Optimizing Costs to Improve Storage

A company’s warehouse offers numerous ways to optimize costs, bringing savings to the company as a whole. One of the ways of optimizing costs is the correct application of manpower, the item that represents up to 60% of the operational costs of storage.

Storage managers should be primarily responsible for improving the performance of the operation for cost optimization, ensuring better performance for storing the items needed for production or sale.

This cost optimization plan should work within an integrated project, bringing better solution to the storage system, within some basic principles:

  1. WAREHOUSE PLANNING

The company must evaluate the storage area and verify the existence of technical and physical conditions to guarantee the quality of the products stored, observing the nature of each item, its weight and dimensions and considering the characteristics of handling and safety.

  1. OPERATIONAL FLEXIBILITY MANAGEMENT

In order to ensure cost optimization, it is necessary to adapt the corridors, docks, doors and equipment available in the warehouse, giving simultaneous or successive reception of all products.

  1. SIMPLIFY TO THE MAXIMUM

The development, adaptation or implantation of the physical area of ​​the warehouse should consider the characteristics of the equipment and the location of the handling areas, trying to simplify the maximum inbound and outbound flow for higher productivity without the generation of bottlenecks.

  1. INTEGRATE FOR COST OPTIMIZATION

Integration across all sectors should be planned to ensure as many simultaneous activities as possible, coordinating each operation in detail.

  1. OPTIMIZATION OF PHYSICAL SPACE

The storage made in a technical way guarantees the safety of both workers and stored items, making it possible to store the greatest quantity of goods in the same area, mainly in relation to the resistance of the floor and the volume capacity of the area.

  1. OPTIMIZATION OF EQUIPMENT

The optimization of costs in storage must also go through the design, development, standardization and implementation of procedures directed to the rationalization of the equipment and the work team.

  1. VERTICALIZATION FOR COST OPTIMIZATION

The optimization of costs also demands the best possible use of the vertical space, without losing sight of the safety in the movement of the loads.

  1. MECHANIZATION FOR COST OPTIMIZATION

The storage of loads requires the correct evaluation of needs that can generate optimization of costs , such as the cost-benefit ratio that can be obtained by mechanization of the largest possible number of load handling procedures.

  1. AUTOMATION FOR COST OPTIMIZATION

The reduction of storage costs tends to be better felt after the implementation of an automation system, allowing greater control of the stored items.

  1. CONTROL FOR COST OPTIMIZATION

Systematic and methodical planning, implementation and follow-up through a system suitable for receipt records, dwell time, delivery of items and control of the physical inventory of the goods is another tool that enables cost optimization in the storage system.

  1. SECURITY FOR COST OPTIMIZATION

The warehouse must be equipped with a security system to guarantee the physical integrity of the stored goods, as well as offering better working conditions to the personnel packed in the warehouse, generating cost optimization for the company through facilities, equipment and maintenance of work teams properly trained to attend possible emergencies.

The storage units Lakewood must be treated with care, professionalizing operators and attending to the best possible way to demand. The cost optimization in the storage system will be reflected directly in all departments of the company, providing better service to all areas that depend on it and bringing better working conditions to sectors that offer you support.

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