Three Areas Where Business Efficiency Can Be Improved

Published: 10th March 2011
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In order to bring better performance of a business, you have to be very sophisticated in all the areas. In a business, there are some key functioning areas that are like pillars. There are different sections like inventory, production, distribution or procurement which need to be improved if you are waiting to see an overall composure. Every department requires some improvisation in order to let the business flourish. You can start by picking any of the section like you can pick inventory and see what needs to be improved in the storing function of your business. For that you can outsource the inventory or logistics operation. You can do it by getting a contract warehouse or a 3PL. But besides outsourcing any operation you can look for the things which you can improve internally in the business sections.

For an overall improvement, carry out a measurement process to identify the errors in the working of all the departments. Let us start with different sections and see what things you can address in each of the section of your business:


In a procurement section, there are some key factors which affect the overall process. Procurement is a complete process in which there is flow of information. The managers carry out the identification process where they identify the suitable vendors to buy the raw materials at a low-cost.

Correct any errors and bottlenecks you see in any part of the procurement section. If the procurement function of any business is not performed well, it can hamper the production phase and further affect the rest of the functions which could be stopped. Eliminate the errors and improvise the operational efficiency in the procurement section so that the other areas of the business are not affected.


Production is a crucial stage of any business. If the products are not produced according to the deadlines, the market takes a gets impression from the firm and there is a chance that their further bookings get canceled.

In a production process, materials handling and machine handling are the core activities. The operational efficiency is dependent on the relationship of the operator and the operation. The effective production takes place if the material handling activity is carried out well. For that, you have to improve the operational efficiency. Identify the errors in the process and bring a proper flow management to meet the dead lines optimistically.

Inventory & Distribution:

Inventory and distribution are the last phases before the product reaches the market. Though a good start is important, the product would not sustain longer in the market without an appropriate final; touch. For effective storage, you have to formulate the effective inventory models.

Simulate different models and pick the one which is right for your product storing. That inventory model is optimistic which can intake the maximum volumes of stock with a minimum space and time. Apply the optimized inventory model and search out any recognized logistics company who can give a successful ending to market your product.


Stewart Wrighter recently stored the overstock from his store in aLos Angeles contract warehouse. He hired aLos Angeles 3PL warehouse to package and distributes the merchandise to various vendors.

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