Cost of Goods Sold
Part 2 of a 2 part series
- Decreased gross margin.
- Increased cost of goods sold.
- Significant adverse deviations from budget.
- Significant increase in a particular line item’s cost
Steps to Improve: CUTTING OVERHEAD
- Conduct an energy audit; self audit or use outside professionals.
- Control facilities’ energy cost.
- Reduce utilities cost with maintenance and rate analysis.
- Lighting: the way to cost reduction.
- Reduce HVAC energy cost.
- Decrease machinery and equipment energy cost.
- Heat water for less.
- Outsource cost: consider the cost of in-house production instead.
- Reduce trash and production waste.
- Shipping: Selecting the right carrier.
- Shipping: Deal effectively with your carrier.
- Shipping: Improving your shipping procedures.
- Shipping: Reduce outbound freight cost.
- Shipping: Decrease inbound freight cost.
- Checklist – Shipping cost: use shipping and freight cost study to improve – 50 ways.