This mainly concerns material-intensive companies. It is extremely important for them to organize the process of purchasing raw materials in such a way as to minimize losses and increase efficiency. A well-thought-out approach eliminates the need to constantly hold working capital. Efficiency in purchasing materials primarily lies in purchasing them in the required volume, no more and no less, and delivering them on time. An example of the opposite approach: construction, where, due to incorrect calculations, a large amount of materials remains after its completion. Most often, they cannot be resold or used at other sites.
It is worth mentioning separately the organization of purchases from the point of view of choosing the best conditions. To do this, you need to make large orders (organize the purchase for all departments at once, for example), set your own delivery and storage conditions and look for suppliers who will agree to them. In a competitive market, this is quite common. It is no longer uncommon for a seller to store a stock of goods on their premises.
Business Process Automation
Today, the installation of such student database systems seems to many to be a magic wand that will help solve all problems at once. But, firstly, proper automation requires a competent professional approach. Secondly, it makes sense to optimize processes that are already perfectly structured. First, you need to take care of properly setting up all operations and the connection between them, and only then implement automation. For this, they seek the help of narrow specialists - methodologists.
The next important step in introducing automation is selecting the right systems. Many people prefer to settle on one universal platform. It is important to understand that the choice of tool depends on the specifics of a particular business process (budget planning, customer service, production management, etc.), as well as on the company's overall activity. In some cases, an ERP system may suffice, while in other cases it will be ineffective and its individual modules will be inferior to a specialized CRM. Only a specialist can find the right combination of using various tools based on the specifics of a particular organization.
Involving employees in performance management
The issue is not to involve employees in the performance of management functions, but to apply their competencies correctly. This will simultaneously increase the efficiency of employees. As an example: it is time for a planned replacement of equipment, management needs to decide whether it is worth spending money on it now. The chief engineer can help by providing objective data on the internal rate of return (IRR) and net present value (NPV). To do this, he only needs to compare the characteristics of the old and new equipment in terms of energy consumption, materials and other parameters.