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5 Easy Ways to Reduce Warehouse Upkeep Costs

Most businesses work on tight margins and just like the rest, warehouse operators are always looking out for ways to reduce operating costs without sacrificing service, quality, and employee welfare.

What are the best ways to reduce operating costs? Here are five ideas that can help you reduce the operating costs for your warehouse operations and help you to generate more revenue and reduce overhead.

Most find it challenging to stabilize a good amount of profit because of how costly it is to maintain inventory and the warehouse. Productivity and efficiency can decrease significantly due to unforeseen factors that may come up during warehouse operations.

Moreover, warehouse costs affect the largest percentage in an overall logistics cost so warehouse improvements and efficiencies need to be managed with utmost diligence.

Here are some ways to help reduce warehouse maintenance costs:

1. Reduce Damages, Delays, and Errors

Operating costs are necessary to any business, thus inefficiencies in the day to day operations must be identified from the onset to help reduce unforeseen costs. Having a functional warehouse design saves you a lot of time and resources too.

Consider examining and plotting your warehouse while strategizing where to drop and load orders or products and goods. This can significantly help you in loading, unloading, and delivering goods accurately and on time. Not only that but it’s also time efficient. Instead of spending too much time on orders, your workers can focus on other tasks that need more deep and critical thinking. Guardrails, bollards, and wide lanes are also some of the things that could help reduce damage and delays.

Plus, maximizing and optimizing warehouse space also reduces damages and delays. Placing products and goods on the right places and having a clear sense of “floorplan” or vision where these goods are located saves you a lot of time whenever you load and unload. In addition, aisles are necessary when navigating through the entire space; therefore, aisles must always be kept spacious to reduce product damage and for safety reasons as well.

2. Save Energy

Taking into consideration your warehouse operating hours, say 8 hours a day and five days a week. Try to record the trend on your power consumption monthly and determine how you can make it cost-efficient. Energy consumption should be one of the most significant factors in keeping operational costs at a minimum.

If you want to save energy, consider getting LED lights. Warehouse spaces and industrial environments are starting to bring in LED lights because of how cost-efficient it is. Although LED lights are highly-priced compared to metal-halide and fluorescent lamps, it still uses less energy that can help you save expenses eventually. In addition, LED lights can also be dimmed and customized according to your preference.

Moreover, consider making use of all the natural light your warehouse can get. Natural lighting is known to be one of the simplest but most effective ways to conserve energy. Not only that, but natural lighting is believed to increase human work productivity. When you use natural light, you’re hitting two birds with one stone: conserving energy and improving work productivity in your site.

3.Pest Control

Though pests are inevitable, it is still best practice to keep them at bay. Pests cause significant damage not only on your goods but on the entire sanitation of the warehouse as well. So, make sure you invest in pest control at the onset and have a pest control maintenance scheduled as much as possible.

Coming up with a pest control plan is crucial when you want your warehouse to be pest-free. This does not only mean hiring a pest control team right away. Instead, take the initiative to examine or inspect the whole warehouse where pests are most likely to breed. It’s important that you consider checking all ventilation shafts are secure. Here at LS Commercial Real Estate Services, Inc., our warehouse spaces for lease we help reduce your expenses because we ensure our warehouses are kept pest free and clean before turning it over to the clients.

4. Encourage Employee Suggestions

Employees are the heart of the day to day operations, and to be mindful of their insights and suggestions during the entire warehousing process is part of the improvement process. Start encouraging employees to suggest ways on how the company can be more cost efficient without compromising quality.

Employee feedback is essential, especially in the improvement and productivity of the business. Not only that, but you also get to maximize work efficiency. By hearing them out, you are making their opinions matter and feel valued. Employees are more inspired and encouraged to work, boosting morale, and reducing employee turnover.

5. Be on the Lookout and Embrace New Technologies

You might be getting too comfortable with your systems or technologies that you’ve been using for a while, so there’s no harm in researching new technologies that are more efficient and within the company’s budget. Maybe it’s time for you to seek new, energy-efficient systems rather than stick with old ones that is costlier to operate and maintain.

Most new technologies have already been introduced to warehouses to improve work efficiency and productivity. An example of this innovation are warehouse drones. Warehouse drones are specifically-made drones to help increase work accuracy within warehouse spaces. These drones have built-in sensors to help keep track of stocks or inventory and notify workers when stocks are running low.

New technologies like this can significantly help in reducing warehouse damages, delays, and costs, and improve work productivity and accuracy.

Not only that but also start re-evaluating your current suppliers and compare their bids along with other proposals. By doing this, you can find out whether there are cheaper but more efficient alternatives or options to your current stocks. Don’t hesitate on trying and testing out new shares from new suppliers because these might be of great help in cutting costs as well.

Wrapping Up

None of these steps will work if you do not regularly make room for improvement. Continuous improvement must happen within the business to ensure that there are reduced wastes and errors and more controlled processes and expenses. Through this, you are making ways for you to reduce maintenance costs in your warehouse effectively.

As you continue to be on the lookout for changes within your warehouse to help reduce damages and cut expenses, each of these changes will most likely lead you to further and better alternatives, improvements, and other ways to cut costs in related areas.

If you plan on investing in a warehouse space, there’s a good deal of warehouse spaces for lease in Kansas City, where you can choose from different types of warehouse spaces in several locations, according to your preference. If you’re interested, feel free to sign up and inquire now!

LS Commercial Real Estate Services, Inc.