Running a warehouse is one of the businesses that if handled properly can bring in lots of benefits. In order to achieve success from your warehouse, you need to make sure that every aspect of the business is being run in a professional manner. Below are five ways your warehouse can save money.
Having an Operations Plan
This starts with getting employees that are experienced and very well organized when it comes to issues related with receiving, organizing and releasing cargo in the warehouse. This will minimize the occurrence of incidences such as breakages, mix ups and loss of things which eventually leaves you liable. Make sure that all the employees know the goals and expectations that you have for the company. It is also a great idea to hire people that are dedicated and willing to lend an extra hand any time when it is needed. These are the things that will help the warehouse save money and achieve its goals.
Developing Standard Procedures for All Warehouse Operations
Another way in which you can save a lot of money in your warehouse is by developing standard procedures for all operations that you will be running. For instance, let the employees know what they are supposed to do when dealing with things like data entry, receiving, shift truck, delivery of products and packaging, among other operations. This will help you stop losing money when services aren’t delivered in the right way. You can even develop a rating system that tracks the amounts of errors your employees make in order to identify problem areas quickly.
Maintain Proper Conditions for Your Inventory
If you take on clients with goods that must be maintained in a particular climate and environment, be sure your warehouse can provide these conditions. Consider adding a backup generator in case your local electricity goes down, and ensure your building remains in good repair. Losing a huge store of your clients’ goods due to improper building maintenance could cost you your company, or at least put you into a hole financially.
Treating Warehouse Machines Well
Another thing that can help you a lot when it comes to saving money in the warehouse is servicing your machines in the right way. For instance, make sure that any fork lifts or other large machinery are regularly maintained. According to Spencer Graves of Eastern Oil Company, “Simple oil and filter replacements can save a huge amount, as repairs themselves cost much more than a regular checkup.” Do preventative maintenance on all your large machinery to avoid the sky-high costs of major repairs.
Insurance
Warehouses are one of the most hazardous places to work in. In order to avoid having to pay millions in liability suits, you should make sure that you have insurance coverage for all your employees. Regular inspections of the storage systems will help get the problems solved before they lead to loss of stored materials or injuries to the people working there. Business insurance is not a convenience: it is a necessity.
