Looking to stay ahead of the curve and compete with your industry? 

It’s no secret that operational efficiency is one of the most important concepts in business and companies are figuring out ways to improve efficiency in a business. With the aim to improve their business practices, increase their bottom line, and staying competitive.  

What do you mean by Operational Efficiency?

Operational efficiency is the ratio of output to input in any production process that makes a valuable product or service while using minimum resources such as capital, material, labor, and energy. It’s expressed in percent or represented by a number. 

How can we calculate Operational Efficiency?

Here is an example: Suppose, a company named XYZ has reported total net sales of $330,000, total COGS (Cost of Goods Sold) of $130,000, and OPEX (Operational Expenditure) of $57,000 over a dedicated period. So, the operational efficiency ratio in this case would be calculated using this formula:

(130,000 + 57,000) ÷ 330,000 = 0.56

Now, XYZ company’s operational efficiency ratio is 0.56 or 56%, which means the company’s operating costs make up for 56% of its net sales. 

Operational Efficiency Tools

The ability of operational efficiency tools to do more in less time helps maximize the productivity of available resources and organize your workflow to get the most out of it, which helps in running your business better and more profitably in just about every imaginable way.  

These tools also help you to stay up-to-date with industry trends, enhance operational improvement strategies, and get more done in less time. From team collaboration and financial management to productivity monitoring and performance metrics, these top 6 operational efficiency tools (discussed below) will transform your business by making it smoother, faster, and more efficient.

But before that, let’s first start with some questions that will guide us on what are operational efficiency tools and where these tools can be used. 

What Are Operational Efficiency Tools?

Operational efficiency tools are systems, software, and other methods that help you make your operations fast and smooth. These tools will help you optimize your business and make it more efficient.

With such tools, you can create a better system for reporting on detailed insights to get better transparency and visibility of your business.  

These tools also provide various ways to improve business efficiency and operational strategies, which is an ideal way to enhance workflow efficiency. Moreover, these tools deliver numerous other benefits as well.  

For instance, they allow employees to work remotely, enable collaboration with other team members for a better understanding, and even allow real-time data access without any hassle, ensuring faster decision-making.

Besides this, operational efficiency tools make analytics more accurate and easier to understand, thus minimizing risks and maximizing potential outcomes.

Most Common Functional Areas For Operational Efficiency 

Operational Efficiency Solutions can be used to improve the efficiency of your business across a wide range of functional areas. The most common functional areas for Operational Efficiency Solutions are:

1) Project Management 

2) Workforce management

3) Resource Planning 

4) Quality Assurance and Improvement 

5) Cost Reduction Strategies 

In these functional areas, operation efficiency tools have significantly improved performance and profitability in many different industries. Moreover, businesses that adopted operational efficiency solutions have experienced a significant increase in their productivity and profit margins.

Read more: How To Measure Productivity Of Employees?

3 Benefits Of Operational Efficiency Tools

Operational efficiency tools are a boon to modern business. These tools are designed to make your company run smoother and more efficiently, which in turn will help you be more productive and grow faster. 

Here are three top benefits of operational efficiency tools that will help your business to flourish.

1) Gain better transparency and visibility into your processes

Analyzing your data is key to any process improvement strategy. Operational efficiency tools deliver you detailed insights providing you with better transparency and visibility into what’s happening in each operation or process within your business. 

It also helps you get an overall picture of how your day-to-day operations are running. Armed with this information, you can use improvement strategies to smoothen your workflow to increase the overall level of efficiency in your business.  

2) Helps in cost reduction

Operational efficiency tools enable organizations to analyze their operations from various aspects and identify those areas where they can cut costs without affecting the quality of work. 

With reports on detailed insights, an organization can easily view how different departments are performing, identify areas for improvement, plan justified expenses and make sure there’s no scope for overspending, thus making your operations fast and efficient. 

3) Allows you to optimize every aspect of your business

Every department in your organization has its own set of tasks it needs to perform regularly throughout the day, week, or month. 

By leveraging the right tool, you’ll see the progress of all these tasks and map out your entire operations in one dashboard that makes it easy for you to pick up anomalies and areas for improvement. Once identified, you can begin optimizing such areas, so your business runs faster and smoother than ever. 

7 Tools to Improve Operational Efficiency

With such benefits, it is worth investing in the following seven tools for increased operational efficiency.

1) Zoho Projects 

Zoho ProjectsZoho Projects is cloud-based integrated project management, collaboration, and business process management software. Whether you are an entrepreneur or a manager in the corporate world, Zoho Projects can help you manage your projects better. 

With features such as task delegation and team management, Gantt charts and templates, etc., Zoho Projects takes care of all your project needs from start to finish.  

Regarding operational efficiency, Zoho Projects’ intuitive interface makes it easy for managers to delegate tasks without any hassles. Furthermore, with Zoho Projects’ Calendar function, schedules can be easily coordinated so that everyone knows what they have to do and when to get it done.

Zoho Projects provides a comprehensive solution for managing projects and getting things done across teams with complete visibility into every aspect of your work, including deadlines, budgets, and milestones. 

Read more: How to Use Timesheet Reports For Superior Project Results

2) Skype 

SkypeSkype is a free video and audio calling service you can use to connect with others on the internet. Skype is useful for businesses because it allows you to hold conversations with your colleagues and help you manage your projects more efficiently, even if they’re miles away.  

With Skype, you can also chat with potential clients, which helps clarify what they want and how they want their assignments delivered. This helps smooth operations, eliminates the scope of errands, or gives detailed feedback about any changes or improvements made to the project.  

Skype is an excellent tool for businesses looking to increase operational efficiency. The best part about this app is that there’s nothing new to buy, no additional software to install- all you need is a computer with internet access and a web camera installed. The app will work on most smartphones, making it easier to work from anywhere at any time. It’s affordable (free) and simple to use, so there is no reason not to try it out!

3) Workstatus


workstatusIt’s hard to keep up with productivity when your team is scattered worldwide. Enter Workstatus, a time tracking and workforce managment software that lets you monitor and track the hours of remote as well in-office employees. Workstatus lets you get insights into how productive your teams are by providing data on who’s working and who’s slacking off.  

Workstatus also has time tracking features that allow you to measure operational efficiency in more detail than ever before. You can view the number of tasks completed by individual users and their top priorities for future work so you know what tasks to prioritize next.

You can also use GPS tracking to keep track of your employees’ location and how long they’ve been working at any given time. With this information you will have a better idea of how you should manage your workforce for maximum efficiency.  

No matter where your business operates or what industry it’s in, Workstatus will help make your operations fast and efficient from anywhere in the world, making it easier for you to grow and scale your business.

Revolutionize Your Team's Productivity Today!

Unlock Your Team's Full Potential.

4) FreshBooks

FreshBooksOne of the tools that will transform your business in 2022 is FreshBooks. FreshBooks is free accounting software for businesses and every industry. It helps the accountant, manager, or CEO by providing everything from invoicing the clients to automatically updating the accounts with all the information, so there’s no need for manual entry, which helps speed up operations.  

FreshBooks also lets you process payments online, removing the time-consuming process of chasing down payments. This saves you time and makes you more money in the long run, allowing you to spend more time focusing on growing your business. 

Any business looking for ways to streamline their accounting tasks and increase productivity should consider these tools to increase their efficiency and make their operations fast and smooth.

5) Grammarly

grammarlyGrammarly is one of the most accurate and easy-to-use proofreading tools out there. It can also provide contextual word suggestions, grammar, and style suggestions to streamline your writing which will help your business avoid embarrassing mistakes while giving a polished look to your content, client-oriented emails, or any other type of written correspondence. 

Grammarly also lets your business proposals, reports, and key messages look more professional by preventing errors from punctuation to repetitive words in sentences. Where a mistake could be made, Grammarly does its best to pick up on it before it becomes an issue. 

What’s even better is that it does come free, but if you’re looking for additional features such as edit checks that are targeted at specific types of content (such as sentence structure), translation checks, and advanced plagiarism detection, then it does cost $12 per month per user. 

6) Zapier

ZapierZapier is a way to connect apps for an easier and smoother data flow. With Zapier, you can automate your business tasks by setting up triggers from one app to another. This way, the workflow becomes more seamless, eliminating any scope of error and saving time in the process.

Zapier is a useful tool for every single company out there as it not only streamlines your workflow but also saves you time and money. The tool currently supports over 750 integrations which means that all you have to do is set up the trigger between two apps, and Zapier does the rest! 

If you’re looking to save time, create efficiency and make workflows more smooth, Zapier should be on top of your list when exploring the available tools. Using this software will always keep you ahead of the curve no matter what type of business you are running.

Read more: Productivity vs. Efficiency: Which One Matter More in the Workplace?


To improve efficiency in a business, companies should consider how they are currently operating and how they can change their process or operations. There are a number of tools that can be used to help optimize the business’ operational efficiency and potentially save money.

With such tools, you can quickly gauge your company’s performance and identify any potential problems or issues before they worsen. And next time you need to improve efficiency in your company, try looking at these top six tools as they will help transform your business for the better.

That’s all for today. 

We hope you enjoyed reading our blog post. 

If you have any queries about improving efficiency in your company, feel free to leave us a comment on this blog post.

Thank You !!

Revolutionize Your Team's Productivity Today!

Unlock Your Team's Full Potential.