Operational Efficiency means making the most of each available resource to achieve the best possible result in terms of production and costs, with the least possible waste. It is the optimization of production or service processes, so that it directly impacts results; because the reason for being of every company is to offer its customers the best products and services at the lowest possible cost, so the company must seek operational efficiency in each of its processes.
Therefore, operational efficiency must be a primary objective in every organization to be sustainable in the medium or long term. To achieve this, the company's teams and departments must be increasingly agile and efficient, always keeping an eye on what is fundamental for the business and thus avoiding the dispersion of their efforts.
It is important to emphasize here that meeting the goals established by the company does not necessarily mean that one is being efficient, which is why one should not settle or feel satisfied with simply meeting the goals. Processes must be constantly reviewed to ensure that weak points that can be improved are detected.
As examples, in production and operations, you must constantly observe the process and monitor its performance, in inventory management, in supplier management, in the efficiency of machinery, etc. In the administrative area, we must not lose sight of the functional structure, the management of information and communications - an area where it is key to have tools that facilitate collaboration and control -, the quality of processes, products and services, management indicators, billing, and account monitoring, etc.
Likewise, in each area of the company, attention must be paid to the key points, regardless of whether the established objectives have been met. It is a constant task to look for every improvement that can be made to the different activities, to have metrics and indicators, to control, to follow up, in order to maintain operational efficiency.
In addition to the company departments, it is essential to remain vigilant about the environment. For a product or service to be and remain competitive, it must adapt to changes in the environment. This involves the economic, political, and social aspects as traditionally done, along with the analysis of competition; however, what has been becoming increasingly relevant in this environment - and now more than ever - are the new technologies.
Nowadays, it is imperative that organizations update themselves in terms of implementation of digital tools and platforms to survive. In this sense, change, digitalization, and innovation projects are increasingly common in different economic sectors since they are the response to the need for adapting to the new digital reality.
Integrating digital technology in all areas of the company, including for customers and suppliers, directly impacts its operational efficiency. It allows a clear and complete vision of the processes, so that due attention can be paid to what It is key to the operation of the company. In this way, the different activities can be analyzed in detail, allowing to detect those in which waste can be reduced, and performance and results improved, which means greater productivity.
Nowadays, digital technology is therefore a necessity for achieving and maintaining operational efficiency in companies and organizations; it allows to be permanently vigilant of the processes, to find the elements to be improved, and thus make better use of each of the resources to achieve the best result for our clients, and by extension, for our business.
