There are so many things to think about when it comes to how you can reduce warehouse costs and improve efficiency. There are so many areas to cover to ensure that your warehouse is working as well as it should be, meaning it will be a big task to make necessary changes. However, the return on investment will certainly be rewarding.
As you are aware (if not, you really should be) there have been new changes to the national minimum wage which will affect every business in the UK. As businesses take on these changes, the cost of labour is increasing. Of course, our hard-working staff are certainly worth the money they are being paid, but it is important to produce the income to keep the team going. So, if you want to achieve this, you need to look at ways to gain more productivity in each hour of labour, possibly through incentive pay.
The most important balance sheet asset in the majority of multichannel businesses is inventory. Having control of location and stock placement means you can track your products during fulfilment process. Here we have some pointer to reduce warehouse costs and improve efficiency. They should help you think about the current warehouse operation system you have in place and ensure you are getting the most from your warehouse investments.
Control your Inbound and Outbound Freight
If you want to prevent profit erosion, this needs to be your main priority. You need to look for guidance from an expert or consultant in this area who will assist you to big competitively and help you negotiate carrier agreements, while at the same time keeping good relationships already in place. By getting the best deals available, you are one your way to reducing warehouse costs.
Consider Incentive Pay
A great way to improve the performance of your staff is to consider them and their needs. You can boost their productivity by encouraging them with incentive pay. Think about where you have the most staff and go from there.
Think about your processes and simplify them
If you think that your production flow is no longer proving to be as effective as it once was, it might be time to make some changes. Step back for a moment and have a look at your existing physical processes with fresh eyes. Think about each step that is involved in product flow and order fulfilment and make some changes. Less steps means less touches and lower costs!
Embrace your Frontline Managers
Your best managers are there to provide you with peace of mind. They know how to execute, they can manage all aspect of fulfilment and they are understanding. They are aware of worker morale and think deeply about the quality of customer order fulfilment. Managers are extremely important, so don’t take them for granted and appreciate what they do.
Look at your Inbound Supply Chain
How you handle your inbound supply chain can have a big impact on your business output. It is important to develop a clear strategy that functions well. Push value-added services up the supply chain and complete a Sales and Operating planning session.
Be sure that your strategy is clearly documented and is acknowledged throughout the entire company. Any customer dissatisfaction should be addressed to prevent the same issue from occurring in the future. Your strategy should meet customer needs and should help the business as it evolves over time. What’s more, it should include the ability to make any necessary adjustments as quickly as possible.
Get the Most out of Advanced Technology
Voice-enabled technology can be applied to all departments and processes within your warehouse. It is something that is used by many as a cost-saving solution. The systems you could invest in are often easy and quick to install and do not need any extra IT or modifications. There is no need for in-depth training for these systems either. This means you will receive a better return on investment for this use of technology. However, it is important to ensure that you undertake due diligence as many applications differ from one another.
Is Third Party Fulfilment an Option?
There are many businesses who believe that they can do their own fulfilment cheaper and easier without the help of a third party. Don’t expect a third party to understand and be as passionate about what you are offering like your own employees would, as this could impact the service your clients receive.
However, going with a third party might be something to consider as it means that capital isn’t tied up in new facilities and systems. For smaller companies, third party fulfilment gives the business the opportunity to look in areas of the business that may be overlooked.
Remember
Remember, when you reduce warehouse costs to improve efficiency, keep looking at your processes and make improvements whenever necessary. This is to ensure you will get the absolute maximum from your warehouse operation.
Get in Touch with Monarch shelving Ltd
For an efficient warehouse, you need the right warehouse racking and shelving to ensure everything can run as smoothly as possible. Monarch Shelving Ltd are here for all your warehouse needs and can offer new or used racking options to suit your budget. Get in touch for more information.
