How to Lower Overhead Expenses

Overhead costs are a defining factor in a company’s profit margin.  Reducing these costs can make a significant contribution to a company’s bottom line.  In competitive and challenging industries it is important to increase company savings wherever possible.  There are many traditional practices for reducing overhead costs that can sometimes interrupt regular operations.  For example, many companies turn to selling their equipment or selling vehicles from their fleet to cut back on costs.   Companies usually cut administrative costs, reengineer business policies and procedures, and begin outsourcing operations.  These practices can work at first, but they quickly run their course and do not end up solving the original problem.

ETS products provide an innovative way to lower your overhead expenses. Our systems will speed up daily tasks, allowing your employees to go home earlier, meaning you can close the shop earlier.  Even closing one hour earlier each day will make an extraordinary difference in your overhead costs over the course of one year.  Implementing ETS systems means companies are able to get rid of certain processes that are not efficient uses of time and money. This will eliminate the need for the following processes: double and triple checking inventory, searching through papers for equipment information, spending time looking around the yard for missing tools.

Gasoline for work vehicles is an overhead expense that can be expensive to maintain, especially if a company has a large volume of work vehicles.  A way to decrease the amount of money spent on filling up company vehicles is to try to cut back on drive time.  This may sound like a simple fix, but often times it’s difficult to cut back on drive time without disrupting business; in addition, when crews lose or forget tools they usually have no choice but to drive back to the shop to get them.

Invisi-Tag alleviates this problem by reducing the amount of time that crews are on the road.  Crews will know what is in the truck before they leave; therefore, they will spend less time driving back and forth from the job site to the shop, reducing the frequency that you have to put gas in company vehicles.  Crews will no longer need to drive back to the shop during the day to pick up forgotten equipment, or go back to a job site to find tools that were left behind.  Eliminating these practices saves on gas money, as well as wear and tear on company vehicles.

The proper storage of important equipment information is a necessity for any company that wants to take care of their equipment and make sure they are available long-term.  Therefore, having a system in place to store and keep track of this information is critical.  This can be any type of equipment data, from warranty details to maintenance and repair history.  The most common way to store this information is hard copies in files.  Often times these papers and files can get disorganized, not to mention the fact that printer paper and ink can be expensive; therefore, having all of your equipment information available on your smartphone eliminates the need to print those items out. 

Sigilo Fleet Management is a paperless method for keeping track of important equipment information. Sigilo can store information such as warranties, repair and maintenance history.  This technology eliminates the need for a company to print out and store large amounts of paper documents.  This not only will save on overhead expenses, but also will increase productivity in the business.  Productivity is increased because employees will no longer have to search through stacks of papers to find the correct warranty or repair information.

When businesses use a variety of tools and equipment on a daily basis, it is inevitable that these items will get lost and go missing from time to time.  It is not uncommon for crews to have to work later in the day due to the fact that they have to spend extra time after they finish a job searching for lost equipment.  Not only does this mean that your shop must stay open later to accommodate the extra time, but employees will work longer, sometimes going into overtime, resulting in extra payroll expenses.

Senal Geo Tracking is a real-time GPS tracking software that is used on your smartphone. are held up looking for missing equipment and tools.  If you are able to track your expensive equipment, then the need to have employees track these items will be completely eliminated.  Senal Geo also possesses the capability to provide event billing.  Event billing is simply any activity that you do that you would like to be able to track.  It is used as a tool to monitor operations, and in turn save you money.

 

Want to learn more about Equipment Tracking Solutions.  Find out which one is right for your business at our website: www.equipmenttrackingsolutions.com

 

 

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