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Midland Steel Equipment Ltd
 
Midland Steel Equipment Ltd
 
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Tips for Reducing Warehousing Costs

Warehouse management is a complex process. With so many moving parts to take care of and inventory to manage, the costs can escalate in no time. Although this rings true for any business, there are some small changes you can bring to your warehouse to reduce costs.

And it does not involve huge investments like converting the entire warehouse to run on robots or doing something like laying off your employees. Instead, these are practical steps you could take to curb costs and reduce overheads such as using the right industrial steel shelving. Let’s take a look at four ways to reduce your warehousing costs.

Reduce Space and Optimise Storage

Effective space management is one of the biggest worries of managing a warehouse. You could be facing a range of issues, from ineffectively used shelving to renting a warehouse that’s too big for your inventory.

The next time you are taking an inventory count, assess how everything is laid out. Are the aisleways wide enough for traffic to move through smoothly? Do you need to invest in additional industrial steel shelving to reduce labour time or to handle orders effectively? Is there a vacant spot in the warehouse that you could rent out?

Take a good look around and look for ways to maximise the available space to help improve productivity whilst avoiding excess costs.

Reorganise Products

Warehousing costs could be measured in terms of the financial impact as well as in terms of the time it takes to finish tasks such as restocking products or shipping an order.

No matter the industry you are in, some products are bound to be more popular than others. Your business can benefit tremendously by rearranging products based on sales figures. If a product is selling like hot cakes, consider relocating these items to the front of the shelves. This will increase retrieval time whilst reducing labour costs.

Use Cross-Docking

A cross-docking terminal can help transfer products directly to customers by cutting out the middleman. It’s a highly efficient model. Incoming inventory are unloaded from the vehicles and immediately transferred to outbound vehicles headed for delivery.

Cross-docking can help save time and money on storage, product management, product transference, shipping and delivering as well as labour costs.

Make the Most of Racking

Steel racking is an efficient way to store inventory and optimise storage space. Racking best practices can help increase the square footage for inventory pallets. Tall and narrow is the most popular form of racking. Look for the most appropriate and safe system to rack your inventory.

Need Industrial Steel Shelving Solutions?

At Midland Steel and Equipment, we manufacture high-quality industrial steel shelving products in a range of options and sizes. When you are looking to cut costs in your warehouse, be sure to invest in quality shelving solutions. Talk to us today to discuss your requirements. Our friendly team is on hand to assist you every step of the way.

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