Part 2 of a 2 part series

Warning Signs:

• Decreased gross margin.
• Increased cost of goods sold.
• Significant adverse deviations from budget.
• Significant increase in a particular line item's cost

Steps to Improve: CUTTING OVERHEAD

• Conduct an energy audit; self audit or use outside professionals.
• Control facilities' energy cost.
• Reduce utilities cost with maintenance and rate analysis.
• Lighting; the way to cost reduction.
• Reduce HVAC energy cost.
• Decrease machinery and equipment energy cost.
• Heat water for less.
• Outsource cost; consider the cost of in-house production instead.
• Reduce trash and production waste.
• Shipping; select the right carrier.
• Shipping; deal effectively with your carrier.
• Shipping; improve your shipping procedures.
• Shipping; reduce outbound freight cost.
• Shipping; decrease inbound freight cost.
• Checklist - shipping cost; use shipping and freight cost study to improve - 50 ways.