Reduce process costs with BPM
by Philipp Böhner
Focus on process costs
When two companies meet to discuss a possible collaboration, they often include topics such as the philosophy and strategic orientation of the companies. However, things usually get exciting in the B2B environment when it comes to process costs. More than cost of goods, cost of services or investment in projects, process costs are decisive when it comes to whether a business relationship can be interesting in the longer term. If you want to keep your own costs under control and maintain your attractiveness for potential business partners in the future, you cannot avoid rethinking and actively addressing your processes and the associated process costs.
Activity-Based Costing (ABC)
In so-called activity based costing (ABC), the costs of process execution are calculated. Costs are incurred for each process run, e.g. for personnel, machines, hardware, software use, goods, but also for checking and ensuring quality and for eliminating and preventing errors. The aim of the ABC is to make these costs as transparent as possible and to be able to allocate them precisely according to the type and origin of the costs.
By precisely recording these variable and fixed costs, particularly costly points in the process, as well as bottlenecks, can be better identified and the need for optimization of a process can be prioritized according to need. This offers great potential for quality assurance and quality optimization and enables clean internal cost allocation.
Overview and cost savings
As stated at the beginning, it is relevant both for the success of the company and for potential partnerships with other companies to have one's own process costs under control. Good control of costs in one's own business processes begins with good control of the processes themselves. The basis for this overview and control is a clean and detailed documentation of one's own processes. This makes individual areas, jobs and sub-processes visible and costs can be broken down to individual cost centers. As a result, the company can see where the highest costs are incurred in a particular business process and where there is the greatest need for optimization. This provides the company with a powerful tool for optimizing its own process costs.
Tools for optimization
For the creation of process maps, brix relies on digitized documentation with ADONIS BPMS. The advantages of this are obvious:
- A process can only be optimized through a good overall view.
- The same overall view is necessary to be able to evaluate and break down process costs in a meaningful way.
- Process optimization is an extremely effective lever for optimizing process costs.
- Process optimization helps to improve structures in the company and thus enables an increase in efficiency and focus on customer needs as well as the avoidance of unnecessary costs.
- An end-to-end process analysis reveals the extensive opportunities for process automation.
- The automation of recurring, time-consuming procedures in processes offers enormous potential for reducing process costs in the vast majority of companies.
What is to be done?
- Document your business processes in a clear process map.
- Create transparency about the processes in the company.
- Analyze your process map and find the most relevant processes.
- Find weak points in these relevant processes.
- Involve all important and affected departments in the company in order to be able to identify optimization possibilities for these weak points.
Do you have any questions?
We would be very happy to meet with you for a no-obligation discussion about your business processes, offer you our comprehensive consulting services, or organize a workshop together with you – tailored to your challenges and needs.
We look forward to hearing from you.Start your request here