Internal Considerations to Lower Warehouse Operating Costs

19535051 - large and tall full warehouse full of boxes and goodsConsumer demand has been hot and steady, and it’s looking to stay that way. You’ve had to make adjustments to your warehouse to accommodate this demand. As the pressure continues, you may find it extremely difficult to reduce your operating costs. After all, with a robust ecommerce comes an increase in price for everything from supplies to material handling equipment. Take a look at a few of these 3 areas in your warehouse to see if you can shrink some costs:

  1. Replace your forklifts where possible. If your drive motor hours are significantly higher than your lift motor hours, you’re not using the right tool for the job. In this case, using a power tug or pallet jack for horizontal movement will reduce your costs in three ways:
    • Tugs and jacks are not a drain on your resources like forklifts are – resources like energy and labor. You’re saving money and boosting productivity when you can substitute the lift truck.
    • The ongoing maintenance and repair costs are a bare minimum with smaller equipment. The more you run a forklift, the more you’re spending to keep it going. If you’re not using a forklift, you’re not wearing it out, plain and simple.
    • Minimize damage potential to people and product. Forklifts are dangerous machines, and they consistently injure people and destroy inventory.
  1. Be smart about the equipment you do need. Whether it’s a forklift, pallet jack, or any other equipment necessary to your operation, explore your options, and take care of your investments. It might make sense for you to rent or buy used rather than buy new, for example. For all equipment you do own, take diligent care of it, and ensure that all operators are properly and regularly trained to use it.
  1. Ensure your packaging is right for the job. There are numerous ways you could be losing money with packaging. If you’re not using the right size, fill, or material, you could be throwing money away. Additionally, saving products from forklift damage won’t matter if it isn’t protected well enough during shipping. Even your package area setup and protocol for filling boxes factor into how profitable your warehouse is. This is an extremely important area to investigate because most companies are losing money on some aspect of their packaging process.

If you think you might be able to utilize more cost-efficient packaging, but you’re unsure where to start, contact Packnet. We handle all packaging needs, from the high-volume standard to low-volume custom. We carry a variety of materials, and our engineers are experienced at creating solutions of all shapes and sizes. Connect with us at 952-944-9124.