Balancing Growth versus Profitability

4th Quarter 2014

Supply Chain Services’ revenue has been on a five year, roughly 20% annualized growth rate.  This has been fueled by a combination of factors; external market recovery, an expanded staff, an accompanying commitment to “Helping Customers Operate Better” and a consistent strategic direction. The rewards have been many – a broader customer base with more of them more consistently satisfied, better OEM relationships, bonus payouts for all employees, larger new office spaces and a growing confidence that we can continue to win.

Yet, while we are acceptably profitable, the company’s bottom line hasn’t grown as fast as the top line. Expansion of our employee base from 15 people to over 40 coupled with new enterprise wide software has required sizeable investment. Should we do something different?

The answer is no. While future growth is unpredictable, it is essential to a company’s ongoing health. We have already seen the benefits of larger, stronger technical, selling and admin teams. We know what improving our efficiency does. We know what broadening our customer base does to strengthen our own skills to serve.  As long as we have acceptably profitable growth we will stay the course.