If not handled correctly, an increase in demand can be just as devastating as a drop. Increased demand, also known as demand shock, happens when there is an unprecedented or unanticipated increase in sales of a company’s products.
For the business to reap big, it must have modules in place that accommodate the change. Many companies work with the current demand trajectory but are not adequately prepared for a sudden change, causing the unexpected expansion to lead towards a downward trend. To be able to accommodate a demand shock, here are a few tips
Have a Human Resource Plan
A demand increase means that you’ll be busier than usual, and you need more employees to handle everyday tasks. If you don’t increase your workforce, the current staff will be overworked, and they might not adequately meet clients’ demands. The result is overworked, unhappy employees, unsatisfied clients, and poor service delivery.
To avoid this, have a plan in place that enables you to acquire the required workforce when demand is up. You don’t have to maintain more employees in anticipation of an increase in demand because it doesn’t make business sense.
Still, outsourcing on-demand from a staffing agency keeps the organization’s processes flowing smoothly.
Invest in the Right Technology
Technology has revolutionized how businesses conduct their everyday processes, making it easier to optimize production, manage inventory, records and improve communication. When investing in any equipment or technology, have the future in mind and go for technology that can accommodate 2-4 times that you’re currently handling.
This means that your current equipment can handle the extra tasks comfortably when production or demand goes up. You’ll not have to hire or buy new and larger machines to accommodate the demand shock.
Other than this, automate most of the processes, freeing your employee’s time. Automation allows processes to run independently with minimal supervision. It means you can operate 24 hours a day, an advantage when demand is high.
Let Go of Processes that Waste Time
Time is of the essence when handling increased demand, and you have to recognize all systems and processes that slow your company down. You have to think of strategies that make everything work better, and sometimes it means trusting your employees more and getting rid of bureaucratic systems.
For instance, managers can take care of authorizations of some processes, such as supplies, and don’t have to wait until you sign the documents to initiate the processes. A simple phone call can give them the go-ahead.
Having a virtual system means that you’ll have less paperwork to deal with, and you can instantly communicate with different departments quickening processes. Probably another thing you need to look into is time spent in meetings and handling tasks that are not directly related to your core business.
For instance, outsourcing your IT needs to a reliable managed services provider frees up your employees’ time to handle the current demand.
As you prepare for an increase in demand, make sure all stakeholders can handle it as well. If you depend on suppliers for raw materials, check whether they can take more orders. It also pays to have two more suppliers you can rely on even on short notice.
