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Best Ways of Increasing Throughput in Small Business

You need to operate at maximum capacity as a small business to get more profits. This means that throughput is an important metric you need to follow closely–throughput refers to the amount of a product or service that a company can produce and deliver to a client within a specified period of time. Simply put, it’s the speed at which something is processed. 


Businesses with high throughput levels can dominate the market because they produce goods faster and more efficiently. This article will show the best ways to increase throughput in small businesses.

1. Use ERP Solutions for Small Businesses

Financial management services for small businesses and ERP solutions for small businesses are important areas to focus on to increase throughput. Many small businesses still rely on manual processing of finances, which is marred by errors and is time-consuming. 


When employees can’t find the right spreadsheet or waste time entering data, they can’t effectively make decisions that help companies grow their profits. However, an ERP system can solve this problem. ERP software automates processes and streamlines the flow of data. By providing a central source of information about your business, ERP systems allow you to make informed decisions–this is also how wholesale distribution ERP software can increase throughput for a small business.  

2. Improve Employee Training

Companies with high throughput levels have competent employees. They understand the procedures and follow the necessary instructions to ensure the goods are delivered in time.

To improve your throughput levels, regularly train your employees on work procedures, and offer guided work instructions to ensure general tasks and changeovers are done correctly. Digital work instructions help employees do the right thing and, in the process, reduce production errors. It’s also important to train your workers on proper communication and workplace harassment policies. This way, you’ll have a vibrant workplace where employees feel empowered and treat your customers well.  

3. Automate Your Processes

Most small businesses have redundant activities that can impact their profits. These activities include customer relationship management systems, email campaigns, and call center systems, among many others. 


Automation is perfect for these redundant activities, as it helps a business have ample time to focus on more important issues around business growth. Certain steps within the production process can also be automated for manufacturing, especially when it comes to increasing work consistency and reducing workplace injuries. Factory automation may include transfer systems, robotics, and automated cranes.

4. Analyze Your Existing Workflow

You can only improve a system when you know what ails it. So, regularly review your existing workflow to spot any bottlenecks that need to be eliminated. Evaluate three main areas: labor, equipment, and processes.


Additionally, it’s important to confirm that you have enough labor to ensure maximum productivity. Are your employees competent and properly skilled for the job? Is your equipment in good condition, or does it break down frequently? Once you know which problems to address, you can offer the right solutions to boost your company’s throughput.   

5. Find a Home for Everything

Operating a well-organized business location is key to improving your throughput. When you know where your raw materials, work instructions, machine parts, and tools are located, the rate of production increases. Workers can easily find what they are looking for when they are located at a known location on your premises.

In Summary

Throughput is a critical metric in running small businesses. Companies that take a larger portion of the market have high throughput levels–they invest in regular employee training to stay efficient and skilled and to reduce redundancies. These companies also use ERP solutions for small businesses to automate activities, save time, store data, and streamline processes. Other ways to improve throughput levels include finding a home for everything in your physical business, analyzing existing workflow, and standardizing tasks–an ERP can help organize all of these aspects in one place.


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