All organizations, be they SMEs or not, focus their activity on the search for profits by increasing sales. However, many times we forget that it is important not only to increase revenues, we also have to reduce costs to continue ensuring the proper functioning and growth of the company.
While increasing sales involves an injection of capital in the short term, the task of reducing (or optimizing) costs may be more complex, but it will help us in the long term to face of any financial difficulties.
5 ways to reduce costs in your company
The first thing you have to do is conduct an audit. This way you will be clear which departments or actions of your company are not giving a correct profitability. Once you have them identified, it is time to act.
These are the main ways to reduce and optimize costs in your business:
1 | Optimize stock management
Poor stock management leads to a loss of financial resources. A clear example is the food sector: if food is stored inefficiently, it can expire or spoil, which is equivalent to a loss of money.
In addition, when there is no proper stock management, you offer to your customers an inefficient service that is translated into bad customer experiences. The result is, sadly, a loss of sales.
We must not forget that stock control, in reducing costs, is equivalent to direct money savings, since in addition to avoiding incurring stock breakages that generate expenses, having 100% stock control will allow us to carry out a better shopping planning.
2 | Control of energy costs
As in a home, but on a large scale, electricity and HVAC systems can be a big outlay for businesses.
If you want to optimize energy expenses, human capital has to be involved to disconnect the devices that do not need to be in operation after hours, optimize the entry of natural light into the office or even negotiate with the electricity or gas marketers to have better rates and conditions.
3 | Logistics control
The transport of merchandise is essential in the development of the activity of most companies. In order to optimize the cost of this service and have greater control of your activity, you have to choose the right provider.
Time is a very important factor in logistics, verification and preparation of shipments is a fundamental task that requires time that translates into money. The more we are able to optimize this process, the less resources we will consume.
In the same way, you have to review what expenses involve a decrease in profit: Return policies, the deterioration or poor condition of the products, the losses or delays in deliveries … Or even, in relation to the first point, the wrong count of stock.
4 | Eliminate unprofitable products
Are you selling all the products of your company equally? Surely you have a series of best-sellers to bet on, compared to others that do not have as much mobility. It is interesting, in this sense, that you can know which products are the ones that you sell the most and, above all, which are the ones that give you the best profitability.
You will probably have to make difficult decisions and remove some articles or references from the catalog, but remember that each company has to adapt to the tastes and behaviors of its potential client.
5 | Bet on digitization
We must not be reluctant to new technologies: with their use we can obtain significant savings in areas such as logistics, inventory control, administration, customer service and personnel, among others.
Thanks to implementing technologies such as management software, cloud computing or similar, we can have information on the status of the company instantly and realistically, in order to make the correct decisions in our business strategy.
Undoubtedly, digitization is a great saving in time and costs, as well as being a correct option for taking control and differentiating from the competition.
Although it may seem complex to carry out, with the RFID technology alternatives from Bionix Technologies it is fast, simple and profitable, as we will see below.
Digitization, automation and control
Read and answer the following questions to find out if you have adequate control of your company to reduce costs:
● Do you know where each item is and where it is supposed to be?
● When should the reviews take place?
● What is the expected useful life of each asset?
● What is the cost of ongoing maintenance?
● Would it be better to replace it?
Did you know the answer to each of those questions?
As a manager, control over your company is mandatory. Not only in its management, but also in regard to the assets, as we have seen, since they are one of the company’s largest investments.
From equipment, inventories, tools … Not only do you have to take into account an adequate monitoring of the location, you also have to make sure that its condition is adequate.
To facilitate their control, Bionix RFID technology provides a simple and cost-effective platform to identify and control assets while allowing to automate processes and reduce costs: Cixxonia, the software to increase control and reduce costs.
Cixxonia, the RFID software that will help you reduce costs
Cixxonia is state-of-the-art software that enables supply chain professionals to optimize the actual flow of operations, from the supplier to the store, through the distribution center.
This tool helps to achieve a unified inventory, based on accurate and real-time data. This data is uploaded from RFID devices located throughout the entire supply chain, at the supplier, the distribution center and the stores.
Cixxonia, in short, provides total control of inventories and the supply chain to improve customer service, reduce costs and increase sales.
How can Cixxonia help you reduce costs?
● Optimize relationships with suppliers. Improve stock control, the efficiency of the production process, which results in greater safety and an improvement in the reputation of the company.
● Real time information. The updated information will allow you to manage any problem that arises in a short time and allows you to adapt the chain to meet customer demand in an efficient and profitable way with the agility required by the current market.
● Monitors the phases of the supply chain. To improve control, it is necessary to define the key management indicators or KPIs, monitor and analyze the results. In this way, errors or points of improvement can be detected to make the supply chain more efficient.
● Sustainability. By collecting all the information of each product in particular throughout the supply chain, from the manufacturer of the raw material to its sale, with data on origin, composition, care and circularity, you will be able to transmit to your customers in a reliable way , fast and transparent all the sustainability actions carried out for each item in particular.
As you can see, there are many options to reduce costs and digitize your company’s operations. With them, and thanks to Bionix Technologies, you will achieve greater control and make strategic decisions based on reality and not on assumed scenarios.
On our website you have more information about all our RFID solutions and RFID devices.
At Bionix Technologies we adapt to the needs of our customers, do not hesitate to contact us whatever your sector. We will help you to obtain a high level of industrial automation. What are you waiting for? Contact now!
– Sales Development Representative and Head of Marketing –
Bussiness development manager- analyzing and searching opportunities and prospects-. Some of her duties are: desing, planning and executing marketing and communication compaigns. She is also involve in action plans focused on managing events and she gives support to the sales team.