Purchasing a warehouse to hold and ship your inventory may seem like an extremely large payment to hand over. At times it can be, but there are always ways to cut down the cost and keep that money in your pocket to go towards other aspects of your business. Just like how you can save some money on your heating or electric bill at home, there are similar tips and tricks for your warehouse.
A lot of your money will go towards the space itself, inventory handling, and administrative responsibilities. This may seem like a lot out of pocket, but there are some ways to help those numbers not look as scary. This may also lead to your warehouse running more efficiently as well.
Get Rid of Unwanted Overstock
Getting rid of any inventory that could be considered “dead” or that is taking up more room than it is utilizing can help in more ways than one. By getting rid of it, you can make room for a product that is actually selling and also put that money that goes making the unnecessary inventory towards the wanted inventory.
One simple way you can get rid of this is by cross-docking these products. That means taking away the need for a middle man and shipping directly to the customer or store that is asking for the product. It can get rid of the inventory faster and even be more time-efficient for the customers themselves.
Utilize Your Space Appropriately
This may take some time and planning, but in the end, it may lead you to get a smaller warehouse than you anticipated or even get to use more of the space within the warehouse for things you couldn’t before. There are many versions of warehouse racking systems that are customizable to your warehouse. You can make your shelves taller and multiple stories, or push together your shelving to make more room, whatever it may be, this could help save space in your warehouse. If you were to choose a narrow and tall racking system, it may lower the square footage you need.
A lot of your paycheck may go into the costs needed for your energy bill. In a warehouse, you are bound to be using a lot of technology and energy and that can be a lot out of your pocket. If you were to look into automated lights, that may take a good chunk away. These lights can be put on timers or even motion sensors to make sure you aren’t having lights on where it is unnecessary. Using the natural light from windows can also help in this.
This may seem a little funky, but it could really help out. For example, in your kitchen, you may have a corkscrew opener that is also a bottle opener and a knife. That is sort of what this means as well. If you have one piece of equipment that can help in multiple areas, that is more cost-efficient than buying multiple different pieces of machinery. Try to get equipment that can be used in more ways than one during a job.
While these are only a few examples, there can be many more creative ways to save costs on your warehouse month to month.