“I don’t like saving money” — said no business owner ever! In our constantly-changing ecommerce business landscape, reduced expenses and increased profits are always welcome.
In the logistics world, properly managing your supply chain can be costly, especially to keep up with the increasingly demanding shipping times current customers have grown to expect. But savvy companies like yours can take the right steps to reduce your supply chain expenses, giving you a stronger edge over your competitors. And a great place to start is your warehousing logistics. Efficient warehousing logistics can easily put more money back into your pockets for the long haul. With that said, what are some ways you can reduce your warehousing services costs?
Key Strategies to Save Money on Your Warehousing Logistics
Implement Cross-Docking
In traditional supply chain warehousing logistics, your products sit in a distribution center or warehouse waiting to be ordered and shipped to customers. The cost of this extra space for waiting inventory can really add up. However, with cross-docking, long-term storage is no longer needed, as your products are immediately moved from incoming receivables to outgoing shipping. Not only does this reduce your overhead costs, it can also make the order fulfillment process much more efficient, setting you up to meet faster delivery times.
Optimize Your Warehouse Layout
In warehousing logistics, space is at a premium. The more space you need, the more money you’ll spend. That’s why it’s not only important to learn how to operate in less space, but also to improve the layout within your warehouse space. With an optimum layout, you can keep your inventory well-organized with less of a footprint, which also leads to more efficient pick, pack, and ship processes, as workers can easily find inventory and move it along the fulfillment process.
Utilize Inventory Management Software
Efficiency means money saved when it comes to warehousing services. And a key way to boost efficiency in your warehousing logistics is to incorporate inventory management software into your operations. The right WMS or inventory management technology can reduce supply chain inaccuracies by giving you access to real-time data on your inventory levels. This enables you to more easily forecast demand and reduce costly overstocking. Software can also help automate your warehousing logistics processes, speeding up fulfillment times and lowering manpower costs.
Pursue Energy Efficiency
While pursuing sustainability can at times be more expensive, in the case of energy reduction, it can certainly save you money. Consider warehousing services options focused on lean energy consumption, such as energy-efficient (even natural) lighting and heating/cooling systems. This can also apply to packaging waste reduction. Cost-effective packing materials sized properly can help create more efficient shipping operations and less transportation expenses.
Enhance Your Order Picking Process
Inefficient picking processes within warehousing logistics can not only slow you down, they can also be costly. That’s why prioritizing streamlined order picking can save you both money and time. Pursue picking enhancement strategies like properly labeling items to reduce errors, as well as adjusting your warehouse layout to reduce picking travel time between orders. Picking approaches such as batching can also be helpful to enhance productivity and reduce labor needs.
The Best Strategy: Partner with a 3PL for Warehousing Services
While managing your warehousing logistics on your own is possible for some, many ecommerce companies are discovering that partnering with a 3PL is a smart strategy as their business grows. And one of the major benefits of working with a 3PL is the warehousing services cost savings.
With years of experience and know-how, a 3PL can more easily optimize your supply chain to efficiently keep up with increasing shipping demands, as well as negotiate lower transportation rates thanks to their vast carrier networks and growing economies of scale. Yet partnering with a 3PL also means you don’t have to spend the overhead on renting or owning warehouse space, transportation, and even warehousing logistics staff, which can add up over time. Your 3PL will already have all this covered instead. Because your 3PL provides its own warehousing space as well, you have the flexibility to increase or decrease your warehousing space requirements when demand for your products fluctuates, which keeps you from spending money on excess warehousing storage you simply don’t need.
So if you’re ready to reduce warehousing costs by partnering with a 3PL, what’s next? Consider Smart Warehousing. For over two decades, ecommerce companies across the country have trusted us for all their logistics needs, including warehousing services, transportation, fulfillment, replenishment, and more. To learn how we can specifically help you save money, contact us today.