How to detect leaks in your business?

¿Cómo detectar fugas en tu negocio?

Sometimes we hear that a business is "leaking" and we think that this cannot be happening to us because we have "everything under control", because we have analyzed each one of our products, we have looked for ways to make "cuts" in all our processes, but we ignore that there are things that could be improved. Because as entrepreneurs we have a vision, but we need a team that allows us to see beyond.

  • But how does a team help me stop the leak?

Because several combined visions see more than a single person, we will illustrate it with the following example:

You have a toilet paper distribution business, so currently your way of working is to receive orders throughout the day to dispatch them as the delivery man comes to pick them up, but at the monthly meeting with your work team they realize that with this process they can distribute orders faster but they have an excess of trips and fuel consumption, so they decide to take the following measures and start receiving orders until 12 pm and dispatch them at 1 pm, then you receive orders until 6 pm to dispatch them to the next day from 9 am to 11 am, you carry out the process efficiently and everything is running smoothly. But at the next meeting they realize that the process has become more efficient, but customers have decreased due to their "1 hour to deliver" rule, and that has led to a decrease in orders.

Since you started with the first distribution method, you understand that it is better to return to that process, because it was more comfortable, orders could be expedited, customers liked agility, or on the other hand, you understand that it is better to make customers understand that the "1 hour to deliver" rule is no longer valid and resign yourself to losing these customers.

  • What would be our solution ?

A solution if your vehicle has space and you do not have a wide variety of products as inventory, would be to " load" it with extra products , so when the courier has a delivery route and uploads an order, you can adjust it to the route, maintaining the rule of "1 hour to deliver", another option could be to have warehouse points throughout the city, and that when an order is placed, the closest point can contact the courier and supply him with the order, another option could be be to have an alternate courier who does not have pre-established routes from the previous day, but who can receive orders the same day.

These are solutions to a simple distribution problem, but analyzing our processes in depth in collaboration with more people, we could observe that the cost of a product that we thought "impossible to lower" has alternative solutions, such as buying in a larger volume , or change of brand , etc.

In short, how could we find the leaks?

  • Make a meeting with a team , if you are currently undertaking alone, make meetings with friends .
  • Analyze each of the processes carried out by your company; Purchase, Sale, Production, Storage, Inventory Control, etc.
  • Observe in detail where you see costs that are affecting you or creating "problems".
  • Think of solutions, some may be crazy, but they are just ideas that you can later mold to your needs.

Emi Group RD

Desde 2017