3 Cost Effective Warehouse Management Tips

Monday, September 23, 2019, 6:00 AM | Leave Comment

Warehouse managers know and understand the importance of comprehensive economic stability.

As such there are several management strategies warehouse facility managers should consider for cost effective warehouse operations.

3 Cost Effective Warehouse Management Tips

  1. Optimize Storage Space

    Every warehouse facility seeks to optimize existing storage space to reduce the cost of storage of goods. Thus, square footage of warehouse space should be compatible with the daily quantities of goods to be stored. Consider the frequency of movement of goods for shipping and distribution to better organize space.

    However, there is also the savings on space when sizes of pallets, forklifts and racks are taken into consideration.

    Vertical storage is a space saving feature. In addition, the use of direct transportation from supplier to customer will show a significant cost reduction in operations. In warehousing, this is known as logistical cross docking.

  2. Reduce energy costs

    Every warehouse manager knows reducing energy costs make a difference in operational cost-effectiveness.

    In many warehouse facilities, installing windows reduces the need for electric lighting during daylight hours. Where possible, maintain a stable room temperature for goods that do not require refrigeration. This helps reduce heating and cooling costs.

    Another reduction in costs is to have your boiler inspected annually for a full burner service. You want to make sure that the air levels are analyzed in the combustion process and seen as normal. You want to have efficacy because it means savings when reducing waste.

    Conserving water is another cost-effective management tip that includes switching to touch style faucets with auto shut off.

  3. Reduce Daily Operational Functions

    Among daily operational functions in a warehouse facility is the use of equipment. Choose equipment that has dual functions or can do twice the work. For example, instead of relying on a single pallet jack to move pallets, consider a forklift industrial truck that can move twice the number of pallets.

    From a logistical standpoint, monitor warehouse movements of goods so there is no duplication of effort or overlap.

There are many other cost effective warehouse management tips that keep budgets under control. Consider the use of robotic technology for warehouse picking and packing rather than having to hire additional workers.

If there is not one in place, consider upgrading to a warehouse management system that will manage bar coding, inventory management, purchasing, deployment, returns management, forecasting and other daily operational management functions.

Additional cost effective options include maintaining employee retention, equipment training seminars, forklift certification programs and productivity training programs to increase employee productivity. Reduce the cost of shipping and storage containers by purchasing used rather than new.

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