I am working in a machine tool company with a post of Office Administrator. Nowadays, when you all know the market scenario, the company is asking to do "COST CUTTING." We are in a service-related business, and our monthly bills for courier are near to 1.5K. There is no record maintained in any department to track which material is of how much weight. For the last month, we have maintained a register in which we write the weight concerning the box/packet dispatched. However, when the courier bill arrives, he mentions that the weight in our register never matches his weight because he considers weight/dimension as well, and charges accordingly.
Now, my question is, how can we track all these things? Secondly, some employees are not contributing to this task as they might not want to partake in this type of cost-cutting. Sir, please share your views so that I can take this initiative with the help of your valuable suggestions.
From India , Delhi
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Now, my question is, how can we track all these things? Secondly, some employees are not contributing to this task as they might not want to partake in this type of cost-cutting. Sir, please share your views so that I can take this initiative with the help of your valuable suggestions.
From India , Delhi
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Dear Mohit,
If you are from Machine Tools company, then a courier bill of Rs 1.5K per month is not that great amount. Nevertheless, we should strive to save every Rupee. To do this, you may keep a register with the Front Office Assistant (FOA) of your company. As and when a courier is received for dispatch, she may enter the details of the courier in this register.
Courier companies measure the weight as well as volumetric and consider whichever is higher. Volumetric weight is calculated as:
(Length x Breadth x Height of the package) / 6000
The FOA can calculate both the weights.
Lastly, about cost-cutting. In the course of the operations, your company would be incurring the following costs:
a) Inventory Carrying Cost of Raw Materials
b) Work in Progress (WIP) Inventory Costs
c) Inventory Carrying Cost of Finished Goods
d) Capital costs to run the operations
e) Capacity costs
f) Maintenance costs
g) Quality costs
h) Inspection costs
i) Ordering costs
What efforts is your company making to reduce the above costs? Far from reducing, has your company measured the costs scientifically? If not, I recommend you focus on measurement and then reduction of the above costs. Rs 1.5K is too minuscule an amount to be bothered about.
Thanks,
Dinesh Divekar
From India, Bangalore
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8218If you are from Machine Tools company, then a courier bill of Rs 1.5K per month is not that great amount. Nevertheless, we should strive to save every Rupee. To do this, you may keep a register with the Front Office Assistant (FOA) of your company. As and when a courier is received for dispatch, she may enter the details of the courier in this register.
Courier companies measure the weight as well as volumetric and consider whichever is higher. Volumetric weight is calculated as:
(Length x Breadth x Height of the package) / 6000
The FOA can calculate both the weights.
Lastly, about cost-cutting. In the course of the operations, your company would be incurring the following costs:
a) Inventory Carrying Cost of Raw Materials
b) Work in Progress (WIP) Inventory Costs
c) Inventory Carrying Cost of Finished Goods
d) Capital costs to run the operations
e) Capacity costs
f) Maintenance costs
g) Quality costs
h) Inspection costs
i) Ordering costs
What efforts is your company making to reduce the above costs? Far from reducing, has your company measured the costs scientifically? If not, I recommend you focus on measurement and then reduction of the above costs. Rs 1.5K is too minuscule an amount to be bothered about.
Thanks,
Dinesh Divekar
From India, Bangalore
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