Companies are constantly looking for ways to increase their bottom lines and increase their profits. Many companies are public or owned by another company which means they are responsible to their stockholders and parent companies. Stockholders and parent companies expect improved profitability each year. There are many potential ways to accomplish this. One of the best ways to do that is to find a more efficient way of doing existing work in order to have less resources producing the same amount of output. There are other ways that are not as effective at increasing the bottom line while maintaining the quality and convenience to customers.
One way to increase the bottom line is to reduce the price of the raw materials and subcomponents. This is possible, but as suppliers are also looking for ways to increase their own bottom line, it is difficult to do. The cuts made could possibly lead to lower quality and need to be done carefully. Those cost reductions could be using raw materials that are not as high of quality or purity. It could also be reducing steps like inspections. These could be impactful for the end product and need to be evaluated wisely. Generally, suppliers are running into this same issue of trying to increase their profits, so it is more difficult to cut their prices.
Another way to increase the bottom line is to increase the cost of the product. This can be difficult as customers don’t want to pay too much more without having additional functionality are new “wow factor” feature added. Customers are very aware of the prices of comparable products because of the availability of prices on the internet. People will comparison shop, reverse bid, and get multiple quotes. There needs to be a good reason for the customer to be willing to pay more for a similar product. Those reasons could include brand loyalty, reputation of quality, or increased features.
However, the best way to increase the bottom line is to lean the process by reducing waste. Waste can be removing:
- non-value tasks
- excess movement
- excess inventory
- over processing
- defects and rework
Using templates and forms such as the validation process within Streamlining Validation’s system helps to reduce the time it takes for resources to develop the validation protocols and writing the reports. It would directly affect the non-value tasks and reducing defects and rework. The templates and forms allow for the companies to remain complaint and having a strong validation process. This in turn leads to lower quality defects. If both the authors and reviewers are familiar with the documentation in a template format, it reduces the back and forth in the reviews (rework). And if the routine items for the documentation are in easy to follow fields, it reduces the non-value added tasks.
Utilizing a system such as Streamlining Validation’s allows a company to maintain the quality of the product that they produce while increasing efficiency of the validation process. This will help companies to increase their bottom line and better position themselves in the market.