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.