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Facility management - are you as efficient as you think you are ? By Tennille Bell , general manager : sales at Programmed Process Outsourcing
There are critical questions that companies need to ask themselves today in order to stay relevant to the fast changing environment , but without proper data to support a conclusion , companies can only make assumptions .
One such question : is your warehouse management system ( WMS ) efficient ? Is it fully supporting your business model , or only slowing it down ? By analysing warehouse efficiencies , businesses - particularly with e-commerce divisions can determine which processes are working , and which require improvement .
Through exhaustive data analysis , business process outsourcing ( BPO ) providers can assist businesses to see whether margins are slipping , where expenses are unnecessarily high , as well as identify and rectify costly warehousing inefficiencies . Bringing on board the right BPO provider facilitates cost and performance efficiency throughout the entire warehousing process - right from supplier ordering , through to product shipping - which essentially means that these exercises in streamlining the business pay for themselves .
TELL-TALE SIGNS OF INEFFICIENCY Without looking at data , businesses can tell they ’ re efficient based on factors such as customer satisfaction levels and production targets . Red flags for inefficiency include backlogs in productivity , unmotivated or complacent staff and key performance indicators ( KPIs ) not being met , in addition to other warning signs like increased customer returns .
On the other hand , efficiency is seamless . There are no delays in business processes , and customer complaints are few and far between because there ’ s simply no reason for complaint . Efficiency sounds simple but putting it into practice is no small feat . Once a business process is designed and in place , there is rarely continuous evaluation of that process and its impact on the system as a whole . That process is used “ as is ” without adjustment or enhancement in the long term .
ALWAYS ROOM FOR IMPROVEMENT Rarely is a company as efficient as they would like to think , and there is always room for improvement . When productivity and output lag , it is tempting to increase headcount , but this is counterintuitive . Output might increase , but so too will costs .
People and businesses get stuck in their ways , and only once the process breaks or becomes unavoidably problematic is it revisited .
It can also be tough for companies to stay on top of technology developments and keep up with the pace of change in the world around them . Before they find themselves in a make-or-break situation , it is necessary for companies to evaluate efficiency as a whole and seek out ways to reach that “ sweet spot ” between maximising output , while minimising cost . This is where a BPO provider can make an enormous difference .
BPO WITH BENEFITS As experts in their chosen fields , BPO providers bring more than mere labour outsourcing to the table for their clients . Exposure to multiple clients and a varied set of demands gives a solid BPO provider extensive experience to draw from .
With so much data involved in analysing WMS efficiencies , bringing in a trusted BPO provider will help the business by conducting its needs analysis with as little down time as possible , delivering an external objective viewpoint on efficiencies that identifies areas for improvement and areas of risk , and presents proven solutions to yield the desired outcomes .
DO WHAT YOU DO BEST , OUTSOURCE THE REST This has been a suggested strategy across the business world for some time now , but which business functions can be outsourced to improve efficiency ? Think about it this way : if it ’ s not a core business function , it can be better handled by a specialist . By entrusting the warehouse management function to a BPO provider , any company can benefit from their expertise in choosing and implementing the best technologies , processes , and people to streamline operations to reduce risk and enhance output .
BPO providers operate under stringent , mutually agreed KPIs and their remuneration is dependent on achieving these KPIs . Processes are continuously evaluated and once they ’ re in a position where KPIs are being comfortably met , BPOs will seek
Arno Senoner | Unsplash
Long has the proposed strategy been one for businesses to focus on core operations and outsource other tasks .
out ways to further fine-tune operations to achieve even higher levels of efficiency by continuously monitoring and optimising . For the business , fixed overhead costs become flexible , and it becomes easier to scale up and down as demand dictates as BPO providers anticipate and cater to fluctuations in production timeously .
ALWAYS A BETTER WAY TO DO IT Such proactive improvement is directly linked to enhanced customer satisfaction , which comes from faster delivery and more accurate orders . Not only are returns ( where applicable ) and complaints reduced , but customer feedback reflects positive sentiment , which in turn has an impact on the company ’ s competitive edge that brings with it increased profits .
For companies still on the fence about adopting a business process outsourcing strategy , it ’ s important to remember one thing - if you deprive yourself of BPO and your competitors do not , all you are doing is putting yourself out of business . Can you afford that ? CLA
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