Category Archives: Business & Property News

Business & Property News, Finance and Banking, News

Tyl by NatWest announces new payments partnership with FSB

NatWest Group has today announced a new partnership with the Federation of Small Businesses (FSB). This official payments partnership, builds on the support the NatWest Group has given to FSB over the years as the UK’s biggest bank for businesses.*

In 2020, NatWest Group established the SME Taskforce with FSB to help SMEs to respond to and navigate the aftermath of the COVID-19 pandemic, working together with stakeholders from across the small business landscape, the two organisations worked closely together to support customers.

Just last year NatWest announced a £1million partnership with FSB to provide NatWest business customers with access to independent support and education to help with the cost-of-living crisis via webinars, and 1-2-1 phone support and webchat.

FSB members will see cost savings and other benefits by signing up with Tyl, subject to eligibility criteria as part of the partnership. Insight from Tyl by NatWest found that 8 out of 10 businesses could save on fees when switching from an existing card payment provider to Tyl by NatWest.†

For the smallest businesses, Tyl offers a simple fee structure based on one low rate for personal card transactions (where the card is issued in the UK or Europe) and one for all other transactions. For bigger businesses, Tyl has a range of different fees to fit the needs of the business.

In addition to the possible business savings, Tyl by NatWest could help FSB members with the day to day running of their business through features including:

  • Choice of card machines or a phone app for in-person sales
  • Take payments online or over the phone
  • Payment links and QR codes to send out so you get paid quickly
  • Simple bills and next business day settlement
  • Tyl Portal for access to constantly updated sales data
  • 7 day a week UK-based service and support line
  • Tyl is part of NatWest which brings trust, security and experience to ensure safe payments

Available now, FSB members could be up and running with Tyl in just 48 hours.

James Holian, Head of Business Banking at NatWest comments:

“FSB and NatWest share an ambition to provide strong support for the growth of entrepreneurship and small businesses in the UK, and we are excited and proud to partner with FSB in payments services for its members.”

Mike Elliff, CEO, Tyl by NatWest said:

“Small businesses are critical for our economy and our communities. At a time where the cost of trading is rising for small business owners, Tyl by NatWest is delighted to be able to partner with FSB to provide its members with a full range of cost-effective and reliable payment solutions, backed by great service.” 

Caroline Lavelle, Chief Commercial Officer, FSB, said:

“I’m delighted to form this partnership with Tyl by NatWest. We have a long-standing history of working with NatWest on various business initiatives and look forward to this next step in our relationship.

“As many of our members, and the wider UK small business community, continue to navigate the increasing cost of trading, an opportunity to make savings on payments, which is core to every business, will be well-received.”

Business, Business & Property News, Business Research, News

New Survey Reveals the Unacknowledged Issue Worrying Most Businesses

(London, United Kingdom), Wednesday 1st May 2024: Reputation management is one of the biggest issues concerning businesses, according to research released today. New statistics show that most businesses are more worried about reputational damage than a host of other serious issues.

The nationwide survey, commissioned by Speakers Corner, drew responses from 500 business owners and directors with at least 20% equity, for companies with at least 100 employees.

Surprisingly, more than half the business owners and directors surveyed say reputational damage worries them more[1] than other concerns including falling profits, high staff turnover, high inflation, the cost of living impact on their staff or rising energy costs. In addition, 50% say they are more concerned1 about reputational damage than the potential of a recession, the possibility of going back into lockdown or the green agenda including net zero targets.2

“The results of this survey are a clear indication that reputation management is a critical issue for most businesses – and it’s never been more challenging,” comments Nick Gold, Managing Director of Speakers Corner, the UK’s leading speaker bureau. “Alongside delivering value to shareholders and stakeholders, businesses are also expected to lead the way in corporate social responsibility and ethical practices, as well as having a positive impact on their communities. Any perceived wrongdoing or controversy can have serious repercussions, and this is obviously a huge concern for most businesses.”

Almost 9 in 10 (88%) business owners and directors surveyed said reputation management is more of a priority[2] for their business than training employees and 86% said it was more of a priority2 for them than sustainability.

 

The threat of reputational damage is coming from a variety of issues. 23% of directors/business owners surveyed see financial issues as the reputation issue most damaging to their business, while 16% cite toxic business culture/bullying as the most damaging reputation issue; 16% name data breach issues as the reputation issue that could be most harmful and 11% list environmental concerns as the issue likely to cause most damage to their reputation.

In today’s interconnected world a single negative incident or comment can spread rapidly, potentially causing significant harm to a reputation, making it an increasingly pressing issue for UK businesses.

The top five impacts experienced by the directors and owners surveyed in managing reputation issues are:

  1. Low staff morale (28%)
  2. Staff left (27%)
  3. Negatively impacted profits (26%)
  4. Negative impact on culture / weakened value proposition (24%)
  5. Investment withdrawn (22%)

 

The stress of reputation management may not be one of the topics making headlines – for example a potential recession or high energy costs are. But these survey results highlight how huge this worry is for the majority of business owners and directors.

Concern over protecting their business from reputational damage is one of the biggest issues most businesses currently face.

 

[1] ‘Reputational damage concerns me much more’ and ‘Reputational damage concerns me somewhat more’ answers combined.

2 See notes to editors for a further breakdown of data as illustrated in the infographic.

[2] ‘Reputation management is significantly more of a priority’ and ‘Reputation management is somewhat more of a priority’ answers combined.

Business & Property News, Business Advice, News, Training, Training & Apprenticeships, Wales

Budding businesspeople bloom at Bootcamp

37 aspiring young business people from all corners of Wales have come together to hone their business ideas, expand their networks and develop their self-confidence at an immersive residential bootcamp.

Hosted at The Summit Centre, Treharris, this year’s Big Ideas Wales residential ‘Bootcamp to Business’ event marked the eleventh annual event since it first launched in 2013.

Targeted at individuals aged 18-25 with an entrepreneurial spark, Bootcamp to Business aims to strengthen the support framework available for aspiring startups by inviting leaders to collectively develop the skills needed within the first year of trading, from branding and social media to sustainability and pitching.

This year’s Bootcamp to Business weekend began with a speed networking event led by Big Ideas Wales Role Model, Jamie McAnsh. Jamie shared the story of See No Bounds, a networking business thriving on genuine connections, and offered tips on relationship building in business.

Participants then had the opportunity to reflect on what type of entrepreneur they want to be in a self-promotion class with wellbeing and self-development entrepreneur, Ryan Davies, before learning how to attract positive, successful partnerships in a DiSC personality profiling masterclass with key speaker, Emma Melrose.

Role Model and founder of digital marketing initiative Yellow Hat, Destiny Kirk, was on hand to help attendees perfect their business pitches. During her pitch masterclass, Destiny guided them through every step of a pitch from introduction to audience analysis, unique selling points and social values.

Masterclasses concluded with a sustainability session with Big Ideas Wales Role Model Tyra Oseng-Rees. During the hour session, Tyra introduced attendees to the importance of launching sustainably, simple eco-conscious business implementations, and the different accreditations attendees can work towards.

A highlight of the event was a talk on mental wellbeing, led by Andrew Jenkins. Andrew became a mental health advocate after bravely sharing his own journey on the hit BBC show, The Traitors, where he got to the finals. Andrew shared invaluable advice about maintaining a positive mindset and the importance of mental wellbeing during his session on Saturday.

Andrew said: “I’ve met a lot of celebrities over the past year, but I was more nervous speaking to these hugely gifted business leaders. They’re the future of business here in Wales, and their devotion and ambition is inspiring. I feel really grateful to have had the opportunity to be a part of this weekend, to have witnessed their entrepreneurial drive and be able to offer some words of encouragement. I want them all to just go out there and build their empires. They can do it.”

Andrew spent two days at the event, offering more words of encouragement to the business-minded attendees ahead of their pitches on Sunday morning, and opened the awards ceremony later that day.

The event came to a close on Sunday with the presentation of six awards. Ashima Anand received the Green Award for the most innovative plans and processes around promoting sustainability, while Sarah Rowlands was honoured with the Community Champion Award for her business idea aimed at helping others.

India Lloyd-Evans, received the Bootcamper’s Choice Award after attendees voted her as the most likely bootcamper to learn from. Chloe Henderson was also awarded the Mentors Award which, voted by event hosts George and Glenda, was based purely on her personal growth and improvement over the weekend.

April Garcia, founder of The Galactic Healing Hub, was also among the winners of the weekend, earning the Best Pitch Award for her compelling pitch earlier that day.

Discussing her involvement in this year’s Big Ideas Wales Business to Bootcamp event, April said: “This weekend has been incredible. It pushed me to challenge myself and refine my business idea alongside inspiring peers. I even offered readings for feedback to enhance my business further. I speak on behalf of all my peers when I say that this event has been unbelievable. We’ve all taken key messages and skills from this experience that will strengthen our businesses further.”

 

Fellow attendee and founder of ST Welding, Sion Thomas, said: “I was very pleased to be invited to this event, and was blown away when I heard it was fully funded. There’s a really strong sense of community here and the atmosphere is like nothing I’ve experienced before. Everyone is here to support one another and make their business the best it can be. I’m very proud to be a part of this event and wider network of Welsh businesspeople.”

 

Following the thriving weekend, attendees will now be paired with Business Advisors who, available via email and over the phone, can guide the launch and further development of their business dreams.

Big Ideas Wales is part of the Business Wales service to encourage youth entrepreneurship in Wales. Funded by Welsh Government, it helps young people aged between 5 and 25 to develop business ideas and entrepreneurial talent.

For more information on the help available to young businesspeople and their start-ups from Big Ideas Wales, visit www.gov.wales/bigideas

 

Appointments, Business & Property News, Technology, Wiltshire News

New MD takes over at IT firm Mintivo as founder steps aside after six years of rapid growth

WILTSHIRE IT services and solutions company Mintivo has appointed Alex Jukes as its new Managing Director after a fifth consecutive year of growth, with 2022-23 seeing a more than 45 per cent increase in turnover.

Founder Chris Gough is stepping aside as MD, although he will remain a member of the Chippenham company’s board.

Mr Jukes, who joined the company three years ago and has more than ten years’ experience in the sector, said: “I’m really excited about this new role because it’s always been my ambition to get to this type of position.

“I’m fortunate because I’m taking it on at a time where the company is incredibly stable and when we have a strong team in general but particularly a really strong management team who I will be able to lean on.”

He said clients won’t notice the change because the company will maintain its focus on customer service. “It’s going to be business as usual,” he said. “We’re not going to make any major changes but we’re going to try and highlight opportunities to change things for the better at the same time.

“We will look at how we make sure that people who work for us get the opportunities they want. In our market although the most important thing is retaining customers, it is also essential to retain the right people, because people buy from people.”

Executive Chairman Steve Healy said: “We see this as a fantastic opportunity for Alex to step into the role of managing director, he brings a wealth of experience and a strong commitment to excellence, making him the ideal candidate to lead Mintivo into its next phase of growth.”

Mr Gough, who is also a non-executive director at Wiltshire Friendly Society, said the move has been planned for more than six months and that he will be looking to become involved in other projects while supporting Mintivo as an advisor to the board. “It has been an absolute honour to lead this remarkable team since we started the company back in 2018 and I am immensely proud of what we have achieved together,” he said.

“We have an exceptional leadership team who will undoubtedly continue growing Mintivo. I am privileged to have worked alongside such talented individuals, and I have every confidence that they will continue to drive our company forward with the same passion and dedication.”

Mr Jukes said he has made maintaining customer service a priority for the year ahead. “Since day one we’ve reinvested in the business, whether it be people or systems,” he said.

“The goal for us is to keep growing, but our reinvesting over the last five years has put us in a strong position. We will continue to reinvest to underpin our growth, while ensuring we partner with customers that value IT.”

He said the company will make a major investment into upgrading its ITSM system. “Our team is excited about the capabilities of what we’re doing, it’s going to enable them to spend more time on things they want to be doing rather than on administration. It’s going to make us more efficient while allowing our teams to focus on our customers,” said Mr Jukes.

The last year’s growth has been driven by attracting new customers who want to evolve and develop their environment through the use of Cloud technologies. Mr Jukes said: “Our goal is to partner with organisations who want to leverage more from their IT, organisations who want to approach IT in a strategic way and see us as a valuable partner.”

Mintivo’s early clients tended to be in highly regulated sectors including financial services and defence, hence the unusual amount of security and compliance accreditation for a firm of its size, but recent years have seen its client base expand into recruitment, professional services, hospitality and its largest recent growth area, the charity sector. In the last few months it has become the long-term strategic partner for Dorothy House Hospice near Bath, Wiltshire Air Ambulance and Bristol Drug Project.

The company has seen an rise in new customers enquiring about IT support and strategic guidance, averaging two new customers a month with the aim of beginning their digital transformation. “I think the key for us and our growth is not purely down to bringing in new customers, but ensuring we are a good fit for the customers’ needs and we attract customers who want to go on the journey together and who see the value in IT,” said Mr Jukes.

“Our customer attrition is incredibly low and we want to continue to look after all of the customers that have trusted us so far.”

Find out more about the company’s services at mintivo.co.uk.

Business & Property News, Commercial Property, Commercial Property News, News, North of England

Fairfield Business Park in Penistone sold to lead tenant

Fairfield Business Park in Penistone, Barnsley, has been sold in a multi-million-pound deal.

Over the past two years, the site has been fully developed from being unoccupied into a thriving business park by family-run, Barnsley-based property and land specialists, Fairbank Investments Ltd.

The fully-let park has been bought by international packaging business Neal Brothers, for a seven-figure sum. Neal Brothers are the main tenants on the site, running their export packaging business from their onsite warehouse.

Located in the heart of Penistone, the historic former David Brown plant shut at the end of 2020 when former owner, SPX, transferred its production and manufacturing processes to an alternative UK production site, leading to job losses and vacant premises.

The 1930s factory development, once a major manufacturing hub employing more than 1,500 people at its peak production period, was given a new lease of life after being acquired by Fairbank Investments in March 2021.

Fairbank Investments bought the four-acre Green Road site after spotting its huge potential to create employment and restore economic prosperity to the town. The development progressed with the Fairbank Investments team prioritising eco-friendly design and sensitive building practices, employing the same meticulous design and sustainability ethos displayed in all of its regeneration projects.

Opened by shipmaker Cammell Laird in the late 19th century, the site was mothballed in 1930 but taken over by industrialist Sir David Brown in 1935. Sir David established foundry, pumps and fabrication operations in Penistone which produced bullet-proof castings during the Second World War and later specialised in manufacturing pumps for the global oil and gas industry.

The park currently consists of 14 independent offices totalling 15,000 sq ft which is home to a range of flourishing independent businesses with a further 66,000 sq ft of warehouse space which has been occupied by main tenants, Neal Brothers since late 2021.

Neal Brothers’ warehouse has prime access, high eves, roller shutter doors and an overhead crane. The facility has enabled the US-based international business to extend its existing operations in the north of England. The company has recruited staff locally and the operation has grown significantly since launching three years ago.

Other successful businesses operating from the site range from financial planning experts and a construction and building specialist to numerous clothing and accessories retailers and a pet grooming salon.

Alex Sewell of Fairbank Investments, commented: “We are thrilled that our vision to revitalise a local site of such historical importance has been fully realised and we have sold the business park as a thriving commercial hub, resulting in job creation and a bright future for the area. The legacy is an important one for the town following a few years of uncertainty but there is a diverse range of businesses on site, which have all created local employment opportunities and fully regenerated the area.

Added Joseph Green of Fairbank Investments: “When the production facility closed in 2020 during the coronavirus pandemic, this resulted in widespread redundancies, and the future of the site in Penistone looked incredibly bleak. As a local family business in the area and living locally ourselves, we wanted to take positive action and restore the site to its former glory, fully benefitting the town and the local economy. We are incredibly proud and satisfied that we’ve achieved this objective and have left the business park in very secure and capable hands. We will watch with interest as the site continues to flourish and the businesses on site go on to even greater success. As a progressive property business, we look forward to delivering similar outcomes for existing and new local regeneration projects.”

Two years ago Fairbank Investments acquired the historic partially Grade II-listed coal drops, signal house, and former railway siding site at Penistone in Barnsley, signalling a new chapter of growth and development for the area.

It recently unveiled the highly anticipated next phase of development for the site. With the next stage of the site’s transformative journey, Fairbank Investments is marking a significant moment in Penistone’s history, with the development promising an inspiring blend of heritage preservation and modern rejuvenation.

—

Pictured: (Left) Joseph Green and Alex Sewell (right) of Fairbank Investments Ltd who have sold the Fairfield Business Park in Penistone to Neal Brothers.

 

Business & Property News, Camping, Camping News, News

East Sussex Camping Site now Hosting Weddings after HSBC UK Backing

A family-owned camping site near the historic site of the Battle of Hastings is now hosting weddings following a seven-figure funding package from HSBC UK.

Bluebell Coppice, a campsite spanning 15 acres of woodlands, has expanded into the wedding industry following a £1.6 million commercial mortgage refinance from HSBC UK.

The savings from the refinanced deal has enabled Bluebell Coppice to open a 678 sq. ft. barn for weddings and events, and the owners are now in the process of refurbishing an existing lodge to be used as an indoor venue, which is due for completion in April.

The launch of the new events business is expected to boost Bluebell Coppice’s off-season revenue, with the park set to host up to 27 weddings annually, offering exclusive use of the glamping site to couples during off-peak weekends. As a result, revenues are anticipated to increase by £90,000 this year and £200,000 next year.

By lengthening its operational season, Bluebell Coppice will provide extended employment for wardens and cleaners. The site is also recruiting a marketer and administrator for its new events business, and has ambitions to launch an on-site shop and café.

Julie Warren, Owner of Bluebell Coppice, said: “After purchasing Bluebell Coppice in 2019, we were forced to close in 2020 due to Covid, so we didn’t have the trading figures we needed to show profitability. As a result, we had to move from our original bank to a loan provider with high interest rates.

“Switching to HSBC UK has been a game changer. Cutting down our mortgage costs has been a big relief, but more than that, it has given us a chance to grow our business in a way we didn’t think possible before. Now we’re hosting weddings and events, which is something we’ve always wanted to do.”

Dave Green, Relationship Manager for Business Banking South East at HSBC UK, added: “We see great potential in the growth plan for Bluebell Coppice and are delighted to have been able to support it through this mortgage refinance. The global glamping market size has been projected to grow annually by 8.7 per cent until 2030 and by branching into the wedding and events sector, the business will be able to boost its profits and take on new staff from the local area.”

Bluebell Coppice offers a variety of accommodations, including camping pitches, glamping bell tents, and woodland lodges. Set within a forest in East Sussex, the site also features a fishing lake.

The deal came through HSBC UK’s newly launched commercial broker scheme. Under the new scheme, accredited commercial finance brokers will be able to provide business leads to HSBC UK’s relationship managers.

Business, Business & Property News

The Evolving Landscape of Business and Office Culture: Navigating the Modern Workplace

In the fast-paced world of business, the office environment plays a key role in shaping productivity, innovation, and employee well-being. As technology redefines how we work, businesses are adapting their strategies to accommodate changing trends and preferences. Let’s delve into the dynamic landscape of business and office culture, exploring key facets that influence the modern workplace.

1. Flexible Work Arrangements: Embracing Versatility

Gone are the days of rigid 9-to-5 schedules confined within office walls. Flexibility has emerged as a cornerstone of modern work culture, with businesses recognizing the importance of accommodating diverse lifestyles and needs. Remote work options, flexible hours, and telecommuting agreements allow employees to attain a better work-life balance while fostering a sense of autonomy and trust.

2. Collaboration and Connectivity: Building Bridges Across Teams

Collaboration is at the heart of innovation and growth in today’s interconnected world. Offices are designed to facilitate communication and teamwork, with open floor plans, communal spaces, and virtual collaboration tools breaking down silos and encouraging cross-functional engagement. Whether through brainstorming sessions, virtual meetings, or project management platforms, businesses are leveraging technology to foster collaboration regardless of physical boundaries.

Within the modern workplace, The Brew, a designated communal area, serves as a hub for fostering connections, sparking creativity, and nurturing collaboration among team members, enhancing the overall office experience.

3. Embracing Diversity and Inclusion: Fostering a Culture of Belonging

Diversity is more than just a buzzword—it’s a promoter of creativity, resilience, and organizational success. Businesses are increasingly prioritizing diversity and inclusion initiatives to cultivate a workplace where every voice is heard and valued. From recruitment practices to leadership development programs, companies are actively working to create environments where employees from all backgrounds feel empowered to thrive and contribute their unique perspectives.

4. Wellness and Well-being: Nurturing the Whole Employee

The well-being of employees is paramount to sustaining a productive and engaged workforce. Recognizing the interrelation of physical, mental, and emotional health, businesses are investing in wellness programs, flexible benefits, and supportive policies to prioritize the holistic needs of their employees. From onsite fitness facilities to mental health resources and remote work options, businesses are taking proactive steps to foster a well-being culture beyond office walls.

5. Adaptability and Resilience: Thriving in Uncertain Times

The business landscape is inherently dynamic, characterized by rapid changes and unforeseen challenges. In the face of uncertainty, adaptability and resilience are invaluable assets. Businesses that embrace a growth mindset, encourage experimentation, and prioritize learning are better equipped to navigate disruptions and capitalize on emerging opportunities. Whether adapting to technological advancements, market shifts, or global crises, a culture of resilience enables organizations to thrive in the face of adversity.

Conclusion: Navigating the Future of Work

As we reflect on the evolving landscape of business and office culture, it’s clear that the modern workplace is characterized by flexibility, collaboration, inclusivity, wellness, and resilience. By embracing these principles and adapting to changing realities, businesses can create environments where employees feel empowered, engaged, and inspired to achieve their fullest potential. As we chart a course into the future of work, let us continue to prioritize the well-being and success of individuals, teams, and organizations alike.

 

Business & Property News, Marketing, News, PR and SEO, Sales

The Direct Selling Association launches campaign for greater adoption of industry best practice amidst direct-to-consumer surge

  • Direct-to-consumer (D2C) brands unite behind call for urgent broader adoption of industry Codes of Conduct.
  • Calls to prevent rogue operators from taking advantage of cost-of-living crisis.

 

The UK industry body for direct-to-consumer (D2C) retail, The Direct Selling Association, today launched a campaign calling for urgent and more widespread adoption of industry Codes of Conduct in the UK.

The campaign follows a significant growth in earnings by people working as independent consultants for direct to consumer retail brands in recent months, with monthly earnings increasing by 73% to £833 last year, thought to be the biggest annual increase in earnings in over a decade.

 

Susannah Schofield OBE, Director General of the Direct Selling Association said: “This form of earning is an increasingly attractive way for people to boost their income as the cost-of-living crisis continues to be felt acutely across the UK.

“Whilst this is a hugely positive development for retailers in an otherwise somewhat gloomy economic outlook, it also presents the potential for disreputable brands and rogue operators to take advantage of the situation and cause huge reputational damage to the wider industry, and we are keen to do everything we can to prevent this.

“It is therefore vital that there is far greater – and urgent – adoption of Codes of Conduct by the many reputable and innovative brands who are selling direct to consumer who are yet to sign up to these Codes.”

 

Direct selling is a £1 billion-a-year channel of retail where products are sold directly to consumers outside of a fixed retail environment. This could be via ‘Tupperware-style’ parties face-to-face, online or through catalogue distribution. Individuals act as independent salespeople and earn through commission paid on product sales. In the UK approximately 500,000 people earn this way, usually on a part-time basis, to supplement household incomes; the average amount earned in the UK through direct selling is £833 per month. Direct selling operates in a similar manner to a micro-franchise, but start-up fees are considerably lower, and it is often free to get started.

As part of its campaign, The Direct Selling Association is reaching out to companies not already signed up to industry codes, as well as engaging with government on the issue.

 

Schofield continues: “Most of the well-known D2C brands such as Avon, The Body Shop, Usborne Books and Ann Summers have signed up to the industry’s Codes of Conduct, which go above and beyond UK consumer law to offer higher levels of protection to both customer and independent sales representatives. However, there still remain a large number of companies in the UK that have not done so, and it’s these companies that we are targeting, to encourage them to do so as a matter of urgency.”

 

Membership of the DSA is only granted to companies which have satisfactorily undergone a full audit process, a process that can take up to a year depending on the maturity of the company in question. During this period, a rigorous examination of an organisation’s business practices, policies and processes are undertaken to check compliance with industry Codes of Conduct.

 

Business & Property News, Business Advice, Business Research, News, Research

Unlocking your business potential with the power of Operational Research

Written By Seb Hargreaves, executive director of The OR Society

In today’s rapidly evolving business landscape, one hidden gem is Operational Research (OR) – an innovative solution that is driving competitiveness and relevance for businesses.

Often termed ‘the art and science of decision making,’ OR combines advanced mathematics, data analytics, and human insights to tackle intricate business challenges.

Originating from World War II, OR’s roots trace back to scientists and engineers innovating strategies that optimised military operations. Analysing data, mapping processes, simulating scenarios, and planning optimal routes became pivotal in minimising military losses and ensuring mission success.

Today, executives across a diverse range of organisations – large, small, public, private, or non-profit – are using OR to extract value from data, model intricate systems, and make better decisions with reduced risks.

OR’s Impact on Business Transformation

Imagine an OR specialist collaborating with a logistics company, optimising delivery routes considering variables like traffic, fuel costs, and delivery deadlines or  a retailer using OR to analyse sales data, precisely predicting stock needs while balancing customer demand and inventory expenses.

Consider Pilkington UK, a glass manufacturer, which employed OR to streamline manufacturing and reduce glass waste. By harnessing OR techniques to review order data, the company redefined its manufacturing processes to align with specific customer orders, minimising waste, cutting costs, and enhancing their customers’ satisfaction.

Another example is Tesco, the UK’s largest grocer, that has used OR solutions to meet the daily challenge of managing the expiring stock of both food and non-food items.  A key step in Tesco’s value chain is what happens at the end of a product’s lifecycle. This is the last opportunity to sell an item to a customer or donate it to the community to ensure it doesn’t go to waste.

Tesco, like most retailers, discounts items that are close to being removed from the shelves.  This process is applied across Tesco’s product range, from general merchandise and clothing to fresh food. In particular, food items are reduced in price as they get closer to expiry to sell them before they go to waste.

Finding an optimal reduction strategy is a major challenge for every retail business. The question that must be answered is: By how much should the price be reduced?

There are two conflicting objectives:  to not only increase revenue but also reduce waste. Finding a solution that achieves both is a non-trivial task, but it’s what Tesco’s Data Science Team managed to do using OR.

They developed a novel multi-stage Clearance Pricing Optimisation system and deployed it across all Tesco stores in the UK where it is applied to 100,000’s of unique products annually.

The key objectives are to: 1) clear excess stock by a specific date; 2) increase revenue by finding the optimal discounts, and 3) reduce operational costs and provide further insights of in-store processes.

The solution achieved these objectives and has been a great success. Tesco has reduced the number of fresh food items going to waste by 5% and its impact on the planet, whilst at the same time increased the revenue generated by 1.5-13% across multiple food and non-food product lines.

Tesco were also delighted to be awarded the OR Society’s President’s Medal in 2022 for this work.

Like these examples, almost any organisation can use OR to solve complex problems, make cost savings, and improve decision-making. For businesses yet to explore this powerful tool, discovering its potential could be a real game changer.

By Seb Hargreaves, executive director of The OR Society

In today’s rapidly evolving business landscape, one hidden gem is Operational Research (OR) – an innovative solution that is driving competitiveness and relevance for businesses.

Often termed ‘the art and science of decision making,’ OR combines advanced mathematics, data analytics, and human insights to tackle intricate business challenges.

Originating from World War II, OR’s roots trace back to scientists and engineers innovating strategies that optimised military operations. Analysing data, mapping processes, simulating scenarios, and planning optimal routes became pivotal in minimising military losses and ensuring mission success.

Today, executives across a diverse range of organisations – large, small, public, private, or non-profit – are using OR to extract value from data, model intricate systems, and make better decisions with reduced risks.

OR’s Impact on Business Transformation

Imagine an OR specialist collaborating with a logistics company, optimising delivery routes considering variables like traffic, fuel costs, and delivery deadlines or  a retailer using OR to analyse sales data, precisely predicting stock needs while balancing customer demand and inventory expenses.

Consider Pilkington UK, a glass manufacturer, which employed OR to streamline manufacturing and reduce glass waste. By harnessing OR techniques to review order data, the company redefined its manufacturing processes to align with specific customer orders, minimising waste, cutting costs, and enhancing their customers’ satisfaction.

Another example is Tesco, the UK’s largest grocer, that has used OR solutions to meet the daily challenge of managing the expiring stock of both food and non-food items.  A key step in Tesco’s value chain is what happens at the end of a product’s lifecycle. This is the last opportunity to sell an item to a customer or donate it to the community to ensure it doesn’t go to waste.

Tesco, like most retailers, discounts items that are close to being removed from the shelves.  This process is applied across Tesco’s product range, from general merchandise and clothing to fresh food. In particular, food items are reduced in price as they get closer to expiry to sell them before they go to waste.

Finding an optimal reduction strategy is a major challenge for every retail business. The question that must be answered is: By how much should the price be reduced?

There are two conflicting objectives:  to not only increase revenue but also reduce waste. Finding a solution that achieves both is a non-trivial task, but it’s what Tesco’s Data Science Team managed to do using OR.

They developed a novel multi-stage Clearance Pricing Optimisation system and deployed it across all Tesco stores in the UK where it is applied to 100,000’s of unique products annually.

The key objectives are to: 1) clear excess stock by a specific date; 2) increase revenue by finding the optimal discounts, and 3) reduce operational costs and provide further insights of in-store processes.

The solution achieved these objectives and has been a great success. Tesco has reduced the number of fresh food items going to waste by 5% and its impact on the planet, whilst at the same time increased the revenue generated by 1.5-13% across multiple food and non-food product lines.

Tesco were also delighted to be awarded the OR Society’s President’s Medal in 2022 for this work.

Like these examples, almost any organisation can use OR to solve complex problems, make cost savings, and improve decision-making. For businesses yet to explore this powerful tool, discovering its potential could be a real game changer.

 

Business & Property News, Business Advice, Business Research, News, Sales

Majority of Businesses Falling Short on Sales Targets Seek Improved Forecasting

Businesses rely heavily on accurate sales forecasting to align with projections effectively. However, recent data from revenue intelligence experts Gong sheds light on the hurdles companies encounter in this area. Over the past two years, nearly 80 percent of UK companies have failed to meet their sales forecasts for at least one quarter, largely due to the use of outdated technology and practices in projection development.

A study conducted in 2022 by the Social Science Research Network revealed that public companies’ earnings guidance is inaccurate approximately 70 percent of the time. This trend indicates that the challenge of forecasting extends beyond private companies to publicly traded ones as well. In both spheres, missed forecasts can undermine stakeholders’ confidence, signaling a lack of grasp on business dynamics and market trends. Implementing advanced forecasting tools, including artificial intelligence (AI), can enhance the precision of these forecasts.

Inaccurate forecasting adversely impacts companies and their employees, resulting in pay freezes, deferred promotions, and halted hiring processes.

Despite these setbacks, businesses remain optimistic about the coming year, with 70% planning to increase revenue projections. When surveyed about the primary obstacle to accurate forecasting, one-third cited outdated technology.

Amit Bendov, CEO, and co-founder of Gong, emphasized the obsolescence of traditional forecasting methods, saying, “The era of revenue leaders relying on spreadsheets and subjective data to predict sales is over.” He highlighted AI’s role in revolutionizing forecasting by incorporating customer feedback and assessing deal health, thus empowering leaders to make informed strategic decisions.

Encouragingly, businesses acknowledge the shortcomings of current forecasting approaches and are taking steps to address them. Thirty-four percent of respondents reported planning to alter their forecasting methods for the upcoming year, while 64 percent are exploring or have already invested in advanced forecasting technologies and systems.

Work marketplace Upwork is one company that has increased its forecasting accuracy as it has grown, with its community of independent talent earning more than $3.8 billion in 2022 across more than 10,000 skills.

“At Upwork, our sales forecasting process wasn’t providing the level of precision we needed as we entered a period of organizational change and growth amid an uncertain economy,” said Drew Korab, director of sales operations at Upwork.

“We implemented a new, AI-powered solution that gives us the data, process, and insights to more accurately predict how our Enterprise business will perform in new logo acquisition. In the first three quarters we’ve used this solution, we reached 95 percent forecast accuracy, allowing us to deliver a stronger sense of confidence to our stakeholders.”

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The study surveyed 1,000 business leaders at privately held companies in the UK in January 2024.