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How distancing measures are affecting your business operations

Social distancing measures are considerably changing how businesses operate, regardless of the type of business.

Your business will gradually resume following the government-imposed hold but your day-to-day will be different.

You must now worry about certain rules that you would never have thought of.

  • How can your business adapt while minimizing the impact on your sales?
  • How can you provide a secure environment for your employees and clients and remain competitive?

We’re here to help you identify the best solutions for you.

Adapting your operational model

In the past few weeks, some businesses have been put on hold, some are able to work from home and others have had to adjust their processes due to social distancing, and introduce stricter health measures.

Businesses must plan for a progressive return, taking into account the impacts of the new parameters. This plan must include both permanent and transitory measures.

Here are some things to reflect on:

  • Analyzing your operational model;
  • Analyzing your operational capacity;
  • Identifying your breakeven point and reviewing your production costs.

Analyzing your operational model

How can you organize your factory, business or offices to practise social distancing? Can you carry on the way you did before the crisis? You need to review the sequence of operations and how work shifts are assigned. And you must ensure employee safety by reassessing your facilities layout and providing protective equipment. All of those factors will have an impact on your operational processes which should be redesigned to ensure safety, efficiency and effectiveness.

In the long run, it will be important to think about implementing process automation and integrating technologies to your operations. When reviewing your business activities, consider the shift to 4.0 or digital transformation.

The COVID-19 pandemic has brought about a great deal of changes and you should rethink your operational model and allow your business to adapt. Set new business goals with those changes in mind. Make informed decisions and take advantage of every opportunity. Dare to innovate!

Analyzing your operational capacity

How are social distancing measures affecting your ability to serve your clients and your production capacity?

In this context, it’s important to examine the impact on the business’ value chain. If social distancing diminishes your operational capacity, find out how client delivery timelines and the client experience are being affected. You might also have to readjust your production planning parameters, especially if they are integrated to your computer systems.

You can resolve this issue by identifying alternative solutions to improve your capacity and meet demand. Assess the costs of these solutions and calculate the return on investment of any changes or additions you need to make.

Identifying your breakeven point and reviewing your production costs

Production capacity has an impact on how a business’ fixed costs are absorbed. Seeing that your costs will be adjusted, calculating your breakeven point can help you determine your new cost absorption capacity. Any changes to your operations will influence your costs. Past production costs may no longer be accurate and they will have an impact on your gross margin or sales prices. Running a cost analysis is key to ensuring your business’ long-term profitability.

Our experts are here to help you identify the impacts of social distancing measures on your business and offer solutions. Every business is unique and there are plenty of solutions. With Solutions for SMEs, you have access to concrete, customized tools that will allow you to adapt to the current context while focusing on your business objectives.

We can help you stay on track!

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