Inefficient business process costs a lot. Although it seems trivial, inefficient habits put a burden on a company's financial condition. It might cost 20%-30% of a company's total revenue each year, according to Marina Martin, the writer of a book about business efficiency.
"Imagine what your company could do if it had 20% extra funds to funnel into customer acquisition or research and development," Martin wrote.
According to her, inefficiency occurs when a company spends more money than needed to in order to arrive at the same result. Inefficient acts include using defective products, excess inventory, or unnecessary phone bills.
That is why a company needs to quickly adapt and find the sources of inefficiency so that it can quickly stop the leakage of money. As summarized from www.entrepreneur.com, a company can carry out many improvements so that business can run more smoothly without wasting time and energy.
First, a company must realize that inefficiency can pop up anywhere, including in overlapping processes that need to be completed. Solutions must be quickly found for challenges that have been restricting the company.
Many companies run processes that are too complicated, while others try to improve by implementing too many new systems. In the end, the issues remain unsolved.
The wisest way is by finding the main spot of the process that's been slowing down the business. The mindset of "there must be a better way" must be implemented by everyone involved in running the company.
Toward business digitalization
After finding the inefficiency spot(s), system-improving strategy must be executed quickly. The development now must be more oriented toward business process digitalization.
Companies need to start implementing digital processes, be they for business-supporting process in the company's 'kitchen' or for service access presentation to the customers.
Digital service access for customers must give both freedom and ease in using the service according to customers' needs. Nowadays, customers are getting more and more engaged in deciding the services that they need.
Using latest technology, customers can order various things from food to flight tickets online. By giving the control of making orders to customers, a company can improve business' effectiveness.
A study by Aberdeen Group revealed that this method could increase customer retention by 30% and boost revenue by 55%.
However, creating a digital system to support existing business processes is certainly not easy. Developing an application or the like must also consider the success of integration process with the existing system. The new digital system should not add to the list of the company's inefficiencies.
According to research firm Gartner, inefficiency in digital integration process might slash a company's competitiveness by 25%. Hence, implementation of digital system also needs preparation and must be designed according to needs.
Furthermore, a company might want to try to see a bigger view of its business so that it can give more comprehensive or end-to-end solutions. Customers' needs in every process need to be considered in developing services.
Take logistics for instance. Customers might need to send goods to other islands, so a logistics company needs to provide services using land, sea, and air transportation to meet the need.
Such holistic services are offered by SELOG, one of the best logistics service providers under PT Serasi Autoraya (SERA). SELOG can fulfill various logistics needs by giving end-to-end solutions.
SELOG offers services of contract logistics, shipping, freight forwarding, warehouse, and yard management, as well as courier. With these various solutions, a company can use one-door logistics services.
It is hoped that companies needing logistics services do not have to waste time and energy to find solutions for various needs, and they can use the services offered. Hence, business can grow and develop in a healthier way, and revenue can also increase.