Easy Ways for Warehouses To Reduce Spending
When operating any kind of business, it’s important to keep finances in mind. This is true of all industries, including warehouses. Storage facilities have many opportunities to cut costs and put money back into their pockets. If you manage one of these sites and are looking to make a change, here are some easy ways for warehouses to reduce spending.
Protect Your Inventory
Warehouses waste millions of dollars annually dealing with damaged inventory. Improving your storage practices will decrease risks and keep your products safe from harm. Train employees adequately so that they can use proper techniques when handling goods. It’s also helpful to perform equipment and system maintenance. This way, none of your heavy machines and tools will harm your inventory.
Balance Labor and Automation
Apart from inventory loss, labor accounts for most storage facilities’ annual costs. Keeping a large number of people on the payroll to complete menial tasks costs a fortune and isn’t very efficient. Instead, find a balance between human labor and technology. Investing in automation will free up your staff to perform more complex duties and complete repetitive tasks in record time.
Optimize Your Space
If your warehouse stores a significant amount of product, renting enough space can get expensive quickly. Instead of spending an excessive amount of money on square footage, optimize your facility so that you can do more with less. Some space optimization methods include:
Creating narrow isles to fit more racks
Installing a mezzanine
Investing in vertical storage
Focus on Sustainability
The easiest way for warehouses to reduce spending is to focus on sustainability. Reduce your monthly utility bills by switching to LED lights and using smart HVAC technology to control temperatures. Implement recycling initiatives to reuse packing and shipping supplies instead of purchasing new materials. You can also participate in pallet buy-back programs to acquire gently-used pallets instead of spending money on newer models.
Those in leadership positions have a responsibility to improve their workplace conditions. Saving money on warehouse expenses will allow you to reinvest in your business. By using these tips, you’ll be on your way to making some impactful changes to your facility and daily operations.