Warehouse Operations – How To Increase Productivity and Reduce Labor Costs

If you are looking to improve your warehouse operations, then you will want to read this article. Specifically, I will discuss different ways you can improve various operations in your warehouse, to enjoy overall productivity and cut back on labor costs.

You should view how you train your employees as one of the most important warehouse operations in your business. The relative cost of training employees, compared to the increase in productivity usually associated to the training is a wise investment. Without the proper training, you can expect low quality work, sub-par productivity, and issues dealing with safety, as well as low morale of your employees.

When this happens, good luck keeping your managers and supervisors around. The stress that they will have to put up with dealing with employees who are not trained properly will cause a chaotic situation.

Improve your warehouse operations, by improving the training of each employee.

The second most important thing to improve in warehouse operations is the use of tools available for employees in the warehouse. Many tools can be used to shortcut simple processes, by five or even 10 times as much, while taking less effort from the employee. Don't skimp on purchasing an extra pallet jack, if the costs your employees time every day, from having to share one or two of them.

Generally, labor costs more than materials. That means if you can find the right amount of tools in order to shortcut the labor involved, then even if these tools are somewhat expensive, it's usually still a good purchase. This means if you have to spend extra to get stretch wrap that doesn't cling or break in the middle of wrapping, then it is wise to spend the extra money.

The proper equipment maintenance is also a very important warehouse operation. Not only will it improve productivity, it will also raise the standard of safety in the warehouse. You should schedule preventive maintenance to work on two fixed lift trucks, conveyor systems, dock equipment, etc. to ensure things are run properly before they break down.

Also, by encouraging employees to immediately notify you if there is a problem with equipment, you can catch a lot of simple maintenance issues and fix them, before they become more drastic.

In conclusion, I have given you some points to consider on how to increase your warehouse operations. They might not be as sexy as the latest warehouse management software, but they have been time-tested and proven to work in warehouses everywhere.