy.
2. Supply Chain Disruptions
The pandemic created massive supply chain disruptions, the likes of which we are still feeling over two years later. Port congestion, increased prices to ship and store products, inconsistency with tracking, and labor shortages all contributed to delays in raw supplies reaching manufacturers and merchandise reaching consumers. With companies closing their doors across the globe, those who relied on international suppliers were hit hard with getting their goods stateside and into the homes of their customers. This situation also creates challenges in forecasting and pricing, as it has become increasingly difficult to predict if you will have a product, and if so, how much of it, and when.
How a CFO Can Help
Forecasting is an area where CFOs thrive. Their job is rooted in a strategy, so that they can look toward the future and all its variables and create plans of action in response to those varying scenarios. While our recent supply chain disruptions have been unprecedented, a CFO is still best equipped to provide guidance on how to reevaluate backorder stock, while also navigating overstock that is not being moved. By examining past and current trends in the industry and target market, in relation to these disruptions, a CFO can help forecast how much product will be needed and when, compared with realistic expectations of delivery times.
The record inflation we’ve been experiencing over the past two years can be felt everywhere from the restaurants in which we eat to the gas we pump to the stores in which we shop. But it’s also been felt by manufacturers, who are paying more for raw materials, causing them to raise their own product prices to combat the increasing costs. And on everyone’s mind is … how long will it all last? When will the bubble burst? This intense uncertainty often causes business owners or CEOs to make rash decisions they wouldn’t ordinarily make.
How a CFO Can Help
CFOs can help provide you with the facts to combat the uncertainty, so that you can make more data-informed decisions. They are experienced at predicting the impacts of rising costs on the bottom line because they have a better overall picture of your company’s revenue, expenses, and profit, both today and in the future. They also more clearly understand what the company can withstand in terms of increased costs and for how long. Additionally, a CFO can help you take an unbiased approach to products through the numbers and shift marketing and sales strategies appropriately. For example, moving a product that is more profitable to counteract those increasing costs.
With a CFO’s assistance, you can respond to challenges like these with confidence and a strategic plan to pivot, as the industry, world, and trends demand. As such, your company will be more resilient against unforeseen financial challenges similar to these. At Agile Planners, we take care of the numbers, so you can sleep at night. We provide strategic guidance and outsourced CFO services to companies of all sizes. We can help provide the strategy your organization needs for the growth you want. We understand that no two organizations are the same. And with our experience and financial knowledge, we can help develop the right strategic plan for your business to grow and reach its goals. Simply, we’ll be your trusted partner, so you can focus on running your organization. Contact us today to learn more about how we can help.