Beginning Good Business Habits

Beginning Good Business Habits

In this Whiteboard Wednesday, James Shores shares how to implement positive practices in your businesses and the great results you can expect from them.



TRANSCRIPT:

Hi. Welcome to this Whiteboard Wednesday. I’m James, and today we’re gonna finish up our discussion on New Year’s Resolutions as it relates to your company.

Previously we’ve talked about things not to do, things we’re already doing, and how to improve. But today we wanna focus on new habits that we can incorporate into our business.

First, let’s take a look real fast at what our processes are in our company it’s pretty typical for most companies – it will change a little bit. And we’re gonna look at the manufacturing side, but a lot of the same stuff applies for retail and distribution.

So we get a customer order. From here we’re obviously generating a bill of materials for that product. Those parts need to be picked for our inventory and passed off to manufacturing whether it’s a multi-step or it’s an easy process, even in distribution when it’s repackaging all those things.

We’re gonna get our finished product ready off to ship. We’re gonna need to reorder from our vendors for those raw goods that we’ve used so that we have more on hand and avoid those stockouts.

So this is our process. What can we do to speed it up? What can we do to save some time?

Let’s start with slotting. This one is so easy. It’s a physical process in most sense where it’s a reorganizing of your warehouse layout or your inventory and where it’s put. But it’s so helpful when it comes to pulling those parts for the bill of materials for the manufacturing process.

If your employee or yourself is scrambling around and everything is just place wherever you can find it, you’re wasting time. But if you create a dedicated inventory map that each part has a spot for it on its shelf, it’s near those other parts that are all needed for that same product, you’re saving time and in the long run you’re gonna end up saving money.

In fact, a similar thing happens with – I recently read about Harley-Davidson Motorcycles where they found even if they’re able to save two seconds off of their production time for a motorcycle because they make so many motorcycles they were saving millions a year.

Let’s move on to mobile – mobile devices. So these helpful little scanners are what you’re using to both check in inventory when you receive it from those reorder points, also checking it out for the production process, and then checking off for when you’re shipping out for a final product.

Now why this is so helpful is you’re not scrambling see if you have enough inventory on hand. It tells you immediately in the mobile device what you have, where it is. You can also immediately check out those items that synchs up with your computer so that you know at all times what your stock levels are.

Since we’re talking about inventory, let’s talk about price breaks. This one’s pretty simple, but still not enough people take advantage of it, and that is the price you pay to your vendor for the materials that you need. Are you buying just the amount you need, or are they offering, like most lenders do, volume discounts that obviously have an initial higher cost because of volume, but over time they’re saving you money.

This is definitely something a look at. You can do it manually, you can call your vendors. But with all of these with an automated software solution all of these can tie together so that they’re all speaking to this main central hub that you’re using – this computer – so that you can speed up this entire process.

Now, if Harley-Davidson is saving millions of dollars a year shaving two seconds off production time for a motorcycle, imagine how much money you might be able to save even by just saving five minutes a day.

Well, hopefully some of these new habit ideas help you and your company. That’s it for this Whiteboard Wednesday. Thanks for joining us.

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