Running a warehouse can be a difficult task, it involves tons of organisation of both people and inventory to keep it running smoothly. A good warehouse manager should always be looking for ways to cut costs without compromising profit. Outlined in this article are our top tips on how to optimise spending within your warehouse.
Proper Organisation of Inventory
Properly organised inventory is essential for any warehouse to run efficiently. You need to be able to easily locate your inventory so when it has been sold it can be packaged and shipped quickly. Accessibility is a bit part of this organisation process; you must make sure your aisles are clear and labelled so your employees can get to the inventory quickly and safely. It also cuts down on the restocking time, which means employees can be more productive and complete more tasks. Additionally, properly organised inventory reduces the space it takes up in the warehouse which ultimately means you can store more products at one time.
Reduce Your Energy Costs
Reducing your energy costs is an easy and simple way to optimise spending within your warehouse. The energy it takes to run a warehouse can be expensive, but there are ways to reduce your overall energy costs without too much hassle. Simple steps like installing automatic lights can help reduce your energy costs as it means when your lights are not in use they do not have to be manually switched off. Another way you can save on energy costs is by ensuring your warehouse has proper insulation. You can lose 25% of heat through the roof of an uninsulated building, so if you don’t take the time to properly insulate your warehouse, the cost to heat the building will significantly increase.
Consider Using Second-Hand Equipment
A lot of the cost that goes into the running of warehouse is spent on equipment and machinery, so where possible, look for ways to reduce that spending. That doesn’t necessarily mean buying less equipment and machinery, it is instead about being more money conscious about the ones you do buy. For example, you may want to consider buying used forklifts instead of buying them brand new. Buying second-hand is a good way to reduce your spending without compromising the quality of your equipment. Check out used equipment from Multy Lift for a good selection of used and refurbished forklifts that are still high quality.
Reduce Your Labour Costs
Reducing your labour costs is another great way to optimise spending within your warehouse. However, cutting labour costs does not mean paying your workers less, instead try and find creative ways to maximise your workers individual potential so more work can be achieved. One example of this is to employ a method called cross docking. Cross docking is a method that involves transferring the product directly from the supplier to customer, effectively removing the need for a middleman. This can be effective for your warehouse as it saves you both time and money and can increase overall productivity. It is beneficial for your customers too, as by cutting out the middleman, you reduce the risk of a problem happening during transit.
Protect Your Warehouse from Theft
Vast amounts of money can be lost in your warehouse through theft, so it is important that you ensure your warehouse has effective security to protect you. It can be challenging preventing theft, therefore it would be worth investing in security equipment that is reliable. Inventory is constantly on the move within a warehouse, which means it can be easy for stock to be stolen. Staff theft and warehouse crime accounted for an estimated £22 billion in losses in the UK over the course of just one year, so it is important you make sure you have an efficient tracking system so stock can always be accounted for.
Embrace Remote Working Where Possible
Obviously when it comes to the manual labour of a warehouse, working from home is not possible. However, many administrative jobs that were previously completed within the office space of a warehouse could now be completed remotely. Remote working has significantly increased since the pandemic, and many businesses are making remote work a permanent feature in order to reduce spending. Take the time to assess the administrative jobs within your warehouse and work out which ones can be completed remotely. By doing this, you can expand your employee net and reach a bigger field of workers than you were previously able to.
When running a warehouse, it is important to always think of ways you can reduce spending without compromising productivity. It can take a while to find out what methods work best for you and your workers, but over time you will recognise what cost-cutting methods are efficient for your warehouse. If you are struggling for inspiration, follow our tips and it may make things a bit easier.