Since we’re still living in an economic recovery period, it continues to be important to find ways to effectively cut costs in warehouse operations. Many companies are looking for solutions to cost-cutting methods that don’t require investing a ton of money. Explore the guide below that offers resolutions which include restructuring, looking into 3PL companies, and research good practices.
Copy & Paste
One of the cheapest and most effective ways to cut warehouse costs is to observe your hardest workers. Every warehouse has people that work efficiently, consistently, and outperform their colleagues. Take some time out of your day and watch what they do. Talk to them about their practices and learn how they think. Find out what they’re doing and teach it to the other people in the warehouse. Follow up with your staff and make sure that everyone is following through with the improvements and you should see an increase in productivity and accuracy. It’s always a good idea to see how other people do things and work because sometimes there’s a more efficient way of doing things that you didn’t see or think of.
Review Step by Step
Many times we walk into work and just go through the motions without even thinking. Take the time to stop and think about each and every step everyone takes to complete a task. After considering the tasks, you’re likely to find quicker, more efficient ways of doing things. You won’t be able to identify these easy fixes without examining old practices. Don’t fall into the trap that “if it’s not broke, don’t fix it” because you might be flushing money down the drain because of practices that are ancient. When you take the time to examine and understand a process you’re most likely able to decrease productivity a bit that overall will impact your bottom line greatly.
There are several 3PL companies, or third party logistics providers, out there that are in the business of helping companies cut costs. These are great options for companies that are looking to try expanding in new areas without taking on the risk of opening a new distribution center. They are also a great solution to companies that deal with seasonal goods or operations because they allow you to scale down on warehouse space during slower months.
Generally speaking labor is a distribution center’s most expensive part of operation. Too many times we overlook or take for granted our warehouse staff because we forget that they’re the key to smooth, consistent operations. Conduct a labor analysis to reevaluate your operations and the people who perform the tasks. Through this analysis you’ll most likely find people who are performing redundant jobs and ineffective practices. Once these issues are addressed you’ll see an increase in productivity among your staff.
Although there already aren’t enough hours in the day to complete the tasks we have on our “to do” lists we can cut costs through looking internally. If you’re looking to further cut costs it might be ideal for your company to turn to an outside company that can aid in transportation or warehouse efforts. Once you come up with a game plan on how you’re going to cut costs it’s important to make sure things are being followed through on.