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Alongside exercising more, losing weight, and quitting smoking, saving money is one of the most common resolutions made each year by New Year’s revelers. There’s a good reason for this: along with the alcohol-induced hangovers suffered by billions around the world on the first of January, most of us can also expect to wake up in 2020 with a financial hangover caused by reckless overspending in the festive season.
Manufacturers, too, may begin 2020 with a determination to cut costs and save money. Through a combination of supply chain savings, green factory savings, and technology savings, this is an achievable resolution that will put your company in a good financial position for the whole year ahead.
How to Cut Costs in Your Supply Chain
Scrutinizing your supply chain for savings opportunities may seem like a daunting task, but is well worth the effort. This doesn’t necessarily mean pressuring your suppliers to give you a better price in the short-term. Fast, easy savings can be achieved with quick wins such as warehouse optimization or using a contract food packager, while game-changing cost-cutting can be unlocked through longer-term supply chain transformation initiatives including:
How to Make Your Factory Greener
The green manufacturing revolution is gaining steam as factory owners become increasingly aware of the impressive savings that can be unlocked with environmentally friendly technologies that reduce waste. At the same time, consumers are increasingly gravitating towards sustainably manufactured products.
Green factory improvements that could save you money in 2020 include:
How to Upgrade to New, More Efficient Technology
While there are many motivations for wanting to acquire new technology, manufacturers should always ask themselves two key questions before investing in a new tech: “Will this technology save us money? “Will it make us money?”
Examples of how technology can enable cost savings include:
So, instead of making a vague resolution to save your organization money in 2020, create a plan to drive real cost savings through supply chain transformation, turning your factory green, and investing in new technology. With a realistic approach and careful planning, improving your company’s bottom line will be one New Year’s resolution you’ll be able to keep.
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