Archive for the ‘environment’ tag
Software applications and resources that can allow business owners to reduce their overhead and operational costs may be a resource that few startups can afford to do without. Resources that can allow you to more easily and effectively track your electric consumption, curb demand for costly utilities or help you find the best , electric companies in Hamilton Texas, and surrounding regions have many benefits for smaller businesses and startups that are seeking to reduce the cost of their energy usage. Finding and making use of the best apps can ensure that your business is able to make use of more competitive utility rates and reduce costly waste and excessive energy consumption.
Choosing the Right Energy Provider
Paying too much for any resource could be a serious misstep, one that a business operating with fixed or limited financial resources may not be able to make. Sorting through your options and comparing electric providers and utility services in an effort to find the most cost-effective options and the greatest values can be a daunting task when you lack for the right resources to aid you in your search. Applications able to provide real time pricing information and easier navigation of the providers you have to choose from can ensure you are able to find the most beneficial options for your electrical service.
Tracking Consumption for Greater Energy Efficiency
Having to keep tabs on the operational habits and costs of powering your business is a labor intensive task, one that may rob yourself and staff of energy that would be better spent on more important matters. Software that can speed up or automate the process will ensure that you are able to stay informed about the level and cost of power consumption your operation is resulting in. Superior information may be required in order to more effectively and successfully curb your consumption.
Reducing Electric Waste
Fixtures and appliances that are not as efficient as they could be, devices that are being powered when not required and other habits and situations that could be costing you more than you might realize are all situations that can be more effectively remedied when you have access to the right information. Tracking your electrical consumption with a software application can allow you to target and identify any aspect of your operations or working process that could be made more efficient. Using less energy will reduce your utility bills and overhead expenses and may allow your business to become more profitable as a result.
Finding the Best Resources
With a number of applications to choose from, finding and selecting the best of them could seem like quite the challenge. Conducting a little research and finding the applications and software resources that will be of most benefit for your business will ensure that you do not lack for a superior resource. The tools you need to ensure your business is able to be made more efficient and less costly could make a big impact on the results and success of your efforts.
Disclaimer: This blog post is from my assignment in the Supply Chain Management course. It is copied from here
The long-term strategy of a company will reflect on how product of that company is designed, how people in the company work together to achieve the same goal. This long-term strategy brings the company ahead of other ones, creates innovation inside the company, and makes a huge profit for the company while others still suffer the economic recession.
Cost Cutting Innovation
The last year was an economic recession year with unemployment above 9 percent and housing is 73 percent below the 2006 peak. Given the furniture is one of the worst categories of retail sectors, the support from government and Barack Obama in jobs help did not push this furniture sector much. In this difficult time, IKEA finds it easy to cut down the price of its products. In contrast to this move of IKEA, almost all other commodity prices increase.
Based on interviews with IKEA CEO Mikael Ohlsson, the whole company culture focuses to produce cheaper products. They set the target price for the product first, and then, by any means, to achieve that price. By improving the efficiency in product design, factory manufacturing and then distribution and delivery, it can cut a significant amount of cost.
However, one of the key factors is via its supply network, when it can try to use the least sustainable materials in this world. This may mean some long-term impact but that is acceptable for IKEA to reach their long-term goal: cut the price.
Tata Nano has innovated a new “Open Distribution” system. This system operates by a modular design approach. Every product is designed in terms of modules, or components, which can be built and shipped separately to different assemblies around the world. This helps Tata Nano to achieve its goal.
By using this Open Distribution approach, it allows suppliers to compete for better qualities and lower price to bid for supplying. To push this even more, Tata Nano has its own internal suppliers. These suppliers need to compete fairly with the outside suppliers, so the general competition level is increased.
These innovations help these companies to move forward faster, affect all of their product designs as well as the process to manufacture the products and ship them to assemblies.
Environment Safety First
In contrast with the approach to cut the cost by all means, there are companies that focus on making value and meaningful social responsibilities. These companies also gain high returns through social values, which would enable them to follow these values in the long term.
There is a trend in designing, manufacturing and distributing new products with the most sustainable materials. These materials help companies to achieve its environmental goals.
The goal of Herman Miller is explicitly stated in its website:
We put Herman Miller’s corporate environmental goal quite simply: to become a sustainable business – manufacturing products without reducting the capacity of environment to provide for future generations
That’s clear. It is the goal of all employees and all products of Herman Miller, to create a sustainable business. That is a meaningful value for everybody, so all employees are proud and happy to work at Herman Miller, to create a social value.
An example of this strategy is when they make a decision about choosing between PVP and TUP. PVP is cheaper, easier for suppliers to work on and there are multiple existing suppliers. TUP, though, is more sustainable for environment but is a new thing and few suppliers are able to provide to Herman Miller with low price. They finally choose to implement TUP since the new product, so they do not have to redesign the existing product and they can be proud about this new product.
This environmental safety first also puts them ahead of other competitors. Due to the strict environmental regulation rules of the governments in product manufacturing, their competitors find a hard time to follow what Herman Miller does.
It also helps Herman Miller to get the best employees for their business, which put them in a competitive advantage position comparing to other companies. The Youtube video clearly demonstrates how Herman Miller could make their employees proud of what they are doing.
These examples give us a broad view of how the company’s long-term strategy and objective affects all their business: from product design to decision-making process to the culture of the company. IKEA has chosen the price to be their competitive difference, and then ignore the environmental side of their works. However, Herman Miller focuses on building sustainable products and business. Both long-term strategies put the ahead of their competitors and make a difference in their business.
1. Tutle, B.2011, Everything at IKEA is getting cheaper, MoneyLand, viewed on 06/02/2012
2. Hamilton, S.2011, IKEA cuts price of US shelves as outlook dismiss, Bloomberg, viewed on 07/02/2012
3. King, B.2011, IKEA cut shipping costs with switch paper pallets, Sustainable Brands, viewed on 06/02/2012
4. What matter to us, Herman Miller, viewed on 06/02/2012