As a manufacturing company, one of your biggest goals is to cut as many costs as possible. Fortunately, there are some simple methods for doing that without overhauling your entire business – here are six of the best.
1: Know Where Your Costs are Going
The first step to cutting down manufacturing costs is knowing exactly where those costs are going, so look at all your outgoings. This will give you a clearer idea of where you are overspending and where you can cut back. You might notice, for example, that a lot of money is wasted on supplies that aren’t used often enough to warrant the expense.
2: Fleet Tracking
If you move goods around, then the chances are a large chunk of your costs go toward this. Luckily, fleet tracking allows you to cut down on these by collecting relevant data. You will learn how your drivers drive their vehicles, their habits, and whether or not the truck needs repairing – information that can help you alter your fleet to save money. The more data you use, the more efficient your fleet will be.
3: Improve Quality Control
You lose a lot of money through unsatisfactory production. Doesn’t it make sense to ensure most of what you’re making is of high quality so that you’re not wasting anything? To get started on improving your company’s quality control, you should maintain a clean warehouse, provide additional training for managers, and schedule regular equipment tests.
4: Consider Your Suppliers
Many manufacturers miss out on cost savings because they never reassess their suppliers. Even if you’ve been loyal to a supplier for a long time, it’s helpful to shop around to see what’s on offer. You never know; you might find a supplier offering the same quality material for a much lower price, which would massively slash your outgoing costs.
5: Assess Your Staff and Their Hours
One of the largest manufacturing costs is staff salaries. To make sure you’re spending wisely, then you must assess your staff’s productivity, and whether or not they need to put in the hours they are doing. If you can find a way to improve workplace productivity while cutting back on staff hours, you could save the company a lot of money. By installing time-tracking technology and using incentives on your staff, you will make sure the warehouse team makes the most of their working hours.
6: Reduce Your Electrical Bill
There is no denying that a warehouse needs energy. You might be using more than you need to, though. Luckily, cutting down on your electricity bill is reasonably easy, as all it takes is switching to LED bulbs, frequent inspections of equipment, and making sure to always switch off the machines. If you want to take it a step further, you could also invest in solar panels and smart technology. Not only will this save money, but it’ll also make your company greener.
With enough small changes in the warehouse, you can greatly reduce the manufacturing costs.
