Three steps to survive a crisis

Automotive suppliers are going through tough times. Despite optimistic forecasts, a return to pre-Covid times of abundance is not yet happening. Many companies are thus deciding what to do next. And some will probably not have time to solve it.

 

Critical chip shortages and total disruptions in supply chains that led to production shutdowns. It was supposed to end this year. But it didn’t happen. Outages continue and car manufacturers – including domestic ones – continue to cancel some production shifts.

Of course, production shutdowns affect not only car manufacturers as such, but also individual suppliers. In addition, they have to cope with a huge increase in the prices of materials and energy and with pressure on wage growth . And price negotiations are very tough with car companies, also due to the highly competitive environment.

Therefore, a number of suppliers in the automotive field are clearly thriving. They fall below profitability, have problems with cash flow, some even go bankrupt. It is almost unnecessary to talk about the fact that they lack money for investment and development.

There is no easy solution. Nevertheless, there are at least three steps that manufacturing companies, not only in the automotive industry, can take to mitigate the effects of the crisis.

1. Diversify

Diversification is a term that we often associate with the world of investments. You’ve probably heard the golden investment rule that says, “Don’t put all your eggs in one basket.”

Something similar also applies in business. If a company is dependent for its existence on one industry, or even on one customer, it will logically run into great difficulties in times of crisis.

Of course, reorienting to a new market and breaking into another industry is not just like that. But it is doable, and in some cases even necessary.

2. Slim down

Jan Pleyer, automotive industry expert, for Hospodářské noviny stated: “The path for supplier firms is … clear: lean. We are in a crisis, companies must find the essence of business. The entire overhead must go down, key employees, talents and people with great know-how must remain.”

The critical period that supplier companies in the automotive industry are currently going through may sooner or later occur in other industries as well.

Therefore, a preventive “reduction diet” is not harmful at all. In practice, this can mean, for example, that the company stops wasting resources in the back office or paying an overburdened sales department.

And what are the most effective ways to shed some business pounds?

3. Outsource

The term “outsourcing” has been a business mantra in recent years. And it’s not a coincidence. Outsourcing allows companies to focus on the core of their business and not waste money where it is not necessary.

Thanks to their experience, expertise and technology, external partners are often able to offer not only cheaper but also higher quality services.

Thanks to outsourcing, companies can react more flexibly to fluctuations in demand and other changes in the market. It is an ideal solution for a period of economic uncertainty.

What can we do for you?

At Intedat, we are happy to help you with all three steps that we talked about in the article. How specifically?

Diversification

Using high-quality data and efficient search algorithms, our data specialists will prepare a tailor-made database of potential new customers .

Thanks to it, you can reach hundreds of companies in the Czech Republic and on attractive European and global markets that exactly match the profile of your ideal client.

Slimming down

With our solution, your business costs will be reduced by up to 50%. If you want, we will not only find potential clients for you, but also contact them on your behalf. In their language of course.

That way you don’t have to pay for an in-house sales team. You will save, among other things, salary costs, office costs, equipment costs, recruitment costs, training and ongoing education, etc.

And even if you decide to contact potential clients yourself, thanks to Intedat’s cutting-edge data, you can be sure that your salespeople are using their capacity effectively.

Outsourcing

In 10 years of experience and during cooperation with hundreds of companies, we have gathered a wealth of know-how, which we are happy to make available to you.

You will get current contacts with us to the right companies and the right people. We will find you future clients even where you might not expect it.

And if you also entrust us with the acquisition process, you will have a perfect overview of it thanks to our clear application and regular reports. At the same time, we will not burden you with trifles. We understand our work and know what works.

Want to know more?

We’re happy about that. Contact us and request a free, non-binding consultation. We look forward to meeting you.