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3 Ways to Reduce Overhead & Increase Revenue

Running A Successful Ag Operation

If you want to run a successful ag operation, it just comes with the territory to stress about your P&L impact. You think all the time about how to reduce overhead and increase revenue. Not to mention balancing customer and employee happiness, and staying on top of innovation and technology to get ahead of the competition. It can be stressful to get everything done on time and on budget.

So, if you want to affect your bottom line right now for the biggest P&L impact, what can you implement in your operations to get the biggest ROI that actually works?

According to Forbes, “it can pay more to cut overhead than to boost sales, because typically, more of the cut to overhead will fall directly through to profits than will a similar boost in sales.”

The easiest ways to see overhead fall is by implementing processes that provide ways to:

The Gartner Group estimates that a 5% reduction in operating costs has the same P&L impact as a 30% increase in sales. And for most ag retailers, reducing 5% of operating costs is as simple as cutting just minutes off your routes. If you want to improve your bottom line, then start by lowering your operating costs through better time management, streamlined efficiency, and increased productivity.

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Time to Test Your Current Fleet Efficiency

What if you did a little experiment for a day and gave every person who talks to drivers or employees a stopwatch? Then had them start the timer every time they picked up the phone to see where a driver is and stopped the timer when they hang up. How much time do you think they would spend coordinating routes on their phone? Let’s say, for example, one phone call on average takes three minutes, and you have ten drivers. Now multiply that by ten times a day. That is an estimated five hours wasted on the phone trying to figure out where everyone is and where they should go. That is five hours of lost productivity that can be used better.

Now, I’m sure you aren’t going to give your employees stopwatches for a day, but hopefully, the exercise makes you think about how you are spending your time in your operations. So, are you running them as efficiently as possible?
Razor Tracking Fleet Efficiency Test

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