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Posted: Sun Dec 22, 2024 8:48 am
Quality control
Source: shutterstock.com
A significant stage in optimizing cost accounting is establishing a high level of business interaction between production units and the supply department. In this case, a bonus will also be the developed competent approach to the selection of contractors-suppliers through the joint formation of requirements for these partners.
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
Find out how
Supply
Optimization of expenses in procurement is a taiwan business email list high-quality built and managed relationship between the enterprise and suppliers. Start by expanding your contractor base. What will this give? Firstly , it allows you to minimize the procurement budget without compromising quality.
Secondly , it allows you to be more flexible in negotiations with suppliers on the topic of changing some terms of contracts, having weighty arguments for this. For this method to work without harm to the organization, it is better to immediately segment the counterparty base. It should be divided into groups of key suppliers and backup ones, in case of unforeseen situations.
The next way to optimize expenses is to improve work with warehouse balances and reduce their turnover. To reduce the costs of their accounting and storage, it is necessary to correctly calculate and plan what purchase to make. And also to liquidate unprofitable warehouse balances.
One of the key elements of optimizing expenses in procurement is considered to be the management of purchased goods. This includes recalculation and adjustment of consumption criteria, focus on purchasing more economical products, and exclusion of less liquid ones from circulation.
Unfortunately, many companies face excessive formalization, which can negatively affect budget expenditure optimization activities. For example, when conducting a tender where several suppliers participate, more time is spent on issues related to documentation, while ideally the emphasis should be on profitable cooperation.
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External logistics
This direction of cost optimization is the organization of transportation of goods to the customer. The enterprise can do this both independently and through transportation services.
Therefore, it is necessary to constantly monitor offers on the market for the provision of such services, work on more favorable conditions with current counterparties, for example, negotiate discounts when a significant amount of work is required.
If the company carries out the delivery independently, it will be more profitable to focus on the volume and specific amounts of the order in which it will be carried out.
External logistics
Source: shutterstock.com
Sometimes consolidation of deliveries is justified for the budget. It is necessary to consider the option of combining delivery by delivery regions, so that there is also optimization of fuel costs.
Internal logistics
If external transportation is about the delivery of goods from the enterprise to customers, then internal transportation is the movement of products, components and other transportation issues within the company itself, which includes the accounting of trade and material assets, their purchase and storage. To reduce this category of expenses, it is necessary to both optimize business processes and review the organizational structure. This will reduce operating costs.
Optimization of organizational structure
As practice has shown, department heads, who are the link between employees and the CEO, often only complicate and slow down work processes. Therefore, it is possible to optimize management costs by reducing administrative positions at the enterprise and increasing the number of employees under the direct supervision of the CEO.
What will help to achieve the desired goal in this direction:
the unification of different departments of an enterprise that have similar tasks, thereby increasing the size of the division;
moving away from disparate structural parts, transforming the management system, reducing management positions;
formation of job descriptions and organization of departments.
After implementing these changes, you will see that business processes will go much faster, and the organization’s budget will benefit significantly.
Improvement at the functional level
The next step in optimizing expenses is to review the functions of certain categories of employees in departments. You can reorganize similar functional positions - create one from two.
Be prepared to train those employees who will begin to perform functions that are related but still new to them. This may require temporary financial expenditures on upgrading skills, but in the long run it will lead to optimization of labor costs.
If necessary, review the number of employees at the enterprise. Introduce more active monitoring of the quality of work and an effective KPI system to understand which employees bring in more profit and who works much worse.
Based on this, you can review the bonuses paid to motivate specialists more. Reduce operational costs in the enterprise's business processes with maximum subsequent automation.
Improvement at the functional level
Source: shutterstock.com
An economically advantageous solution would be to use the services of third-party companies to solve some tasks that do not require the direct presence of the contractor at the enterprise. Transfer some functions to outsourcing, for example, targeted advertising, marketing services, work on the website and content for the company, and so on.
To ensure that this works as efficiently and without problems as possible, be sure to legally correctly draw up civil and fixed-term employment contracts, and think through a piecework payment system for such work.
If you are unable to reduce the number of employees, you may consider reducing the number of working hours, i.e., making some employees work part-time, or part-time, for no longer than 6 months. This option is regulated by the Labor Code of the Russian Federation.
Source: shutterstock.com
A significant stage in optimizing cost accounting is establishing a high level of business interaction between production units and the supply department. In this case, a bonus will also be the developed competent approach to the selection of contractors-suppliers through the joint formation of requirements for these partners.
Case: VT-metall
Find out how we reduced the cost of attracting an application by 13 times for a metalworking company in Moscow
Find out how
Supply
Optimization of expenses in procurement is a taiwan business email list high-quality built and managed relationship between the enterprise and suppliers. Start by expanding your contractor base. What will this give? Firstly , it allows you to minimize the procurement budget without compromising quality.
Secondly , it allows you to be more flexible in negotiations with suppliers on the topic of changing some terms of contracts, having weighty arguments for this. For this method to work without harm to the organization, it is better to immediately segment the counterparty base. It should be divided into groups of key suppliers and backup ones, in case of unforeseen situations.
The next way to optimize expenses is to improve work with warehouse balances and reduce their turnover. To reduce the costs of their accounting and storage, it is necessary to correctly calculate and plan what purchase to make. And also to liquidate unprofitable warehouse balances.
One of the key elements of optimizing expenses in procurement is considered to be the management of purchased goods. This includes recalculation and adjustment of consumption criteria, focus on purchasing more economical products, and exclusion of less liquid ones from circulation.
Unfortunately, many companies face excessive formalization, which can negatively affect budget expenditure optimization activities. For example, when conducting a tender where several suppliers participate, more time is spent on issues related to documentation, while ideally the emphasis should be on profitable cooperation.
Recommended articles on this topic:
Example of a cooperation proposal: just follow the instructions
B2B Marketing: Key Features, Promotion Channels
Marketing Department KPI: 11 indicators and calculation example
External logistics
This direction of cost optimization is the organization of transportation of goods to the customer. The enterprise can do this both independently and through transportation services.
Therefore, it is necessary to constantly monitor offers on the market for the provision of such services, work on more favorable conditions with current counterparties, for example, negotiate discounts when a significant amount of work is required.
If the company carries out the delivery independently, it will be more profitable to focus on the volume and specific amounts of the order in which it will be carried out.
External logistics
Source: shutterstock.com
Sometimes consolidation of deliveries is justified for the budget. It is necessary to consider the option of combining delivery by delivery regions, so that there is also optimization of fuel costs.
Internal logistics
If external transportation is about the delivery of goods from the enterprise to customers, then internal transportation is the movement of products, components and other transportation issues within the company itself, which includes the accounting of trade and material assets, their purchase and storage. To reduce this category of expenses, it is necessary to both optimize business processes and review the organizational structure. This will reduce operating costs.
Optimization of organizational structure
As practice has shown, department heads, who are the link between employees and the CEO, often only complicate and slow down work processes. Therefore, it is possible to optimize management costs by reducing administrative positions at the enterprise and increasing the number of employees under the direct supervision of the CEO.
What will help to achieve the desired goal in this direction:
the unification of different departments of an enterprise that have similar tasks, thereby increasing the size of the division;
moving away from disparate structural parts, transforming the management system, reducing management positions;
formation of job descriptions and organization of departments.
After implementing these changes, you will see that business processes will go much faster, and the organization’s budget will benefit significantly.
Improvement at the functional level
The next step in optimizing expenses is to review the functions of certain categories of employees in departments. You can reorganize similar functional positions - create one from two.
Be prepared to train those employees who will begin to perform functions that are related but still new to them. This may require temporary financial expenditures on upgrading skills, but in the long run it will lead to optimization of labor costs.
If necessary, review the number of employees at the enterprise. Introduce more active monitoring of the quality of work and an effective KPI system to understand which employees bring in more profit and who works much worse.
Based on this, you can review the bonuses paid to motivate specialists more. Reduce operational costs in the enterprise's business processes with maximum subsequent automation.
Improvement at the functional level
Source: shutterstock.com
An economically advantageous solution would be to use the services of third-party companies to solve some tasks that do not require the direct presence of the contractor at the enterprise. Transfer some functions to outsourcing, for example, targeted advertising, marketing services, work on the website and content for the company, and so on.
To ensure that this works as efficiently and without problems as possible, be sure to legally correctly draw up civil and fixed-term employment contracts, and think through a piecework payment system for such work.
If you are unable to reduce the number of employees, you may consider reducing the number of working hours, i.e., making some employees work part-time, or part-time, for no longer than 6 months. This option is regulated by the Labor Code of the Russian Federation.