Shaving COGSĤFront Ventures is one of the industry’s masters of low-cost manufacturing. We spoke to companies big and small throughout the industry to see how they are meeting a moment that calls for financial prudence, smarter processes, and buy-in from teams on the concept that margin-not revenue growth-is the key performance indicator (KPI) companies should prioritize during tough times. “The companies with intrapreneurial, spirited employees probably have the biggest chance to survive because they contribute to the goal of the company and can get on board with the need to be super-efficient.” and a veteran of the ebbs and flows of fast-growing industries. “These phases can be super exciting for businesses, but they can be stressful for the people who just want a job,” said Andreas Neumann, chief creative officer at Jushi Holdings Inc. With new capital allocations at their lowest in years and balance sheets being squeezed by rising inflation and falling prices, adopting lean principles and taking a ruthless red pen to unnecessary line items looks like the path to greater profits. Today’s cannabis industry might benefit from studying Carnegie’s mindset. Carnegie established a new order: Technology followed the demands of industry, and significant increases in margin were realized by automating processes to find gains and save pennies. The introduction of the Bessemer process to the United States ushered in a new era of industry and upended a more than century-long assumption that division of labor was the key to unlocking growth, as Carnegie’s countryman Adam Smith outlined in The Wealth of Nations.
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