Despatch Cloud Blog

5 tips to save money in your warehouse
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Cost control has never been more important to companies and maintaining the most efficient processes in warehouses is an important aspect to this. Read our 5 top tips to save money in your warehouse operation.

1.  Efficient Warehouse Picking

Staff are expensive, factor in not just their hourly pay, but social contributions such as national insurance in the United Kingdom, pensions, holidays and you will see the true cost of your staff. They are an expensive resource and the chief cost saving measure any warehouse can achieve is ensure the staff are working efficiently.

Use efficient picking methods, picking items in sequence is only efficient in a small warehouse, A warehouse of any larger size requires the ability to pick far more efficiently using other methods. Tote picking involves picking multiple orders at once, using a trolley or pallet with multiple boxes. Bulk and Sort involves the picking of many items for multiple orders and sorting them out before packing. Using an effective Warehouse Management system can help with this.

2. Reduce Warehouse errors and damaged goods

Staff training is a keyway to reduce expensive errors. Staff who know how to handle the items they are picking, will know how to avoid damaging them. Miss picks are at best waste of time and at worst are expense to rectify. As well as the risk of loss you need to remember that it will put your stock accuracy out, resulting in over selling or under selling. Ensuring that all products are barcoded with a well thought out goods in procedure will and a method to scan out

3. Optimise Space in your warehouse

Again, you need to factor in not just rent or financing costs but the others costs like land taxes and rates. Ensuring that you use every square meter efficiently not so much savings costs but increasing your ability to turn over revenue. Key to this is accurate records which are held in near Realtime. Being able to accurately identify warehouse locations with low stock levels which can be consolidated and then being efficiently moved. 

4. Leverage technology to lower warehouse costs

A small scale warehouse can operate efficiently using basically methods. But as warehouses scale, it calls for different methods to retain optimal efficiency.

One of the most obvious is paper and printing. Printing is surprisingly expensive. There is simply no reason why a medium or large scale enterprise should be using paper pick lists and

5. Track everything

Having better data, means you can use it to create better information and thus lead to better decision making. A good warehouse management system, which tracks all sorts of data means you have access to the right information.

Key metrics to track

  • Warehouse productivity – With so many operations in a warehouse this would combine as many as practically possible, such as pick rates, distance travelled, time taken to do physical inventory, rate at which items are put away
  • Stock accuracy – Ensuring that the stock quantities are accurate are vital to stop over and underselling, both of which eat into your profits. Tracking the accuracy of your stock gives you control over this and may identify shrinkage (industry terms for loss due to errors or theft). 
  • Order Pick error rate – The number of picks with errors and who makes the most errors, going back to staff training and management, knowing who needs to improve is important. 

How to make your warehouse paperless?

Eliminating paper is a great way to reduce costs. At Despatch Cloud we have an Android App, not only can you load your orders on there, but you can choose the most efficient picking option for your warehouse operation. From straight forward in sequence picking, picking multiple orders into totes and bulk and sort picking. 

Scanning each item’s barcode into the app avoids mistakes in picking and the App will alert the user to mistakes. 

Then moving stock around, all you need is the device and App, scan the items out from one warehouse location, move it and them scan into the next location. Ensuring that keeping your warehouse is optimised is a quick and efficient job. 

Our software can save your company money, so come and talk to us today and see how we can save your warehouse operation time and money.