Corporate Waste

A director decided to award a prize of $100 for the best idea of saving the company money during the credit crunch.

It was won by a young executive who suggested reducing the prize money to $20.

Urban myth?


28 Responses

  1. While at uni I grabbed at bit of work at Arnotts.

    Regularly dozens of cartons of biscuits that would be nearing their ‘best buy’ date were discarded.

    The cartons were dumped into large industrial waste bins and a security company was contracted to ensure that they were ‘safely’ delivered to the nearest dump and destroyed.

    The idea of donating the biscuits to a charitable organisation was never entertained. Giving away some biscuits to the detriment of sales ticking over was obviously a complete no-no.

    Surely the costs of hiring an industrial bin and paying a security company for a few hours work would have been greater than the lost sales of a few dozen cartons of biscuits.

  2. Reminds me of my time with a steel fabrication company (eg reinforcing mesh, fences, gates, reinforcing structural steel etc.

    We often had fencing materials (and other orders) rejected (wrong measurements, gates raked {made for slopes} incorrectly) these were just dumped and picked up by our steel recycler – I suggested we have an auction every couple of months for staff and friends – always successful and the takings went to the works Christmas Party (over 500 employees) …

    … up until this time the steel cut-offs had also been picked up “for free” – after a few calculations on the “value” we negotiated, a price for the steel with the recycler … these guys had no idea of “market demand” (ie no scrap – no business) …

    … this all began when I was given the “project” of clearing the storage areas of all accumulated, rejected orders – we estimated the value of steel alone (ie not including lost labour) at well over a $1 million …

  3. Oh! …. and, joni, I suspect a, joni myth … very creative though …

  4. Get rid of the IT team.

  5. Whyyouioughtta!

  6. It always amazes me why iconic brand names have such large advertising budgets!

    Take Coca Cola for instance…there is no need for advertising unless they are introducing a new product.

  7. Get rid of the IT team.

    False economy reb – then you have to deal with contractors who have less engagement with the company or it’s staff… and who would you have to inspire thoughts of mass murder?

  8. I agree scaper. Would sales of Cocal Cola go down if the product wasn’t advertised? I doubt it.

    Same goes with five draw cabinets.

  9. Very good points TB and Miglo. And yes, this is it, one cannot donate to charity because it might impact on prices at the supermarket.

    But then Bacchus, many organisations still will not hire anyone except as contractors..and one can imagine the benefits for the organisation re paperwork.

  10. Mmmmm … I remember IT “managers” on mine sites … the nickname on one mine was “the Gestapo” … too much power, too much paranoia and absolutely no people skills … someone on Blogocrats works in IT too, I think?

  11. But, but, but, if Coca cola didn’t spend that multi-million dollar budget on advertising this year, they wouldn’t get it again next year…!

    What is it about that that you people don’t seem to appreciate??

  12. The thing with IT people is WYSIWYG.

  13. TB

    Yes – I am an IT consultant.

  14. And reb, don’t forget GIGO, which would probably be true in joni’s case.

  15. Are you, joni, well goodness me … 😉

  16. Yes TB, he’s one of those.

  17. But we love him anyway… 🙂

  18. And he wears short sleeve business shirts!

  19. I guess I too am technically an “IT Consultant” as well… I say technically, because who would want to own up to being one of those tossers? 😛

    Sorry joni. 😉

  20. Last line should read

    Sorry joni, but we tend to be tossers 😉

  21. Miglo, on July 6th, 2009 at 12:26 pm Said:
    Yes TB, he’s one of those

    LOL! You are awful… but I like you ….!

  22. Short sleeves!

    … and you throw off at my clothes 😆

  23. And I am in short sleeves today too!

    I am a computer geek and proud of it.

  24. (gee – I hope I did noy buy this shirt at Lowes)

  25. “And I am in short sleeves today too! ”

    You know, that’s not something I would’ve fessed up to, but…

    “I am a computer geek and proud of it.”

    Kind of explains it…

  26. “But, but, but, if Coca cola didn’t spend that multi-million dollar budget on advertising this year, they wouldn’t get it again next year…!”

    Maybe the advertising budget could be diverted to sponsorship of sporting events to fill the eventual void created by the banning of alcohol advertising in the future?

  27. It was won by a young executive who suggested reducing the prize money to $20.

    No doubt this trumped a suggestion from a non-executive that they could reduce the CEO’s salary by $120 and still come out ahead.

  28. Miglo and TB have hit on it: Wastage and the elimination thereof.

    I held jobs over uni long-vacation for a couple of years in the Iron mines and ore treatment plants of the Pilbara in WA. This was many years ago, but the wastage there was unbelieveable.

    For example, they’d buy fleets of company utes and run them into the ground with minimal maintenance over the next 2 years or so. They’d then replace the entire fleet.

    Another example was the large electric motors that drive the ore conveyors. These things are huge and worth a fortune.

    Again, they’d run them continuously at 100% of rated power till they croaked-it and then replace the motor, rather than give it the regular maintenance that would have kept it going indefinitely. I suppose the rationale was that the maintenance shut-down time and costs associated with consequential lost production were greater than what the motor was worth.

    I bet that’s not the case now with the Global financial crisis.

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