Business

7 Effective Ways to Address Resource Crunch & Boost Operational Efficiency

Are you finding it difficult to meet project deadlines due to the shortage of skilled talent?

Is your organization finding a workload imbalance among the existing staff?

The shortage of skilled talent strikes businesses all over the globe. Factors such as supply chain disruptions, rapid growth, and increased demand give rise to a resource crunch.

On the other hand, in some scenarios, a scarcity of resources is a repercussion of economic factors such as recession and continuous technological advancements.

Now, the pertinent question is, is it possible for businesses to operate efficiently with a shortage of resources and still retain the top and bottom lines? The answer is “yes.”

This blog has covered ways to address the resource crunch and how SAVIOM’s resource management software can enhance operational efficiency.

But first, let us understand –

1. What is resource crunch & how does it impact the operational efficiency of an organization?

A resource crunch is a situation where there is a shortage of workers to meet the demands of projects in an organization. Unfortunately, when an organization witnesses a resource crunch, it overutilizes the existing workforce, leading to stress and burnout.

Moreover, if continued for an extended period, overutilization of resources can result in culpable absenteeism and unplanned attrition.

Consequently, a resource crunch leads to a decline in operational efficiency and all the related metrics, such as labor productivity, production capacity, turnaround time, and profitability.

Furthermore, it also leads to reduced quality of projects, budget overruns, and delivery delays, eventually resulting in loss of sales and customers.

Having discussed the negative consequences of understaffing, let’s learn some practical strategies companies can implement to optimize their operations.

2. 7 effective ways to address resource crunch & boost operational efficiency

Resource shortage is a pertinent concern for almost every type of organization. Here are some strategies that managers can adopt to address the crunch and boost performance-

2.1. Deploy workforce on projects of high business value

When you are operating with limited resources, it becomes essential to prioritize projects based on the financial and strategic goals of the organization.

Accordingly, managers can assign the existing resources to profitable projects to ensure business objectives are met.

In addition, if resources are working on internal projects or low-priority tasks, they can be reallocated to billable projects for better ROI and profit margins.

This way, deploying resources to value-adding projects can boost operational efficiency, fortify growth, and help companies gain a competitive edge.

2. Promote on-the-job training and shadowing

As Aristotle said, “For the things we have to learn before we can do them, we learn by doing them.” On-the-job training and shadowing are effectual practices that provide resources with valuable work experience, acquaint them with internal procedures, and enable them to broaden their skills.

For example, in industries like IT, where tools and technologies keep evolving, appropriate training helps employees learn processes faster.

As a result, even in a resource constraint environment, organizations will have a robust pool of talent with advanced proficiencies to support business-specific needs and retain productivity.

3. Track & optimize resource utilization consistently

One of the significant consequences of a resource crunch is the overloading of the existing workforce. To avoid such instances, managers must monitor and track resource utilization levels.

In the case of overutilization, managers can implement optimization techniques such as resource leveling or smoothing to minimize the workload.

During resource leveling, managers adjust the start and end dates of the project timeline to balance resource demand across multiple projects.

In contrast, resource smoothing includes uniform allocation and addition of resources and is generally implemented when projects have a time constraint.

4. Leverage contingent workforce as required

A part-time or contingent workforce is an excellent alternative to meet seasonable or niche-skill demands without making long-term commitments.

In addition, when facing a resource crunch, a contingent workforce can help accommodate the increased workload briefly without raising the overhead costs.

In addition, hiring part-time employees brings niche expertise to the table and opens the door for fresh perspectives. This also implies that you can experiment with innovative ideas without fear of considerable loss.

Finally, the right balance of permanent and contingent workforce also helps to elevate project quality and maintain deadlines.

5. Perform resource capacity planning for pipeline projects

Organizations must forward plan their pipeline projects to ensure resources are available before the project’s onset.

In this scenario, resource capacity planning can help foresee project requirements and identify skill gaps ahead of time.

Accordingly, managers can take appropriate actions to bridge the capacity vs. demand gap.

For instance, suppose you need a Financial Analyst with Power BI skills for your new audit project, and no matching resource is available.

With visibility into future demands, you can either upskill the existing resources or hire contingent analysts. Furthermore, forecasting resource demands also avoids last-minute hiring/firing.

6. Facilitate cross-departmental collaboration

Effective collaboration between departments is vital for project success, particularly when facing a resource crunch.

Cross-departmental collaboration enables employees to work on projects that do not fall under their departments but require their skills.

Hence, it is the best way to strengthen teamwork and combat resource crunch.

The acquired industry experience, unique skills, and creativity of different members working together boost innovation and problem-solving.

In addition, cross-functional teams leverage diverse competencies and ideas to improve project delivery. It results in improved productivity and operational efficiency in a resource constraint environment.

7. Automate & streamline admin work

Employees’ time on administrative or BAU work affects productivity and organizational profitability. Businesses can prevent this by streamlining and automating repetitive tasks such as invoicing, billing, report generating, etc. This will reduce employees’ workload, and enable them to focus on billable work, resulting in improved efficiency.

Moreover, automation also enhances accuracy and aids in providing faster services to customers.

For example, IT firms can utilize chatbots to answer frequently asked questions by their leads and let their sales team focus on other strategic activities.

Now that we know ways to address resource crunch and boost operational efficiency let’s see how resource management software can assist in this scenario-

How can advanced resource management software help?

The continued technological improvement has given birth to advanced tools that help organizations efficiently manage resources. Here is how advanced resource management software like Saviom can help in surpassing resource crunch and maximize operational efficiency –

Advanced Resource Planning: The tool’s 360-degree visibility and advanced filters facilitate the appropriate allocation of resources to projects based on their skills and availability, which is crucial for planning during resource shortages.
Capacity Planning: With capacity vs. demand reports and visibility into pipeline project demands, managers can optimize resource schedules ahead of time.
Utilization Tracking: Using heatmaps and real-time reports, managers can quickly identify if the resources are overutilized and take necessary measures to prevent burnout and improve productivity.
Predictive Analytics: By analyzing historical data and predicting future trends, SAVIOM’s software can help businesses plan for the future and take proactive measures to prevent resource crunch.
Modeling & Simulation: The tool enables managers to create numerous scenarios using modeling and simulation techniques. It helps them compare different outcomes and determine the most viable resource plan.

With these next-level features to track and manage resources, organizations can work resource crunch and improve operational efficiency.

Wrapping up

Operational efficiency is imperative for continuous growth and sustainability in the highly competitive business environment.

Therefore, by implementing the strategies mentioned above, paired with the right resource management software, organizations can minimize the impact of resource shortages on their operations and ensure they are better positioned for success in the long run.

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Business

PepsiCo Reduces Revenue Projections As North American Snacks And Key International Markets Underperform.

(VOR News) – In the third quarter of this year, Pepsi’s net income was $2.93 billion, which is equivalent to $2.13 per share. This was attributed to the company.

This is in stark contrast to net income of $3.09 billion, which is equivalent to $2.24 per share, during the same period in the previous year. The company’s earnings per share were $2.31 when expenses were excluded.

Net sales decreased by 0.6%, totaling $23.32 billion. Organic sales increased by 1.3% during the quarter when the effects of acquisitions, divestitures, and currency changes are excluded.

Pepsi’s beverage sales fell this quarter.

The most recent report indicates that the beverage and food sectors of the organization experienced a 2% decline in volume. Consumers of all income levels are demonstrating a change in their purchasing habits, as indicated by CEOs’ statements from the previous quarter.

Pepsi’s entire volume was adversely affected by the lackluster demand they encountered in North America. An increasing number of Americans are becoming more frugal, reducing the number of snacks they ingest, and reducing the number of times they purchase at convenience stores.

Furthermore, Laguarta observed that the increase in sales was partially attributed to the election that occurred in Mexico during the month of June.

The most significant decrease in volume was experienced by Quaker Foods North America, which was 13%. In December, the company announced its initial recall in response to a potential salmonella infection.

Due to the probability of an illness, the recall was extended in January. Pepsi officially closed a plant that was implicated in the recalls in June, despite the fact that manufacturing had already been halted.

Jamie Caulfield, the Chief Financial Officer of Pepsi and Laguarta, has indicated that the recalls are beginning to have a lessening effect.

Frito-Lay experienced a 1.5% decline in volume in North America. The company has been striving to improve the value it offers to consumers and the accessibility of its snack line, which includes SunChips, Cheetos, and Stacy’s pita chips, in the retail establishments where it is sold.

Despite the fact that the category as a whole has slowed down in comparison to the results of previous years, the level of activity within the division is progressively increasing.

Pepsi executives issued a statement in which they stated that “Salty and savory snacks have underperformed year-to-date after outperforming packaged food categories in previous years.”

Pepsi will spend more on Doritos and Tostitos in the fall and winter before football season.

The company is currently promoting incentive packets for Tostitos and Ruffles, which contain twenty percent more chips than the standard package.

Pepsi is expanding its product line in order to more effectively target individuals who are health-conscious. The business announced its intention to acquire Siete Foods for a total of $1.2 billion approximately one week ago. The restaurant serves Mexican-American cuisine, which is typically modified to meet the dietary needs of a diverse clientele.

The beverage segment of Pepsi in North America experienced a three percent decrease in volume. Despite the fact that the demand for energy drinks, such as Pepsi’s Rockstar, has decreased as a result of consumers visiting convenience stores, the sales of well-known brands such as Gatorade and Pepsi have seen an increase throughout the quarter.

Laguarta expressed his opinion to the analysts during the company’s conference call, asserting, “I am of the opinion that it is a component of the economic cycle that we are currently experiencing, and that it will reverse itself in the future, once consumers feel better.”

Additionally, it has been noted that the food and beverage markets of South Asia, the Middle East, Latin America, and Africa have experienced a decline in sales volume. The company cut its forecast for organic revenue for the entire year on Tuesday due to the business’s second consecutive quarter of lower-than-anticipated sales.

The company’s performance during the quarter was adversely affected by the Quaker Foods North America recalls, the decrease in demand in the United States, and the interruptions that occurred in specific international markets, as per the statements made by Chief Executive Officer Ramon Laguarta.

Pepsi has revised its forecast for organic sales in 2024, shifting from a 4% growth rate to a low single-digit growth rate. The company reiterated its expectation that the core constant currency profitability per share will increase by a minimum of 8% in comparison to the previous year.

The company’s shares declined by less than one percent during premarket trading. The following discrepancies between the company’s report and the projections of Wall Street were identified by LSEG in a survey of analysts:

SOURCE: CNBC

Business

Old National Bank And Infosys Broaden Their Strategic Partnership.

(VOR News) – Old National Bank, a commercial bank with its headquarters in the Midwest, and Infosys, a firm that specializes in information technology, have recently entered into a strategic expansion of their link, which has been in place for the past four years.

This expansion is more likely to take place sooner rather than later, with the likelihood being higher.

For the purpose of making it possible for Old National Bank to make use of the services, solutions, and platforms that are offered by Infosys, the objective of this expansion is to make it possible for the bank to transform its operations and processes through the application of automation and GenAI, as well as to change significant business areas.

This lets the bank leverage Infosys’ services, solutions, and platforms.

Old National Bank Chairman and CEO Jim Ryan said, “At Old National, we are committed to creating exceptional experiences for both our customers and our fellow employees.”

This statement is applicable to Old National Bank. Infosys is carefully managing the business process innovations that it is putting us through, putting a strong emphasis on efficiency and value growth throughout the process to ensure that it is carried out efficiently.

This is a routine occurrence throughout the entire operation. Because of Infosys’ dedication to our development and success, we are incredibly appreciative of the assistance they have provided.

Old National has been receiving assistance from Infosys in the process of updating its digital environment since the year 2020, according to the aforementioned company.

Ever since that time, the company has been providing assistance. The provision of this assistance has been accomplished through the utilization of a model that is not only powerful but also capable of functioning on its own power.

Infosys currently ranks Old National thirty-first out of the top thirty US banks.

This ranking is based on the fact that Old National is the nation’s largest banking corporation.

It is estimated that the total value of the company’s assets is approximately fifty-three billion dollars, while the assets that are currently being managed by the organization are valued at thirty billion dollars.

Dennis Gada, the Executive Vice President and Global Head of Banking and Financial Services, stated that “Old National Bank and Infosys possess a robust cultural and strategic alignment in the development, management, and enhancement of enterprise-scale solutions to transform the bank’s operations and facilitate growth.”

This remark referenced the exceptional cultural and strategic synergy between the two organizations. Dennis Gada is the one who asserted this claim. This was articulated explicitly concerning the exceptional cultural congruence and strategy alignment of the two organizations.

We are pleased to announce that the implementation of Infosys Topaz will substantially expedite the transformation of Old National Bank’s business processes and customer service protocols. We are exceedingly enthusiastic about this matter. We are quite thrilled about this specific component of the scenario.

Medium-sized banks operating regionally will continue to benefit from our substantial expertise in the sector, technology, and operations. This specific market segment of Infosys will persist in benefiting from our extensive experience. This phenomenon will enable this market sector to sustain substantial growth and efficiency benefits.

SOURCE: THBL

Business

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

The largest regulated water and wastewater utility company in the United States stated Monday that it had been the target of a cyberattack, forcing the company to halt invoicing to consumers.

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

American Water, based in New Jersey and serving over 14 million people in 14 states and 18 military facilities, said it learned of the unauthorized activity on Thursday and quickly took precautions, including shutting down certain systems. The business does not believe the attack had an impact on its facilities or operations and said employees were working “around the clock” to determine the origin and scale of the attack.

water

The corporation stated that it has alerted legal enforcement and is cooperating with them. It also stated that consumers will not be charged late fees while its systems are unavailable.

According to their website, American Water operates over 500 water and wastewater systems in around 1,700 communities across California, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Maryland, Missouri, New Jersey, Pennsylvania, Tennessee, Virginia, and West Virginia.

SOURCE | AP