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Wednesday November 5, 2014

Improving business efficiency and profitability

In business, as in life, some relationships just work …

 

Take for example the relationship between efficiency and profitability.

 

While there are many ways to increase profitability (like reducing costs, increasing turnover, expanding into new market sectors or developing new products or services), improving the efficiency of a business is often overlooked as one of the simpler ways to increase profitability.

 

So what do we mean by efficiency?  In a nutshell, we’re talking about making the most out of what you have, or using your existing resources in the smartest way possible.

 

For start-up and small businesses, this could be as simple as using a bookkeeping service rather than spending countless hours a month getting your accounts ‘half right’.

 

For larger businesses, this could mean looking at workflow and restructuring teams to speed up service delivery.

 

At Marley Loft we encourage our clients to get a clear picture of their opportunities for greater efficiency and profitability by reducing average transaction costs.

 

We recently introduced “Receipt Book” to a client so that they, along with us, could reduce the time they spent processing supplier invoices that they received.  As a result of this the client has significantly reduced the amount of time they spend completing the administrative function of their business and allocated this time to be used working on the business.

 

Opportunities for increasing efficiency could exist in any area of your business.  For example:

 

  • Purchasing - are you getting the best prices and service from your suppliers by giving them the most effective order quantities and delivery schedules?

 

  • Employees - do they have access to all of the information and tools they need to do their jobs right, the first time?Are youwasting time on repetitive processes that could be automated with implementation of a simple technology?

 

  • Operations – is your fleet operating with the right vehicles? Is there a way to improve logistics and journey planning? Are you minimising inventory carrying costs?

 

  • Technology – have you updated your software to be cloud based, eliminating many server and upgrade costs?

 

  • Information – is an out of date contact list or database costing you time and money in poor marketing campaign results, redirection of packages to a correct address, or negative brand impact?

 

If we can assist you with understanding your opportunities to increase efficiency, please get in touch.  Simple opportunities for greater profit could be right in front of you.