The automotive industry was no exception to this, with drastic drops in demand for travel as well as unforeseeable manufacturing interruptions continuing to be experienced. In the United Kingdom alone, year-on-year new car sales were down 46% in March and 97% in April (McKinsey and Company, 2020), with car production also falling to its lowest level since 1984 (BBC).
Whilst the long-term impact of Covid-19 is yet to be understood, it is safe to assume companies operating in the automotive industry are going to continue to face decreased consumer demand to ongoing restrictions. During the next few years, automotive businesses will benefit from protecting cash assets, however it is important that long-term solutions are also considered. Surviving through these unprecedented times requires businesses to evolve and analyse the long-term sustainability and durability of their core business functions.
Protecting cash assets whilst continuing normal business operations brings with it the need to shift capital. However, this should not mean that funding is taken away from strategic departments, such as research and development, as it’s these technological advancements which drive competitiveness. Rather, an opportunity arises to review operational expenditure and establish alternative ways of reducing costs.
Take your transactional HR & Payroll activities for example. It has been proved that outsourcing these activities to a service provider like Zalaris can save your company up to 30% on operational expenditure. Outsourcing these transactional activities to Zalaris eases the need to cut costs in other business areas, improves efficiencies within HR & Payroll processes, and ultimately frees you up to focus on other strategic core business activities.
Zalaris are a comprehensive multi-country HR & payroll technology and services company who, for more than 20 years, have provided a first-class, multi country, single cloud-based HR & payroll solution that seamlessly connects all aspects of our customers HR and Payroll processes into one turnkey solution. Zalaris further accompany our leading technology platform with outsourced business services to manage all aspects of our customers HR & payroll transactional needs.
For more information about us, go to zalaris.com.