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1 strategic initiatives. What major projects are you able to delay or 8 running costs. Turn out lights. Turn down the heat. Reduce legal
eliminate because they are developmental rather than essential to fees. Rethink cars. Evaluate travel expenses.
the core operations?
If you do these eight things, there are significant savings to be
2 staffing. If sales per employee are £220,000, and the benchmark had—and they all drop directly to the earnings line. Times are
for your sector is £275,000, how will you move your staff closer to challenging. It’s time for a thorough tidying up.
the goal? Since you are
probably not going to see
a big jump in sales, what
does this tell you?
3 programs and software.
What licensing fees can
be eliminated or cut back?
What marginal programs are
being supported that could
be scrapped? How many IT
people are really required in
the operating environment of
the next year or so?
4 call centre. If sales are
flat to slightly up, how do
you clean out, dust, sweep
and scrub the customer
service/order entry process
to gain 15-20 percent
productivity?
5 advertising. If you have
a £100,000 budget for
pay-per-click advertising,
would you be better off
spending that money on
an aggressive customer
email regimen? Would you
profit from cutting mailings
to unproductive customers
and increasing mailings to
your high performers?
6 warehouse. Has senior
management been given
responsibility for eliminating
£0.50 per order in cost? If
not, why not?
7 inventory. At least 15
percent of your inventory
either is obsolete or has too
few sales to justify stocking.
Eliminate this drag and
clean out the big closet in
the back.
15
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