Cost-Cutting Ideas Beyond the Usual: How Can We Save More in Our Organization?

Hi,

Kindly let me know some cost-cutting ideas which we can implement in our organization. Other than reducing paper usage and saving electricity, etc.

Regards,
Shweta

As your business evolved, it gathered a lot of surplus assets, items, and operating expenses. So, see the big picture.

Techniques:
- Use cheaper pens.
- Use less stationery.
- Stop/minimize the subscription of paper magazines.
- Discard/cancel memberships.
- Stop/minimize business travel.
- Minimize the use of company phones.
- Check the accounts and find the petty cash expenses, then cut them.

Hi,

To cut the cost, we could practice the following:

1. Cut the telephone and mobile calls. We need to plan for the calls and ensure that we document the communication so that there are no repeated calls.

2. Travel cost - Plan for the travel and share the responsibilities so that one person does not need to travel for simple tasks or a single task.

3. Manage the usage of the Internet.

4. Creamy allowances of top or middle managers can be based on their performance, not on rank.

5. Ensure that all employees work during the specified work time and do not extend it. If you find someone extending, check for the reason and take corrective measures to address it.

6. Cut lodging expenses for shorter trips.

7. Manage courier costs. You can send ordinary communications through mail, registered post, or even speed post to save costs rather than using desk-to-desk services.

Regards,
Vijay

Shut down the systems when not using them.

Convey the message to the employees about cost-cutting.

Regards,
Mithun

I found an interesting article on cost-cutting benefits.

Dear Shweta,

All the replies are really appreciated, but one thing is missing which is one of the most important parts for corporate events, i.e., Parties & functions (either organize a less formal party or make this company gathering only).

1. Travelling/tour:
a) If Air travelling: make it economy class or convert it to Railway/AC compartment.

2. Fix the exact amount for phone expenses: in case the amount exceeds the fixed amount, then you can take action to either stop the service or deduct the exceeded amount from his/her salary.

3. Not only stationery or electricity bills, but also we should reduce the use of the internet. This will also help in reducing costs.

Regards,
Nayana Bharadwaj
nayana.bharadwaj@gmail.com

Dear Sweta,

Cost cutting has become a trend now, and every organization is implementing it after the recession period. Your question is genuine, and the replies you got may motivate others to implement the same in their organizations. We are also trying hard on cost cutting. Just imagine yourself how good a homemaker you can be. A good homemaker is one who allocates a budget at the beginning of the month and works towards meeting the goal by the end of the month.

So, my suggestion is BUDGET. Give a budget to each department, and if they exceed it, they will no longer receive the service. Create a budget based on the expenses incurred over the last three months' average plus 20%. You can also have a margin of an additional 10% without their knowledge.

Hope you like my idea.

Regards,

Hi Shweta,

Kindly let me know some cost-cutting ideas which we can implement in our organization. Other than using less paper and saving electricity, etc.

Regards,
Shweta

Hi Prashant,

Below are some cost-cutting ideas:

1. You can use waste paper for printing.
2. Everyone has to switch off their monitors to save power.
3. If you have an electronic access system, you can switch it off between 12 pm to 4 pm.

Best regards,
Prashant

Dear Shweta,

Do not focus on cost-cutting; rather, focus on increasing income is the best idea.

Regards,
Anish

Hi Sweta,

Here are some of the following steps to cut costs:

1) The A/C temperature should be maintained at 25°C, resulting in a 20% savings in electricity.

2) Ensure all employees finish work within the stipulated work timings and leave the office for the day.

3) Allow outgoing calls on landline phones only to users who really require them.

4) When hiring, think thrice, as existing employees can also be given additional responsibilities.

5) Travel entitlement can be redesigned one level below.

Your comments are welcome.

Regards,
Bhupesh

Cost cutting is a top-down directive from management. I know some organizations set "COST OBJECTIVES" every year and set targets to be achieved in that year. For example, the top management may specify the "Cost Objectives for 2009" as:

- Control/Reduction in fixed costs.
- Control over Process Cost i.e. consumption ratios and waste levels.
- Reduction in working capital cost with special emphasis on inventory levels.
- Reduction in Purchasing Costs including product substitution and optimizing requirements.
- Control in General Administration Costs.

The target for each of the above objectives may be "Cost reduction by ---% over the previous year." On this basis, each manager makes an action plan for his/her area at the beginning of the year. This exercise forms the basis for cost reduction during the year. The achievement of cost objectives is reviewed once in, say, three months. The objectives themselves may be reviewed at that time if the situation/external factors affect or influence them.

Nipuna,

Nice ideas for cost-cutting. We need to start cost-cutting in small things; it will become a huge benefit to the organization. Now is the time for everybody to implement.

Shreeram.

There is a proverb, "Boond Boond sagar bharta hai....," We all have to implement these ideas in our day-to-day processes, and it will be beneficial for our organization as a whole.

"A Rupee Saved is a Rupee Earned."

All the ideas are superb...

Dear Shwetabansal,

First of all, you have to know what the target is for your company in terms of saving or expenditure. After that, you can determine which area or department is consuming how much electricity or paper, and then you can set the targets for them. Assign a responsible person to keep track of these targets and ensure weekly monitoring and control. This way, you can initiate a process to control and save on overheads, whether related to electricity or paper. We can discuss this further.

Email: devender.mudgal@delta.co.th
Phone: 09756606955

Friends,
Listed below are some ideas that would help in mitigating the costs without affecting the efficiency of our Offices or compromising on standards in any manner.

Saving on Electricity

• Switch off Lights/Fans/ACs when leaving your Room/Work Station/Desk.
• Turn off computer monitors when on break time or not in use. At other times use PCs on Power Saving Mode.
• Turn off ACs and lighting during break time
• Reduce AC settings 30 minutes before end of working day. Turn-off AC 15 minutes before end of working hours.
• Toilet lights must be turned off when not in use and be switched on only if needed.
• Switch off unnecessary or redundant lighting.

Saving Stationery Expenditure

• Think twice before printing documents. If document or data can be kept in hard disk, there is no need to print and file.
• Set printing of internal memos, drafts and nonessential documents at least resolution (draft quality) to save on ink.
• Use back pages of obsolete documents / papers for printing non-sensitive, draft or internal letters. Use fresh sheets only for the Final Printouts.
• For internal files, print on both sides of paper.
• Since we have the email system in the office, it can be efficiently used to save on telephone costs while passing info between Offices. Common requests like leave sanctions can be processed over e mail. It saves paper and time.
• Reuse recovered paper clips, fasteners, folders and envelopes (brown or even mail envelopes from bills, letters, etc).
• Screen Incoming fax. Limit non-essential, non-business or unsolicited fax proposals. What can be sent by email to or between offices need not be faxed.
• Printer cartridges can be refilled two to three times before discarding instead of replacing them every time as the cost difference is huge.

Saving on Communication Costs

• Use MTNL Numbers of the Offices between Delhi and Mumbai (if they exist) to make calls to save on STD Calls, and also avoiding the use of Mobiles for this purpose.
• Minimize telephone cost by listing out points before making a call to Mumbai / Taloja or vice versa.
• Use SMS instead of a call to convey any short message as quite some time is lost in connecting the call through the Reception to the desired person, as also there is always a tendency to discuss an issue when on phone while SMS means 'fixed' expense.

Other Suggestions

• Examine all faucets, toilet water tanks, flush, pipes and repair all leaks to avoid wastage of water.
• All miscellaneous items such as old printers, computers, magazines, etc which are not needed must be sold off.
• Repair instead of Replace wherever and whenever possible.
• Make optimum use of weight allowance in sending couriers to Mumbai. Often our packets are under weight. If the delivery is not critical, the papers can be sent the next day when we have sufficient numbers to take advantage of the full capacity.
• Try to finish a day's work within Office Hours. Extra hours beyond office hours mean Overtime Payments and extra expenditure on Heating / lights and PC usage.
• Where Conference Call can help a visit from one Station to another is avoided.

:lol: Kumar Kant

You can also reduce costs by introducing plastic mugs instead of plastic (use and throw) cups. Each employee can be given one to two mugs for drinking water, tea, or coffee. They can wash the mugs and keep them in their lockers or drawers. This will reduce the wastage of cups significantly!

Thanks,
Samiksha

Restructuring and streamlining the organization is the best option. Retain only essential personnel and assets.