Feedback Form
Home Features Mastermind Forums About Advertise Blog Network Contact Be An Author

Lesson #3: Use Technology to Temper Your Costs

Jim Sinegal Articles
Lesson #3: Use Technology to Temper Your Costs

When one thinks of Costco, a company with a thriving technological edge is not necessarily the first thing that comes to mind. But, while Sinegal might not be your typical CEO, he does understand the importance of utilizing technology to his benefit. Not only has modern technology helped Costco automate many of its operations, but in keeping with Sinegal’s all important goals, has helped the company lower its costs.

“Technology has made us much more productive,” says Sinegal. “With computers, fax machines, and cell phones we have more productive time during the course of the whole day and can react to situations more immediately.” Indeed, Costco’s computer system is a relatively sophisticated one. With a wireless record of purchases, Sinegal can get into the systems of any of his warehouses anywhere in the world without ever leaving his desk, to check on such things as how one item might be selling during the day. “Sometimes we have so much information it’s more than we can deal with,” he says. “Our web site and our e-commerce business are also profitable on a fully allocated basis, and that is somewhat of a milestone.”

Sinegal also embraced the concept of energy management and conservation early on, using technology to cut down on his energy demand. Costco stores make heavy use of skylights and controlled lighting based on the time of the day. They use high efficiency heating and air conditioning, and are venturing into photovoltaics, or the use of solar panels to generate electricity, and the use of hybrid delivery trucks. On an environmental side note, Sinegal also gives subsidies to his employees who carpool or use monthly bus passes. He believes that these efforts will not only benefit the communities in which Costco does business, but also the company’s shareholders and members in the long run.

Despite Sinegal’s embracement of new technologies in his bid to create a lean and efficient operation, he is wary not to go too far. “Technology helps us become more efficient and productive but our business still has a lot of art as opposed to strictly science,” says Sinegal. “The reason that the dot-com companies didn't succeed is that they were very good at the science end but they didn't understand anything about the art of buying and selling merchandise. They thought that was the easy part but it turned out to be the most difficult.”

Sinegal makes sure his Costco team understands that buying and selling merchandise is the real business of their company, while everything else simply augments that aspect of it. “If you don't have the right merchandise in the right place at the right time you can forget about everything else,” he says. “All the satellites in the world aren't going to help you.”

No matter how much online business is moved in the future, Sinegal still sees the future of shopping in physical stores. “People are still going to want to go out and have that social exchange,” he says. To that end, Costco focuses all its energies – and technologies – on making that experience the best it can be.





Lesson 3 Use Technology to Temper Your Costs

Like this article? Share it with your friends

Article Feedback
 Article Feedback No article feedback found.
  Leave Your Feedback
article feedback

Article Feedback
John Brennan
John Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website


To learn more about the Evan Elite Author Program please contact us.


Jim Sinegal Picture Jim Sinegal Newsletter
Get our free newsletter to learn more about Jim Sinegal and other famous entrepreneurs!

Name:
Email:





Evan Elite Authors
Staging Diva  
John Alexander  
Kim Castle  
Evan Elite Authors

Become An Author
Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details.
Become An Author

Evan's Latest Video
Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media
Evan's Latest Video

Business Opportunities
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"

How to Start An Online Business

Click Here To Learn More
Business Opportunities



Evan's Newsletter
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
Name:
Email:
Evan`s Newsletter

Free Downloads
Network More Effectively Icon Network More Effectively
One Size Success Icon One Size Success
How Search Engines Work Icon How Search Engines Work
Radio Campaigns Icon Radio Campaigns
Strategic Plan Icon Strategic Plan
Free Downloads - Complete List

Entrepreneur Tools and Guides
Top 50 Niche Blogs 2009
Top 50 Niche Blogs 2009
Top 50 Niche Blogs 2009
 
Top 50 Social Entrepreneur Blogs of 2009
Top Social Business Blogs
Top Social Entrepreneur Blogs
 
Entrepreneur Tools and Guides

SEO For Africa
SEO For Africa
Foster Odei Nkawkaw, Ghana,
Foster Odei
Nkawkaw, Ghana
SEO For Africa

If I Were A Startup...
Dana Zita, > $2.5 Mil in revenues
Dana Zita
> $2.5 Mil in revenues
Razor Suleman, $143k to $5.4 Mil in 5 years
Razor Suleman
$143k to $5.4 Mil in 5 years
If I Were A Startup... - Complete List

Famous Entrepreneurs
Asa Candler, Coca-Cola
Asa Candler
Coca-Cola
Anita Roddick, The Body Shop
Anita Roddick
The Body Shop
Famous Entrepreneurs - Complete List

Entrepreneur Advice
Keith Ferrazzi, Never Eat Alone
Keith Ferrazzi
Never Eat Alone
Zig Ziglar, See You At The Top
Zig Ziglar
See You At The Top
Entrepreneur Advice - Complete List

Popular Articles
(Premium Authors)

     What are Some Best Practices in the Area of Sabbatical Leave
By Jennifer Loftus
     Back to School Pt. 3: Work & Parenting...Can They Coexist Harmoniously?
By Jennifer Loftus
     Halloween At Your Place of Employment
By Jennifer Loftus

Have A Suggestion?
Toronto Salsa Classes / Toronto Salsa Lessons Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
Have A Suggestion?

More Evan Carmichael
More Information