In response to the cost reduction emails we send out, we often get responses back from our readership with cost saving tips of their own.
There are endless means of reducing costs within a business - some simple, some more difficult to implement. The tips and advice we offer come from the audits we undertake of costs, consumption and processes for all types of businesses, from single-sites to multi-national organisations. We’ve worked across many sectors and whilst we see a lot of reoccurring problem areas, we also see unique areas where a business can save money. As each organisation is different, what works for one may not necessarily work for another.
In sharing our tips and insight, we have received feedback from our readers on some of the cost saving initiatives that have worked for them. Again, although some are easier to implement than others (and we don’t advocate them all), here are just a few:
- Paper costs can be reduced significantly by using digital documents and setting-up online processes
- Travel costs can be reduced by alternate means of communication - voice and/or video conferencing for meetings, such as Skype
- Analyse Software costs - add ons outside the standard package is expensive and do you really need it. Licensing control is an other issue
- Purchasing of consumables and store items should be done directly from manufacturers or designated wholesalers where applicable; it helps to cut down the cost of production
- IT maintenance contracts quite often can be found for software not used anymore or with inappropriate number of users
- Slowing down payment - we do not recommend this as a cost saving strategy. Instead, speak to your suppliers and renegotiate terms, you may obtain early payment discounts that outweigh cash-in-the-bank.
Please continue to share your own successful tips (as well as those that didn’t work so well) which we can share with our readership, by emailing email@example.com