Most business owners consider warehouse operating costs to be losses because the warehouse does not generate any revenue. If you consider your warehouse to be lost revenue, then it makes sense to do everything you can to reduce those losses. There are several methods a business owner can use to bring down the cost of operating their warehouse and still run a profitable business.
Stock The Shelves Intelligently
One of the biggest assets that is lost in a warehouse is time. The longer it takes to fill orders, the slower your company can put out product that generates income. When you stock your shelves more intelligently, you reduce the time spent picking and packing each order. For example, move the highest selling products closer to the packaging area to make sure they are ready to go as soon as the packing slip prints.
The only way to keep warehousing costs down is to know where all of your product is at all times. The best way to organize an entire warehouse is to utilize a computerized warehouse barcode system. You can customize your barcode system to help organize your products in any way you want, and you can track products instantly to make sure that your purchasing department knows when to place orders and avoid holding onto stock you don’t need.
Hire Quality Control Experts
Most companies avoid hiring quality control experts for their warehouses because they consider quality control to be a waste of money. But if picking and packing errors are costing your company thousands of dollars a month, then it makes good sense to cut those losses by bringing in an expert.
Do Inventory Regularly
It is common for company owners to avoid doing a manual inventory twice a year after installing a computerized inventory system because they expect the numbers to always match up. Employee theft and stocking issues can still cause inventory problems that can only be addressed by the bi-annual manual inventory.
If you believe that your warehouse is always operating at a loss, then it is a good idea to limit those losses as much as possible. There are several ways you can create more efficiency in your warehouse and prevent spending too much money on an operation that does not bring in any revenue of its own.