Why Streamlining Operations Is The Smartest Financial Move A Company Can Make

How many companies do you know that have serious growth potential, but aren’t growing?

Instead of scaling like their founders know they can, teams are bogged down with messy processes, chaotic planning cycles and disconnected departments. Not only does it drain the life out of what could be a dynamite company culture, but it also costs businesses serious money each month.

There’s a lot going on in most businesses. But keeping your departments siloed isn’t doing you any favours (financially or otherwise).

And here’s the best part…

Streamlining operations:

• Is one of the quickest ways to start saving money
• Has been proven to increase profitability

…and begins with a little thing called cross-functional planning.

Why Disconnected Operations Cost You Money

Here’s a picture of what’s happening at most companies these days.

Sales team is planning. Ops team is planning. Finance team is over there doing… finance things.

Nobody is communicating. Every department has their own KPIs, their own data and their own version of what needs to happen next quarter.

Disconnected teams create massive amounts of waste.

Sales forecasts that don’t align with production schedules lead to excess inventory (or none at all). Finance doesn’t have any visibility on operational costs which leads to unrealistic budgets. Marketing launches a promotion that Supply Chain has no way of keeping up with…

These are costly problems. Research from Airtable and Forrester shows that silos, inaccurate data and manual processes cost companies revenue – and that improving collaboration across functions can save teams up to 12 hours per week.

Priceless.

How Cross-Functional Planning Changes Everything

Cross-functional planning means exactly what it sounds like.

Every department (sales, operations, finance and supply chain) planning based on the same data, the same goals and the same forecast.

Planning doesn’t have to be a one-department-team sport. Getting every key player in the room to collaborate improves every aspect of your business.

Here’s how.

If every department is planning based on the same numbers, decisions can be made quicker. Accurate forecasts can be produced. Budgets are aligned and resources can finally be allocated where they need to go.

The result?

Less waste. Fewer unexpected surprises. And more money in the bank.

Not only is sales and operations planning software making cross-functional planning more accessible, but it’s connecting teams like never before. Instead of working from their own separate plans (hello spreadsheet jungle), S&OP software ties it all together so everyone is literally working from one plan.

Boom.

Companies that take the time to plan across departments end up saving money in the long-run and are able to make better business decisions because they finally have a clear view of how every department contributes to the company’s bottom line.

The Financial Impact Of Streamlining Operations

Ok, but how does streamlining operations actually impact the bank account?

When companies make the effort to tighten up their operations, a few things happen.

Costs decrease: Duplicate tasks across departments are eliminated and manual tasks that take hours of employees’ time are automated.

Cash flow improves: Because everyone is planning together with more accurate forecasts, inventory is managed more efficiently and less capital is tied up in inventory that isn’t selling.

Revenue increases at a much faster rate: Teamwork makes the dream work – or at least helps products hit the market quicker and improves customer experience, leading to repeat buyers and organic growth.

Companies with streamlined financial operations saw finance costs 32% lower as a percentage of revenue than companies who didn’t, according to research from APQC.

That is a competitive edge most companies don’t realize they could have just by streamlining operations.

Forward-thinking companies who adopt cross-functional planning don’t just save money, they scale faster, weather storms better and win the market.

4 Ways To Start Streamlining Operations Today

The “why” is covered. Now for the solutions.

Here are four ways you can start streamlining your operations and saving your company money today.

Stop Working In Silos

This should come as no surprise. But if departments aren’t communicating with each other on a weekly (or monthly) basis nothing will change.

Once a week sales, operations, finance and supply chain get in a room together and talk about what’s going on. Sharing what they know about the next quarter and what their departments need to succeed is critical to breaking down the silos.

You can’t streamline what you don’t see.

Centralize Your Data

Data should never be stuck in an Excel spreadsheet only your finance team knows how to read.

Take a look at your current processes and figure out where you can centralize data so everyone has access to the same information. Doing this alone can save you hours of meetings and reduce errors.

There’s no excuse not to have a single source of truth these days.

Automate Whenever Possible

If it’s a task that you’re doing more than once a month, there’s probably a way to automate it.

Any time you can eliminate tedious manual tasks and have your systems do the heavy lifting for you, you’re one step closer to streamlined operations. Spend some time this week going through your current processes and making a list of what to automate. There are tons of tools out there that can help you do everything from inventory planning to financial reporting. And if you aren’t sure where to start, chat with your software vendors and ask.

Automation has to happen.

Invest In Software That Does What It Promises

Technology is cheap these days but that doesn’t mean you should buy every SaaS software that promises to make your life easier.

When looking for tools to help you streamline your operations, make sure the software you choose brings your departments together instead of creating more silos. You want real-time visibility, scenario planning and collaborative forecasting – and it shouldn’t feel like purchasing ten different software solutions to get there.

Keep. It. Simple.

Stop Throwing Money Away

Listen, streamlining your operations and tearing down departmental silos isn’t a “nice-to-have” goal. It’s the single smartest financial decision your business will make.

Disconnected departments cause unnecessary waste. When every team is planning from one unified plan, everyone wins.

Cross-functional planning is the foundation of every streamlined business. Without it, every other process you try to improve will be more difficult and expensive.

And the businesses that reap all the rewards are the ones who get their operations dialed-in first.

Make streamlining your operations a priority this year. You’ll thank yourself later.

Your bank account will too.