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Tips for Managing and Optimizing Your Warehouse Labor Costs

By April 2, 2019March 10th, 2020No Comments
, Tips for Managing and Optimizing Your Warehouse Labor Costs

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.

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.

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