In any business, using a warehouse becomes a prerequisite. It is the place where raw or produced materials are stored. This serves as the link between production site and logistics department of the company. To keep margins on the higher side, it is necessary to keep warehouse operating costs within control. Without effective planning and deployment the same products stored in the warehouse may spoil, running costs may go up and productivity can be adversely affected.
Consider the tips listed below if reducing warehouse cost is on the agenda:
Slotting and proper storage of materials
Whether the company manufactures garments or FMCG products, the warehouse should be designed in a way such that different products can be stored in appropriate places upon unloading at the dock. Color and number coding can be used to help staff locate specific products stored in the warehouse with minimal delay. This also minimizes time wastage and the prospect of errors. Based on the condition and budget, manual numbering, digital display, or both can be used in this regard.
Ideal storage conditions
Some types of products including medications and foods may need to be stored under a specific atmosphere. Drastic changes in humidity and temperature levels at the warehouse can lead to deterioration in product quality. This can be detrimental for the company eventually. So, the warehouse needs to be equipped with climate control facilities to ensure products can be stored under optimum humidity and temperature levels at all times. This will eventually lead to reduced product wastage.
Augmenting human operations
While human labor and activities will be the main driver of productivity in the warehouse, efforts may be taken to simplify human labor by a margin. By using computer controlled operations, the workload of human operators can be reduced, bringing down running costs. Computerized warehouse operations also reduce the risk of error significantly.
Proper space utilization
With time, the production level is bound to go up in any organization. This may lead to the need of more storage space for both raw materials and manufactured products. However, it is not always necessary to expand the physical size of the warehouse to accommodate more products. By using movable racks and vertical storage units, more products can be stored in the same available space. This also leads to effective material storage and cost reduction.
Using efficient lighting and equipment
Regardless of the type of business operation, using electrical equipment and lighting is mandatory in any warehouse. However, it is possible to cut down on the energy that the lights and other electrical equipment at a warehouse consume. Switching to energy efficient LED lighting in the warehouse is a prudent idea in this regard. In some situations, solar powered lighting can also be set up. The price of such lights based on alternative energy sources are diminishing with time. It is also a good idea to get wiring checked periodically to detect power guzzling equipment or faults in the wiring leading to excess energy consumption.
Using pest control
In warehouses where food grains, beverages and fruits need to be stored in huge amounts, pest invasion can be a serious threat. Apart from insects, vermin invasion cannot be ruled out in those setups either. These warehouses should be equipped with adequate pest prevention measures. From sealed doors and windows to using pest eliminating sprays and fluids, there are a great many approaches to handling potential invaders. Of course, hiring professional pest control services periodically can be of use in such scenarios. This will help prevent product wastage and resultant cost escalation.
Summing it all up
Bringing down operational cost at a warehouse is not as tedious as it sounds. With proper planning and analysis of storage needs, cost saving measures can be deployed and this can help management reduce costs in the long run.