If you own your own company, it goes without saying that you want to cut costs. After all, every dollar that you save is worth as much as every dollar that you earn. They both look the same when they land on the bottom line, correct?
Even if you work for a company instead of owning one, cutting costs should still be one of your top priorities. If you establish a track record of saving your company money, chances are very good that you will be promoted more quickly, move into company leadership sooner, and enjoy other career benefits.
If you agree that you can earn more and move ahead faster if you’re a cost-cutter, how should you get started? We recently found some excellent tips in “Cost saving tips for manufacturers,” a smart post that Neil Summerfield wrote for The Manufacturer, a UK-based publication. You’ll want to read his article for yourself, because it offers some very smart cost-cutting strategies.
Here’s our take on how some of Summerfield’s cost-cutting approaches can be effective for the readers of this blog, who have an opportunity to increase their earnings by recycling the precious metals in the sputtering targets and other materials that are part of their manufacturing processes, along with a strategy Summerfield never even considered…
Strategy 1: Don’t focus on just one area where your company is spending money and try to cut costs there.
Make an inventory of all the areas where you’re spending, prioritize them, and attack them in a logical order. Example: Your company spends different amounts of money on electricity, payroll, office supplies, building heat and maintenance, and manufacturing supplies. To be an effective cost-cutter, you need to weigh those expenditures and identify areas where the most money can be saved.
Strategy 2: Always make your employees and staffers part of the process.
They are uniquely equipped to help you identify areas where you can cut costs – and they are the best people to create and implement cost-cutting measures.
Strategy 3: Shop around and review your supplier relationships regularly.
Summerfield writes that many companies continue to use the same suppliers for five years or more, without bothering to interview others or compare costs. If you’re in a manufacturing industry, the costs of sputtering targets and other materials can change often, especially materials that contain precious metals, and you need to be aware of current costs. Also: Summerfield recommends reading all the fine print on vendor agreements and contracts, because the clauses and commitments you miss could cost you in the long run.
Strategy 4: Invite suppliers to bid competitively for your business.
Summerfield notes that it’s “a buyer’s market” in most manufacturing industries today. You could also be able to cut costs significantly by getting in the habit of negotiating on prices with your suppliers, even after competitive bidding has taken place.
Strategy 5: Keep completely up-to-date with new technology and production options.
Manufacturing systems are improving regularly, often with the goal of making production faster, less labor-intensive, and less expensive. The more current you are with industry trends, the more you can cut costs.
Strategy 6: Don’t cut costs in ways that “cheapen your business” or diminish the quality of what you make.
Summerfield makes this point, and it is a wise one. If you cut costs in ways that make your organization and its products less competitive or less respected, that’s not a route you should take.
Strategy 7: Reclaim and Recycle the value in your used sputtering targets and precious metal-bearing scrap.
For more than 32 years, our customers have come to Specialty Metals Smelters and Refiners to reclaim the value in their precious metal scrap. Sputtering targets contain gold and other platinum group metals, and that could be money your company is throwing away if you’re not recycling them, not to mention getting the best prices for your scrap by working with us.
Want to be a company hero? Call Specialty Metals Smelters & Refiners at 800-426-2344 to find out about setting up a regular program to recycle and refine your precious metal scrap, lowering the cost of manufacturing and putting it right back into your bottom line.
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