These days,
it doesn't hurt to save a little
— This statement is being heard more and more often in various organizations. We are operating in a difficult and uncertain geopolitical reality with a high inflation level resulting in rising costs of doing business. In such circumstances many companies are looking for ways not to pass their increased costs of product manufacturing or service delivery directly on their customers.
Such an approach in difficult times is a guarantee to ensure competitiveness and increase market brand trust. However, how can this be done? Where to look for savings? We have some proven tips that we would like to share.
1. Labor costs
The cost basis of most businesses are labor costs. However, we all know that it is difficult to save money when our employees are responsible for producing our products and services. Downsizing can be a vicious circle if it affects our productivity. Instead of reducing it is better to optimize. And optimization should be done effectively – first by measuring, then analyzing and finally by implementing. For such a project-based approach, you need tools that can determine, with high precision, the position of your employees at each moment of execution of their assigned workflow. The result of work done, together with the location data, is the right input for the analytics needed to find areas of optimization.
2. Efficiency of procedure execution
Procedures are used to systematically perform tasks guaranteeing a certain level of quality. Good procedures ensure that a task is completed with the required quality in the shortest possible time. However, it is not always so easy, especially when the procedure requires moving around, transferring goods from place to place, searching for components, etc. Optimizing such procedures requires knowledge of the flows during execution. Only a sufficiently large sample of data subjected to analysis can indicate areas to be looked at.
3. Employee safety
Employee safety risk is the last thing any compromise should address. Citing the NSC, the average cost of a workplace accident in 2020 was $1,1k and as much as $44k per medically consulted injury. If we are serious about optimization, we need to minimize all risks related to work safety. Warning tools must be in place to quickly and correctly diagnose potential risks.
If you are interested in optimizing your work environment and thus generating permanent savings not only in times of crisis, take a look at www.trackgent.com and schedule a meeting with one of our analysts.