Quick Tip: Penny Management

Penny Lane. J.C. Penney. Penny Management?

Though it might not fit with the first two, penny management is a simple concept that can yield exceptional results and save you money. Every penny saved when mailing 10,000 pieces or processing 10,000 orders is an extra $100 on the bottom line.

Challenge everyone in your organization to find a way to save a penny. It is easy, fun, and profitable. Make it a fun contest and the company theme song will be “Pennies from Heaven.” Every contest needs cool categories and prizes. Set your imagination free and create a contest that will inspire.

Here are some penny management tips to get you started:

–Identify the 20 top selling items by volume and ask the vendors for a discount. Most negotiations are based on dollar instead of unit volume. Vendors often have unadvertised quantity discounts.

–Eliminate multiple copies of order processing forms. The same form can move from processing to pick/pack and on to the customer. It will reduce the cost of supplies and labor. No more filing!

–Print your pick tickets at night for processing the next day. It will reduce the pickers down time.

–Include return information on the order form and packing list. It encourages prospects, reduces calls, and does not increase the return volume.

Debra Ellis is president of Barnardsville, NC-based operations consultancy Wilson Ellis Consulting.

Partner Content

Hincapie Sportswear Finds Omnichannel Success in the Cloud - Netsuite
For more and more companies, a cloud-based unified data solution is the way to make this happen. Custom cycling apparel maker Hincapie Sportswear has leveraged this capability to gain greater visibility into revenue streams, turning opportunities into sales more quickly while gaining overall operating efficiency. Download this ecommerce special report from Multichannel Merchant to more.
The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.