08 Jan How much money are you wasting?
Your company might be wasting, every year, a massive amount of money.
According to a study made by edinn in 56 production plants, selected for their use and standardization of the edinn platform, many businesses could be wasting massive amounts of money every year, specifically 5% of their EBITDA, although in many cases it could be as much as 10%.
This is appalling news and explains why many companies are experiencing serious trouble for their survival, or are about to, as the economy slows down. It also explains the difficulty many companies have had to grow, export and develop a satisfactory financial situation.
But, how is this EBITDA wasted? The conclusion to this study is clear and can be summed up in a few words: the lack of digital transformation and company culture focused on continuous process improvement.
The analysis made by edinn also determines the main causes of this lack of digital transformation: overhead, excessive personnel rotation, lack of formation, bad previous experiences or not centered around profitability and, surprisingly, the fear of facing real and objective performance indicators.
In the words of David Tronchoni, CEO of edinn: “companies are struggling in areas where achieving EBITDA increments is hard because it’s not just up to them, but about other external elements such as the market or competitors, and as a consequence face a higher risk of failure. However, they’re not taking advantage of current technology and experience to improve their internal processes, when it’s been systematically proven that it could prevent a significant chunk of their losses. We have to convince management that this is a real problem, help them interiorize it and make it a priority. Otherwise we will have a serious environmental and economic problem in our hands”.
Good news is, according to the document, there is a solution for all these companies, even for those with a very low budget and few capable personnel. That’s why edinn makes this incredibly detailed report available free of charge to any company that might be interested. Obviously, the report presents all data in aggregated form to preserve the anonymity of everyone involved.
Edinn and their network of partners have a long history of experience in this field. Since the year 2004 the company is 100% focused on the development of standardized open platform for the digital transformation of factories, framed in the fourth industrial revolution or industry 4.0. Edinn has pioneered many innovations, like the concept of 4 types of losses or the developments of neural networks to detect and prevent failures, which situates the platform, according to many users, amongst the best in the word, but with the best price to quality ratio.