Dan Mullhall is one of the owners of Mullhall's, a garden retail, landscape and nursery in Omaha, NE. Dan currently serves as president of ANLA's Retail Division. Dan says, "Growing up in a family business, I've only had one job, but I've had thousands of bosses as I see each customer as being in charge."
For many of us, who joined the working class after the mid-80's, there has not been a protracted economic slow down to contend with. That is particularly true here in Heartland where we have avoided (or haven't gotten to participate in) the great boons or the great busts. But what is going on now in the market place sure feels different. There is a nervousness and uncertainty in the consumer's mind that is really affecting their purchasing. There are some things we are planning to do here at Mulhall's, and I'm looking for ideas from anyone else as well.
Read more at ANLA's 2009 Management Clinic Blog.
Unlike Dan, I have unfortunately lived through many economic down turns. I have worked for very large companies 50,000 employees and very small companies 9 employees. One of his comments is of particular importance I believe. Inventory control. Inventory is the enemy and should be treated as such. After staff, it is the one element that will suck cash flow dry. In business I have always attempted to sell goods before I had to pay for them. This was a key element in what and how much to buy with constant reforecasting of needs. The shorter the terms the smaller the order and the longer the terms the bigger the order. Even an extra 10 days can be critical to good financial health. I think there is too much focus on "the price" and not enough on other elements of a purchase such as seeking extended terms, consignment and prepaid shipments. We now rate suppliers on how close they are to our operation. Even sending our own truck for pick-up rather than paying for freight. Cutting down on suppliers has also made us more important to fewer people which helps both of us. Customers and suppliers are not the enemy to win or lose with. Too much or too little inventory is the real ememy by which you will win or lose.
Posted by: John Ridgway | December 12, 2008 at 09:08 AM