Finding ways to tweak your processes in order to reduce your costs will always help your bottom line. We have listed a few ideas on how to reduce warehousing costs

1. Eliminate unnecessary steps

Every time an employee touches an item it decreases your bottom line. A good warehouse management system will help you cut down on unneeded touches. Look at your processes with a critical eye to spot where you may be duplicating or retracing steps.

2. Reduce inventory with cross-docking

Cross-docking bypasses the put away process and sends the product almost directly to outgoing carriers. It eliminates steps and doesn’t take unnecessary floor space to store the product.

3. Real time tracking

Do you know where your entire inventory is? How much of each item do you have on hand? Do you have the same item in more than one location or multiple warehouses? Your WMS should help you locate each item in your warehouse(s) in real time.

4. RF tracking and/or bar coding

These help you track your inventory from door to door and ensures efficient fulfillment. Track orders and verify their accuracy. Real time visibility will speed processes and eliminate the need for paperwork.

5. Use the right sized storage configuration

Inefficient use of space can increase costs and waste money on additional warehouse space that you don’t need. Your WMS can help you efficiently store your inventory that will reduce the time spent and increase the accuracy of your picking process.

6. Have enough inventory available to ensure pickers are productive

Your pickers waste time and money walking around, looking for inventory or waiting for restocking. Keep in mind product velocity and cube size when assigning picking slots. Keep enough inventory in stock and keep tabs on fast moving products. 

7. Manage returns

Save big money with managing returns properly. Your WMS should enable you to receive, inspect and repackage returns before sending them back into your warehouse. 

8. Keep your warehouse clean and organized

Organization and cleanliness means a lot to your overall productivity. Keep workplaces free of debris and dispose of outdated items or to store them in an out of the way location. That makes picking easier and more efficient and increases accuracy.

9. Manage your workforce

Make sure every employee is trained well and can handle multiple tasks. Create a work environment with incentives and keep morale high at all times. 

10. Make error reduction a priority

Keep supervisors on the floor and task them with optimizing the workflow. Your supervisors are your front line and can spot errors and correct them before they become habit.

Reducing Warehousing Costs

Now that you’ve read our tips to reduce your warehousing costs, it’s time to pick one to get started!

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