In today’s world, there are always ways to cut expenditures with just a little time and effort. As the director or plant manager, it may fall upon you to find ways to cut costs to boost profitability. If you are in a manufacturing sector that relies heavily on automation, there may be some things you can do above and beyond automating processes. Here are a few of them.
1. Operate a Lean “Machine”
Here, we are not talking about the machinery you are using, but rather the way in which you operate your plant. This will take a consistent analysis of your ongoing operating costs to see where you can cut money wherever and wherever feasible. You obviously can’t buy sub-standard materials, but you can find cheaper prices on quality goods. This leads to the next money-saving tip.
2. Use Big Data for Better Buying Power
Next on the list would be that fearsome term, “Big Data.” So many owners and directors don’t really understand what a powerhouse big data really is. Think of this in terms of how you’ve automated many of your processes to reduce manpower hours. Now, with this analogy in mind, consider what you can do by analysing big data when it comes to pricing supplies and materials. By knowing and understanding what consumers are looking for, you can find the best suppliers with reasonable pricing structures. Now, on to the third tip, which you will love!
3. Find Competitive Utility Pricing
One of the greatest things about the deregulation of utilities is that there are always going to be ongoing price wars. You may not know that there are new providers popping up in all parts of the UK that can offer lower pricing than the one you are dealing with now. This is another example of data analysis, only you don’t need to do the analysing. Why not consider using a comparison site to get corporate bids on utilities like https://www.utilitybidder.co.uk? They do the cost analysis for you so that you can accept the bid you want!
4. Reduce Energy Consumption
Finally, just as you reduced labour costs by automating some (or all!) of your manufacturing processes, why not find ways to reduce your dependence on energy? That would be paid energy. Do you leave your equipment running when you are not in operation? Perhaps you could consider shutting down machines, even for an hour, while the line is out to lunch. There are a number of ways to reduce your energy consumption from ensuring lights are kept off when offices are not in use to unplugging devices and chargers that draw a trickle charge to switching to energy efficient equipment.
Actually, all of this is a part of going lean, but each has its own framework in which to make those changes. By reducing what you spend, you will ultimately be increasing your plant’s profitability, and that is something that will give you, in turn, the competitive edge in your industry. By reducing your expenses, you can cut your price structure, and everyone wins. What a way to capture a bigger market! Spend less and grow. That’s the equation for success.
