Federal Government spending in 2009 was right at $3.5 trillion. In 2010 the number slightly decreased, to just under $3.5 trillion. This was the first time Federal Government spending decreased since 1964-1965, when the spending went from $118.5 billion down to $118.2 billion, respectively. This occurred again when the government decreased spending in 2012 to return to the 2009 level.
Obviously, these statistics reveal an overall government mindset to decrease spending. For government contractors, it means that companies in the industry must adjust their mindsets as well. “For years many government contractors have had the luxury of acting as a reactive company, or waiting until their customer’s contact them with needs…but that world is changing.”
The decrease in spending will lead to fewer contract jobs and more competition in a rapidly shrinking market. “This will lead to smaller deals, higher cost of sales and lower margins – all of which result in reduced profitability and growth for the reactive government contractor.” By taking a proactive approach, government contractors will get ahead of those slow to implement changes, providing an enormous advantage.
The main goal to being proactive in any industry is building and growing customer relationships. When leveraging relationships with customer analytics, companies can quickly identify problems and provide the best solutions. There are a variety of ERP solutions that can help government contractors comply with strict industry requirements and serve both a commercial and public sector practice.
A central, organized CRM system will help track resources and provide analytical data to determine strengths and weaknesses, specifically why the company is winning/losing out on contracts. Planning systems will help increase success rates by explaining what actions are successful and reduce costs by filtering out unsuccessful ventures.
Collaboration is another crucial process to being a successful proactive company. Resources and data have to be implemented together effectively to target and close contracts and ensure customer satisfaction is exceeded. SBS group can help with all ERP needs in the government contracting industry. Feel free to contact us: http://www.sbsgroupusa.com/ and follow us on Twitter and Facebook.