As a distributor, you’re pressured to stay innovative while keeping costs low. One way to do this is to closely monitor the effectiveness of your daily operations. Making the right operational changes can cut costs and add value. The wrong changes can open a can of worms and create more problems than before. Instead of rushing out to make changes with business operations that you hope will boost profits, here are a few key things to consider.
- Know what you want to change: You may identify a process that seems a little ”off” for some reason. Research why you have that process in the first place. You may find a valid reason that necessitates keeping things the way they are. You may also find out that no one knows how that process came to be and, in that case, it may be time for a change.
- Know why to make a change: Cost-reductions, improving productivity, and variation reductions are all valid reasons to make a change. If you can reduce the time needed to complete a task, save money, or reduce confusion, then an operational change can add value to your business.
- Outline how to implement that change: Decide how to go about streamlining or improving the task, then get buy-in from those affected by the change. If the changed process is confusing or causes problems with your team, then your solution may not work as well or as smoothly as predicted during the planning phase. Once you have an operational change planned, perform training so that your team knows how to execute the new process properly.
- Re-evaluate as needed: Evaluating daily operations is a good exercise to complete on a regular basis. As your business grows and changes, additional investigation into operational processes may be necessary. Continuous improvement is a buzz-word that fits this scenario. A successful business isn’t a destination, it’s a journey.
Measuring productivity levels, monitoring expenses, and analyzing the effectiveness of operations can lead to improved profit margins and higher customer satisfaction. The Resource Group can provide assistance with choosing the right technology to streamline operations and optimize profitability throughout your enterprise. Contact The Resource Group for more information about making the operational changes that can make a difference.
By The Resource Group, a Microsoft Dynamics GP Partner out of Washington