One of the many short and/or long term objective of any business is to reduce its costs and wastages. Wastage is not only the manufacturing defaults produced. Even the time spent by employees idling is considered a wastage to the company. It is very important that as a business you always try to minimize costs whilst completely eliminating wastage.
The first step reducing costs and eliminating wastage is to conduct an in depth survey of your business operations and level of employee motivation and dedication. An in-depth analysis will help you determine what are the areas that have high costs and can be reduced are and what are the areas that is not utilizing the resources to their optimum hence creating waste. You can either carry out the analysis by yourself or get an efficient, unbiased member of your staff to do it for you. But the best option would be to hire a systems analyst to do it for you.
Cost reduction methods
There are many ways, as laid down by theory to cut down on costs. For instance, bulk buying is quoted as an option in reducing costs. I.e. when businesses opt for buying in bulk they are able to obtain considerable discounts. However, this is not entirely the case always, especially with products that are high in demand and low on supply. Some other known options for long term cost reductions is to invest on trainings and staff motivation to help them increase their output and/or effort to their optimum level. Another would be to cut down on fixed costs like workspace rental, by moving to less expensive location.
Eliminating wastage completely will be a greater challenge than reducing costs. It will not be an easy task. In fact when trying to reduce waste you have to do a lot of research as well. You will need to find out where the wastage is and the reasons behind the wastage. Whether it is a temporary one or long term one, matters as well. Then you will need to plan out a strategy to help you in eliminating the wastage. For instance, if you have an extra warehouse space available in your premises that you can let out then you should do so. You can give the storage place for rent in Singapore, which will convert a wastage into an income bringing asset!
As businessman of several years and a person who believes in building and nurturing a business, I can assure you that unless you always act with your businesses interest in mind you will not be able to succeed in business as much as you would love to! So always put business first!