Can you turn the supply chain crisis into a business opportunity?
7 December 2022
The ongoing supply chain crisis is slowing down production and pushing up prices. But there might be a way to turn this business challenge to your advantage. If you’re a business-to-business (B2B) supplier, this could be a golden opportunity to become a supply chain saviour.
If a competitor is struggling to supply customers, can you be the alternative that saves the day? By delivering your goods to customers more quickly, more cheaply, and with less hassle, you make your company invaluable as a local trusted supplier – and that’s great for your revenues.
Become the supplier that saves the day
Companies are crying out for reliable suppliers who can meet their needs. If you can streamline your processes, and rethink your business model, this is a gap that your company is capable of filling. It just needs a few changes in thinking and strategy.
- Reduce the impact of the pandemic on your operations – none of us were fully prepared for the impact of the COVID pandemic. But, several years into the crisis, there are plenty of preventative measures you can take to protect your staff, reduce employee absence, and offer a safe environment for employees and customers. By mitigating the negative threat of COVID, you make it easier to run your operations at full capacity.
- Focus on sustainability and providing for local customers – globalisation and ‘offshoring’ of the supply chain has increased choice and reduced costs. But a global supply chain has become increasingly difficult to manage when faced with the current geo-political challenges. By offering a local, sustainable alternative, you help your customers cut down wait times, and reduce their carbon footprint. You also give customers a way to support their local economy.
- Review your margins to offer a competitive price – businesses are paying over the odds for scarce materials and supplies. Try offering a better price, while still maintaining a reasonable profit margin, so customers see the benefits of your cheaper, local alternative. The key is to streamline your manufacturing and logistics costs, using time-saving automation and economies of scale. By lowering your cost of goods sold you keep your profit margin, and can still offer an extremely competitive price.
- Update your systems and software to go digital – digital systems can do a lot to improve the efficiency of your operations. Modern cloud-based inventory, project management, and logistics solutions help you automate the time-consuming manual tasks. This not only speeds up your pipeline, it also frees up time for your employees and management team to focus on customer-facing tasks. This resolves customer problems more quickly, provides a better customer experience and builds a trusted supplier relationship.
Taking steps to make your B2B business more attractive in the market is always a sensible move. But with the supply chain crisis set to continue well into next year, giving yourself a competitive advantage has rarely been more important for B2B companies.
We can help you review your business model and your key targets for the coming months. With the right plan behind you, there’s nothing to stop you maximising the supply chain opportunity and making your business the 'go-to supplier of choice.
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As an employer, there are several obligations and expectations set by the Inland Revenue Department (IRD) that you must adhere to. Understanding these requirements is essential for maintaining compliance and avoiding any potential penalties. Let's take a closer look at what the IRD expects from you as an employer. Register as an Employer Before you hire your first employee, you are required to register as an employer with the IRD. This is a crucial first step in ensuring that you can meet all tax and payroll obligations. Accurate Record Keeping The IRD requires you to keep accurate and detailed records of all employment-related transactions. This includes: Employee personal details Wages and salary paid Payroll dates and methods PAYE deductions and remittances Details of benefits or allowances provided to employees Maintaining proper records helps ensure that you are reporting and remitting the correct amounts to the IRD. Deduct PAYE Tax You are responsible for deducting PAYE (Pay As You Earn) tax from your employees' pay. This involves calculating the correct amount of PAYE and ensuring it is deducted from each employee's salary or wages before their net pay is provided. Pay Employer Contributions In addition to PAYE, you may also be responsible for contributing to your employees' social security and retirement benefits, depending on the country you operate in. These contributions are typically paid in conjunction with PAYE tax. Issue Statements and Forms At the end of the tax year or upon employment termination, you should provide each employee with a statement showing their total earnings and PAYE deductions. Additionally, filing the appropriate end-of-year PAYE schedules with the IRD is required. File Employer Returns Employers are required to file regular returns with the IRD, which could be monthly, quarterly, or annually, depending on specific regulations. These returns should accurately report all payroll activities, including PAYE deductions. Handle Tax Codes and Changes It's crucial to apply the correct tax codes for each employee's circumstances. Any changes in employment status or tax code must be updated promptly to ensure accurate tax withholdings. Comply with Audit Requests The IRD may audit your business to ensure compliance with employer obligations. As such, being prepared to provide all requested information and records in a timely manner is vital. Adhering to these expectations from the IRD is not just about compliance; it's about fostering a transparent and trustworthy relationship with your employees and the tax authorities. If you need assistance with understanding or managing your obligations as an employer, consider reaching out to a professional accountant. Our team is here to help you navigate these responsibilities seamlessly, ensuring peace of mind and allowing you to focus on growing your business. Feel free to contact us for further information or assistance.
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