5 Tips For Running A Warehouse At Lower Costs

October 17, 2020

Warehouses form an integral part of a business that not only amplifies the profit margin but also retains the standard of the product. However efficient warehouses don’t necessarily mean expensive warehouses. There are a lot of ways to cut down expenses on them without affecting the quality of the product.  The optimum use of floor space is a smart way to cut down the expense drastically.  You need to avoid warehouse management mistakes to make the most of your limited space.

Why are warehouses important in a business?

Warehouses are directly linked with the productivity of the business. Storage, delivery, and processing are going to determine the success of a company. It is a must to focus on improving the accessibility and maintenance of a warehouse for better management. One of the most important reasons why consumers switch warehouses is because of the product quality and the speed of delivery. You might top the charts if the warehouse management is done right!

How to cut down costs without reducing the efficiency of a warehouse?

Owing to the current crisis of the pandemic only the right technology and planning strategy can improve the sustainability of a company. A few measures eliminate warehouse wastes and optimize your work centre include:

1.     Efficient Management of Space

You don’t have to necessarily keep expanding the square feet with an increase in demand and inventories. Instead, optimizing the storage that you already have by adding more aisles, placing alternate way aisles, and reducing the distance between two aisles.  Use small spaces in your warehouse efficiently.

2.     Prioritize the products

Always keep a check on the date of the stocking of a product. The faster-moving goods can be placed vertically making it easier to transport while the slow-moving goods can be placed horizontally. Avoid overstocking or lesser demand products.

3.     Warehouse management system

One of the most time-consuming work in the warehouse is to search and pick the orders needed and it becomes tedious when there isn’t a proper system to guide you through the place. This management system helps reduce excessive time and labor consumption by recording all the data of the product and its location.

4.     Optimized manpower

With the right use of technology and management systems, manpower can be limited and optimized in a better way. Instead of adding 4 workers to operate manually 2 workers with sound technological knowledge can save you a lot of money

5.     Cross-docking

This is a process in which the supplier directly meets the consumer and delivers the goods without a retailer in between.

6.     Timely Audit

This is essential in the case of packaging and workflow. Reviewing the packaging measures such as boxes and bubble wraps used can reduce wastage very drastically.

7.     Mobile technologies

Warehouse applications online have been used to resolve multiple issues revolving around warehouses. Staff productivity, theft detection, delivery, and task tracking, better turnaround times are a few of the parameters.

Remember, the yield is always better if you work smarter. Eliminate warehouse wastes and optimize your work centre.