May 26, 2010

How to do more with less

Fortna executive addresses how companies can cut costs by optimizing existing resources.

By DC Velocity Staff

"There is always pressure to do more with less—less time, less cost, less labor, less total resources," said John Giangrande, senior account executive with Fortna, a supply chain consultancy company. Giangrande helped WERC members explore proven ways that they could respond to that challenge by optimizing their existing investments. He suggested that managers start by looking at historical data and compare it to set goals. What is more costly than it is supposed to be? That is a good place to start.

Giangrande presented both tactical opportunities (inside the four walls of a facility) for optimizing investments as well as strategic opportunities (beyond the four walls).

Ways companies can save tactically are by optimizing labor, improving service levels, and utilizing equipment more efficiently. He also strongly believes in measuring to improve performance.

Strategic opportunities include lowering transportation costs, reducing overall inventories, optimizing the distribution network, and taking advantage of tax saving opportunities.