A cluttered warehouse can lead to numerous problems in your business’ supply chain.
That’s obvious in most cases, but have you ever considered how the overall warehouse design affects shipping rates?
Without the right forethought put into things your business could be losing money.
Of course, even when things are running smooth there are always ways to improve. Let’s take a look at those little details which make a big difference.
Starting at the Beginning
When a warehouse is being designed from the ground up it’s important to do more than just put in shelving and hope that things work out.
Instead, the outbound logistics of the entire operation should be considered from the very start.
Customer service is the primary responsibility of any business. Without satisfied customers you’re not going to be in business for long.
Without the right warehouse engineering & design you can quickly find yourself facing high shipping rates. Which your business will either have to take in or you’ll have to pass the cost on the customer.
Of course, it’s not always possible to begin with an entirely new warehouse.
Shipping Factors
The most important factor in your warehouse’s operations, as far as shipping is concerned, is the ability to flow.
Items should be able to move easily through the entire warehouse without lanes getting clogged by loading equipment or being difficult to access.
Clear avenues to both the inbound and outbound parts of the shipping process are important. The longer it takes for an item to reach it’s destination, whether a loading dock or a shelf, the more you’ll end up paying per unit shipped.
After all, you’re paying the workers and the longer an individual unit takes to be processed the more you’re paying in labor.
If you haven’t already, it’s time to calculate the actual labor cost per unit shipped.
Optimizing the floor plan and storage to maximize your ability to move stock will help keep shipping costs to a minimum. That increases profitability and also means you shouldn’t have to pass on higher prices to your customer.
Just how a warehouse flows depends largely on the characteristics of the products being sold out of it. While bottled water is fast moving and has a long shelf life, bulkier and more expensive products like power tools will need a different order of operation.
Don’t Get Settle For Bad Warehouse Design
Shipping rates and the overall layout of your warehouse are intimately intertwined. Bad design will lead to higher costs, slower shipping, and even more problems farther down the line.
But with modern storage and people nailing the science behind warehousing there’s no reason to settle for bad design which causes higher shipping costs.
It may just be time to find a warehouse design consultant today. The ability to make things flow smoothly and increase your return on every product in the warehouse is already there. You just have to take the help offered.
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