Just like with any business, cutting costs is an immediate way to be more competitive and increase profit margins. If you aren’t actively trying to save money from your operations then you are leaving a considerable amount of money on the table.
Not only that, but you won’t be able to price aggressively against the competition, it will be harder to hire top recruits since you won’t be able to offer the proper salary and you will ultimately see a downward spiral of profitability.
It just makes sense. There are some cost cutting measures that are specific to medical device businesses so you have to know where to look.
In this article, I will go over several ways to cut down on your operating expenses as a medical device company.
1 – Outsource
These days, you can outsource almost every aspect of your business. There are certain parts of your operation in which it doesn’t make sense to have a division or even specific employee on your payroll to do some jobs.
Shipping is a good example. It can cost a lot to maintain a fleet of delivery trucks in terms of maintenance, insurance and paying the drivers. Companies like Reliable Couriers specialize in shipping medical devices and can be used instead.
You may even find that hiring locally for specialists that you need may not be an option and are forced to look towards other regions. Marketing can be outsourced as well as your accounting if it makes sense financially.
2 – Automate and use the latest tech
In addition to outsourcing, there are also advances in technology that make it possible to automate a lot of your processes. The blockchain is very efficient when it comes to the Internet of Things and makes logistics and supply chains work better.
This can mean that your inventory and shipping are linked to make sure that you don’t have to do much in the way of inventory control.
In other ways, tech can be used to help your HR department. For instance, paid time off requests and time tracking can be done via app to streamline the payroll process.
3 – Do an audit
A typical culprit when it comes to overspending and waste is the fact that many companies have overlapping and repetitive processes. You may have two departments that essentially do the same thing, for instance.
If you do an audit of your own business, then you will likely find some bottlenecks that slow things down and cost you money, or to many redundancies. You can hire a third party agency to take on this role, or you can do it in house.
Either way, taking a hard look at your business operations will surely show you some areas that can be eliminated, streamlined or departments merged to cut down on the wasteful spending.
Use technology to help you streamline your business and you will surely cut down on your costs. Then you can grow bigger and better as a company which means more money for everybody involved.
This post has been sponsored by Roundshark Ltd
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