A warehouse is expensive to operate and maintain. There are plenty of moving parts that constantly generate costs that can be counterproductive to business growth. Optimising a warehouse and its operations can drastically reduce expenses, leaving resources free to be invested elsewhere or for profit.

Here are five simple ways to reduce costs and improve warehouse operations.

Invest in Employee Training

Labour constitutes the majority of warehouse expenditures. It is also the lifeblood of the warehouse because a warehouse cannot operate without its manager nor its staff. Holding training and development programs have multiple benefits that reflect back to the business.

A recent study shows that employee retention rates are higher in companies that offer training and development programs. Moreover, training warehouse operators on standard procedures reduces mistakes in operations.

Optimise Storage Space

A major expenditure that results from disorganisation is the lack of a proper storage system. The risk of misplacing items or pieces of equipment is high when there are no appropriate places in which they are kept. By simply reorganising a warehouse’s current storage space, owners and operators can easily keep stock of what they have and what they lack. Moreover, an organised warehouse can contribute to the efficiency of operations as less time is spent looking for items and more time is spent accomplishing daily tasks.

Simplify Processes

A warehouse will see a number of procedural changes in the course of its operational lifetime. These changes can be the root of several costly problems down the line. This is because mistakes and delays are more likely to occur when there are different instructions that overlap or contradict each other. Creating and implementing an adaptive workflow system that can integrate these changes has the potential to eliminate redundancies, reduce unnecessary tasks, and streamline operations.

employee checking warehouse inventorySchedule Regular Maintenance

Regular maintenance is a must for any business that makes use of a warehouse. Two of the major factors that contribute to warehouse expenditures are lighting and temperature control.

While some warehouses can take advantage of natural lighting, some don’t have that privilege. Converting to LED lights can lower power bills as they are more energy efficient than fluorescents. Although the initial cost of LED’s is higher, they more than make up for their cost with their energy efficiency. In terms of temperature control, unless the products require a specific temperature setting, most warehouse owners can reduce costs by simply adjusting their thermostat.

Adopt Innovative Solutions

These days there are several technological solutions that can optimise a warehouse. These solutions range from a warehouse management system to automatic loading systems. However, there are also manual skate and track systems and other operations management solutions for businesses that are just starting out.

The important takeaway from these solutions is how they are all aimed at optimising a warehouse in order to reduce costs. While some of them might be costly in the beginning, the amount that can be saved in the long run makes it worth consideration. Furthermore, the advantages these solutions bring to a warehouse, its owner, and its operators far outweigh the minor installation inconveniences that come with them.