Cost Management

Inventory Management can put cash in your pocket.The easiest way to improve profitability is to control your spending on materials and outside services.  We know from experience that in order to get the most value for those goods and services, you must balance how much you buy, when you buy it, and how much you pay.

  • What do you do when a vendor announces a price increase?
  • What is your plan for reordering stock?
  • How do you decide how much to buy?
  • Who has purchasing authority within your company?
  • How do you track purchases?
  • How do you qualify a vendor?
  • Do you rotate stock?
  • Do you wish you had more storage space or a larger warehouse?

We can analyze your financials and spending habits and identify areas where you should be able to reduce your costs.  We can help you set up easy to use systems and train your people to use them.

Another way to reduce costs is to change the way you work.  How you utilize your manpower, tools and materials affects profitability.  Savings in goods and services need to be accompanied by their efficient use. Your profits could be leaving by way of the trash can.

  • Do your processes make the most efficient use of materials? How much of that material expense ends up on the floor?
  • How do you control the use of consumables?
  • How much of your inventory is out of date?
  • How do you use / maintain tools, machinery and office equipment?
  • Are company vehicles used as intended?
  • How do you route your deliveries and audit your drivers?
  • How do you audit stock “shrinkage”?

Our review of your internal processes will highlight methods you can employ to reduce costs.  We will help you set up a system of controls that is easy to document, easy to implement.

Overhead expenses are not exempt. Effectively managing outside services can make a significant contribution to your bottom line.  We will help you to assess your needs, select vendors and evaluate their solutions.

How often do you turn over your finished goods inventory?  Until it is sold, inventory represents cost — for materials, production, overhead, and interest on your line of credit.  We can help you set up a system to deliver product — in time to meet sales orders — without carrying excessive inventory.  Think of what you can do with that extra warehouse space.

A sustainable program of cost management can contribute as much to your bottom line as a new customer — with less effort.

Contact us to schedule a free, no obligation meeting.