Don’t Burn Money Manage Your Labor Costs
Labor costs comprise the largest and most unpredictable element of warehouse operating expenses. Unlike material handling equipment and other fixed assets, staffing needs are dependent on variables such as fluctuating workloads and employee turnover.
This doesn’t mean resigning yourself to uncontrolled budget expenses. Experts offer the following tips for successfully managing labor costs.
Optimize Warehouse Layout
When was the last time you made modifications in your warehouse layout? Are order pickers wasting a lot of time traveling from one slot to the next? Review the warehouse layout and look for ways to make workflows more efficient.
Consult an Expert
Outside consultants have experience working with all types of warehouse operations so they can provide tested solutions. Objective eyes can also spot problems and opportunities that may not be readily evident.
Automate Manual Processes
People are often reluctant to give up old-school methods, but when it comes to cost management, you have to use every tool at your disposal. Warehouse management systems (WMS) and other electronic data-gathering programs collect real-time data for more accurate and timely decisions.
Integrate Voice Logistics
Voice-driven systems have reached new levels of sophistication. Bluetooth headsets keep workers’ hands free for more efficient picking and other tasks.
Reduce Turnover
Hiring and training workers is a tremendous drain on the budget. In addition to direct costs associated with the process, it creates a ripple effect of indirect costs, including reduced productivity. Incentivize employees with bonuses, recognition programs and other perks for outstanding performance.
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