Inflation and the threat of economic recession have a lot of business owners scrambling. One of the biggest priorities for a lot of people is to find ways of cutting costs to help offset inflation. Use these five tricks to fight inflation at your warehouse.
1. Don’t Put Off Maintenance
While it may seem like a good idea to put off maintenance and repairs that cost money, we don’t recommend it. When you put things off, it becomes more likely that you’ll end up having a more expensive repair, or you may have to replace equipment completely. Regularly scheduled maintenance is always cheaper than an emergency fix.
2. Monitor Energy Consumption
Warehouses consume a lot of power through processes like lighting and conveyor belt operation. One thing you can do to fight inflation at your warehouse is to improve conveyor system efficiency so that your machines use less power. It’s also a good idea to switch to energy-efficient light bulbs.
3. Keep in Touch With Suppliers
Your suppliers know a lot about the packaging and equipment you use every day in your warehouse. Talking to them is a great way to learn about new cost-saving products and techniques. If you build a good relationship, they may even be willing to cut you a deal on their services.
4. Do a Spend Analysis
An in-depth spend analysis is a valuable tool when you’re trying to avoid the effects of inflation. Basically, a spend analysis is a thorough examination of all your expenditures and where you’re making those purchases. The analysis can help you pinpoint places of budgetary overlap, like when you’re buying packaging supplies from two different vendors.
5. Reconsider Warehouse Layout and Equipment
In order to store and sort goods, warehouses need to be big. Unfortunately, it takes a lot of time for people to walk through a big space, and that time costs you money. Our advice is to take a good look at your warehouse arrangement and see if there are ways to cut down on the amount of time employees spend walking from one place to another.
Staying afloat in these difficult times isn’t easy, but with enough planning, your business can survive. Follow these tips to lower costs and make every penny in your budget count.
