Reducing warehouse costs is an ongoing project that requires smart actions that don’t compromise quality or customer satisfaction. Here are some ideas for helping your warehouse spend less and maximize profits.
Inventory losses to the tune of billions of dollars are noted each year in warehouses. While theft and misplacement do play a role, stock damage tends to cause the biggest amount of loss. Employee training and sound practices for packaging and storing can make a huge difference, as can using control systems like RFID to avoid product misplacement. Keeping doors locked and enacting security measures can also help protect assets.
Making the Most of Storage
With land cost prices rising, using cost-effective smaller spaces is the way to go. This may sound out of reach for some, but there are some relatively minor tweaks you can use to squeeze more storage space out of your warehouse. Inventory can be sorted, for example, based on the aisle dimension needed for forklifts to access it. Racking can also create a lot of space for pallets, especially the tall and narrow options.
Another clever way to cut costs is by buying used containers. Indeed, savings of as much as 40 percent are possible when buying used containers over new ones, whether they are metal bins, food trays, or pallet containers. Some vendors will offer products that have been cleaned and inspected, giving buyers peace of mind.
Curbing Energy Costs
Another move that can result in sizeable cost savings is reducing energy costs. One step you can take is improving your building’s insulation. This will pay for itself pretty quickly. Automatic lighting systems are another good investment when you’re looking to save some money on energy expenses. Installing windows in strategic locations can help you make the most of natural light, keeping electrical bills down while using the sun’s power to reduce heating costs.
These are just a few of the ways you can save money in your warehouse. If you look at your operations carefully, there is a good chance you’ll find plenty of areas where improvements can be made.
This blog post was based off of an article from All Things Supply Chain. View the original here.