5 strategies to reduce warehouse costs and increase process efficiency

14 January 2021

Would you like to reduce your warehouse costs without compromising productivity? These strategies can help you cut waste and increase performance!


1. Perform a logistics analysis

The first step in understanding how your warehouse can be optimized is to analyze the processes in the logistics area, identifying the flow of goods, defining the minimum stock required by the various products and examining any areas whose performance can be improved.

2. Integrating a system of warehouse management processes

Following an initial analysis of the situation in the logistics department, it is essential to design and implement a system that optimizes all processes taking place in the warehouse. From the receipt of goods, through storage, to order completion and dispatch, each of these steps must be made as streamlined as possible through both the integration of technology and appropriate employee training.

3. Applying automation: RFID identification

One of the methods to facilitate the goods identification process is RFID, which stands for Radio Frequency Identification and allows goods with a label to be uniquely identified. This contains shipping information, item details and allows stock levels to be monitored in real time in the warehouse. This eliminates a lot of the manual work involved in stock monitoring.

4. Ensure inventory accuracy

Ensure that you carry out inventories with a level of accuracy close to 100%. With the application of technology this task is greatly facilitated, such as by applying the RFID identification mentioned above. If this method is not used, make sure that inventories are carried out with the utmost care and that the data collected is as close to reality as possible.

5. Optimize space

The area occupied by the warehouse is one of the biggest operating costs, so it is essential to make full use of both horizontal and vertical space in the building. Also consider aisle space, as this also contributes to overhead costs. Aisles should not be wider than required by access equipment and forklift trucks.

Di Massa’s experts are at your side to analyze the situation in your logistics area and advise you on the best strategies to reduce your warehouse costs and increase its performance. Contact us now!

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