Every business on the planet experiences resource and product loss — and loses money in the process. To increase savings and become more sustainable, you must minimize waste. Here is the importance of this approach and four proven methods to consider.
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What Are the Benefits of Minimizing Waste?
The benefits of minimizing waste include increasing savings, improving efficiency, lowering overhead costs and boosting brand perception. You receive more rewards over time since it is a long-term commitment. You can gain a lot from implementing one or more of the four proven strategies.
How Do Most Businesses Create Waste?
Usually, businesses produce waste at every operational stage, from manufacturing to delivery. While it varies depending on the sector, most are similar because the same factors apply.
Here are some of the main ways most industries waste resources:
Inventory: Most businesses have stock they simply do not use, whether it is excess printer paper in a storage closet or heaps of scrap metal in the manufacturing facility. Unused inventory takes up space and does not produce value.
Manufacturing: By nature, the manufacturing process results in some material loss. However, many businesses simply throw out products that do not meet their quality standard, essentially throwing away money.
Shipping: The improper packaging size and a lack of packing material make product damage more likely during transportation. Customers then return the broken items, meaning the company must pay for a replacement, shipping fees or refund.
Over time, the cost of waste adds up significantly because you are paying for resources and labor just to throw items out. Minimizing it will help you run your business more effectively.
The Proven Ways to Minimize Waste
Consider using one of these four proven methods to boost your business’s growth and increase your savings.
Using reusable materials is the simplest, most effective way to minimize waste. Do you use printer paper, sticky notes or envelopes? These are single-use items, so you essentially throw away money when you do. Even though they are classic business supplies, it is better to transition to something more sustainable.
Every year, businesses use 10,000 pieces of paper per employee on average. Using it carries a price tag, considering you must get printer ink or mailing materials. It is the digital age, so businesses can handle almost every administrative task on a computer or phone. Speaking over email and writing on an online document could cut nearly all of your paper costs.
For operations that electronics cannot replace, consider getting reusable items. For example, you could use paper clips instead of staples or stamps in place of stickers. Instead of buying things just to throw them away, get items you can keep using for years.
Most businesses offer delivery to reach more customers and increase revenue. While it usually is beneficial, improper packaging is one of the main ways businesses produce waste — poor packaging damages products, resulting in returns. You can change your packaging type to minimize waste during transportation and distribution.
This is one of the best approaches to waste reduction since shipping is usually a pain point. You could use custom packaging to significantly reduce the chances of breakage, smaller boxes to lower the amount of packing materials you need or bulk shipping to decrease the fuel you use.
Consider, for example, how Amazon implemented an “Amazon Day” perk for prime customers, where they can order multiple items throughout the week and have them delivered together instead of individually. The simple change reduces packaging and delivery costs.
Many businesses have found that leveraging technology to reduce waste has resulted in incredible success. This method often has a higher initial investment cost but is typically worth it. Various options exist, so you will find something to align with your needs.
For instance, artificial intelligence could do everything from managing your inventory to identifying product defects. Alternatively, it could forecast demand, predicting when you need more or less materials. In this scenario, you would always know when to adjust your orders so you only have the amount of stock you will actually use.
A circular economy is a method of reuse where products end their “life” at the same point they begin it. For example, a customer would return an empty bottle of lotion to where they bought it from originally. From there, the business repurposes the container and gives it a new use.
The goal is to have a closed-loop recycling system to minimize waste and save money. Many businesses accomplish this, considering they use up to 98% fewer raw materials in manufacturing and lower power consumption by 90% if they implement a circular economy.
Why Does Minimizing Waste Matter?
Every business wastes resources to some degree, whether it gets rid of manufacturing defects or tosses returns. You may think it is only a minor inconvenience since everyone deals with it, but that is not the case — addressing it is essential.
Even though it happens everywhere, most businesses attempt to minimize the amount they produce because it costs them money otherwise. Each piece of scrap material or broken product you throw out has a price tag, so finding workarounds is in your best interest.
How Can You Use These Methods?
You must look for opportunities, plan and monitor progress to use these methods successfully.
Even though most businesses produce waste in similar areas, you may be different. Audit your current resource use to identify possible areas of improvement — the results may surprise you.
Once you know where to focus, you must create your strategy. Implementing one of the four proven methods to minimize waste is a good start, but you need it to align with your business. For instance, recycling returns to establish a circular economy would only work if customers frequently send their items back.
Many small and medium-sized businesses do not have excess funds lying around, so the initial investment may have to be small. Even though minimizing waste will eventually increase your savings time, some of the technology can be expensive upfront. Decide whether you want to start with a total or partial change.
Immediately switching to new methods or materials maximizes your savings over time, making it cost-effective. In comparison, starting slow would give your workplace time to adapt and leave you with a more flexible budget. Weigh your options to figure out which is right for you.
You can only know if your attempt at minimizing waste is successful if you measure its impact. For example, you could track how many products you tossed the year before and after your change. How you go about it depends on the area you focus on and your chosen strategy, but it generally involves comparing figures.
Minimizing Your Business’s Waste
Minimizing your business’s waste can positively impact your storage, shipping and manufacturing processes. You will save money and likely appeal to customers when you become more sustainable, so it is an ideal choice.
Eleanor is editor of Designerly Magazine. Eleanor was the creative director and occasional blog writer at a prominent digital marketing agency before becoming her own boss in 2018. She lives in Philadelphia with her husband and dog, Bear.
The post Four Proven Methods for Minimizing Waste in Your Company appeared first on Enterprise Podcast Network – EPN.
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