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5 Creative & Effective Ways to Reduce Warehouse Costs

12.19.2017 | By Todd LaFond | 2 min. read

Any good warehouse manager is always looking for ways to save money. Keep reading to learn about five easy-to-implement, effective ways to reduce your warehouse costs.

1.) Cross-Train Employees

The holidays are tricky. As a warehouse manager, you’re simultaneously dealing with an increased workload and lots of time-off requests. To make the most of the staff you have on hand at any given time, cross-train employees so they can perform multiple job roles. This will allow you to shift workers to the busiest departments as needed.

2.) Use Smart Tools & Software

Poor inventory management increases warehouse costs. How? Undercounted inventory can lead to backorders, resulting in increased shipping costs due to off-schedule orders and deliveries. Over ordering leads to overstocked product, which results in warehouse waste. So how do you fix this issue?

Smart tools and software – such as warehouse management systems (WMS), handheld RFID scanners, and beacons – can help you simplify inventory management, improve accuracy, and reduce costly waste.

3.) Focus on Employee Retention

Overworked employees who feel their productivity isn’t recognized will move to other companies. That means you’ll be forced to spend money hiring and training new employees.

One way to reduce warehouse costs is to boost employee retention. Focus on increasing overall job satisfaction so employees will want to stay with your company. Make sure your workers are getting necessary rest breaks, reward them with bonuses, and promote stellar workers.

4.) Take Advantage of Cross-Docking

Cross-docking involves not allowing shipments from the manufacturer to sit in the warehouse for long. When done effectively, inbound shipments are immediately moved to the loading dock and sent as outbound deliveries. This process reduces material handling costs as the items don’t have to be sorted, picked, packaged, and re-shipped.

5.) Optimize Packaging

Cut cost corners by cutting back on packaging. Use just enough packaging to keep your products secure for transport without going overboard. You can also cut costs by using pallets as a shipping tool. Well-packed pallet shipments save you money, as you’re able to fit more product into a stack and take up less space on a truck.

Use these five creative warehouse cost-cutting tips and enjoy a profitable new year!

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