Cost Reduction Strategies for Bakeries_bakery oven suppliers

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Cost Reduction Strategies for Bakeries

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bakerybazar 2009-06-30 06:53:42 Publish:

Labels: bakery cost of production ., cost reduction strategies for bakeries, cost saving ideas for bakery With economic slow down and low spending by consumer has forced big bakery manufacturer to implement cost reduction strategies in their plants and operations . Cost reduction programs should be ongoing program rather than Knee jerk program. One should continuous strive for innovation , modification or automation for savings in factory operations .

We can get substantial cost savings in following areas .

Procurement or purchase

Around 60 - 65% cost of product is raw material . Hence savings in raw material purchase can add on to profits.Main raw material s are flour , fat , sugar .Apart from raw material other materials are engineering items and packaging. Few of the ideas are

Bulk purchasing

Forward buying

Buying from sales tax,excise duty free area

E procurement

Reverse Auctions

Imports or sourcing from across the globe

Logistics

Cost of transportation inbound and outbound are very high to have efficient logistics management definitely helps reducing cost. Few are listed below

Freight or transport management
Inventory management
Warehouse design and location
Type of transportation

Energy

Energy also contributes to cost of manufacturing hence to reduce cost of energy should be a priority for manufacturers . Few Ideas are mentioned below.

Get an Energy Audit done . Implement their suggestions

Fuel savings through energy efficient burners

Power energy savings through energy efficient motors

Install screw compressors

Packaging
Packaging material also a major factor in cost of manufacturing hence selection of packaging material should be done with care . Few ideas are

Reducing or Modifying shape and size of product.
Reducing Packaging waste through thickness or gauge reduction .

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