Archive for November, 2018

Cost efficiency has become a buzz word for business all over the world. More than 65% of businesses plan to cut costs in a year, of which less than 30% actually meet their target, says a PwC study. Cost cutting is only possible if a business maximizes its efficiency.

WHAT IS BUSINESS EFFICIENCY?

Efficiency of a business is not just about managing costs, it also has to do with operational efficiency and the efficiency with which goods are produced or services are provided in a given timeframe. In simple words, a business is said to be efficient when it is able to achieve the highest output using the minimum possible inputs.

Streamlining business operations is a proven way in which small yet complex businesses like courier companies can drive down resource needs, operational costs, and increase profits, says an expert at Key Software Systems. This can be best achieved with the use of good courier management software that leverages a central database to automate business workflow and achieve greater transparency through charts, graphs and reports.

NEED FOR BUSINESS EFFICIENCY

Business efficiency is a must for the smooth functioning of a company and competitive advantages over the competition. Efficient small businesses are also major contributors to jobs within an economy.

In 2015, small businesses created nearly 2 million jobs, according to data published by the US Small Business Administration. In fact, firms that had less than 20 employees were responsible for creating more than 1 million jobs for the economy, boasting the largest gains amongst all types of firms.

The prime aim, however, of increasing efficiency for any business is reduced costs and increased profits.

WHAT ELSE CAN BE ACHIEVED WITH BUSINESS EFFICIENCY?

Financial efficiency, often calculated as the percentage of expenses over revenue, is the main aim of increasing business efficiency. It is usually calculated in the form of:

• Asset turnover ratio
• Operating expense ratio
• Depreciation expense ratio

Then comes labor productivity. Increasing labor productivity helps businesses reduce costs in terms of wages, since less workers will be needed to finish the task in an efficient way. In a courier business, route planning makes it easier for the business to increase productivity, by saving time and effort, which would otherwise be wasted due to unexpected scenarios like traffic congestion, climate change and more.

Business efficiency is also dependent on the efficient efforts made to improve its operations, which can increase the return on investment (ROI).

If you are in the courier industry and want to provide your customers with the best possible results, you already know that Black Friday is the most difficult time of the year trying to please everyone. People find out their orders are delayed, and your phones may be ringing with complaints. Keep reading to find out how you can combat this problem with customer support and a courier management service. With this software, you can keep your orders on time and your customers happy.

INCREASED ORDERS

Black Friday shopping once meant people had to drive to their favorite stores early in the morning if they wanted to get the best deals of the year. That is no longer the case, and shoppers can now enjoy many of the same deals just by shopping online. A lot of companies are not able to handle the influx in orders and end up falling behind. You don’t want to face that barrier so use courier delivery software to stay on top of your game.

INCREASED SHIPMENTS

When a package reaches the buyer, sometimes it has not yet reached its final destination. Many people will order products online and then send them to friends and family as gifts. This situation makes it even harder to keep up with the increased order volume that occurs during the holiday season. Businesses that use courier software can reduce stress and keep orders coming and going efficiently by tracking shipments every step of the way.

INCREASED RETURNS

While increased orders and secondhand shipments can make your life much more challenging, they are not the only issues you will likely face. Some people take advantage of Black Friday sales and later discover they don’t even need the product they ordered.

Most businesses see a significant peak in return shipments in the days and weeks following Black Friday, putting even more chaos on an already overburdened system. Companies that use courier delivery software have much less trouble than those that don’t since the service is mobile device compatible, allowing you to work on the go.

COMBATING THE PROBLEM

Although Black Friday sales can make things difficult for your business, it does not have to be that way. Courier tracking software lets you find parts of your operation that need improvement. Making a few calculated changes can save you more time, and you will be pleased with the outcome. Also, letting your customers know orders take a little longer during this time of year will help.

FINAL THOUGHTS

People buy, exchange, and return many products during Black Friday, a situation that puts stress on the courier industry. You can overcome that problem by using tracking software to improve your productivity and effectiveness. Even if your shipments will still be a little behind, letting your customers know about it in advance makes a world of difference. You might be surprised to see how understanding your customers are when you make an effort to communicate. Using the latest software and crafting a viable plan can do wonders for your business.