Running a warehouse business is an idea that can turn either incredibly lucrative or completely disastrous for your finances in the long run. One of the key things you need to take into consideration is that running a warehouse isn't as intuitive as you think or something that you can do on your own.
For starters, you need to understand that while you're making your profit according to the number of items that you have stored, maximizing the storage space isn't always the cost-effective thing. Second, by saving time and labor, as well as reducing injuries, you're saving a substantial amount of money. So, here's how you can be more productive.
1. Hire the right crew
The first thing you need to keep in mind is the fact that hiring the right crew creates layers and layers of productivity improvement in your organization. It gives you people that are time efficient, reliable and trustworthy. It also ensures that you work with people who can embrace the right rules, abide by safety guidelines and bear in mind.
Hiring people with experience is not an easy task and definitely not cheap. You should prioritize people with experience but you can also look for those with the right skillset. All in all, the hiring process is incredibly important and might even be worth outsourcing.
2. Invest in a warehouse management system
Another thing worth taking into consideration is the option of turning towards software in order to resolve your problems. You see, with the right warehouse management system, you stand to save time and effort. Some of the world's largest warehouses are already employing robots in order to automate tasks. This is incredibly expensive but you don't really have to go that far. With the right warehouse management system, you can already make a huge leap forward. This is an affordable and convenient type of innovation.
3. Don't be greedy
Another thing you need to keep in mind is the fact that there are a lot of warehouse owners and managers that are incredibly greedy. This makes them overwork and underpay their staff (which makes them tired, under-motivated and unfocused). Also, it makes them overuse the available space in their warehouse. The tighter you pack the shelves, the more you risk that something will be tipped over. You need to leave some room for safe maneuvering with equipment for handling materials. Speaking of which...
4. Buy specialized equipment
With the help of specialized equipment, you can save your staff's labor and reduce the likelihood of an accident in the warehouse. The likelihood that the goods will be mishandled is a lot lower if you use equipment that's well-suited for the warehouse. This doesn't mean that you have to pay a small fortune for the equipment. You can buy used forklifts at a decent price. Provided that they're in decent condition, this would ensure that you get exactly what you need at merely a fraction of the price. All in all, buying specialized equipment is a priority over buying brand new.
5. Watch out for employee theft
One of the things that causes a huge problem in warehouses across the globe is employee theft. All these items are easily accessible to your staff and it's up to them to either ignore the opportunity or leap onto it. Sometimes an opportunity makes the thief.
The most important thing to keep in mind here is that creating an environment where stealing is near impossible might dissuade some and disable others from doing so. Regular inventory, peer system and supervision are just some of the things that can make this easier. By keeping your employees on their toes, you'll come one step closer to securing your warehouse.
6. Strategically plan for the future
Keep in mind that expanding your warehouse always needs to be planned for the future. Therefore, you need to look into the potential of every measure that you take. Try asking whether the option that you're choosing is scalable. Next, make sure to consider what it will look like once you start making your infrastructure and logistics more complex. All in all, there are numerous problems that can be averted and some others that can be postponed. Still, this doesn't mean that you should always avoid temporary solutions.
7. Put safety first
Lastly, you need to understand that safety and money-saving often go hand in hand. Preventing injuries prevents unnecessary sick leave. It also means that you will be fully-staffed for longer which leads to a direct productivity boost. Other than this, the more accidents there are the more damaged items there'll be. This too directly contributes to the scenario where your warehouse is actively losing money. Not to mention that constantly damaging goods may result in a negative reputation. In the business world, this could turn out to be a hit that your enterprise simply can't take.
In conclusion
In the end, you need to understand that running a warehouse tends to be quite unpredictable. You never know what may happen and there is a surprisingly large number of unexpected occurrences on-premises. This is why you need to stay adaptable and keep evolving your business.
There are new tools and technologies out there every single year and by not allowing yourself to go dormant, you'll have the privilege of growing your business in just the right way. All in all, making your warehouse more productive is up to your effort, research and entrepreneurship.
Guest Author
Ron Wolf is a hobby designer and a DIY enthusiast, and, above all, a very blessed father of two. Besides that, he has a strong passion for writing. He is a featured blogger at various blogs and magazines in which he shared his research and experience with the vast online community. If he is not working he enjoys being outside with his family. Hiking, bike riding, and BBQing are always a thing for him. In the evening, he likes to watch documentaries or build something with kids in their lego corner.