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Cost Control as a Means for SMES to Overcome High Operating Costs
Small and medium enterprises (SMEs) make up 90% of the business population, and are massive drivers behind global economic growth. However, the latest statistics show that more than 20% of these small enterprises fail within the first year and approximately 50% of them fail in the first five years. One of the most prevalent problems startups face is overcoming high operating costs, However, cost control solutions can help SMES overcome these high operating costs by reducing unnecessary or excessive expenses.
The Importance of Cost Management for SMEs
For any business, large or small, cost management is a crucial element of success. Businesses must keep track of their spending in order to stay within their budget and ensure that they are making a profit. But this can be difficult for SMEs, which often have limited resources and staff. Cost management is therefore even more important for these businesses, which must carefully control their costs in order to stay afloat. An effective cost management process can help businesses identify the best methods as well as make well-informed decisions to increase profitability and savings, reduce unnecessary expenses, mitigate risks and gain a competitive advantage in an ever-changing market.
In a case study on cost management, it was shown that commuter and commercial airline, Cape Air, managed to reduce its operational costs by 15 to 20% through a robust and scalable analytics infrastructure. With the help of a third-party business intelligence provider, the airline was able to merge different data sources and query the data in a way that lined up with the airline’s short- and long-term objectives through a suite of data analytics products. This new system gave Cape Air the ability to increase their level of operational efficiency and productivity with proactive and faster revenue performance insights, quicker access of passenger name record (PNR) history and life cycle, as well as a reduction in manual interventions.
In addition to avoiding hidden costs through a more comprehensive analysis of their current operations, it also achieved improved customer satisfaction and a more productive rapport with stakeholders. This proves that with smart and efficient cost management, SMEs can accomplish their cost control goals with much success.
The Path to Cost Control
In today's competitive business environment, SMEs that don't take cost management seriously are likely to struggle in the long run. For these businesses, cost control is not an option – it's an essential part of doing business. That being said, SMEs can overcome high operational expenses by cutting costs in a multitude of ways such as digital adoption to propel process transformation. The current challenges businesses face trying to implement cost management systems include inaccurate reports due to human error, ineffective budget forecasting due to lack of data credibility, inefficient workflows and more. However, cost control strategies can provide companies with an escape route from the cost trap as they empower businesses to better understand their operational expenses and make more informed decisions about where to allocate their resources.
Achieve Effective Cost Control with FUJIFILM Business Innovation
SMEs are becoming the backbone of the global economy as they play a significant role in driving innovation through product development and also providing employment opportunities. Yet these businesses face challenges such as high operational costs that hinder their business development.
At FUJIFILM Business Innovation Thailand, we strive to continuously innovate and extend new frontiers to help businesses grow. Our cost management solutions give SMES a way to overcome the issues of hidden costs and wasted resources. Easy to set up and use, our cost management solution enables you to conveniently monitor end-to-end functionalities including copy, fax, scan and print all from one place. It also allows for customisable monitoring and reporting to meet your specific needs and provides easy budget and quota allocation to restrict spending with flexible account selection capabilities – either by user, department or device.
With the ability to see where every cent is being spent, you can effectively identify and rein in unnecessary costs. By gaining a higher level of transparency and control, you can also ensure that everything is printed out in the most cost-efficient way.
In addition to managing your costs more effectively, businesses can also explore our workflow automation solutions which include business process management and more. Contact us and find out how you can operate with efficiency and maximise your profits today. Browse our other office solutions for SMEs for more tailored options.