How to reduce warehouse storage cost?
Warehouse is a place where company store material and keep inventory, it’s very important area to reduce operation cost, but seldom put into important area by companies. Some company pay attention to reduce inventory and improve cargo flow, but they don’t know how to do it. Thus we introduce some methods for your reference:
1. Reduce stock. Reduce stock means increase stock turnover and money flow. This is very important for company finance. Once market changed, the warehouse strategy can change accordingly very quickly. First, count the quantity and make sure the actual stock quantity.
Then adjust stock qty according to safety stock quantity. Afterwards warehouse manager should discuss stock requirement with purchase manager and confirm a suitable stock level. This can save money for stock.
2. Check stock everyday and help management know better for stock level. It’s obviously that correct decision can be only made base on correct stock level. Logistic department should know which items flow fast and which items flow slowly. For the items flow very slowly, we should work out the reason and suggest solution for it.
For the items already out of market, we should deal with it in time to save warehouse cost and money cost.
3. Adjust warehouse layout, increase storage capacity and logistic speed. This is very important especially these days land cost is very high. Warehouse manager should discuss with pallet racking and warehouse shelving supplier carefully for this issue. Warehouse manager should choose a suitable racking solution according to the requirement of company
4. Work out standard operation time for warehouse pick up, load/unload job and labeling system.
This can help measure whether logistic work is reasonable and handled properly.
As a professional racking & shelving supplier, T Racking help a lot of customers in different industries to maximum storage capacity and make best use of warehouse, T Racking export a lot of pallet racking and longspan shelving project to all over the world. we are glad to offer you a detail solution base on detail RFQ.