The top 3 CEO profit challenges that Corporate Trade can help solve.

Posted by KImberly Armstrong on Jun 21, 2013 12:09:00 PM

Having navigated through all the turmoil of the past decade, CEOs whose job is to steer a company to profits and growth still have plenty of worries top of mind.

The multi-million dollar question is ... how? PwC’s 16th Annual Global CEO Survey found that CEOs around the world are concentrating their resources on driving a few carefully selected initiatives forward with power, versus gradually nurturing many.

Today, my blog zeroes-in on the top 3 challenges faced by today’s CEO, that a Corporate Trade solution can help solve.

Flat EconomyCEO Challenge #1: Delivering shareholder value and boosting top-line growth in a little to no-growth economy.

Many Canadian leaders are faced with the dilemma: planning for growth vs. defensive economic planning. Marketing is often the first place to either slash budgets or seek leadership to drive new product sales, forcing many CMOs to undergo a careful balancing act.

Corporate Trade helps in two ways.

  1. Defensive economic planning: Corporate Trade can save your bottom line as much as 15-20% through your advertising budget. While your negotiated media rates stay the same, it enables you to partially pay for that expense using other assets (such as last season’s excess inventory).  It also acts as a financial tool to recover painful profit mark downs on obsolete assets such as excess inventory or capital equipment.

  2. Planning for growth: Using the same principle, Corporate Trade can help extend your existing media budget further by as much as 15-20%.

CEO Challenge #2: Stimulating product and service innovation in a cost-effective way.

Today, the corporate world depends on innovation, and leaders are seeking to focus on how to alter their current business models and product lines to define future trends. At the same time, they cannot leave the company vulnerable to another economic downturn.


Corporate Trade is an enabler to innovation: Think about the resources and time that currently go behind moving obsolete assets and product. How much money does your business give away each year liquidating obsolete assets or other unsalables? Corporate Trade is a strategic solution to this common problem, opening up time and resources so that you can innovate for the future.

CEO Challenge #3: Protecting the business against increased risk.


Today, CEOs are thinking about risk as integral to enterprise management, and are challenged to continually evaluate their companies' approach to risk across all areas of the business.

The Corporate Trade link: Even the most successful companies with advanced forecasting tools cannot predict all market variables. Changing weather patterns, natural disasters, surprise competitive activity, new technologies and more all contribute to risk in your asset mix and supply chain.

Corporate Trade acts as an insurance policy on the profit affected by these types of unpredictable market variables. Rather than liquidating slow-moving or obsolete assets for a fraction of their worth, Corporate Trade enables a business to recover that write-off entirely. Integrating Corporate Trade as an ongoing part of your risk management program not only saves headaches, but helps to manage risk to your EBITDA.

Your turn: what are the top 3 profit challenges your business will face to close out 2013 fiscal year?

Free eBook - the CSuite Guide to Corporate Trade

By Kimberly Armstrong, Senior Director of Market Development, Active International

 

Topics: Cost Management, EBIT, Risk Management, Corporate Trade 101, Supply Chain Management (SCM)

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