Cutting operational expenses is something ever organization must learn to balance to ensure productivity and profit margins increase for the company. An increase profit margin is the bottom line for any business and its stakeholders. In order to cut operational expenses productively Artemis Sportswear needs a comprehensive look at the everyday operational expenses. Cutting the everyday expenditures is in need of balance, because to much cuts can cause lose of productivity which in the end will not achieve the desired affect of increase profits. Cutting operational expenses also affects the work force of Artemis Sportswear. This proposal is to define the expenses that need or could be to cut to ensure the success of Artemis Sportswear and how these cuts will affect the workforce.
Cutting everyday expenses can help lower operational expenses. When purchasing office supplies, generic is going to be less expensive than brand name products. Buying the store brand name is generally sold at a lower cost.
Buying supplies in bulk is cost effective over a long period of time. Leasing equipment is better than buying equipment. When leasing you have the opportunity to upgrade or downgrade when necessary. Technology is always changing and improving, so by leasing there is the option to stay current with the new changes in the equipment. Leased equipment always comes with an insurance policy, which is not needed if there is a currant insurance policy with the company. To avoid being double charged register with your companyÃÂÃÂs insurance broker then submit a copy of the new insurance to the leasing company to have it dropped.
Smaller equipment such as telephones, printers, fax machines and calculators should be purchased not leased. Usually the smaller equipment will hold its value over time and can be easily replaced if needed. Shopping for bargains or sales...