Warehouse costs can quickly add up– you’ve got workers to pay, machines that use gas or electricity, heating/cooling equipment and plenty more expenses. Forklifts aren’t free. Someone has to manage the place. Even something like waste management services can cost quite a bit.
So, how can you reduce warehouse costs?
Optimize Your Storage Locations
First, optimize storage space in such a way that space isn’t wasted. You can use tall and narrow storage racks, and use forklifts that fit well within the aisle dimensions.
Use Cross Docking Services
Next, consider using cross docking whereas you transfer products from the supplier to the customer without long-term storage– this saves time and money.
Invest in the Right Programs
Thirdly, invest in recycling programs such that you’re recycling as much waste as possible– compacting it when appropriate to save on the need for a lot of pick-ups during the week. Meanwhile, consider buying used containers in good condition in order to save some money.
Invest in the Right Workers
Also, rather than always try to find new hires, do something special to help retain the employees you already have– make sure they know they’re valued by giving them recognition and special perks as they prove valuable to the company. Consider offering incentives to maximize productivity.
Make Your Warehouse More Energy Efficient
Consider changing your warehouse’s lighting and insulation so that it’s more up-to-date and energy efficient. You could be wasting lots of money on heating and cooling if you’ve got a leaky roof, holes in walls and/or old-fashioned lights that suck up a whole lot of electricity.
Use Technology to Your Advantage
Finally, reduce warehouse costs using modern technology such as RFID (radio frequency identification) to identify and track containers and/or voice-directed picking systems which only need a user’s voice rather than both their hands.
Need to find warehousing space for your products? Call Affiliated Warehouse Companies at 732-739-2323 for more information. Affiliated Warehouse Companies can connect you with warehouses across North America.
