Given that the economy is still turbulent in the U.S., it’s important for businesses to cut costs. Running a leaner operation is crucial to the survival of many a firm. Especially for those in the food industry.
You might think that the food industry is one that is seldom affected by economic strife. But, many food producers have suffered the blows that the economic downturn dealt. If you want to run a leaner food business, today we are show you how to do just that:
Upgrade your technology. If you aren’t running the latest technology, you’re bound to be wasting money. Why? Because today’s tech helps us to improve how we do things and save money. There are many examples of technology that a food business will use.
There is the robotic equipment used in the manufacturing and packaging of food. In the office, there is the computers and networking equipment that admin staff use. And, how about the tech behind your billing systems?
It’s worth doing an audit of the technology you use. That way, you can identify areas of concern. You’ll then have the power to improve your firm’s efficiency and productivity.
Get rid of unsold food fast. The thing about food is that it all has a shelf life. Such commodities have to get sold within a particular timeframe. Otherwise, there is no choice but to destroy them. And, doing that means you’ve wasted money.
For the most part, food firms can predict the demand for each product line. But, there might be unforeseen circumstances that cause little demand for specific items. Rather than destroy lots of valuable stock, why not find other ways to sell it?
Sometimes food companies might discontinue a brand or, in worst case scenarios, go bust. The good news is it’s possible to liquidate inventory fast, even in those scenarios. Whatever the reason, one can sell food in a short period instead of destroying it.
Offer flexible payment terms. Many food companies lose potential customers because of their inflexibility toward payment. Smaller chains and independent stores, for instance, might not want to pay upfront. Nor will they want to pay in less than 30 days.
You should entertain more flexible payment terms for your customers. Remember that their business livelihood is also important to you. Without customers, you could end up with a cash flow crisis too.
Run seasonal promotions. One way to keep income constant is to offer seasonal promotions. The key is to do so at times just before “quiet periods” of the year. Yes, you’ll make less money during a promotion. But, if you time it right, you could make enough to cover any shortfall during quieter times. This way, your overall profit gets spread throughout the year.
Hire the right staff. Last, but not least, it’s crucial to hire only the right employees for your company. It costs a lot to seek out and hire people these days. The last thing you want to do is repeat that process for the same job role several times a year.
Photo by Tatiana Lapina
Milo Senalle
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