How manufacturing companies save in the long term

In my last blog entry, I already wrote about optimizing manufacturing processes and today's topic is also closely related to this. However, the focus today is on cost savings in production. Cost savings are probably a constant companion in many areas and play a role not only for companies but also for private individuals. For companies, however, cost savings often simply mean buying more cheaply, investing less or cutting staff. But even such measures can often have undesirable disadvantages, such as a drop in quality or dissatisfied employees.

What if there were better ways to reduce costs and increase efficiency in the long term? Most of you would probably agree that this sounds like an ideal solution. And I can reassure you. In this blog post, you will learn about strategies that can contribute to sustainable cost savings.

1st strategy: Reduce material costs - but do it right!

You might be thinking: at the beginning you were talking about reducing material costs as a negative example and now suddenly that's supposed to be one of the strategies? It's about doing material reduction right. This means looking at alternative materials that are of higher quality and have a longer service life. This may seem more costly at first, but in the long run it can outperform cheaper materials with higher scrap rates and ultimately be more cost effective. In addition, the supply chain can play a role and can also be optimized. Using volume discounts, entering into longer-term contracts with suppliers and purchasing directly from the manufacturer can be a clear advantage here. However, recycling and reuse can also help to save costs and also contribute to a company's sustainability.

2nd strategy: reduce energy and operating costs

Another option for reducing costs is through the operating costs that are incurred. Energy efficiency can be increased with LED lighting, for example. Machines that consume less electricity can also be used. Following on from this, general production times can be optimized. This can be achieved through more targeted planning. This is where tetys can help you decisively.

3rd strategy: simplify production processes

There is also the option of starting with the production process itself. In my last blog post, I already wrote about how production processes can be optimized. To keep it short, production processes can be simplified through lean manufacturing, for example. This helps, for example, to use and shorten transport routes more efficiently and generally reduce waste. Automation can also help in production. New technologies such as robots or AI-supported systems can also help to work more efficiently.

4th Strategy: Employees of a company

Who is partly responsible for a company's success? The employees, of course. They can also help to reduce costs by sensitizing them to work in a cost-saving manner and generally encouraging this. It can also help to train employees in different areas so that they can be deployed flexibly and thus minimize potential downtime. In general, employees are essential for the performance of a company and should never be ignored. Satisfied employees are also more willing to work more cost-efficiently or in the interests of the company than dissatisfied employees.

5th Strategy: Digitization

The last strategy I would like to introduce to you today is to implement digitalization in the right places in your company. Real-time data analysis, for example, can help to reduce unnecessary material consumption or identify inefficient processes. Here too, tetys can help. Our tool management module can help with efficient resource management and avoiding downtime. If you would like to find out more, you are welcome to contact our team.

But other digital processes can also save costs. Using cloud solutions instead of expensive IT hardware, for example, can make all the difference. This saves costs for the actual hardware and also for maintenance. What's more, everything is stored in one place in the cloud.

Conclusion

Saving costs in production means more than just producing more cheaply. It is about making decisions that have a long-term effect. More energy-efficient machines, simple processes and intelligent material procurement can not only help to reduce costs but also increase competitiveness. I have often talked about employee satisfaction, and this is also very important here. Savings should therefore not be made at the expense of them or quality. If you want to reduce costs in the long term, you should not only make savings, but above all invest in the right places and in the right things.