The unpredictable economic conditions and increasing inflation has made it imperative for businesses to reduce their operational costs. If you want to stay afloat in this environment, you have to use different strategies to minimize expenses while maximizing profits. As a leading material handling equipment supplier, we serve many warehouses across the US. Here are some tips from our experts to optimize warehouse operational costs.

Reconsider Storage Practices

The major expense in a warehouse is the land cost. By rethinking your current storage practices, you can significantly save your operational costs. The goal should be to store more in less space and make everything easily accessible. For example, aisles offer efficient navigation for workers and machinery. The quicker your staff can locate a product in the warehouse, the sooner they will dispatch it for further processing.

You can reduce the width of inefficient aisles and sort inventory in a way that offers quick access. Racking is another great way of utilizing small spaces for more storage. It optimizes inventory storage in a way that leaves a lot of room in your warehouse.

Minimize Inventory Loss

Each year, warehouses lose billions of dollars worth of inventory due to mishandling, theft, misplacement, or stock damage. Reducing this damage can help you save a considerable amount of money. Here is what you can do to prevent inventory theft or loss.

• Offer extensive training to your workers
• Implement proper handling and storage SOPs at all levels to keep every worker on the same page
• Utilize efficient packaging and storage procedure to avoid unintentional damage
• Use control systems like RFID or VDP to avoid product misplacement
• Hire guards for each entry of the warehouse and also a few guards to check employees and visitors while they enter or leave the warehouse
• Implement a key card system and install high-quality security systems in your warehouse

Automate Your Processes

Labor-related costs put a significant strain on a warehouse’s budget. By automating most of your processes, you can reduce your overhead costs and increase efficiency. For example, air bearings or air pallets make moving objects much easier and reduce the force needed. If you need four people to move an object of 1000 lbs, with air pallets, you’ll require just one or two people to do the same job. This is why you should invest in technology and automation to increase efficiency and reduce costs.

Reduce Absenteeism and Turnover

Employee absenteeism and turnover are two major concerns of any warehouse. They not only delay processes but also increase your expenditures for hiring and training new workers. The major reason behind employee absenteeism and turnover is unsafe working conditions and inadequate compensation. You can retain your workers by offering better pay, work culture, and other incentives. In addition, introducing safe and ergonomic equipment will help employees prevent fatigue, injuries, and other work-related illnesses.

At Hovair Systems, we offer ergonomic equipment moving systems like air lifting bags, air bearings, lift decks, etc. Using these products makes warehousing activities faster and cost-effective, and also prevents fatigue and injuries. Contact us for more details.