Reduce Warehouse Operating Costs - 6 Steps
Here are 6 crucial steps that will enable you to reduce warehouse operating costs. Click on each step to learn more.
1. Reduce Forklift Operating Costs
2. Prioritize Employee Retention
3. Optimize Your Space
4. Keep Your Inventory Safe from Loss and Damage
5. Cut Down on Energy Costs
6. Reduce Forklift Downtime
If you are looking to lower your forklift operating costs and downtime, contact us.
Follow these helpful steps to reduce warehouse operating costs
How to Reduce Warehouse Operating Costs
Step 1. Reduce Forklift Operating Costs
Your Forklifts play an important part in operating your warehouse, however, they can also eat up a sizable chunk of your operating budget. Here are some ways in which you can reduce your forklift operating costs.
Invest in electric forklifts:
Whenever possible, choose an electric forklift over one that burns fossil fuels. Even though the initial purchasing cost can be higher with electric forklifts, your total cost of ownership is usually much less.
This total cost of ownership calculator can show you how much you could save by switching to an electric forklift.
An electric forklift will cost less over the time that you own it
Choose a lithium-ion battery over a lead-acid one:
If you want to save even more on your forklifts costs, choose an electric one that is powered by a lithium battery instead of a lead-acid one. Lithium batteries are virtually maintenance-free so you don't have to pay someone to water and maintain them and they don't require a lengthy cooling down time.
They are also 50% more energy-efficient than lead-acid batteries. Here’s another calculator that you can download to discover how much you could save using a lithium-powered forklift.
Lithium batteries don’t need to cool down after they are charged
Choose the Right Type of Forklift:
Choosing the right type of equipment can greatly increase your efficiency. For example, investing in a double pallet stacker can allow you to handle two pallets at the same time or investing in a reach stacker can allow you to make the most of your warehouse space by being able to install higher shelving.
You could also invest in AGV (automated guided vehicle) forklifts that will efficiently operate without a paid operator. Automated forklifts can run as long as they are needed without taking breaks.
AGV forklifts can reduce warehouse operating costs - watch one in action
Step 2. Prioritize Employee Retention
Controlling employee costs is another great way for you to reduce warehouse operating costs. One often-overlooked way to reduce employee costs is to make sure that you keep your employees happy and don't lose them.
It actually costs more to hire and train a new employee than it does to keep paying an experienced employee. On average, it could cost you as much as 6 to 9 months of salary to replace a salaried employee, so keeping your employees happy can save you considerably.
Some ways that you can promote employee retention include:
Offer a good benefits program
Foster a healthy environment that listens to employee feedback
Conduct exit interviews and act on issues that come up
Reduce warehouse operating costs by focusing on employee retention
Step 3. Optimize Your Space
Space is very expensive so you want to be able to store as much product in as little space as possible.
Keep your aisle widths smaller by using narrow aisle material handling equipment. Store your inventory according to size, so you can reduce the aisle dimensions of inefficient aisles.
Keep your aisles as narrow and tall as possible for maximum storage space, making sure that you have the right type of racking for safety.
Maximize your warehouse space with narrow aisles and high shelving
Step 4. Keep Your Inventory Safe from Loss and Damage
Inventory Loss:
You can lose inventory either by misplacing it or by theft. Make sure that you employ a clear labelling and storage procedure to ensure that your products don't get misplaced.
Using technologies such as Radio Frequency (RF), Radio Frequency Identification (RFID), Warehouse Management System (WMS), Voice Directed Picking (VDP), and Pick to Light (PTL) can help you keep track of your inventory.
To prevent theft, hire security to check out employees and visitors entering and leaving your facility, keep your doors locked, and put in a key card system. You can also install a security system and if you are not running around the clock, you could employ a security guard during off-hours.
Inventory Damage:
To keep your products safe from damage, make sure they are properly packaged and train your employees on safe handling practices as well as forklift safety practices.
Use a clear labelling and storage procedure to ensure that your products don't get misplaced
Step 5. Cut Down on Energy Costs
Energy costs can also add up quickly. Here are some energy-saving tips that you can implement to help reduce warehouse operating costs.
Install additional windows to let in lots of natural light, thus reducing your need for extra interior lighting. The light can also help to heat up your space in winter.
Reduce your water use by installing automatic flush low-flow toilets and hands-free faucets.
Make sure your warehouse is properly insulated
Install an automated lighting system
Use natural and automated lighting to reduce energy costs
Step 6. Reduce Forklift Downtime
One of the best ways to reduce forklift downtimes is to make sure that they are well maintained. Follow the manufacturer's guidelines for regular maintenance and get any small issues repaired as soon as they come up.
While your forklifts are being serviced or repaired, temporarily rent others so you don't have to stop working. Reputable forklift dealers will provide you with rental units at discounted rates while they are servicing them
You can also use forklifts with onboard chargers so that they don't need to be out of service for charging times.
Purchase forklifts with faster charger times such as lithium-ion forklifts. They can fully charge in as little as 2 hours compared to a lead-acid battery which takes 8-10 hours.
Lithium-ion forklifts charge faster so they have less downtime
How Wayco Can Help You Reduce Warehouse Operating Costs
Wayco can help you find the best forklifts that will reduce your warehouse operating costs. Our service department can also make sure that all of your material handling equipment is in top condition so that you don’t experience unnecessary downtime.
We have been in the forklift business in KW for more than 40 years and we have earned a solid reputation for being trustworthy and fair.
Our knowledgeable staff will be able to help you choose the perfect model that best suits your particular applications and we will accept your old forklift as a trade-in towards your purchase.
WE THOROUGHLY CHECK EVERY USED VEHICLE
Wayco takes the worry out of purchasing used equipment. Before we sell any pre-owned vehicle, we thoroughly check each one to make sure that it's in top working order.
WE CERTIFY EVERY USED VEHICLE
We then certify all of our used inventory, so you can be confident that you are purchasing a used forklift that you can rely on!
WE OFFER INCREDIBLE WARRANTIES
At Wayco, we want to make sure that you are completely satisfied with your new or used forklift purchase.
That's why in addition to inspecting and certifying all of our pre-owned vehicles, we also offer incredible warranties to further assure you that you are purchasing a forklift you can trust.
We Offer Financing
If your warehousing budget is tight, don’t worry. We offer financing for both new and used purchases.
Contact Wayco today to find out what forklifts they have in stock, both used and new models.
“We purchased a used fork lift from Wayco in January. It was extremely clean and in excellent condition when it was delivered. We have also had incredible ongoing service from the professionals at Wayco. Overall dealing with them has been an excellent experience.
— Don't Trailer Service
