Vocal for Local (VOL)

You are struggling with growth. Competition is getting intense, and you are looking for better ideas.

In this newsletter, let us drive topline growth and optimize cost with 2 case studies.

If you are a business owner with 10-25 years of experience in your domain, your problem is that you are not growing.

Even if there is growth, it is stagnation growth. The growth that is visible as growth but not allowing you to grow looks like growth in reality.

Your margins are getting thin, and you sometimes wonder how you will stay afloat.

In my experience, 70 percent of businesses face this challenge.

• You do not know where to focus your energy on
• You haven’t optimized your operations.

Topline Growth

In my career in souring, I have realized that businesses assume that increasing revenue is the key to growth. The reality is that more sales do not equal profit, especially when you are not optimizing cost.

Let me share the key points in the top-line growth of two leading giants: one in the FMCG space, India’s key milk products brand, and the other a paints brand.

• The milk brand did not stop selling milk but expanded to butter, cheese, ice cream, and chocolates, creating a market leader. Became a household and dominant brand in the dairy sector.
• The paints brand ventured into decorative products with home solutions. The key was raw material sourcing and supplier relationships.

Cost Optimization

1. The dairy brand negotiated with farmers and reduced the middlemen, thus reducing sourcing costs. (Direct sourcing). Automation has helped it increase efficiency and reduce labor costs, leading to lean operations.

2.The Paint brand invested in data analytics and technology to improve demand forecasting and inventory management. This brought operational efficiency and reduced waste.

The Balance

Manage the balance between revenue and cost.

Lets recap:

• The milk brand added products, optimized sourcing, improved supplier relationships, and eliminated inefficiencies for healthy margins.
• Top-line growth and bottom-line optimization help you to expand and bring profitability.

Innovative procurement – leverage relationships, invest in technology, and strive for cost-effective solutions.

In my years of experience, I’ve seen how the right sourcing strategies can make all the difference in helping businesses grow.

If you’re in the 70% of businesses facing stagnation, now is the time to focus on growing your topline and optimizing your bottom line.