Efficiencies to Improve Company Performance in 2019
Making your company more efficient this year should be high on the priority list. Getting the most out of the income that comes in and not squandering it on unnecessary expenses is just one part of what makes a small business perform better.
Let’s look at a few of the efficiencies that are easy to do and lead to better results.
Better Warehousing and Logistics
When operating your own warehouse, it’s very easy for it to be run in an inefficient manner. Scanning product barcodes one at a time is slow and laborious, especially if the software behind the system is not best-in-class (scanners can now scan multiple barcodes at once).
Thinking about last mile logistics, it’s necessary to look at every process within the warehouse operations to wring out every improvement possible. Unnecessary delays, duplicating processes and tasks that haven’t changed how they’re performed in years should be investigated. Look for how every stage in the logistical apparatus can be improved. Reward staff for making useful suggestions for speeding things up while still maintaining a solid health and safety record in the warehousing and shipping areas.
Adopt LEAN Operations
Running a lean company means removing anything that is surplus to requirements. Spending less on unnecessary items avoids throwing away potential profits or needed working capital on fancy computers, extra desks, and frequent upgrades that just aren’t essential items.
When running a lean company at all times – not just when the money is tight because business is slow – it helps ensure that there are more retained earnings. And usually less debt on the books too! Both points put far less strain on the company in tough markets because there’s less debt to service from a stagnant income. Running lean should be a standard; not something implemented through a wave of staff cuts when times get tougher.
Companies that are managed with tighter controls on financial spending make it possible to invest when other businesses are cutting back. They’re also able to pick up excellent new employees that other companies were forced to let go because of overspending.
Use Kanban for Better Project Management
Kanban is a light system to manage company projects and tasks more efficiently. Its advantages include that it can be used company-wide, not just by the CEO and upper management, and its simplicity.
Kanban uses boards where tasks are individually pinned to one board at a time. The boards start out with titles such as To Do, Doing, and Done. Once all the current tasks are written out on cards – there are digital apps like Trello that do this for you – they can be placed on the appropriate board.
Once this has been done, it’s possible to see everything that’s outstanding and what stage the company is currently at. Projects also get their own card and tasks for the project shown inside that card. It is a very modern way to manage projects and tasks.
Being more efficient as a company gets more out of less. Also, it avoids losing ground even when the economy is struggling.