With any new business, the initial set-up can be a really scary prospect, especially in certain industries.

Warehousing, distribution and supply chain management in particular; largely because many different businesses now rely on you to help deliver their products.

As with any new business, you will need to buy equipment, assuming you already have the ‘office’ space and staff available. It’s the synergy of these three elements that will determine how efficient and successful your business will be.

Errors can occur at every stage of the warehousing process; from inventory logging to proper management of space; from staffing levels to managing of the warehouse fleet. However, in this article, we will discuss common mistakes in managing warehouse space. The following are common rookie mistakes that happen over and over again:

1. Are you wasting space?

In a warehouse, space is a premium commodity. Many warehousing newbies already know their way around pallets pallet racking, cantilever, drive-through racking etc., but few of them seem to factor in the space available overhead. While we are not suggesting installing racks that are the height of the Eiffel Tower, but by purchasing taller pallet racks, with more shelves per bay; you use up the space that would have been wasted.

Some of the drawbacks of poor warehouse space management include inefficient storage and retrieval practices. Your business will also incur higher energy bills, as you have a larger environment to heat or cool. By using taller racks, you find that you have more floor space available for other activities.

2. Where are your racks placed?

How many times have you visited a warehouse and seen seemingly random placement of racks and other equipment? Many managers believe that the racks can be stored wherever there is space available. This can be anywhere that seems ‘bare’ at the moment. The problem with this way of thinking is that, most times, the racking starts to get in the way of the warehouse flow.

Racking should be installed at the points where it will be used & where it provides the greatest efficiency. This avoids having to stop other activities just to to gain access to specific materials.

3. New or used?

Would you buy a used Rolls Royce? I’m sure you would jump at the offer. Getting a functioning luxury car at almost half off is a steal. So why do many small business owners insist on spending a lot just to purchase brand new, brand-name equipment? You can buy used equipment in excellent condition.

Another mistake many newbies make is not prioritising their purchases, spending half of your available cash on buying a brand new piece of equipment, and having a smaller balance to buy more vital equipment.

4. Watch out for used equipment.

While we advocate saving money and buying used equipment when possible, it can become a slippery slope really quickly. Some small business owners get into the trap of attempting to buy EVERYTHING used. While it is possible to do so, however it is unwise.

This relates to the complexity of the equipment in use. You can buy used pallets and pallet racking, but when buying a used carousel, you will not want to skimp on the controls. Machines and processes that use automation and require software are best purchased new.

Weigh the benefits of used versus new before prioritising your spending. Knowing when to buy used or new equipment is a vital skill that will help you save money in the long run,.

5. Shave the inches, shave the cost.

When it comes to the final packaging of your product, it pays to keep it simple. Keep size and design elements to a bare minimum, (think Amazon brown box packaging). These can increase efficiency and stretch cost. Critically examine your existing packaging. Can you shave off some millimetres from your packing boxes? Contact your couriers and see if you can get discounts if you change elements of the package.

These are common mistakes that many first-time entrepreneurs in the warehouse industry make. While some errors will definitely occur in the business process, most of them boil down to a lack of pre-planning. By addressing these questions, you are on your way to packaging and shipping as efficiently as possible.

At Monarch Shelving Limited, we don’t claim to have all the answers, but we can help you find cost-effective solutions to most of your warehouse needs.

We can also ensure you don’t fall victim to any warehouse mistakes.

Contact us and view our wide selection of new and used pallets, pallet racking, packing benches, and work stations etc.