In such economic hardships, cuts and better strategies have to be put in place in order for your business to survive. So here are ten top tips which will enable you to improve how much you spend without affecting the quality or efficiency:
Number One: You could cut out the wholesaler (otherwise know as the middle man!). This will:
- Make the distribution process more speedy as you will be delivering directly to the customer
- You will cut costs
- Are able to sell more products because you will be able to offer better prices
Number Two: Improve the tracking in your product, which will:
- cut down competitors copying your product
- enable you to stay ahead of your competition by being more efficient
Number Three: Improve your technologies in the manufacturing process.
- Therefore the products will be created quickly and efficiently.
- Enhancing your technology in the process will hopefully help to cut the cost of making the product so that you can sell it at a more competitive price.
- It will also make the manufacturing process more efficient if you update the equipment.
Number Four: You could outsource the manufacturing to new markets such as India or China, which will:
- Cut labour costs because it will be cheaper there
- You will be able to make your products cheaper
Number Five: Ensure that quality control is kept as best as it can be.
- If you have good quality products this will increase sales.
- When you properly analyse the quality of your products then it could stop disastrous results that may hurt the company which in turn will cost a lot of money
- As you will be aware, in the pharmaceutical industry there is little room for mistakes
- Additionally, this industry is extremely competitive and thus if you produce anything that is under the expected quality it could mean that your contracts may move to competitors.
Number Six: Have a proper analysis of where you are spending your money is going:
If you carry out this analysis then you can find out where you can cut costs and make budgeting better
Number Seven: You should cut costs in areas where there is a lot of wastage or money is not being used efficiently.
In every industry there will always be areas where money is not being used as effectively as it could be used. Your thorough analysis will show up any wastage in your company.
Number Eight: You could conduct as supply chain analytics.
This when a business scrutinises the whole supply chain process. It will allow you to assess the areas that need to be improved. The supply chain is very complex because you will deal with several suppliers on a global scale. Certain questions need to be asked such as; which suppliers are the most efficient, what factors effect the supply chain, are you overstocking or understocking?
Number Nine: when you have conducted a supply chain analysis then you should quickly implement the necessary changes to the supply chain in order to increase efficiency and cut costs to the supply chain.
Number Ten: Examine your purchasing team, this will:
- Ensure that you are getting high quality products without spending too much money
- You may need to change suppliers to decrease the costs but make sure that you keep the quality to a maximum effect.
- Make sure that you get detailed data from the purchasers so that you can analyse how efficient and cost- effective you are being.