There’s no denying that running a warehouse is a costly operation. From your daily operations to your staff, there are a seemingly infinite amount of expenses that quickly add up. While it’s true that many expenses are unavoidable, there are actually quite a few things you can do to cut your costs considerably.
While cost-cutting hacks do require a bit of time and effort, the hardest thing about them is getting the ball rolling, and actually implementing them! But believe us, it’s worth the pay off.
We’ve put together a list of four of the best hacks to slim your budget. Do them, and you’ll soon reap the rewards of your proactiveness and effort.
1. Review Your Processes
One of the most difficult things to do as a warehouse manager is to admit that some processes could do with some improving. It’s certainly a pain to have to overhaul what seem to be fairly adequate processes. But if you’re serious about cost-cutting, this is an area you need to critically attend to. After all, if your warehouse operations aren’t as streamlined as they could be, you’re wasting precious financial resources.
This is why it’s a smart idea to do an audit of your warehouse’s entire processes. This should not only include investigating logistical considerations like how a package travels from point A to point B. It should also include looking into your office operations like accounting procedures and human resources. Once you identify what’s not working optimally, you can make improvements as you see fit.
2. Stop Ordering Unnecessary Supplies and Services
After you conduct your audit, chances are that you’ll have some surprising revelations about the supplies you order and the vendors you work with. Ask yourself: are any unnecessary or excessive? Are there any cost-effective alternatives you can consider instead?
The good news is that there are many things you can do to cost-cut in this area. A handy way to slim your costs is to conduct some research and see if you can get a more competitive price. If you haven’t compared prices in a while, you may be surprised to find that you’re paying substantially over the market price. Another tip is to ask for a discount If you buy in bulk.
Finally, you should see if your loyalty (literally) pays off. If you’ve been a loyal customer for many years with a service provider, ask if they can cut you a deal. You may not get one, but you won’t know unless you ask!
3. Warehouse Automation
Warehouse automation has been a much talked about topic in the warehouse industry, with good reason. Automating your warehouse operations will not only make your warehouse run smoother, but it will also lead to greater accuracy. Moreover, it will shave off hundreds to thousands off your budget.
While it sounds too good to be true, many warehouses have already leveraged the cost-saving benefits warehouse automation offers. Some examples of warehouse automation include picking automation, barcode labels and scanning automation, and automated vehicles. It’s an incredibly exciting - and profitable - innovation to look into, so we suggest that you dig a bit deeper into warehouse automation if you’d like to reduce your costs for this year.
4. Take Care of Your Workers
This tip isn’t about the items and processes that make up your warehouse. Rather, it’s about the very people who help keep it running - your workers! One of the best ways to streamline your warehouse costs is to take care of your employees.
It’s easy to get caught up in the drive for greater productivity, but at what expense? Your employees should obviously work in an efficient manner, but making them work to their limits all the time will lead to greater inefficiency.
Burnout is a real thing, and it can impact your employees’ mental, physical, and emotional health. Working your workers too hard will lead to a greater number sick days, which means there will be a loss in productivity and output and essentially, your bottom line. Being a good employer involves numerous considerations, including creating a positive company culture and being a good leader. So hop to it, and start making a work environment that is productive and positive - it will benefit your employees, and your budget too!