Tag: warehouse profitability

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.

DJ Products: Your Top Source for Material Handling Equipment

Customers have proclaimed that using our electric material handling equipment is “like adding another employee.” Visit our website and learn how our assortment of tugs, movers and pushers can improve warehouse productivity and safety.

Expenses for material handling equipment and other fixed assets are relatively easy to control, but managing labor costs presents a unique challenge. The optimum balance between low cost and high productivity is frequently a moving target.

In addition, today’s shrinking labor pool makes it difficult to retain good workers. Use these tips to manage warehouse labor efficiently while boosting engagement and loyalty.

Automate Repetitive Tasks

While we’re a long way from fully robotic warehouses, there are a number of automated solutions available to handle many repetitive tasks. Automated conveyors, voice-directed picking and connected glasses are just a few of the options that can free employees up for higher-value jobs.

Implement Labor Management Software (LMS)

You probably already use a warehouse management system (WMS), which collects a wide range of data and compiles it in convenient formats. Integrating LMS with WMS offers more robust analysis to make planning and scheduling more accurate.

Establish Incentive Programs

Workers will be more motivated to increase productivity when there are individual benefits at stake. The incentive costs will be more than offset by the positive results.

Conduct Cross-Training

Fluctuating workloads add to the difficulty of managing staffing levels. When employees can move easily between tasks, you’re able to handle ebbs and flows with fewer workers and the variety of tasks will prevent boredom.

Make Safety a Priority

Maintaining a culture of safety demonstrates concern for employee welfare. Make sure workers have high-quality material handling equipment and conduct ongoing training to instill proper procedures.

Material Handling Equipment Designed for Safety

Battery-powered tugs, movers and pushers from DJ Products are designed to reduce the risk of most common workplace injuries. Their efficiency also frees up employees to focus on more important tasks. Contact us to learn more.