Being efficient in today’s business environment puts you immediately at an advantage in comparison to your peers. If you are maximising all available resources and producing your end product as effectively as possible you will be more likely to succeed than fail.
But how do you know if you are utilising every input better than your competitors?
Are you certain that you are buying your raw materials better than others? Is your manufacturing process best in class? Are your raw materials yields high and waste levels low? Are you ensuring that product is produced right first time? Are you optimising your supply chain to ensure that finished product gets to your customers quickly and effectively?
There has without doubt been a paradigm shift across fast growing businesses on in how they maximise yield, minimise waste and focus on every margin reducing element to ensure that their sustainable commercial advantage is maintained.
But when you are facing the day to day demands of running a business, how do you identify where all of your costs are? How close do you look? Well in reality you have to start from scratch. In today’s competitive business environment there is no such thing as waste. Every unused or underutilised input may well be a valuable co-product for somebody else, you just don’t know until you ask.
Understanding where you add value and where you don’t, what is waste and what is potentially a co-product, depends on how closely you examine the process. Until you break it down into its constituent parts there may be many areas of downstream commercial opportunity.
The sensible way to identify where opportunities exist is by engaging Fare Solutions to undertake a value stream mapping exercise. The evaluation looks at every facet of your business process, breaking down each individual element into where you add value, where you develop waste and where co-product sales opportunities may well exist.
Forward thinking businesses are using Value Stream mapping as their evaluation start point. Until you look at the process closely, those areas of resource surplus and hidden value in waste products that you are currently paying someone to take away will make quite a difference to your bottom line.