5 simple ways for manufacturing, engineering and retail organisations to protect their margins
What do materials shortages, rising labour costs and ongoing supply disruption have in common?
They’re all just a few of the challenges which are threatening the margins of manufacturing, engineering and retail organisations right now.
BUT… there’s still a number of simple strategies that organisations can use to keep their margins safe, without needing to invest in any game-changing technology. So, without any further ado, here are five simple ways you can protect your margins if you’re a manufacturing, engineering or retail organisation.
To get a truly accurate assessment of your margins, you need to compare them with the rest of your industry. Market research and analysis will show you whether you’re doing worse (or better) than you initially expected.
Reduce excess inventory
Nothing weighs on margins like a bloated inventory. Conducting forecasts and planning accordingly will keep your inventory lean, meeting demand without the need to sell any stock at a discount.
Get your pricing right
Consumer demands change, which means their expectations over price and quality change too. Focus on high-margin products, differentiate them with better quality, and identify where you can increase prices without negatively impacting sales.
Streamlining production processes can only have a positive benefit on overall margins. More often than not, there are bottlenecks which can be removed or areas where productivity can be improved with just a few simple changes.
Reduce unnecessary costs
If something isn’t adding any value, don’t waste your money on it. You can invest any cash you save in the areas which need it most, whether that’s product development, new production technologies, or something else entirely.
Want to take a closer look at your margins? Get in touch with Hexagon Consultants today.
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