The Reservoir Of Neglected Saving Potentials
INCREASE MATERIAL EFFICIENCY AND SAVE 9,6 % OF COSTS IN AVERAGE
In projects concerning stock optimisation, the subject of material efficiency is often neglected due to the massive effort that comes with it. Yet, making material efficiency part of the project helps with doing more of the right thing at once.
Even though the potential of material efficiency projects is very dependent on the company’s industry, the average potential across all branches is 9,6 percent. Depending on the branch, it can go up to 20 percent of the gross production value, as a study in 2005 has shown1! Of the various industries, the chemical industry has a potential for saving costs of 20.1 percent, building industry 13.3 percent, polymer processing 11.9 percent and devices for energy production 8.6 percent. But even the metal ware producers, forest industry, medical technology, process measuring and control technology and optics show potentials of 6.4 to 6.9 percent. The study based on 284 potential analyses in SMBs. The average total of cost savings was 220.000 Euros per year, 3.300 Euros per employee or 2.5 percent of the annual turnover. The period of amortisation for the investments into these projects in most cases was less than 6 months. Side effects of the efficiency projects, such as economies of scale in sales due to possible decreases in pricing are not even included yet.
If you are interested in receiving the whole case study in a PDF file, please download it below:Download PDF