You can waste a lot of money when running a business. What might have seemed a good investment at the time can work out to be a total money sink, and without the proper preparation, even days in the office can cost you a lot more than you ever thought possible!
But one of the worst places for wasting money, even without realising, is your supply chain.
So, with that in mind, here are some of the best ways to save your company’s cash when creating, building, and shipping out your products.
Change Your Ordering Process
Depending on the kind of business you’re running, knowing what you need to order, and how much, is going to differ wildly. And that’s why there’s no ‘one size fits all’ model here – you’ll want to control your stock level more than anything else here, and that’s why you need to think about your ordering process.
But what can you do here to improve your stock control? Via methods such as automation, real time inventory tracking, as well as software integration no matter what you’re using, you’ll be able to get a proper, detailed overview of your inventory at all times. This is good for helping you cut down on the costs that really drain your business bank account.
Modify Your Machinery
Modifying your machinery is a good way to help cut down the cost of the actual manufacturing process within your supply chain. Once again, one of the best ways to modify your factory floor is via automation; the use of assembly robots, and other automated software in your ordering and execution process, can cut out the need for multiple factory staff on your payroll.
Of course, you can always switch out parts of your current machinery loop to help it achieve a faster speed and productivity level. For example, you can use Alpha Gear Drives to help slow down your input speed, while still maintaining a strong and fast output level – that’ll really help you to streamline your production process!
Now, this might sound counterproductive to the goal of making your business more profitable, but when you cut back on the stock you keep, you prevent your company from wasting excess inventory.
That prevents you from spending money needlessly in the long term, and it’s always easier to bulk up in case of low stock than it is to try and peddle an overflow of stock to your customer base. Less is more, after all!
To reduce stock, you can do quite a few things. You can put an inventory buffer system in place, or you can implement a stock rotation system, and you can also use forecasting models to better predict how many products you’re going to sell in the first place.
A lot of resources are used up and churned out for later use in your supply chain. Knowing you’re being cost efficient and sustainable throughout the process is key to long term financial success.