10 Ways Your Company Can Reduce Costs - Without Cutting Back on People

We all know that cost containment is important in all economic cycles, as it determines a company's competitiveness, its success and, ultimately, its survival. In the current scenario of widespread crisis, this cost reduction becomes particularly relevant for companies, as this extreme situation may be closer than ever. The added difficulty of indebtedness also increases the need to find funds within the company itself. The most difficult part of cutting costs is ensuring that you lose the accessory without touching the essential – what makes the company competitive today and will do so tomorrow, what motivates your staff to excel and your customers to buy. Here are 10 suggestions:

1. Cut down on paper – is it really necessary to print emails or other documents? In addition to paper and ink, you will need filing folders, dividers, cabinets, space... and all of this has a cost;

1. Centralise purchasing – having fewer departments buying from fewer suppliers can allow you to negotiate significant discounts;

1. Have alternatives – always ask for prices from several suppliers – competition (or the possibility of it) almost always ensures you get better prices;

1. Ask suppliers for ideas – to keep your business, they may suggest ideas such as less frequent deliveries, which reduce their costs and allow them to pass on those savings to you;

1. Review specifications – you may be using products that exceed what you really need – for example: can your product be transported on second-hand pallets?

1. Be careful with automatic renewals – whenever you sign a contract, review the renewal conditions and set a reminder in your calendar for one or two months before the date on which you can cancel it. Reassess your needs and the market;

1. Challenge price increases – do not accept price increases from your suppliers without discussing them;

1. Reduce stock – ask suppliers to hold it for you;

1. Try white label brands – they usually offer the same quality with a price difference of up to 30%;

1. Call in an expert – the person in your company who has daily contact with suppliers wants (and must) maintain good relations and will therefore find it difficult to be "tough" – an external expert will not. In addition, your staff are unfamiliar with markets that are not central to your sector, as they negotiate each type of contract once a year or less, whereas the expert does so on a daily basis.

Of course, not all of these methods are appropriate for all companies. Select the ones that best suit your business and start saving today!