A warehouse is a required expense for any factory, distribution center or any other industry which relies on the moving, shipping or storage of physical product as part of their daily operations. Likewise, when dealing with the various facets of industrial manufacturing, a warehouse is essential to the day-to-day operations. When the need for warehouse space is non-negotiable, careful planning can ensure costs don’t skyrocket.
Warehouse Budget Concerns
One of the most important aspects of controlling warehouse costs is an essential understanding of what the space will be used for. Packing, shipping and receiving and assembly should have designated areas; as should storage. Enlisting the help of a talented and experienced person with knowledge of how multi-use spaces work can ensure you’ll have the most efficient layout. It’s wiser to use the new space at maximum capacity rather than risk the need for purchasing additional storage.
Tips for Reducing Warehouse Costs
Although warehouse space is a required expense for some industries, there are several ways to keep the the costs of maintaining such a space within budget:
- Consider whether it will be less expensive to buy a warehouse outright rather than leasing or renting one
- Monitor labor costs
- Monitor energy costs
- Safety! Accidents are costly
- Protect your inventory with storage cabinets, bins and appropriate shelving
- Protect your food related inventory with proper pest control
- Invest in the right infrastructure – an office desk isn’t the right surface for packing and shipping, a sturdy industrial workbench will last for years
If you feel you’ve outgrown your current space, again, enlist the aid of a warehouse designer. Perhaps there are ways to convert what you have, with mezzanines, workbenches and color-coded bins, thus avoiding increasing rent and the hassle of moving to a new location.
The warehouse can be an afterthought for management personnel who work in the office and don’t see first-hand the company operations. These staffers know how to sell and market the product, but may not understand the ground operations which occur in the warehouse. Make sure your warehouse has a direct liaison to communicate what they need to work more efficiently. This will help protect the company’s bottom line, which is a win-win for all!