As we are all searching for the next best way to cut costs, I ran across an old article about an approach Delta Airlines took in the mid-90's. They asked their employees! On an employee suggestion, they removed the lettuce leaf that was served in their food trays as garnish to an astounding $1.4 million in annual savings! http://gtalumni.org/Publications/magazine/win93/delta.html
I recently worked for a company that was so incredibly operationally inefficient that I was amazed they were still in business. Three months later, they weren't! From having way too much lighting in the stock areas, to a time-wasting price change procedure, to unnecessary shipping costs($4ship fee for a $.99 item), to incredible wastes of paper (I actually counted a minimum of 45 sheets per day wasted...in one store). This store had so many little things that could have completely changed the cost of business, it is a shame they didn't listen to their employees.
Employees may not have the experience or even the education of those making the decisions, but they are the ones that get to see these operational inefficiencies on a daily basis. Their opinion counts. Now more than ever it should be heard.
As with Delta, any small savings over a large company, over an extended period of time, has potentially staggering effects to the bottom-line. No idea is too small.
$1.00per day x 365 days x 500 stores =$182,000, Would $182,000 help your company? Your idea just put a huge dent (or even paid) your store's payroll!
I recently worked for a company that was so incredibly operationally inefficient that I was amazed they were still in business. Three months later, they weren't! From having way too much lighting in the stock areas, to a time-wasting price change procedure, to unnecessary shipping costs($4ship fee for a $.99 item), to incredible wastes of paper (I actually counted a minimum of 45 sheets per day wasted...in one store). This store had so many little things that could have completely changed the cost of business, it is a shame they didn't listen to their employees.
Employees may not have the experience or even the education of those making the decisions, but they are the ones that get to see these operational inefficiencies on a daily basis. Their opinion counts. Now more than ever it should be heard.
As with Delta, any small savings over a large company, over an extended period of time, has potentially staggering effects to the bottom-line. No idea is too small.
$1.00per day x 365 days x 500 stores =$182,000, Would $182,000 help your company? Your idea just put a huge dent (or even paid) your store's payroll!
This needs to be read by management more than the employees. As an employee, what benefit do I get for sticking my neck out and making a cost-saving suggestion? Most of the time, management ignores you or does not properly give credit. There is little incentive for an employee to make suggestions.
ReplyDeleteEven worse than non-recognition for fixing problems is that for not allowing them to happen. Few people notice when you do your job error free, but everybody notices the person who saves the day by fixing a problem.
"Intellectuals solve problems, geniuses prevent them." Einstein
The company I work for sends out a visual manual to every store at least once a week. They overnight it to over forty stores as well as emailing it. The pictures show how the floor should be set but over 50% of the stores don't carry most of the merchandise. I asked our UPS guy how much each cost to send every week and was told $40. Multiply that by the forty stores 52 times a year and it would more than cover the pay increases we were denied this year!!! And that is something so easily fixed. It would be cheaper to buy every store a color printer to print out the email every week.
ReplyDeleteMichael, Thanks for reading. Unfortunately, there isn't much recognition for the employee that has that great "Idea". Even in that Delta article, the executive got credit for asking employees, but the employee that had the idea remains nameless.
ReplyDeleteNot allowing problems would be great!! I am hoping to give management the encouragement to listen, and employees the encouragement to speak. Maybe the reward is the knowledge that you may have contributed to your own job security.
Anonymous, you raise a great point. Many companies are starting to weigh the cost of technological upgrades. I agree with you, though. Often times that one time fixed cost seems more efficient than current methods. In your case, that adds up to over $80,000...I think that definitely covers 40 color printers!
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