How To Save Money In Your Warehouse

Running a business takes a lot of  coordination, organisation, and resources. Costs are a huge factor in the success of a business, especially where there is a supply chain or warehouse involved. Saving costs is as important as making a profit, so business owners need to be aware of small changes they can make. Implementing a few changes could make a big difference to valuable resources and budgets for the coming years.

Make The Most Of Current Warehouse Space

A warehouse has unlimited potential for a business, but if it’s poorly organised or simply not making enough, it’s a wasted resources. A key place to start is addressing the current layout. Wide aisles are wasting precious space, and if vehicles aren’t needed in a warehouse, then consider making the aisle space smaller to maximise storage units.

Another option is to build storage higher, even an extra layer could accommodate extra stock, in turn improving profits. It is also worthwhile considering how stock is stored, could it come in smaller packaging or even flatpacked to allow for more storage? Companies like Ikea have the right idea when it comes to warehouse management.

Look at The Current Workforce Patterns

A warehouse’s biggest costs will come in the form of labour - and whilst this isn’t always easy to reduce, there are ways of improving output and keeping costs down.

Unless the business operates 24/7 - there is some space to compress work hours. Reducing the amount of shifts within the warehouse will lead to a reduction in costs, as well as a better work life balance for the warehouse staff.

Another area to save money is investing training staff who want to progress within the company. These staff can train new staff in the right processes which will save the business time and money by encouraging efficiency and honesty.

Adopt Technology Which Saves Costs

Where there is a potential problem to be solved, there is likely an invention or a product which will save time and money. A warehouse will see a lot of it’s costs go onto lighting and heating. LED lights are increasingly adopted by councils, charities and schools to save money. So it’s no surprise that many businesses are looking at LED lights to cut rising costs.

LED lights offer many benefits for businesses, from saving up to 90% off energy bills, to improving lighting conditions, to being hardier and reducing maintenance. LED lights are also more environmentally friendly, so businesses are supportive of the environment, but still able to save money.

Consider Improve Insulation / Heat Retention

Warehouses are difficult spaces to heat in winter, and keep cool in summer. There are ways of keeping the space warmer in winter by improving insulation and installing cooling systems which fit in with the business’s needs.