A4.10 Effective Resource Management


Non-renewable resources are increasing scarce and there is an ever-increasing demand for them as more countries industrialise. This results in increasing costs and an uncertain supply. It is therefore more important than ever for organisations to use resources effectively.

A recent example of this would be the dramatic increase in metal prices. This has resulted in a steep rise in costs for many manufacturing industries. To remain competitive, they must reduce costs and effectively using raw materials is an important way of achieving this.

The business benefits are that the organisation can remain competitive and in business, whilst environmentally the benefit is that a natural resource is preserved.

The term ‘resources’ does not only apply to materials; effective resources management also encompasses the use of energy and water. Furthermore, it also considers the effective use of renewable resources. Consider the use of timber. It is not an effective use to simply cut down trees indiscriminately. It is effective use to ensure that trees are planted to replace those we remove, to ensure a continuing supply.