How do they do it? How is it that some companies always find a way to save a little more, re-invest a little more and profit a little more? When times are tight, it seems, these superstars come up with even more ideas for stretching their budgets to improve their business.
We asked successful UPS customers for tips. Here's a look at some of their best suggestions for making their companies shine.
1. Embrace new technologies. In the past year, Mayer Fabrics has experienced 35 percent growth but hasn't had to add a single staffing position, says CFO Steve Mayer. How? By investing early in advanced technologies. In the past decade, for example, the textile fabric wholesale distributor has transitioned to a barcode system in the warehouse, which simplifies inventory control, and integrated its WorldShip® shipping system into its ordering and billing systems, streamlining data entry and saving the company a full-time position. "Once the bugs are worked out and everything is online, you'll get more efficient," Mayer says.
2. Go paperless. Reducing paperwork saves material costs, but perhaps more important, it can cut processing and filing time and reduce the risk of errors. That's why Pantone, makers of color communication tools, stopped attaching commercial invoices to international shipments and switched to UPS Paperless® Invoice instead.
3. Reduce package size. Seattle Sutton's Healthy Eating ships its healthy prepared meals with gel packs to keep the meals cold. But the large, light packages triggered dimensional weight shipping rates. With expert advice from the UPS Package Design and Test Lab, Seattle Sutton reduced the size of its cartons at considerable savings. "It cuts our price pretty much in half," says corporate manager Brian Emerson, who estimates that the company will save about $250,000 per year in shipping fees.
4. Think inside the box. Seattle Sutton doesn't just save on shipping; it saves on shipping materials, too. "I'm always trying to think of ways to reduce the cost," Emerson says – and he's not afraid to shop around among suppliers. Recently he switched from a Styrofoam spacer to Bubble Wrap, which is 75 percent less expensive and better for the environment too, since it's recyclable. But Emerson warns that cheaper is not always better. Upon the UPS Package Lab's recommendation, he upgraded from cartons with a 32-C ECT (Edge Crush Test) value to a 44-C. It wasn't the least expensive option, but the improved strength reduces the number of returns caused by damage. "And that keeps our customers happier," he adds.
5. Talk to colleagues – and competitors. Mayer says he isn't shy about bouncing ideas off his counterparts in other industries – or even about asking industry colleagues what works best at their companies. "If you can find people who have done something similar before, it's good to find out where their failures were, or where they missed an opportunity," he says. "The better information you're equipped with, the better your chances are of obtaining your goals."
6. Choose the right service. Use your shipping system to calculate transit time to see what shipping service best meets your needs. Or use the time/cost calculator at ups.com to make the calculation. Sempermed USA uses its shipping system to match speed to need, says UPS Senior Account Manager Steve Rose, enabling the maker of medical and industrial gloves to scale back on rush orders. "People were shipping overnight when they didn't need to," he says.
7. Recycle. When you can't reduce or reuse, be sure to recycle, Mayer says. "A lot of our product comes in cardboard boxes, and a lot of the ones we don't reuse we recycle," he says. "You're saving on dumping costs, and it's always an environmental consideration, too."
8. Store products closer to market. To ensure a continuous supply of its product, even in the event of a natural disaster, Advanced BioHealing – maker of a wound-care skin substitute called Dermagraft – divides its temperature-sensitive inventory between its California warehouse and the UPS distribution center in Louisville, Ky. "Should anything happen either at the San Diego airport or at our facility … we now have a viable distribution alternative," says Mike Whitmore, ABH's senior logistics manager.
9. Learn stuff for free. As Skates on Haight transitioned from a neighborhood San Francisco skate shop to a global e-commerce business, its owners signed up for a free export seminar.
Got a creative cost-cutting or better business tip? How is your company a super-saver? Share comments and tips below.
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