A well-planned business strategy is crucial in maximising profits for any business. For companies that provide a wide array of products, a major part of that strategy involves streamlining inventory systems to increase warehouse productivity. From employing efficient archive storage shelving, all the way to tracking retail products in a storage facility, improving your inventory system significantly helps reduce operational costs. But how do companies run an efficient and cost-effective storage system? Here are five ways your business can improve its warehouse operations and lower costs.
Optimise Product Storage to Reduce Space
Renting larger property for storing products obviously costs more than renting smaller property. If you change your storage procedures, you can find more effective ways to optimise storage without the need for a larger area. Racking storage is a great option that helps maximise space, increasing the allowed square footage for pallet racks. Consider a customised racking system equipped to store the dimensions of your load. Most racking systems are narrow and tall, enabling you to stack horizontal rows with multiple levels. Moreover, improving storage organisation gives the facility space for clear aisles, which helps workers and machinery navigate the warehouse with ease.
Eliminate Slow Turnover by Simplifying Your Operational Process
Review how your product flow is employed throughout your operations. If your business has been distributing products for a few years, you might have added new procedures over existing ones. Are these steps absolutely necessary, and can you do away with them? If not, think of a better way to incorporate them in your operational flow. Whether it involves third-party inspections or signatures from frontline managers, your goal is to make the process smoother and much faster. Once you find out which parts you can eliminate or change entirely, this will help simplify operational flow. A faster turnover time will also help lower warehouse costs.
Provide Focused Employee Training to Streamline Operations
An efficient warehouse system is only as good as the people who manage it. Make it a priority to conduct thorough employee training that will help them understand how to run the warehouse facility on schedule. This includes handling inbound shipment, archive storage shelving, as well as how to negotiate carrier arrangements. Moreover, focus on training that will teach employees how to use technology for improving the warehouse facility. For instance, you can install a voice-directed picking system for racks or RFID portals to help track and streamline operations more effectively. These tools will help you find misplaced inventory faster, which saves precious time and labour costs.
Cut Costs by Buying Used Containers Instead
To save more, consider purchasing used containers for warehouse storage. Choosing used containers for perishable and non-perishable warehouse goods allows you to save up to 40% on costs. Just make sure to contact a reputable supplier for used containers. Established vendors always inspect and clean containers to ensure quality. Whether you need pallet racks, wire baskets, or metal bins, specify the exact container you need. Moreover, be sure to handle the containers properly so that you can use them longer.
Reduce Costs Associated with Energy Bills
Apart from streamlining your warehouse operations, your business will save a lot by reducing energy-associated costs. There are two major ways to save energy: first, improve your warehouse insulation by repairing cracks and waterproofing your building, and second, install an automatic lighting system that allows you to strictly program when the power turns off. You can also cut costs by installing windows in strategic points to increase natural light in the warehouse. This will help reduce heating costs during winter operations.
Your business can achieve smooth operations if you’re constantly willing to review and improve the way it works. Take note of these pointers so that you know what factors to observe and change. Make sure to optimise the way you store products to reduce space, and simplify your process to eliminate delays. It’s also important to provide thorough employee training focused on using technology to streamline your operations. To further lower costs, consider buying used containers, and make sure to reduce energy costs in your storage facility. We know that each warehouse is different, and some of these ideas may not always work for you.