Among all the costs and requirements that you could encounter, warehouse order fulfilment is one of the most common. If you do not feel your orders in check, things can run out of control. We are faced with daily online shopping creating constant demands for improved shipping times. As a result, it feels like a lot of the expense for shipping and fulfilling orders is on the seller.
How to Reduce Warehouse Fulfilment Costs
On the surface, this just seems like a typical part of business procedures these days. However, there are many things that your warehouse can do to better manage shipping costs. These are things that can also help you keep everything under control while you pass the savings onto your customers. Here we have the four easy ways to manage the costs of order fulfilment in the warehouse.
Audit Existing Costs
Any major changes to your business should be first accompanied by a close and careful examination of where you currently stand. You must also think about what effect these changes may have. Warehouse order fulfilment costs are no exception to this. There are a few ways to measure these metrics. However, you must generally look at how much it costs to keep these goods stored, as well as how much it costs to pick these good up. You should also look at your total monthly costs for storing items and work from there.
Cut Packing Expenses
Packaging materials are one of the areas where you can find expenses piling up fast. While spending lots on the best packaging goods may seem like a good idea for customer service, it can actually hike up expenses. This can cause problems later on. Identify where you can cut back on material costs without sacrificing product safety. It is a good idea to cut back on the materials used inside the package without skimping too much on the outside. The outside is the area that will receive a bigger hit in transit.
Optimise Inventory Management
While much of the focus is put on the actual packaging of your shipments, as well as the costs of mailing them, the actual labour costs associated with storing and retrieving these items will also factor. Shorter shipping times and reducing the costs of shipping means these items must be correctly stored and quickly retrieved. This will reduce handling times, further benefiting your ability to ship items quickly. Make sure you carefully arrange your industrial shelves and pallet racks. This is so that you can store them in a way that makes them easy to retrieve and safe to handle. Don’t forget to label everything as you need. Consider “kitting” items together if they are commonly purchased as a bundle to further reduce handling time.
Talk to Monarch Shelving Ltd
No matter what you do to keep the costs down, you need the right storage. If you would like to know more about how second-hand pallet racking, shelving or any other storage system can boost business, then get in touch. Monarch Shelving Ltd is here to ensure you have the desired storage solutions to keep your warehouse running as smooth and fast as possible.
