Proposal for Artemis Sportswear Company for cutting operational expenses to increase profit margins; some ideas. As a business, Artemis can cut down the operational costs by down-sizing the labor force so the company can compete with other sportswear companies. There are two ways a company can down-size the labor costs, one of these is down-scaling the direct labor, and the other one would be to relocate the labor and obtain cheaper labor force. Reduce Employee Costs. Outsource any jobs where a full-time employee is not necessary.
This will cut your payroll expenses, health-care costs and space requirements. Introduce a reward scheme for employees who do not take any sick days in a year or six-month period. The cost of the reward is minimal compared to the savings made by the company. Rather than pay overtime rates, try re-organizing the work rosters and routines to prevent the need for overtime. Offer staff incentives for reducing their personal days and sick leave taken. Hire college students or interns-Internship programs are a win-win for both sides.
You get an ambitious employee who will do monotonous work and they get college credit, experience and hopefully, an excellent reference. Cutting everyday expenses can lower operational expenses. When purchasing office supplies, generic is going to be less expensive than brand name. Buying the store brand is generally sold at a lower cost. Buying supplies in bulk is cost effective over a long period of time. Leasing equipment is better than buying equipment. When leasing you have the opportunity to upgrade or downgrade when necessary.
Technology is always changing and improving, so by leasing there is the option to stay current with the new changes in the equipment. Smaller equipment such as telephones, printers, fax machines and calculators should be purchased not leased. Smaller equipment will hold its value over time and can be easily replaced if needed. Try shopping for bargains or sales whenever possible. Company could go green by using products that produce less waste, or less energy. Curb your business travel — and cut costs where you can.
Meeting with long-distance clients is costly and it can be expendable for some businesses, but travel can also be the most beneficial expense for a business. Fortunately, modern technology can replicate the experience at a much lower cost; such as communicating through Skype or some other form of video chat link. Cut out the landline and fax line — with Blackberry’s and iPhones, and everything compatible for email, who needs them? Conceder free advertising whenever possible, try piggybacking your advertising.
Including advertising material in other mailings, such as in invoices, saves postage and other costs, says J. Donald Weinrauch, co-author of The Frugal Marketer. Likewise, make the most of your point-of-purchase opportunities by tucking coupons, newsletters or other promotional fliers in the bag with customers’ purchases. Hire independent contractors or temporary workers as needed. Outsource your payroll, benefits and HR. Consider a virtual assistant or answering service to reduce payroll.
Some IT Department solutions, Process Automation allows a smaller management team to effectively handle a larger number of systems Intelligent Software Delivery allows companies to more accurately assess how many licenses they will need when purchasing software Endpoint Virtualization reduces downtime for application conflicts and provides a secure workspace when roaming Power Management Capabilities documents compliance with energy consumption policies and may provide rebates from local power companies Remote Diagnostic Tools reduces required IT travel time and travel budgets.