Five ways to streamline warehouse operations

THE LATEST reports from the UK Warehousing Association show that running a warehouse is becoming increasingly difficult, mainly due to rising labour costs, energy prices and supply chain disruptions.

That’s why experts at bespoke material and handling equipment manufacturer, BlueTrolley has detailed five ways to reduce these costs and optimise the efficiency of any warehouse operation.

1. Invest in Energy-Efficient Upgrades

Energy bills can be a major expense for warehouses. Implementing energy-efficient upgrades like LED lighting, improved insulation, and automated lighting systems can lead to substantial cost savings over time. For example, switching to LED lighting can reduce energy consumption for lighting by up to 80%. Every kilowatt saved translates to more profit in your pocket.

2. Reduce, Reuse, Recycle

Sustainability isn't just good for the planet, it's good for your wallet. Look for ways to recycle and reuse packaging materials whenever possible. Explore options like returnable shipping containers or investing in durable, reusable packaging for internal operations. Not only will you lessen your environmental footprint, but you'll also reduce waste disposal costs.

3. Optimise Inventory Levels for Maximum Efficiency

Carrying excess inventory ties up valuable capital and increases storage costs. Implementing a robust inventory management system allows you to maintain optimal stock levels, preventing overstocking and ensuring you have the supplies needed to meet demand. This reduces storage space requirements and frees up capital for other investments. Studies have shown that effective inventory management can reduce inventory holding costs by 10-20%.

4. Focus on Staff Retention 

Employee turnover is expensive. Hiring and training new staff takes time and resources. You can significantly reduce turnover and associated costs by fostering a positive work environment that prioritises employee well-being and offers competitive compensation and benefits. The cost of replacing an employee can range from one-half to two times the employee's annual salary. A happy and experienced workforce is a key factor in maintaining efficient operations.

5. Embrace Automation

Implementing warehouse automation technologies, such as automated guided vehicles (AGVs), conveyor systems, and warehouse management systems (WMS), can significantly improve efficiency and reduce labour costs. These technologies can streamline processes like picking, packing, and shipping, leading to faster order fulfilment (increasing picking rates up to 50%) and reducing the number of errors.

"In a challenging economic climate, the cost of running a warehouse and manufacturing goods has naturally risen," said a spokesperson for BlueTrolley.

"Reducing costs has never been so critical to businesses surviving in a difficult landscape. We hope our insights prove useful for those with high running expenses and help ease the burden of financial pressures business owners constantly experience."

For more information:

bluetrolley.com

Tel: 0300 303 2549