5 Ways to Save Money Now!
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Transcript of 5 Ways to Save Money Now!
5 Ways to Save Money Now!
• Occupancy cost is HIGH! Approx. 25-35% of the cost of each order
• Look up, and utilize your air space
• Optimize cubic feet as wells as square feet
#1 Go Vertical
Fitness
Center
WAREHOUSE
STORAGE
Auto
distribution
Racking, Shelving, and Mezzanines are the best means
to turn your air-space into working space.
•SAFE - engineered capacities
•ECONOMICAL - long lasting steel
•FLEXIBLE - layout can change as needed
PALLET RACKS OVER BAY DOOR STORAGE
#2 Measure and Share
The “Hawthorne Effect” showed that worker productivity
increased because the workers realized they were being studied…
Not because the lights were turned up
Create Operating Metrics and Share the Results with your Employees
You will be amazed at how they take ownership in measuring
themselves and take pride in their own improvement.
• A picker may spend 70% of his or her time walking!
• Reduce the travel time by making your fast-moving items easily
accessible and closest to the shipping door.
• Set up a “hot-pick” zone to concentrate activity in a small area.
#3 LAYOUT & DESIGN AFFECT PRODUCTIVITY
The product must be present when
a picker prepares to pull it.
Otherwise, the havoc wreaked is
endless: a wasted pick up trip, last
minute vendor purchase & pick up,
and additional paperwork.
INVENTORY MANAGEMENT
SYSTEMS
Develop a replenishment schedule
based on Min-Max and
Demand-Replenishment concepts.
#4 Knock Out Stock Outs
An enormous range of products brings
with it a massive load of problems.
Products could languish in the
warehouse for years.
Only carry your best-selling products,
and special order slow moving items.
A Hidden Benefit:
Special orders often carry a premium
price, further increasing your margins!
#5 Prune Your Product Line