Tag: Costs
High Costs to Operate the Store
Unknown how much you write of-of shrinkage. Unknown how much is a result of employee or internal theft. You are experiencing poor inventory management/spoilage. High inventory costs. You turn your inventory often. Some merchandise doesn’t move. You have been ordering the wrong mix of merchandise. It is taking up valuable shelf space. You are experiencing high labor costs. Lengthy training time associated with turnover rates contribute to labor costs. Unknown how you currently manage seasonal hiring. It takes long to get someone trained. The part-time or seasonal employees make more errors. High cost of merchandise. Unknown how much you think…
Read More »Production Cost Increases
Your legacy system is not integrated. Data is being re-keyed from the production software into the financial software causing possible transportation errors. Unknown how many people are designated for this function. Unknown time it usually takes for an order to be placed into production. This causes you to have to purchase material at a higher cost. You are paying excessive freight & handling charges for these rush orders. You don’t have incomplete data capture. You are not capturing all labor cost on a Production Order. Direct & Indirect Labor. When consuming components, your system is not accurately recording material cost…
Read More »Time and Cost to Support Business Units
Systems are not integrated? How much time do you spend writing interfaces between the systems? Do you ever have to write special reports to retrieve information from the different systems? How much time does that take? How often do you get special requests from sales, customer service or marketing? Are they satisfied with the time it takes you to deliver? It is time consuming to initially set up and modify applications? How flexible is the set up process? How often are there changes? Is it because of changes in the business structure? Policies? What are some of the changes? How…
Read More »High Cost of Payroll
You manually update general ledger accounts with payroll information. You may be using some type of export from one system and import in to your financial system. Unknown who does that. It takes much time. Unknown cost associated with this process. Causes inconsistency between systems or errors. You do not have a system to manage HR processes, such as recruitment/applicant tracking. Your HR and Payroll systems aren’t integrated. Unknown time it takes to reenter data. You have much time spent trying to reconcile and correct. Unknown whether or how do they integrate. You still find yourself doing duplicate data entry.Unknown…
Read More »Increased Warehouse Costs
You have high carrying costs. Inventory is inaccurate. Do you order items already in stock? Uncertain how to determine what you purchase. You often do a physical cycle count. You have to shut down the warehouse. It costs. Uncertain where is the delta between actual inventory. The system often says you have something that you don’t . It is difficult to track time. You need to identify specific inventory by lot or serial numbers. You assign your own serial numbers. Manually. It takes much time. It is error prone. Uncertain what happens. You carry inventory past its life cycle/expiration date….
Read More »Difficulty Managing Employee Expenses
Not all employees expense transactions are manually entered. Additional time is needed to enter the data and create expense reports. There are data entry errors. Transactions could be missed. It is difficult to accurately manage the expenses. There are delays in employees getting reimbursed for expense reports. Uncertain whether approval process is manual. Expense reports are late and stolen. Accounting spends time manually entering employee expenses. It is difficult to accurately manage the expenses. You have a manual process of auditing and reviewing expense reports. You manually enforce T&E policies after expense reports are submitted. Policies are cumbersome. They are…
Read More »Business Operates Inefficiently and With High Overhead and Operating Costs
Posted by AJ Amjad Khanmohamed
— October 14, 2017
in Business Operates Inefficiently and With High Overhead and Operating Costs
Business Operates Inefficiently and with High Overhead and Operating Costs Are the time cards, expense records and requisitions systems maintained and updated timely and accurately? Do the personnel require excessive paper shuffling? Is valuable time of company’s employees wasted in search of paper forms which get lost in work flow process? Do HR and accounting staff spend time re-entering data into their systems that has already been created in another form? Is updated and accessible information available to sales and customer service personnel? Does the company’s need automated billing and invoicing processes to reduce administrative tasks for employees? Is excessive…
Read More »Time and Cost to Manage Financials
You need to manually re-enter data from other applications into your financials. It takes much time. There are errors. Unknown impact. It takes a lot of time to update the general ledger with journal entries/transactions. Unknown how you do it today. You must post transactions all at one time. You need tow ait until batches are posted before continuing any other work. Unknown impact. You have one checkbook assigned to multiple cash accounts. It is difficult to track cash flow from the checkbook. It causes inaccuracies. You have to make multiple transactions to transfer funds between checkbooks. It takes much…
Read More »Resources Under-Utilized
Lack ability to schedule appropriate resources. You do not hae isibility into all inentories. Unknown isibility into future assignments. Unknown numbers of skills appropriately matched to assignments. Inability to set goals and track progress towards goals. You do not know how to track performance. Uncertain whether realization budgets can be set per employee. Unknown number of ariance reporting. Unknown number of employees motiated towards goals.
Read More »Increased Operational Costs
You have high carrying costs. Inventory is inaccurate. You order items already in stock. Uncertain how to determine what to purchase. You perform a physical cycle account often. Unknown delta between actual inventory. You have too many of the wrong items in stock. You cannot determine what to order. Uncertain average turn. Uncertain how much it cost to carry items that don’t move. Uncertain as to which warehouse to have items shipped to. You find you often transfer between warehouses. Unknown cost. You carry an over abundance of kits in inventory. You assemble kits and commit to demand. You cannot…
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