Benchmarking, looking at companies outside your own sector, is a good method for comparing and improving business processes.
For example, how do Scania or Phillips deal with expenses, what margins do they make, what is their personnel policy, how do they get capital.
You name it, you can't think of it that crazy. Looking around gives you new ideas and can lead to a whole new perspective on things.
How do other managers and directors view the concept of margin in other sectors, for example? How do they deal with costs?
Running a business is ultimately about making a profit. Profit is the difference between costs and revenue. – The margin in between.
That seems simple.
The cheese slicing method is widely used to control costs. Costs can be limited by dealing more efficiently with fertilizers, for example.
However, this strategy also carries risks. For example, an increase in machine costs, due to an increase in the spreading of slurry, to maintain grass growth.
Another risk is the loss of attention to limiting fertilizer costs, which means that costs will gradually increase again. And what about an increase in the cost of the product, which in turn cancels out the decrease in costs.
Eliminating costs is much more effective than reducing costs.
Cost elimination is achieved by adjusting production in such a way that the need for the product disappears permanently and the cost item disappears from the accounting system. This means that the method of production changes permanently, so that the product is no longer needed.
It may be that an investment is required to bring about the change, but often the most important change is also adapting the working method.
For example, applying legumes in the production of roughage. The first advantage is that the costs of fertilizer are eliminated in the bookkeeping. The extra margin is immediately visible as an increase in profit.
The investment costs are relatively small and are already earned back in the first year.
Additional advantages can also be mentioned:
– Eliminating fertilizer means less natural gas consumption, a blessing for the people of Groningen.
– More insects because there are flowering plants in the plot.
– More meadow birds and other small game because the insects are there.
– Less track damage in the field because there is less driving.
– Enhance the natural soil fertility because fertilizer breaks down organic matter over time!
– A lower workload because the fertilizer spreading is no longer necessary.
– Lower machine costs because the tractor and fertilizer spreader are used less.
In this way, environmentally friendly suddenly becomes financially interesting and smart to do.
Sustainable production must first of all be financially sustainable in order to have a future.
Anyone can add clovers. The key to success is in the detail!
Saladebuffetten contain the right legumes in the right proportions in addition to the right other grass and herb species to ensure a high forage production of high quality.
