The business landscape has changed even more rapidly recently and staying competitive is more challenging than ever. Today companies face a variety of challenges – from the urgent need to be sustainable, escalating energy costs, material sourcing intricacies due to situations like Brexit, to global disruption caused by ongoing conflicts.
In these complex scenarios, achieving operational efficiency becomes the cornerstone of maintaining competitiveness. But getting it right can feel elusive; that’s where we come in. At Oakwood we specialise in helping businesses optimise their operations, ensuring they’re efficient, productive, and competitive, even in the face of challenging circumstances.
Why is being competitive important?
Things that businesses can’t control are becoming more frequent and carrying more negative impacts; so, it’s vital that businesses become better at the things they can control to compete with other businesses.
Take, for instance, logistics companies grappling with soaring fuel costs, a factor beyond their control. In times like these, the key lies in focusing on what you can control, for example, streamlining your operations to reduce costs and not putting the cost onto customers. Whilst price increases are expected to a reasonable degree, expecting your customers to pick up the slack could result in you losing a customer to a competitor. This is a situation that could have been avoided if you’d improved your operations to cut unnecessary spending.
Guiding businesses towards success: Oakwood’s operations route to competitiveness
Oakwood’s support covers a diverse range of businesses, including those in manufacturing, engineering, and logistics/supply chain industries. Our approach involves collaborative analysis, delving deep into the complexities of business operations.
The focus areas include:
Controllable cost management and reduction
Managing costs effectively can be the difference between sinking and sailing. Our approach involves a careful analysis of all costs that a company can influence directly. This includes scrutinising expenditure on supplies, labour, technology, and overheads. By identifying inefficiencies and unnecessary expenses, we help businesses develop strategies to reduce costs without compromising the quality of products or services. This proactive management not only safeguards the financial health of the company but also enhances its competitiveness in the market – a double win!
For example;
In a grocery manufacturing business, optimising outbound delivery of finished goods through the backloading of raw materials can significantly impact cost reduction and operational efficiency. This approach also enhances supply chain sustainability by reducing transportation emissions and improving resource utilisation.
Optimised use of resources, processes and systems
Every resource within a company is valuable, from the talent of its workforce to the technology powering its operations. We understand this and focus on optimising the utilisation of these resources, including evaluating existing processes and systems to identify bottlenecks, redundancies, and inefficiencies. By streamlining workflows and ensuring seamless integration of technologies, we enable businesses to operate at their highest potential. This optimisation not only improves productivity, but also fosters an environment of creativity and efficiency, where employees can focus on strategic tasks rather than getting bogged down by operational hurdles.
For example;
At Oakwood, we’ll help you look for ways to maximise your resources. Let’s take the grocery manufacturing business as an example again.
Optimising vehicle utilisation by altering operational assumptions, such as delivering and merchandising goods to the high street overnight can dramatically improve logistics, cost efficiency, and even customer service. Similarly, converting from double-day shift full-time working to three part-time shifts can reduce unit labour costs while also influencing various aspects of operations and workforce management. It’s all about working smarter and making the most of what you have available.
Maximisation of revenue and profit, product and pricing mix
Strategic planning lies at the heart of our approach to maximising revenue and profit. As the saying goes, fail to prepare then prepare to fail! By analysing market trends, consumer behaviour, and competitors, Oakwood assists businesses in developing a full understanding of their market. With this insight, companies can optimise their product offerings and pricing strategies, helping to ensure that they remain competitive.
Whether it involves introducing new products, diversifying the product mix, or revising pricing models, we help businesses make informed decisions that lead to increased revenue and higher profit margins. This precisely planned alignment with market demands ensures long-term sustainability and growth.
For example;
In a supply chain or logistics business, improving depot profitability by replacing marginal cost pricing with full cost pricing for lower volume customers can have several significant implications and benefits, including profit margin enhancement and improved customer segmentation.
Volume control, increases, and forecasting
A crucial aspect of operational efficiency is the ability to align production volume with market demand. Overproducing leads to excess inventory, costs and wastage, while underproducing can result in missed opportunities and dissatisfied customers. We assist businesses in forecasting market demand accurately. By analysing historical data, market trends, and other relevant factors, we help companies predict demand patterns.
Efficiency of people, equipment/machines, plants, vehicles, operations and distribution
People and assets are the backbone of any business, so they’re a core part of our focus. We help streamline the efficiency of human resources as well as operational assets. For human resources, this involves strategic workforce planning, training, and performance management to ensure that every employee is contributing effectively to the company’s goals.
When it comes to assets such as equipment, plants, and vehicles, we can help to assess their utilisation rates, maintenance schedules, and lifespan. By optimising the usage of these assets, companies can extend their lifespan, reduce maintenance costs, and improve overall operational efficiency.
For example;
Reducing unit labour costs across multiple factories in a grocery business by reviewing speed, headcount, and hourly rates aimed at maximising efficiency while minimising expenses can lead to a more competitive market position and higher profitability due to leaner operations and optimal resource allocation.
‘Zero-Based Diagnostics’ vs KPIs
Unlike conventional Key Performance Indicators (KPIs), we employ a unique approach called ‘Zero-Based Diagnostics’. This method involves a thorough re-evaluation of existing processes, ensuring that every aspect is optimised for efficiency and cost-effectiveness.
Helping your business to achieve continuous improvement
Oakwood’s support doesn’t stop at analysis; we help your business to implement continuous improvement programmes and profit improvement planning. This holistic approach provides businesses with:
- More control: Over their operations and costs.
- Cost reduction: Identifying unnecessary expenses and streamlining processes.
- Greater efficiency: Making the most out of available resources.
- Margin increase: By optimising pricing strategies and cost structures.
- Higher output: Increasing productivity without compromising quality.
These initiatives feed into the development of growth strategies and management learning opportunities, ensuring that the business not only survives but thrives in the competitive market.
The key to sustainable growth: Synchronising business and operating models
Our support goes beyond mere efficiency; it focuses on synchronising businesses and operating models. This alignment has helped businesses we’ve worked with see an incredible three-times Return on Investment (ROI).
By combining business strategies with operational efficiency, companies not only weather the storms of economic uncertainty but also emerge stronger, more resilient, and truly competitive. This approach fosters innovation and agility, enabling businesses to adapt quickly to market changes and seize new opportunities.
Struggling to keep up in the competitive world of business? We can help. Fill out the form on our website to book an appointment or let’s talk on 01789 867686.
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