CHAPTER 32Two Dimensional Virtual Vertical Integration: Solving the Impossible SC Problem
By Sotiris Melioumis1
1CEO, SoNiceSoNice UK Ltd
Defining business behaviour is influenced by institutionalized ideas as well as rooted into solutions that previous generations have been deploying to address business problems.
You lack liquidity?…you ask your banker for a loan or a credit line
You experience late payments?…you buy trade credit insurance
You experience disproportional trade risk?…you stop selling on credit
You have high operational cost?…you hire consultants to lean engineer your business
Yesterday’s solutions have become today’s problems as business profitability is currently below 8%.1,2,3
Global insolvencies YOY growth stands at 6%.4
Nine out of ten startups will fail in within 10 years of foundation.5 Same-profession wages inequality varies between $194 and $1864.6 Institutionalized ideas are driving societies in the wrong direction.
The Cost to the Economy
Asking for a loan to cover your liquidity gap does nothing to correct the root cause of the problem. By using trade credit insurance, you incur cost, reduce your revenue potential and your customer base due to restrictions imposed by your insurer and you fail to address the root cause of the problem. By not selling on credit you will lose between 47% and 85% of your potential customers to your competitors. The way we organized our business processes and our banking systems to cope with transactions, the ...
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