The manufacturing industry has never been more competitive. Sometimes, the best way to maintain profitability is to make smarter decisions around the plant. Save money at your production site by following these suggestions from industry experts:
Work closely with suppliers
Your suppliers need business to remain operational. Like you, they prefer long-term relationships that provide steady, regular work. After identifying the best suppliers for your needs, negotiate with them to achieve cost savings.
- Explain the value of reliability to leverage better prices.
- Factor future delivery priorities and expenses into your negotiations so your company receives deliveries ahead of competitors’ or suppliers’ less valuable customers.
- Suppliers can negotiate with their own suppliers to reduce your costs. Consider offering down payments on future lower-price orders. Arrangements like these can reduce your overall expenses, boost your suppliers’ cash flows, and ensure you get deliveries on time.
By building strong partnerships with trusted parts and equipment sources, you can realize valuable savings on parts and materials over time.
Reduce costs on the shop floor
Inside the shop, savings are to be had as well.
- From your machines:
- Run your machines according to manufacturer instructions, keeping them tuned, oiled, and maintained.
- Schedule maintenance windows to reduce time lost to emergency repairs.
- If you run variable loads, consider installing variable speed drives to save power costs and protect engines from unnecessary wear and tear.
- From your energy use:
- Switch out oversized HVAC systems, chillers, and pumps if you don’t need the capacity.
- Several automated environmental controls can help you maintain the comfort level of your site without needing constant attention. By switching to digital heating, cooling, and lighting, you may have small upfront costs but will likely make that up over time through utility savings.
Tailor cost savings to customer satisfaction
When shifting to a more cost-conscious plant, keep your customers’ best interests in mind. Share with them what you’re doing and why you’re doing it. After all, keeping them happy brings them back.