A New Way to Reduce Operating Expenses
In this new economy when every rupee counts, even the smallest increase in revenue or reduction in expenses can have an impact on company profitability. The good news is a large-scale company overhaul isn’t necessary. It’s often simple, clever steps that improve the bottom line. I always wondered was it the same 100 years ago. “Do these things really kick the competition then?”
It was 1910. At Highland Park, Ford began to implement factory automation. But experimentation would continue every single day for the next seventeen years, under one of Ford’s maxims: “Everything can always be done better than it is being done.” Ford and his efficiency experts examined every aspect of assembly and tested new methods to increase productivity. Ford himself claimed to have found the inspiration for the greatest breakthrough of all, the moving assembly line, on a trip to Chicago: “The idea came in a general way from the overhead trolley that the Chicago packers use in dressing beef,” Ford said. The pace only accelerated, as Ford’s production engineers experimented with work slides, roll ways, conveyor belts, and hundreds of other ideas. The way to improve the processes and cut down costs has been improving from then on a larger scale across all industries.
Nowadays, globalization has made competition more intense and diversity more possible. With this happening, innovation and cost management have become more than important. In such scenario, top companies are looking for innovative ways of managing their expenses which allows them to compete at their topmost level. I hadn’t known this much till we met a person who heads a top company in India.
His team and he were explaining to us how they were drawn into the red blood ocean by not improving. So they stepped back, took a while and decided that they improve their process and innovate new products. They improved their efficiency in the processes which reflected 50% increase in sales and 20% reduction in operating costs over the past 5 years. I was amazed seeing how improving your processes could also improve your profitability. This does mean little investment but they said that with ROI less than 5 years for their investment, it would do a lot of good to them to compete in the market.
We being providers of energy saving solutions had to tailor our solution if such is the intent to reduce the expenses and make the processes more efficient. And when we thought about it for a while, we realized that is what we do. We provide you exactly what the previous sentence says!!! The energy usage behavior of your building for the past 12 months is studied, solutions are suggested with savings that would be expected by implementing them and we also do install solutions for your building. Isn’t it really great when you could really cut down operating expenses for your business? And that too without any big overhaul.
Now you might be wondering about the investment that needs to be put in. We just didn’t want to be sounding that we do cut down your operating expenses. We started designing our solutions in such a way that it’s directly reflected in our customer’s finances. We started implementing solutions where we could bring down their energy bills by 25–30% which reflected in their operating expenses a reduction by 4%. Also, we made sure our solutions have a faster ROI within 1 year. This is because, for a good business, the results need to be quick, isn’t it? This really motivates us to serve our customers because we are contributing to the success of their business in a way. That could also be one of the reasons why we are sharing this with you.
We always want your business to be on top and we facilitate a path by making your buildings’ energy efficiency best. There could be many ways of reducing operating expenses and many strategies to stand out in the market. And this could be one of them. As always, we are eager to see your thoughts in the comment section below.