Business process improvement can be something that can yield huge results, particularly when it comes to streamlining supply chains and logistics. It can be a course of action that can cuts your overheads by reducing the amount of work going into unnecessarily bloated ways of getting things done. It lets you serve your clients or customers faster, and can even allow you to improve your offerings overall by letting you see new ways of doing things.
When to Review and Improve Your Business Processes
Process improvement is something that you can work on at any time in the lifecycle of your business, but in general, the most important times to focus on it are when your business hasn’t updated its processes in a few years and you feel you may not be making the most of the solutions currently available. It helps when the business is lagging behind others in your industry, when you identify a clear problem in your processes that is creating bottlenecks or friction, or when your business has undergone significant growth.
Here we are going to look at the latter situation, and why growth can make business process improvement drives a necessity if you want to keep your business functioning at its most efficient, effective, and profitable:
Processes That No Longer Fit
Processes need to be fit for purpose, and things that suit a small business may be insufficient or overly convoluted as a business becomes larger and more people become involved. This can be true of just about every process involved in your business, from things like HR and payroll to your supply chain management. If you have gone from a small business where management wore a lot of different hats and a lot of things were dependent on individuals, to one with dedicated roles responsible for different aspects of the business, then this is an important sign it is time to review your processes. If you have gone from having a small number of customers and suppliers to a more complex network, then this is also a sign that you may not be running things at their best and giving the best service you can, using processes you created for a simpler structure.
Processes That Have Grown Organically
It is normal when businesses grow for new solutions to be tacked on to existing processes to deal with new demands as and when they come up. This, over time, can lead to some highly bloated and unwieldy processes that can be difficult to introduce to new people as your company grows in size, and can hold you back. Having a review of your processes or a process audit done by process consultants like Supply Velocity can be the first step towards remedying this situation. Once your processes have been analyzed and you have a good picture of what needs to be done, how it is being done presently, and what the friction points are, you can begin to work with your consultants to design and implement new and leaner processes.
If your business has grown a lot through 2020, then now could be a very good time to begin the work of streamlining your business with leaner and more efficient business processes.