The modern business world is highly competitive, and it requires any business to practice sustainable business practices in order to thrive and proceed towards continuous growth. Small and Medium Enterprises (SMEs) have a significant role to play in the economic development of a country and therefore waste reduction and productivity improvement are crucial elements to maintain the sustainability of SMEs. Even though these are many globally accepted strategies for waste reduction and productivity improvement, SMEs should strategically identify the methods that are most suitable for their ventures based on their capabilities.
As the initial step of reducing the waste, a waste audit must be conducted to identify areas where waste is generated. Once the wastes and bottlenecks are identified, suitable waste management techniques such as redesigning production process to minimize resource wastage of raw materials, labour, time, funds etc can be implemented. Usage of more sustainable materials, planning beforehand, investing in technology and equipment, streamlining the production processes and operations of the entire business will help to reduce the wastage while improving the efficiency and productivity. For example using simple, free of charge software to handle inventory would help to streamline operations, reduce errors and improve efficiency. This will also optimize their workflows and processes by breaking down complex processes into simpler steps and finding ways to automate routine tasks and free up more time for high-value activities.
Additionally, focusing more on employee training and development can help SME s to improve productivity while reducing wastage. For example, a trained employee may know how to perform their job task with the most efficient utilization of the resources available and can also transfer the knowledge to the fellow workers as well. Amazon proves this in real life by providing an exceptional training to their employees that has helped to improve productivity at their workplace in increased percentages. Providing training on new technologies, investing in leadership and management development programs, conducting motivational programmes etc, will help employees to work more effectively. Setting goals and SMART objectives to track the progress will identify areas of improvement and check the efficiency of these training programmes.
SMEs can also foster a culture of continuous improvement, where employees are encouraged to identify areas for improvement and suggest ways to streamline processes while they work on the job as they have the ground level knowledge on how the business operates and what savings could be implemented while maximizing productivity.
SMEs can also engage with stakeholders to promote waste reduction and sustainable practices. Using sustainable practices will help SMEs to reduce waste while building a strong brand image. Some recommended activities to promote sustainability and reduce waste by SMEs are; implementing recycling programmes for waste materials such as paper, cardboard, plastics, implementing composting programmes for food waste and other organic materials, encouraging employees to use reusable containers for food and beverages, implementing purchasing policies that prioritizes sustainable and environmentally-friendly products and materials. Also waste can be reduced by partnering with suppliers who have sustainable practices and packaging solutions, encouraging customers to recycle products and packaging by providing clear instructions and convenient recycling options etc. By collaborating with all stakeholders, SMEs can build a more sustainable and responsible business ecosystem that will also be productive.
In addition to the above strategies, outsourcing non-core tasks to experts in relevant fields is also a good strategy to reduce waste and improve organizational productivity specially for SMEs. For example, outsourcing accounting, payroll, or customer service to specialized service providers will help to free up more time for core business activities and reduce overhead costs while also enhancing their ability to compete in their respective markets. A great example of a company that improved with outsourcing is WhatsApp. When WhatsApp was still a small business it outsourced its IT talents and managed their costs efficiently which helped them to grow exponentially.
In conclusion it is clear that reducing wastage and improving productivity goes hand in hand. By adopting waste reduction strategies, SMEs can become more competitive, profitable, and sustainable in the long term. Reducing raw material costs, recycling, improving efficiency, and reducing environmental impact will help to attract more customers who are concerned about sustainable businesses. Increasing productivity naturally means improved quality so that the cost of rework, compensations will also be spared. As a consequence, customers will also be satisfied. Thus, in summary it is evident that waste reduction and productivity improvement are crucial for the success of SMEs. As SMEs have an important role to play in creating a more
sustainable and responsible business environment, by focusing on waste reduction and productivity improvement, they can make a significant contribution to this effort which will make a noteworthy change in the business world and within their own ventures.
