4 Reasons Why Businesses Live and Die By The Efficiency Of Their Warehouse

Some will think this seems obvious, and I can assure you others will not be so wise, but the efficiency of a business directly impacts profit margins. Reducing the amount of time it takes to complete tasks will increase productivity, and with warehouses usually being in huge buildings offering mass storage, the daily operations carried out within them need a smooth productive system in place.

Focusing on how you run different areas of your warehouse and making small changes will lead to big improvements in your bottom line. Here are 4 reasons why businesses live and die by the efficiency of their warehouse.


1. Successful businesses use correct of shelving systems

One of the first areas of your warehouse that needs to be considered right from the beginning is the correct use of shelving systems. Whether you have just moved in to your warehouse, or have been operating in it for some time, you can still optimise your space and layout. In the short term you may see a reduction in the efficiency of your business through loss of time when making rearrangements, but the long term benefits of increased efficiency and production will far outweigh this, and will prolong the need to move into a larger premises as your business grows. Considering the ideal form of shelving, racking and storage systems are all underestimated, yet they are beneficial ways of reducing costs whilst sustaining performance in your warehouse.

2. Businesses prosper when they factor in growth

Many businesses have a focus at the beginning to keep the costs down in the early stages as the main goals lean toward growing the company whilst increasing sales. What many business owners and directors fail to recognise here is the bigger picture. If you anticipate growth by factoring in the size of your warehouse, and you plan the layout of your warehouse effectively by maximising storage space available, these decisions will rarely be discussed during the life cycle of the business. By planning the use of space, you save your business a lot of time in the long run, ultimately saving money too!

3. Consider employee and warehouse staff operations in your layout

For businesses that have long standing established warehouses but realise more room is needed to house new stock, your employees that function in your warehouse on a daily basis can give you a well-educated insight into how your space can be used more efficiently. Make sure you utilise them. By spending just a few minutes with your employees (take some doughnuts with you), you can reflect on ways to improve the warehouse environment. Even simple things like metal sliding doors can help your employees to move around the warehouse more easily, saving them from having to struggle with door handles as they carry stock from one area to another. You can also look at implementing indoor safety gates to ensure that your employees can move around areas safely when they are on ladders and platforms.

4. Manage overstock like any other stock

Knowing your overstock is also very important. Products which are not selling and are not required should be cleared out to make room for your more profitable items. It goes without mentioning that you should be conducting an annual stock check. Whilst doing this, make sure stock is kept in order as time spent searching for items in the wrong areas wastes employee time and burns money.

Action Storage provide shelving systems, storage units and racking systems for industrial and commercial usage. Our experienced team can help your business transform your warehouse into an efficient environment that looks after your bottom line.

Leave a Reply