A penny saved is penny earned! When running a manufacturing operation it is essential that you pay attention to every detail of the entire supply chain to ensure you are running it most efficiently and economically. There are multiple ways in which you can save money – ranging from installing efficient machines to shopping around. The bottom line is you have to look at all elements of the procurement and supply chain to get the most out of your money. Here are three suggestions you can implement without too much effort to generate significant savings in your manufacturing operations.
Join the Green Revolution
In the United Kingdom, the industrial sector is responsible for a quarter of the country’s total CO2 emissions. By making changes to become greener you will not only help the environment, buy these investments will also have a positive effect on your company’s bank balance. Start by getting an energy audit to better understand how much you’re spending on aspects like lighting and heating. You might find that simply switching to more energy efficient bulbs can have a big effect on your day-to-day running costs, saving you almost 50%. Don’t forget to also check the efficiency of your equipment. Electric motors count for around two-thirds of all energy consumed in industrial settings so by replacing them with more energy efficient solutions you could see drastic results over a short period of time.
Buy Used Machinery
Another great way to save money on equipment is to buy used machinery. This can have an initial saving of almost 60% as well as the benefits of better efficiency rates if you’re upgrading to newer equipment. When purchasing used machinery, make sure you are buying from a reliable source. It goes without saying that there is added risk when you’re not buying direct from the manufacturer. There are companies who specialize in the field, however, like Clarence Jones have over thirty-five years experience dealing with sheet metal and fabrication machinery. Whatever sector your company operates within, make sure you buy from a similarly reputable source so you can be sure any equipment you purchase will be of a high standard.
Don’t Forget to Shop Around
When you are involved in the manufacturing process, a small saving on the cost per part can have big impact when you’re buying in bulk. Don’t forget to shop around on even the smallest piece. The rule of thumb is that you should be looking for at least three different sources for everything you buy. The time spent here will be worthwhile when it finally comes to negotiating with the material’s suppliers. This way, you can quote a competitor’s price to try and get a better deal.
Now that getting the best rates for parts and staying on top of the day-to-day running on the factory is your responsibility, there’s no way you can blame bad numbers on anyone else but you. Take advantage of these tips to ensure everything goes to plan.
