Question

Topic: Strategy

Cost-efficient

Posted by Anonymous on7/17/2010 at 3:32 AM ET 50分
What does it mean to be cost-efficient? How can I apply this in a convenience store setting. We have been reviewing our monthly purchases and found that our product turnover are just fine. Employees are happy with their jobs. There is trust with the company. Can we considered ourselves cost efficient?
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RESPONSES

  • Posted byCarolBlaha在7/17/2010 at 8:18 AM Accepted
    Cost efficient means the bottom line. What efficiencies are in place to maximize your profit?
  • Posted byHans De Keulenaer在7/26/2010 at 2:13 PM Accepted
    As an energy efficiency expert, I can see a parallel between energy and cost efficiency. No surprise here as energy efficiency is a cost reduction technique.

    - both are not absolute concepts. The goalposts are continuously changing. If your organisation hasn't been thinking about cost efficiency for a while (several years), it is unlikely to be cost efficient.

    - both our process concepts. You start with measuring the current situation, then set continuous improvement targets. Measuring progress is key to performance. Measuring can be internal (sales/employee) within a shop, among shops, or with competition.

    - both concepts have 'low hanging fruit', i.e. measures you can take without (much investment). For example paper recycling, switching off lights, ...

    - both need commitment from all layers of the organisation. They are hard work. There is a policy component and a behavioural component.
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