• Anthony Maiello

Top 4 Reasons That Lead to Operational Inefficiencies


Improving operational efficiency is a key concern for executives. Our research at VNCTech Group shows more than 65 percent of executives we spoke to want to learn about becoming more efficient. All too often, operational inefficiencies are not detected until they cause major problems to a business. But there are methods to prevent inefficiencies altogether by having knowledge of how to detect the causes BEFORE wreaking havoc on your business. To that end, VNCTech Group has identified the top 4 reasons, easily detectable ahead of time, that typically leads to operational inefficiencies.

Growing Number of Disconnected Workflows and Manual Processes.

As a firm grows, processes, tools, procedure and skills need to keep up with new demands that include changing regulations, faster time to market, expanding internal teams, technology disruptors and more. Monitoring the following issues will help in detecting and preventing a major impact to your business in this category:

  1. Noticeable slowdown in effectiveness of overall business operations

  2. Real time information is not easily accessible

  3. Business processes are not transparent and getting worse.

  4. Internal customers are starting to complain

  5. External customer satisfaction is starting to become a regular issue

  6. Legacy business processing are highly manual and continue to become more manual without automation or data collection for analytics

Growing Silo’s between internal departments without critical communication processes in place

Managing internal reorganizations and growth is an essential part of moving from a small to midsize and large company. As a leader you must be looking out for certain indicators to ensure your company is running smoothly and efficiently. Monitoring the following issues will help in detecting and preventing a major impact to your business in this category:

  1. Departments lack tools to connect teams across departments (more than just email)

  2. Poor communication for remote access

  3. Lacking proper or enhanced reporting tools for management

  4. Lacking leadership and direction to pull teams together

Increasing Mishaps Caused Bad Decision Making

As an executive you often have to make decisions to help move the company forward. As your company scales in size and revenue, these decisions get more complex and require more information to ensure these decisions are based on intelligence and facts. How are you ensuring you’re making the right decisions in a growing organization where there are many moving parts? Monitoring the following issues will help in detecting and preventing a major impact to your business in this category:

  1. Complaints that staff roles and responsibilities are not well understood

  2. Gaps in timely or correct information due to old or outdated forms, policies, procedures

  3. Lacking or outdated key performance indicators or scoring sheets in place and being measured

  4. Outdated or non-existent auditing process

Sales are growing but Margin Starting to Shrink

The reasons for this issue is largely due to process problems within the company and the leading indicators you will notice depends on the type of your company. For example, if your company is a warehouse, your indicators would be seen in warehouse accuracy, order efficiency, delivery routes and ISO quality controls - so your specific indicators would look more like the following:

  1. Accuracy and efficiency of general warehouse production and organization decreasing

  2. Growing number of errors in orders and no one is looking to automate or get smarter ordering capabilities

  3. Deliveries are taking longer to reach destinations lacking analytics and data gathering

  4. Lacking consistent focus on quality control systems ensuring ISO guidelines are in order

Conclusion

Companies like yours can easily detect if something is about to go wrong without fancy tools or automations in place. If you detect something could be going wrong in some or most of these areas, rest assured that technology and Optimization experts can quickly be utilized to discover efficiencies and continue to grow and enable increased revenue, margin and create a competitive advantage.

You can access FREE case studies and further efficiency solutions to each of these top 4 critical issues by clicking the link below.