Improving a company’s bottom line involves several different areas of the business. Clients who come to Trilogy with the goal of boosting their bottom line often find that this success has a positive influence on other areas of their business as well.
There are three ways clients have found Trilogy’s processes helpful with improving their bottom line.
Understanding “breakeven.” It’s important to know how much you need to sell each month to cover your monthly, weekly and annual fixed costs and overhead. Fixed costs affect a company more adversely than variable costs. By considering changing some of your fixed costs to variable costs, you can make a big difference. For example, a client recently changed from employing a full-time, salaried mechanic to outsourcing mechanic services only when needed. This saved them thousands of dollars.
Reducing carrying costs of excess and stale inventory. Trilogy helps you streamline inventory by monitoring, controlling and reducing the number of days products spend in your inventory. Two ways are by buying faster-moving inventory and utilizing economic order quantities (EOQs)—the quantity goal that minimizes total inventory holding and ordering costs. This reduces stale inventory, increases your inventory turns and helps eliminate write downs of older items.
Billing timely and accurately. One Trilogy client recently shortened their billing turnaround time by 15 days. We automated the billing process to reduce errors, save employee labor and eliminate unnecessary questions on bills. They also now pre-bill and progress bill to reduce the total cash cycle and prevent collection issues. Systemic billing processes and procedures creates better consistency throughout the company.