If I asked you to name one inefficient process in your company, what would it be? Now, here’s a better question: How much money does that inefficient process waste? That’s a tough question to answer because inefficiency is nearly impossible to quantify. Oftentimes, you don’t realize just how much money an inefficient process wasted until it’s fixed.
Here’s a great example: This bicycle manufacturer didn’t have a web-based ordering system. Instead, they took orders in through their call center, which is obviously less efficient than a web-based system. When they finally created a web-based ordering system, something amazing happened: Overall sales dramatically increased!
Why the increase in sales? As it turned out, fixing their inefficient ordering process created a ripple effect of benefits. Here are a few:
1. Ease of use: It’s now easier for their customers to make purchases. Additionally, their customers can now see the products they’re buying, which is something they couldn’t do on the phone. All in all, the buying process is easier and faster for their customers.
2. 24/7 ordering capabilities: In the past, customers could only purchase during business hours. Now they can purchase whenever they want.
3. Re-assigned staff: With more people purchasing online, they were able to re-assign some of their call-center staff to more pro-active sales roles. This boost to their sales force drives revenue up even further.
Inefficient processes can waste money in ways that aren’t immediately clear. In the example above, the inefficient ordering process was actually holding back sales. I could rattle of any number of similar examples, but the real question is this: How are your inefficient processes holding your company back? Chances are, it’s more than you think.