It is nothing new to say that cut costs in business is necessary for all the economic cycles. A better resources’ use means more competitive products or services, brings visibility to the company and a higher profits margin.
Cutting costs does not have to be something that we look for when in trouble, and it does not have to mean compromise quality or performance. It can be a continuous process that will determine the success in business, in a big or small company. In this article, we will approach concrete ways of how to cut costs in the business.
How to cut costs in business with BPM – centralize services and processes
The implementation of software and BPM techniques, if done correctly, can promote significant operational costs reduction in companies of all sizes. BPM introduces a better visibility in business and technological processes, allowing that all departments work together, changing the process quickly and efficiently.
Assertiveness leads to saving. BPM also reduces costs by introducing an efficient communication between all the areas, imposing a superior control in the administrative and productive routines, optimizing the work team, reducing the productive resources and performing a constant monitoring, in a way that eases proactive actions in cases of detours.
Many companies today find it useful to use SSC – Shared Services Center. It is the concentration of business operations that are used by various parts and departments of an organization, a business model that enables resources to be scattered across the entirety of the organization, resulting in lower costs and business efficiency. It usually sees the rest of the company as its clients, offering the services in a standardized manner that is the heart of the BPM model and the key to process automation.
SSC allows a company to structure itself accordingly a vision of services provided, internally – between departments – and external – towards the customers and suppliers. All this in a consolidated, standardized and harmonized scenario, with the aim to ensure the rationality in the human and financial resources consumption. SSC is a useful way of how to cut costs in your business.
5 tips when thinking about how to cut costs
First, look for the easy saving – put a brake on travels and entertainment costs. We should start to drive effectiveness and cut costs changing areas with minimal disruption.
Standardize technology – IT expenditures and purchases are high in many companies. IT is essential and a vital part of every business. It can happen that in a company one department use software, and other uses another. It raises the IT work significantly. Mastering the IT complexity is essential when cutting costs.
Consolidate vendors – supply chain improvements are easy and crucial. Reduce the number of your supplies and negotiate by buying more for the ones you keep.
Avoid lawsuits – costs with lawyers and lawsuits are extremely high, and also not hard to be avoided. Work the problems before they grow to the point of involving lawyers.
Learn something new – consultants are fundamental when running a business. Instead of hiring someone to do a permanent job, hire them for a small period to teach you how to do it.
When thinking about standardization, profitability, productivity, costs and software, BPM is the answer to your company’s troubles. See also: BPM best practices and learn more about how to cut costs in the business.