How many times have you purchased something on impulse and later on realized it was a waste of money? We’ve all probably been there a time or two in our lives. While you can very well do as you please with your own finances, when it comes to managing company finances, impulsive, haphazard purchases could ultimately lead to financial demise.
Yes, it’s true you have to spend money to make money and invest in the business for it to grow, but if you don’t think the purchase through carefully you’re putting the future of your business on the line. Below are a few steps you can take to make more efficient purchasing decisions:
Define the Need
The first thing you need to do before making a decision is define the need of the company. What is it that needs to be accomplished? What void needs to be filled? In order to ascertain the real needs of the company you may need to converse with management. Talking with supervisors or human resource staff can give you an in-depth understanding of where the needs are in the company.
For example, the owner of a manufacturing company may not be aware that the production process is wasting a lot of time and resources. However, the production manager would be able to provide this information. The manager would be able to provide suggestions on feasible solutions, such as MPS software (Master Production Scheduling software) that would allow for the production team to stay on task and access pertinent work order information.
Establish a List of Criteria
Once you’ve determined that there is in fact a real need within the company, the next step is to determine what criteria you need the product or resource to have in order to fulfill the need. Using the example above, if it is agreed that scheduling software is needed to maximize the production process, what features does this software need to encompass? Do you only need scheduling? Would you like features that allow staff to access work order information? Would you prefer an application that is cloud based?
Again, working with management or even the workers on this list of criteria will ensure that you’re making a purchase that is not only necessary, but that will actually benefit those who will be utilizing or benefiting from the product. Creating a list of “must haves” and “would like to have” can help you in finding the best solutions for the business.
Check the Budget
Now that you know there is a need and know exactly what type of resource you need to invest in, can you afford it? Though you may have a need for something, if purchasing it is going to put you in the red, you may need to look at other solutions. Review your budget to see what you have available to spend. To determine if you have enough, it may be necessary to do a bit of research to determine the going rate for what you’re looking to buy. If you have an accountant, this would be a good time to consult with them to evaluate your budget and determine what you can spend.
Research Your Options
After you’ve determined what you have to spend on your purchase, you’re ready to begin research. You don’t just want to purchase the first product that comes your way, but the Internet can be resourceful in helping you compare features and costs. As you review various suppliers review the features and compare them to your “must haves” list and your budget. Try to narrow it down to at least two or three choices and then bring the options back to your management team to discern which the best option is.
Making a purchase for your company is a lot like making a purchase for your household. The only real difference is that the funds you’re utilizing are not simply your own, these funds are necessary for maintaining and operating your business and as such impulsive purchases could result in poor finances. By utilizing the above mentioned steps in your decision making process you are sure to have a much simpler time making a purchase that will benefit your business now and in the future.
Will Self-Driving Cars Be Better for the Environment?
Technologists, engineers, lawmakers, and the general public have been excitedly debating about the merits of self-driving cars for the past several years, as companies like Waymo and Uber race to get the first fully autonomous vehicles on the market. Largely, the concerns have been about safety and ethics; is a self-driving car really capable of eliminating the human errors responsible for the majority of vehicular accidents? And if so, who’s responsible for programming life-or-death decisions, and who’s held liable in the event of an accident?
But while these questions continue being debated, protecting people on an individual level, it’s worth posing a different question: how will self-driving cars impact the environment?
The Big Picture
The Department of Energy attempted to answer this question in clear terms, using scientific research and existing data sets to project the short-term and long-term environmental impact that self-driving vehicles could have. Its findings? The emergence of self-driving vehicles could essentially go either way; it could reduce energy consumption in transportation by as much as 90 percent, or increase it by more than 200 percent.
That’s a margin of error so wide it might as well be a total guess, but there are too many unknown variables to form a solid conclusion. There are many ways autonomous vehicles could influence our energy consumption and environmental impact, and they could go well or poorly, depending on how they’re adopted.
One of the big selling points of autonomous vehicles is their capacity to reduce the total number of vehicles—and human drivers—on the road. If you’re able to carpool to work in a self-driving vehicle, or rely on autonomous public transportation, you’ll spend far less time, money, and energy on your own car. The convenience and efficiency of autonomous vehicles would therefore reduce the total miles driven, and significantly reduce carbon emissions.
There’s a flip side to this argument, however. If autonomous vehicles are far more convenient and less expensive than previous means of travel, it could be an incentive for people to travel more frequently, or drive to more destinations they’d otherwise avoid. In this case, the total miles driven could actually increase with the rise of self-driving cars.
As an added consideration, the increase or decrease in drivers on the road could result in more or fewer vehicle collisions, respectively—especially in the early days of autonomous vehicle adoption, when so many human drivers are still on the road. Car accident injury cases, therefore, would become far more complicated, and the roads could be temporarily less safe.
Deadheading is a term used in trucking and ridesharing to refer to miles driven with an empty load. Assume for a moment that there’s a fleet of self-driving vehicles available to pick people up and carry them to their destinations. It’s a convenient service, but by necessity, these vehicles will spend at least some of their time driving without passengers, whether it’s spent waiting to pick someone up or en route to their location. The increase in miles from deadheading could nullify the potential benefits of people driving fewer total miles, or add to the damage done by their increased mileage.
Make and Model of Car
Much will also depend on the types of cars equipped to be self-driving. For example, Waymo recently launched a wave of self-driving hybrid minivans, capable of getting far better mileage than a gas-only vehicle. If the majority of self-driving cars are electric or hybrids, the environmental impact will be much lower than if they’re converted from existing vehicles. Good emissions ratings are also important here.
On the other hand, the increased demand for autonomous vehicles could put more pressure on factory production, and make older cars obsolete. In that case, the gas mileage savings could be counteracted by the increased environmental impact of factory production.
The Bottom Line
Right now, there are too many unanswered questions to make a confident determination whether self-driving vehicles will help or harm the environment. Will we start driving more, or less? How will they handle dead time? What kind of models are going to be on the road?
Engineers and the general public are in complete control of how this develops in the near future. Hopefully, we’ll be able to see all the safety benefits of having autonomous vehicles on the road, but without any of the extra environmental impact to deal with.
New Zealand to Switch to Fully Renewable Energy by 2035
New Zealand’s prime minister-elect Jacinda Ardern is already taking steps towards reducing the country’s carbon footprint. She signed a coalition deal with NZ First in October, aiming to generate 100% of the country’s energy from renewable sources by 2035.
New Zealand is already one of the greenest countries in the world, sourcing over 80% of its energy for its 4.7 million people from renewable resources like hydroelectric, geothermal and wind. The majority of its electricity comes from hydro-power, which generated 60% of the country’s energy in 2016. Last winter, renewable generation peaked at 93%.
Now, Ardern is taking on the challenge of eliminating New Zealand’s remaining use of fossil fuels. One of the biggest obstacles will be filling in the gap left by hydropower sources during dry conditions. When lake levels drop, the country relies on gas and coal to provide energy. Eliminating fossil fuels will require finding an alternative source to avoid spikes in energy costs during droughts.
Business NZ’s executive director John Carnegie told Bloomberg he believes Ardern needs to balance her goals with affordability, stating, “It’s completely appropriate to have a focus on reducing carbon emissions, but there needs to be an open and transparent public conversation about the policies and how they are delivered.”
The coalition deal outlined a few steps towards achieving this, including investing more in solar, which currently only provides 0.1% of the country’s energy. Ardern’s plans also include switching the electricity grid to renewable energy, investing more funds into rail transport, and switching all government vehicles to green fuel within a decade.
Zero net emissions by 2050
Beyond powering the country’s electricity grid with 100% green energy, Ardern also wants to reach zero net emissions by 2050. This ambitious goal is very much in line with her focus on climate change throughout the course of her campaign. Environmental issues were one of her top priorities from the start, which increased her appeal with young voters and helped her become one of the youngest world leaders at only 37.
Reaching zero net emissions would require overcoming challenging issues like eliminating fossil fuels in vehicles. Ardern hasn’t outlined a plan for reaching this goal, but has suggested creating an independent commission to aid in the transition to a lower carbon economy.
She also set a goal of doubling the number of trees the country plants per year to 100 million, a goal she says is “absolutely achievable” using land that is marginal for farming animals.
Greenpeace New Zealand climate and energy campaigner Amanda Larsson believes that phasing out fossil fuels should be a priority for the new prime minister. She says that in order to reach zero net emissions, Ardern “must prioritize closing down coal, putting a moratorium on new fossil fuel plants, building more wind infrastructure, and opening the playing field for household and community solar.”
A worldwide shift to renewable energy
Addressing climate change is becoming more of a priority around the world and many governments are assessing how they can reduce their reliance on fossil fuels and switch to environmentally-friendly energy sources. Sustainable energy is becoming an increasingly profitable industry, giving companies more of an incentive to invest.
Ardern isn’t alone in her climate concerns, as other prominent world leaders like Justin Trudeau and Emmanuel Macron have made renewable energy a focus of their campaigns. She isn’t the first to set ambitious goals, either. Sweden and Norway share New Zealand’s goal of net zero emissions by 2045 and 2030, respectively.
Scotland already sources more than half of its electricity from renewable sources and aims to fully transition by 2020, while France announced plans in September to stop fossil fuel production by 2040. This would make it the first country to do so, and the first to end the sale of gasoline and diesel vehicles.
Many parts of the world still rely heavily on coal, but if these countries are successful in phasing out fossil fuels and transitioning to renewable resources, it could serve as a turning point. As other world leaders see that switching to sustainable energy is possible – and profitable – it could be the start of a worldwide shift towards environmentally-friendly energy.
Economy2 weeks ago
Report: Green, Ethical and Socially Responsible Finance
Energy7 days ago
5 Easy Things You Can Do to Make Your Home More Sustainable
Sustainability4 weeks ago
Worldwide Cities Leading the Way in Sustainability
Economy6 days ago
New Zealand to Switch to Fully Renewable Energy by 2035