BUSINESSMANAGEMENTREVIEW.COMOCTOBER 202495. FINANCIAL PERFORMANCE (FP): Maintaining sound financial performance is essential for sustainable growth and the business health of all stakeholders. Sunland's BPM focuses on EBITDA and Business Growth metrics. Clear and measurable EBITDA MBOs prioritize profitability and operational efficiency, while tracking Business Growth metrics provides insights into market expansion and competitiveness. This strategy fosters financial sustainability and growth, ensuring both short-term profitability and long-term viability, allowing swift adaptation to economic shifts and market dynamics.CHALLENGES IN THE SUPPLY CHAIN INDUSTRYThere is increasing Volatility, Uncertainty, Complexity, and Ambiguity (VUCA) in today's supply chains being compounded by challenges around labor shortages, shifting geo-political dynamics, environmental concerns, and increasing costs. With so many impactful variables outside a business' control, it is essential to focus on what is within its control like an effective process for Business Performance Management that is aligned with its organization's strategy. 1. LABOR SHORTAGES AND WAGE DISCREPANCIES: Hiring teams use BPM to identify labor shortages' causes and locations, enabling them to concentrate on recruiting and retaining skilled labor in key markets. This ensures competitive wages, enhancing employee retention and lowering recruitment and training expenses.2. FACILITY LEASE INCREASES: Escalating lease prices for warehousing and transportation facilities have added to cost pressures across the supply chain. A good BPM department should always know when a lease increase will occur, ensuring that all escalations are covered in an operations budget planning cycle. Whenever increases are missed, P&L's can be negatively impacted.3. CONTRACT MANAGEMENT CHALLENGES: Contract management can become complex with evolving market conditions and client needs. BPM enables companies to proactively oversee contracts, allowing sufficient time for preparation, scheduling, and communication of renewals and COLA increases to customers. These challenges demand careful management and can significantly affect profitability if mishandled. Effective BPM is a cornerstone of success in the 3PL and logistics industry. Leveraging BPM tools to track and observe MBOs enhances a company's performance and competitiveness. Adapting to ever-changing market conditions by utilizing BPM tools and adopting a customer-centric approach positions logistics companies for sustainable growth and success in a demanding environment. EFFICIENT PROCESS LEADERSHIP IS CRUCIAL FOR SMOOTH LOGISTICS OPERATIONS
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