If you have a business that operates out of a warehouse, you’re probably wondering how you can make it as profitable as possible. Primarily, your business model revolves around the idea of storing goods and shipping them out to customers. You may have an online store where people can place orders, then your warehouse team gets the right stuff and it’s sent out.
So, how can you improve the profitability of a warehouse? There are a few interesting ideas and concepts, and here are three of the best to try:
Rent out some warehouse space
Are you making the most out of your warehouse space? If you’re leaving shelves unoccupied because you don’t have anywhere near as much stock to fill them, then you’re basically losing money.
Many small businesses start off like this as they rent a warehouse for the long term. In the future, you may increase your stock and be able to fill up more of the warehouse. For now, you can boost profitability by renting this space out to other small businesses. Let them pay you to keep their goods in your warehouse.
Smaller companies have an affordable place to store and sort their goods, and you get some extra money on the side for doing pretty much nothing.
Improve the warehouse layout
You need to have a productive warehouse layout to make it as profitable as can be. This includes using clever things like a warehouse racking system and a one-way movement system throughout the place.
Why is this beneficial? Well, it means that you can find goods far quicker than ever before. Time isn’t wasted, so you’re able to process and ship orders at a faster rate. It allows you to reduce delivery times, which can encourage more people to purchase things from you. After all, consumers are greedy and they don’t like waiting!
Another efficiency you can add to your warehouse is the use of mobile platforms. Customizable platforms will work in a variety of settings and give you the extra space and access to your warehouse needs.
Theoretically, if you have local customers, you might be able to process orders so quickly that you can deliver them on the same day. It’s only possible when your warehouse layout is perfect!
Implement warehouse technology
You can easily find a good WMS (Warehouse Management System) that helps you make your warehouse more productive.
The idea of these systems is to use technology to help you figure out the best routes for picking things up, and so on. Some tech can even send out order notices to people on the warehouse floor as soon as they come in, meaning they know exactly where to go and what to pick up.
Warehouse technology can also reduce the chances of shipping the wrong orders by scanning codes to double-check that you’ve picked up the right thing. Wrong orders are draining for your profits as they mean you waste money having to deal with a return.
Evidently, these three ideas will definitely help you improve the way your warehouse operates. As a result, this could set you up to make more money. Focus on using all the technologies available, improve your warehouse layout, and rent out any free space that you’re not currently using.
