HOW TO IMPROVE THE OPERATING PROFIT DOWN AS SALES. HOW TO GROW IN SALES AS AN SME DECREASES. ARRIAGA ASSOCIATES CONSULTING PRODUCTION, PURCHASING AND OPERATIONS. NOW ALSO IN ZARAGOZA, SPAIN. Reviewed by Momizat on .   HOW TO PROFIT FROM OPERATIONS INCREASES SALES DOWN WHEN? There are many SMEs that have seen their sales have been declining significantly. Lost sales is not e   HOW TO PROFIT FROM OPERATIONS INCREASES SALES DOWN WHEN? There are many SMEs that have seen their sales have been declining significantly. Lost sales is not e Rating: 0
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HOW TO IMPROVE THE OPERATING PROFIT DOWN AS SALES. HOW TO GROW IN SALES AS AN SME DECREASES. ARRIAGA ASSOCIATES CONSULTING PRODUCTION, PURCHASING AND OPERATIONS. NOW ALSO IN ZARAGOZA, SPAIN.

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HOW TO PROFIT FROM OPERATIONS INCREASES SALES DOWN WHEN?

There are many SMEs that have seen their sales have been declining significantly. Lost sales is not easy especially for those who have no business track record in exports. Exports are a good recipe when we fail our national clients. But as we say, selling out is not improvised and takes time. Of course it is an option that should not be left neglected.

But every company should examine how to sell in other geographic markets as in Spain may not be easy. And as it can be easy and we propose other possibilities that we have worked with our customers.

We know of cases in which Arriaga Associates has worked as consultants, which have not been necessary to maintain sales to be able to maintain the operating result.

An industrial company, due to the limits of its productive capacity of the production was outsourced. Thus your bottleneck, the production system, not merely in terms of sales. But with the crisis sales decreased dramatically. The company made the decision to invest in machines (second hand, low price for the crisis, but in very good condition), and began to produce what was previously outsourced. Of course this measure sales but did not grow significantly increased operating margin. In fact its current operating margin is the best in its history.

Associated with a company Arriaga collaborated to optimize operations to reduce inventory without increasing the risk of breaking or broken stocks customer service and achieved two very important things these days: they reduce investment and stocks and improved costs by increasing productivity. It also did better supplier agreements lowering the costs of raw materials.

In conclusion of this article should be noted that when sales should recover decrease in foreign markets and new distribution channels. But there are also operational measures that can lead to increased added value through its own production of what used to be outsourced or by improving the level of procurement operations, productivity and operations planning.

Operations Department.

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