The CEO of Global Knowledge Consulting Group, Dr. Steve Olusegun Ogidan MNI, has admitted that irrespective of the merits of the subsidy removal, businesses will have to adjust to rising prices.
Ogidan, who is the Managing Director and Chief Executive Officer of Successory Team, said with “increased fuel prices, transportation costs have been on the increase too. Therefore, you need to optimise delivery routes, use more fuel-efficient vehicles, and negotiate favorable contracts with transportation providers.
“You can also consider having your employees work remotely or take shifts or consider passing on a portion of the increased costs to customers through adjusted pricing.”
It is estimated that inflation would surge to 30 per cent according to KPMG while other analysts argue that it may hit 50 per cent.
In an advisory post targeted at businesses, Ogidan who is an expert at helping businesses map out ways to mitigate the effects and ensure the effective running of businesses noted, fuel costs may lead to increased electricity tariffs in Africa’s biggest economy.
He said, “You can minimise the impact by using energy-saving appliances, optimising lighting systems, and properly insulating buildings. This can help reduce electricity consumption and lower energy bills.”
He noted that, in addition to energy efficiency, businesses could consider investing in renewable energy sources such as solar panels or wind turbines.
He acknowledged that, “initial investment may be significant, but the long-term benefits can help offset rising fuel and electricity costs.”
On embracing technology, he said, “You can consider using technologies and automation to streamline processes such as online collaboration and communication tools, inventory management software and e-commerce platforms, cloud computing and storage which promote remote work capabilities, etc.”
He said businesses should open discussions with suppliers and vendors in a bid to negotiate better terms and prices.
“Exploring alternative suppliers or consolidating orders with fewer vendors can result in bulk discounts or better pricing arrangements,” he added.
According to him, businesses should identify untapped customer segments and diversity their product offerings to increase revenue.
For him, businesses should monitor inventory levels and implement efficient inventory management systems.
“This means that you need to minimise stockouts and avoid overstocking. This way, you can optimise cash flow, reduce storage costs, and avoid unnecessary losses.”
The Successory Team CEO noted that it is paramount for businesses to retain existing customers.
He also said businesses must look for means to foster brand loyalty which could “help you minimise the impact of price increases and maintain a stable customer base.”
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