Browsing: Cost Saving

More Job Cuts!

Today on The Star Online, I read the news of another job cuts. It seems like the situation is really not that encouraging at the moment. The job cuts will definitely affect the life of many, whether directly or indirectly. 
Towards the end of Dec 2015, I also read about cost reduction strategy by oil and gas companies.  These oil and gas companies are reducing cost by ‘readjusting’ their office space. 
Hoping that the situation will be better soon.

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Effective cost saving ideas for your office – Part 4

It is almost end of July 2009 and I still read news on staff retrenchment and positions been made redundant. The hard time is not over yet. Why not gather everyone in your organization and start to concentrate on cost savings plan? I know many of us not in favour to hear the words ‘cost savings’, but always remember, it is always better for us to save cost and work in a team, rather than the company had to cut down on headcounts and starts to lay off its employees.
Other than those ideas in my ealier post, I had another 3 additional effective cost saving ideas for your office:
1) Reduce the frequency on courier charges
Most company will need to use the courier service to send documents, parcels, products or other item to their customers, suppliers or other organizations. What more to say if it is multi national companies or huge corporate with offices worldwide. Courier charges will be just like telephone, electricity or water bills – it is a necessity. Bear in mind to control these courier charges. Perhaps select one courier day in a week where only on this particular day, your staff can send a courier. Of course, provided the courier is not really urgent. Avoid sending 2 different courier with different consignment note from your organization to the same destination. Ensure your Logistic or Admin department take control, track and make proper arrangement for all courier service. If implemented successfully, you will see a drastic drop in your courier charges invoices.
2) Cut down unnecessary face to face meetings
Many of us do not like it (meetings), but we need to discuss and find solutions to problems. Face to face meetings can used up a lot of resources. For company with offices worldwide or nationwide, to arrange a meeting for all the representative from different regions is wasting a lot of their resources on travelling hours, air tickets, accommodations, staff claims and other expenses. And yet, can the meetings come out with effective results? With the current developing technology, why not try to arrange for something different? Perhaps can try teleconferencing or video conferencing? Most importantly, just make sure the objective of the meeting is met.
3) Alternative Air Travelling Arrangement
Why I specifically mentioned on air travelling is because it is the travelling method which is most expensive if you compare to the land or sea travel method. But, the good news is there is always an alternative air travelling arrangement. Try to look for alternative airlines which provide a much lower air tickets compare to the standard charges. If possible, try to book and make travel arrangement ahead of time to avoid skyhigh air tickets.
I hope the ideas above will bring benefits to your organization. If you have other cost saving ideas, feel free to add in more.
Happy Cost Saving!

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Effective Cost Saving Ideas For Your Office – Part 3

Though the retrenchment rate in the US has reduced for April 2009, it doesn’t meant that the hard time is over. I believe it will still take some time before the economy bounces back. It’s still  a hard time for huge and small organizations to stay afloat.
Why not practise the cost saving ideas below to prevent $$$ from flowing out from your organization?
1) Control New Purchases
Do you really need to buy the new PC set for your staff? Or the old PC still is still functioning for at least another year? By controlling new purchases especially huge purchases, it does help to save cost in an organization.
2) Limit Staff Overtime Claim
Did the Human Resource or Audit Department really check through the staff overtime claim? Do your staff really need to work overtime or they are just taking the opportunity to get extra cash? Make sure, the overtime claim is with valid reason and with approval from department head. Overtime claim not only mean you are paying the staff for the extra works , but also for those additional hidden expenses (electric, water and heater cost).
3) Review Company Functions
Is it really necessary for your organization to organize monthly, quarterly or yearly functions? I meant grand and expensive functions at 5-star hotels. Or, is there a way to trim down cost by organizing the same function at the meeting rooms or company hall? Most important part is to make sure the objectives of the functions are met.
4) Reduce Entertainment Cost
This is another area where staff can misuse the benefits given to them. Give your employees the limit of entertainment cost. And have them verified before they bring their guest for entertainment.
5) Advertisement Cost
During this hard time, consumers are more reserved to respond to advertisement. Review your advertising strategy as advertisement is one of the  most expensive cost paid by mos organizations. 
The above cost saving ideas sound better than retrenchment isn’t? You can practise the above cost saving ideas even when the economy is back to the bullish style. Let’s build a financially healthy and profitable organization.

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How To Cultivate Cost Saving Attitude Among Employees

As I have mentioned in my previous blog, the most important part when you are thinking to save cost on your company expenses is to educate your staff on the importance of cost saving and its benefits to the company, the individual and to the global as a whole. The next question would be “How to educate my staff the importance of cost saving?” One solution would be to create a cost saving awareness program among employees on how to help your company to save cost. Since the employee is the living part of your company, there’s no other people who can understand your company better than your employees. Once the employees understand the company, they will know where does the money flows too and how to prevent more money flowing out from their company.
To start, pick a date. Create a cost saving suggestions program among your employees. Make it a compulsory for all employees to participate. Better if everyone of your staff must come up with at least 5 practical cost saving ideas. Make the program fun and more meaningful by rewarding employees with the best and most practical cost saving suggestions. Or reward employee with the most cost saving ideas. The rewards can be in the form of monetary value or other incentives. Encourage employees to suggest as many ideas as possible. Remember to give employee enough time for them to come out with effective and practical suggestions.
From this program, company will have hundreds or thousands of fresh, useful and practical cost saving ideas from their own employees. For the employees, by participating, they are practicing accidental learning on the importance of cost saving ideas for the company. As an employee, it’s great to know that their idea does matter and can help the company to move forward. And not forgetting, they will have opportunity to grab the cash incentive too.
Make sure that the company will take action and practise the useful cost saving ideas. After all, great ideas are meaningless if not been practised.

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Effective Cost Saving Ideas For Your Office – Part 2

This is the continuation of my previous post on effective cost saving ideas for office. Other than those simple and practical ideas I mentioned before, do consider the steps below if you’re planning to save cost on your businesses or in your office:
a) Subscribe for alternative voice solutions
Other than the national service provider, there are hundreds of alternative voice solutions which can provide your company a much lower phone charges compared to you current national provider. Most of these alternative voice solutions enable your company to call to outstations or mobile with much lower rates, some can even provide a saving of more than 50%. 
b) Request for bundle of services
Try to request your service provider to bundle a few applications for your company. Perhaps can bundle the phone, data and other communications services from the same service provider. I am sure they would be very happy to offer the services as it is a win-win situation.
c) Negotiate for lower office rental
If you office premise is on rental basis, most probably you will find the landlord will try to increase the rental during the renewal of tenancy agreement. Don’t just simply agree with the new rental. Try to request to maintain the office rental or if the landlord insist to increase, try to negotiate to reduce the increment. If you never request, you will never get it!
d) Limit newspapers or magazine subscriptions 
Does your office really need the newspapers subscriptions to different languages and from different publishers? Does your staff really read the newspapers or magazine? If you reduce one newspaper subscription, your company can easily save RM30 per month. Encourage your staff to get the up-to-date news from the Internet at no extra cost.
e) Switch to energy saving light bulb
For most offices, the lighting will be switch on during office hours, a typical 9 hours a day. Thus, switching to energy saving light bulb will definitely bring extra saving to you monthly electric bills.
f) Install dual flush system for washrooms
Use half-flush for flushing liquid waste instead of a full-flush.  Your company will be able to save about 40% on water bills. 
For item last 3 items, they are not only helping your company to save cost, but they are environmentally friendly too.
But again, the most important part is the human factor. All employees must be alert and understand the purpose of cost saving for the company. All employees must also playing their parts accordingly and participate in the cost saving exercise. After all, nothing is more meaningful than working with a team with the same direction.

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60 Earth Hour Malaysia – Saving The Planet

Heard off Earth Hour? According to Wikipedia,

“Earth Hour is an annual international event created by the WWF (World Wide Fund for Nature/World Wildlife Fund), held on the last Saturday of March, that asks households and businesses to turn off their non-essential lights and electrical appliances for one hour to raise awareness towards the need to take action on climate change. Based on an idea successfully executed in Thailand in 2005, it was pioneered by WWF Australia and the Sydney Morning Herald in 2007, and achieved worldwide participation in 2008”

The next Earth Hour will  take place on Saturday, March 28, 2009 at 8:30 pm, local time.
In Malaysia, Earth Hour is planned and run by WWF-Malaysia and its partners. Local radio stations and news are encouraging all parties to participate in Earth Hour on the 28th of March 2009 by turning off our lights for one hour from 8.30pm-9.30pm. 
What else better ways to show that we love our Planet Earth? Let’s increase global awareness on world climate change. Let’s save our Planet Earth. And I can’t imagine how much the world is saving by turning off the non-essential lights and electrical appliances just for that one hour.

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Effective Cost Saving Ideas For Your Office – Part 1

It has been a tough time for everyone including corporate companies and giant organizations. Why not try practicing some cost saving ideas in your office?
a) Recycle of all recyclable products
Most office will have unused papers – newspapers, printed documents, magazines, proposals, faxes). Don’t just throw these papers into the dustbin.Collect them and arrange them accordingly, whether white papers or coloured papers. Once in a month, sell to the recycle company. Other than papers, printer or fax cartridges are also recyclable. Make sure not to wait till the cartridges head is dried.
b) Reuse of paper/envelopes
I am sure there are papers resulted from wrong printings, old documents or just plain papers which can’t be used for external purposes. Why not reuse these papers for internal purposes? If the paper only has printing on one side, you can print on the reverse side. Or you can cut the papers in to smaller pieces and use it as memo or for writing notes. Besides paper, envelope is another item which most companies can reuse and reuse again. I have seen envelope which has been reused for more than 5 times!
c) Negotiate for lower price when asking for quotations
This involved your negotiation skills. Whenever asking for quotations, firstly do some homework and make sure you know the lowest market price. Then, try to get your suppliers to quote lower than these market price. You never try, you never know what you’ll get.
d) Switch off all electronic equipments (air-cond, lighting, computers, printers, scanners) when not in used
We all learned this from primary school. They are common sense. But, do we really practise them? Next time, if you are the last person who leaves the office, make sure all electronic equipments are turned off. You will see a significant savings in your coming electric bills.
e) Use emails for communication to save on phone call or fax charges
Nowadays, most offices equipped with Internet or broadband facilities. Fully utilize it. Use emails more. Talk less through phone. Use email attachment instead of fax.
f) Reduce on unnecessary printing or copying
Always think twice before print any documents (If you really need to print that document?). Also, if the printings are for internal purpose, try to save on cartridges by using the ‘economy’ or ‘draft’ printings.
g) Educate all staff the importance of cost saving
From my experiences, a lot of company staffs don’t bother to participate in cost saving because they feel like it’s not their responsibilities to monitor or control the company expenses. So, if you are thinking to save cost on your company expenses, firstly must educate your staff the importance of cost savings and its benefits to the company, the individual and to the global as a whole.
The above ideas not only will significantly reduce office expenses, but will also bring in extra cash for your office and most importantly environmentally friendly.

Do you have any more cost saving ideas for your office? Do share with me.

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