Techniques To Minimize The Cost Of Organization

Profit V/s Expenses

In the organization the authority of minimizing all the cost of expenses of organization given to either junior manager or account department. This is given to them because company or firm expect some reduction on working expenditure which is quite manageable also. While company earn profit there is one thing which is also noticed that is expenditure. If a lot of non required expenditure made during a year that gives a negative sign to the goodwill of organization. So here I have suggested some of the best techniques or ways to minimize overall cost of the organization, company or even firm also. One thing we have to always remember in business that product is money and money value is product for us. To be a horse of long race in a competition we have to cut down every single type of non necessary expenditure and always step ahead for generating profit from the margin of expenditure. So here are some tips to minimize the expenses of organization.

1. Reduction in printing - In the organization for every report we take a print out many copies while we need a single copy as backup only so why printing so many copies. Today we are using email system all over day we can take help of this instead of printing and dispatching it to another party. We can also save numbers of paper used in printing process by simple technique using in word application by setting margin from default to 1 centimeter. We may have seen by default word application has around more than a inch margin which is not more than a waste of resources.

2. Reduction in the consumption of energy - From start to ending of the working process of organization we uses a lot of energy and also pay for those consumption at the end of month. So some things to always remember in mind as,

• Computers - While leaving computer for some time off its display or hibernate it.
• Lights - Use energy efficient lights like LED bulbs and CFL tubes at workplace.
• Air conditioners - Off AC at some intervals when room gets colder as required.

All over world energy used in larger amount so our single action can reduce the burden of the energy production also and gives a positive effect on light bills.

3. Effective contracts with performing parties - Some time we take and also gives contract to many parties whether it is suppliers, transporters and producer. Many times this happen that we not needed suppliers for months so why pay them as annual contract when we are not needed them whole year. As transport cot is very high now a day so instead of paying them by per transport we can set policy of payment on fixed number of goods transported which is more effective way to get more in less money. Taking a example as above explained, suppose you are manager in an organization and given task to get maximum delivery in minimum time with less and optimum usages of money. Generally most of the transport companies allow us to deliver goods by cost of dispatching good one time basis. However you are in big industry tell them and encourage that transport agency to make charges of delivery on numbers of goods basis not on the per delivery charges, if I found that less goods in your delivery of whole contract will be cancelled. So transport agency never miss this deal and dispatch more at same cost.

4. Adopt open sources software and application - Many of the organization uses paid software and application where we always have to pay for renewal and upgradation. So why not use open sources of such software and application which is more better and secure over paid one. I am talking about Linux based operating system software which are more reliable and free of cost. We never need to pay a single bucks to use it. Adopting Linux will sure down the cost of computers because it does not need any special paid software and any antivirus it is almost more secure than others.

5. Be a good neighbor and get more happy customers - While being in competition this is more important that you have a good amount of neighbor and contact relation with others. Because we can not say when we need help. Our general small problem can be solve with help of them like very short time credit and involvement in business process. By which our business can run soother and we can get more happy customers in the market.

Minimizing cost of the organization not solely depend upon the manager or account's department it can be done when whole staff and personnel becomes ready to adopt them. Such small things can also saves the cost of expenditure made whole year.