Monthly Archives: February 2022

Samir Allen Farhoumand: Preparing for Global Supply Chain Concerns

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Samir Allen Farhoumand has watched the global supply chain issues in recent months with growing concern. Companies are not adapting to the new normal in ways that make sense. This problem could linger for years unless they take proactive steps. Thankfully, he understands many techniques to help with this problem. Companies struggling with supply chain problems can utilize these ideas to avoid financial struggles.

Samir Allen Farhoumand: Tips for Managing Supply Chain Issues

The first tip that Samir Allen Farhoumand suggests is stockpiling in the face of potential shortages. For example, car companies have seen a need for essential microchips throughout the market. This shortage makes it impossible for them to produce vehicles or slows down the process. As a result, people trying to buy cars find themselves waiting for weeks or even months instead of days.

However, Toyota has weathered this problem better than most because they stockpiled chips to help improve their production. This intelligent decision made it easier to keep up with demand and avoid production shortages. Stockpiling is a strong choice in the face of such rare and staggering supply chain problems. However, more common issues may need more persistent solutions.

For example, Samir Allen Farhoumand states that stockpiling isn’t always financially reasonable for companies. Instead, backup capacity may be a more innovative solution. This concept requires shifting your resources to meet higher demands, leaving lower-demand situations unresolved. Let’s stick with the auto industry for a while as we examine how to approach this solution.

Companies like GM and Ford simply stopped making certain car lines and focused on those that were highest in demand. This meant that certain types of luxury or higher-end cars and trucks were not produced or concentrated on this year. Instead, more in-demand SUVs and general use cars received chips. As a result, they could continue production and meet many customers’ needs.

Obviously, this approach has downsides. Samir Allen Farhoumand states that it will cause frustration for many consumers who want that specific product. It may also cut into your profitability. By focusing on lower-end and lower-cost vehicles, GM and Ford could not attract the all-important luxury market. So while this solution helped them stay open, it may alienate those who want higher-quality products.

Day-to-day supply chain problems, such as a lack of drivers, require more short- and long-term solutions. For instance, hiring more drivers may help but could also cause union issues. Improving medical treatment and wages for existing drivers may also minimize shortages but cost companies more cash. Automatic-driving vehicles can also help but are far on the horizon for availability.

Factors to consider when choosing methods of financing

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When it comes to funding a business, there are several options available, as well as a variety of creditors and borrowers from which to select. Financing can involve a variety of loans or capital, with major differences in terms between the both. JeffLee Credit, a trusted moneylender, is particularly good at money lending in Jurong East. The payback terms, the total return on capital, and the funder’s expectations are all important variables to take into account when deciding financing options for a firm. Some of the variables are briefly discussed below.

Required Amount

The company should evaluate the amount of capital that the business requires and is attempting to secure. Not all financing options supply the same amount of money. Some money lenders are well-known for producing enormous sums of money, but others are more limited as they arrange for only modest amounts of money required by the firm. To find appropriate financing, the company must first determine how much money it requires. Borrowing a business loan for a small, relatively minor financial emergency is ill-advised because business loans are fixed. Instead, taking out a bank overdraft is a way better option.

Autonomy

A loan is a better alternative than having shareholders if you want to handle your firm with little to no help from others. Investors or shareholders frequently request influence on a firm’s management. That contribution can be as basic as being on the management board and getting monthly operational updates, or it could be as involved as day-to-day management of the company. Financial institutions will almost certainly impose limits that prevent massive debt, but they don’t get embroiled in the company’s management. The lender’s relationship ends after the debt is paid off. Investors have a stake in the organization as long as the company does not go public or is not sold.

Income

Creditors and investors assess revenue, which is your profit after costs are deducted. Creditors will believe that your firm will have a difficult time repaying the loan if it does not create a lot of revenue. A loan will not be an option for your firm if it makes no money. A bank business loan is unlikely for a start-up business because it has no track record of success. However, you might be able to get a personal loan by refinancing your house. If the company has significant potential for future growth, investors are another option.