Release Date: 2020-04-20
There is no wrong time to reevaluate your business’s outgoings and seeing where you can cut costs, whether big or small. Every penny which can be saved in business will be beneficial in the long run, and you should make a reevaluation of your business’s costs a regular endeavor, whether monthly, quarterly, or yearly.
The guide will take you through exactly what you should do if you’re looking to reduce your supply chain business costs and manage your money more effectively.
1. Consider Remote Working Opportunities
The world is embracing remote and home working more and more, with many businesses offering more flexible working hours and the opportunity for remote working. If some of your supply team can still work effectively and do their jobs in a remote or home-based fashion, this can be a big money saver. It will be possible for many of your supply chain team to do this, but you have to be prepared that it might take time and money to be effective in the beginning. However, be patient, and you will reap the rewards from doing so in the end, and be one step ahead of your competitors in many ways.
How do you save money this way, though? Having your employees work remotely permanently means that you cancel out the need to pay for extortionate building rental charges, as well as the daily maintenance and utility charges.
2. Effectively Manage Your Supply Chain
This is an important method to implement into your business strategy. The more effectively your supply chain is managed and run, the more likely you are to cut costs and save money. Furthermore, a more proactive and successfully run supply chain increases the chances of more sales and more satisfied customers: which means more money. Click here to learn more. Developing your understanding of the best practices will only aid you going forward.
3. Build Relationships
A supply chain needs to be 100% efficient for it to work. One fault can see the whole thing crumbling, so to save money, you have to start building on the relationships between suppliers, distributors, and customers. For example, you might notice that certain supplies or items are popular amongst your clients. Sit down and chat with both your suppliers and customers to see if they would consider buying in bulk. Not only will this save them money in the long run, but it will show them that you care about making the process as faultless as possible.
4. Take Advantage of Free Marketing
Marketing will always be a worthy expense, but that doesn’t mean that the more money you pool into your marketing budget, the more effective it will be. You can take advantage of free marketing methods alongside your traditional methods to spread the word about your supply chain business and find new clients without having to pay extortionately for it.
In regards to free marketing methods, consider:
· Actively updating your social media pages and profiles with free and engaging content to drive other businesses to your website that might be interested in supply chain management help
· Following up with customers to gain positive reviews, as well as publishing positive reviews to garner interest in your business
· Free email marketing and newsletters
· Attend networking events to make valuable contacts
5. Boost Productivity Within Your Business
Working more productively means important tasks can be completed at a faster pace. You’ll want your team of employees to be working at their best, and most productive, so paying attention to motivation within your business environment is key. Offer incentives for employees to work more productively, such as regular employee reviews and appraisals, bonuses, or the opportunity for more training or responsibility that could offer promotions eventually.
Also, implementing a clear schedule for all employees and business tasks helps everybody to better understand their time management and work to the same schedule.
Time is money, after all.
6. Embrace the Digital and Virtual
Digital and online software has made certain business processes and connectivity a lot easier. This is key in reducing costs wherever possible. If there is anything you can do in a digital or virtual manner which can eliminate extra costs, then you should embrace it. This could be implementing a digital software system that your customers can order via, and your employees can access the right information in real-time, and send across to the suppliers in seconds. Instead of physically printing and storing (therefore eliminating printing and filing costs), this will save you money. Also, you could consider holding video chat meetings or virtual meetings with suppliers and customers to save on traveling to meet with them to discuss something for 20-minutes.
7. Be More Energy Efficient
Embrace any and all energy saving methods within your business, both to save money and to help the environment. Consider switching to energy-efficient appliances within the office, turning off electricals when not in use, and switching off overhead lights in rooms of the business building which aren’t being used. You can also install energy-efficient bulbs and have a more environmentally-aware approach to all areas within your business, which may also be able to help you cut your utility costs.
8. Invest More in Quality
It may seem counterproductive to spend more money in order to save money, but the more money you invest in better quality service means it’s less likely that you encounter quality issues from unsatisfied customers. Higher quality also means an increased chance of customer satisfaction, loyalty and referral, therefore more opportunity for a greater number of sales and profit. Try not to cut any corners when it comes to providing your supply chain service and deliver your best the first time around.
Switching to more digital and remote methods can be great ways to save high expenses, but this might not be possible for all members of your team. So be sure to use a combination of the above techniques, and consider what changes your business can make comfortably. The important thing to remember is that you need to ensure that any cost-cutting methods don’t negatively impact the way your business is run. Cost-cutting methods aren’t effective if they mean you lose sales in the long run, so only make the compromises and changes you can afford to make.
Visit Too Our Partner