

Knowing how to reduce warehouse costs is essential to run any successful company that relies on the import and export of goods. This is because storing merchandise in a warehouse can be expensive if you don’t take certain precautions. This guide outlines warehouse costs and how to reduce them, so your company can be as profitable as possible.
There are several things you can do to reduce warehouse costs. Most important among them is to reduce your required space by optimizing storage. To begin, it is essential to learn the dimensions of the forklifts you’ll need for every type of product. Organize your storage by the aisle dimension required for forklift access. Choose a narrow and tall rack build to lower your required square footage.
Another important step is to protect your inventory. Billions of dollars are lost in warehousing costs every year because of damaged goods, theft and misplacements. Use proper inventory control and storage systems to minimize these problems.
Cross docking is another way to cut warehousing costs. Cross docks allow you to transfer products directly from the supplier to the customer with little to no long-term storage. In some cases, a product might be put on a truck for delivery, or it might be transferred to another link in the supply chain, such as a last-mile facility or a brick-and-mortar retailer. This process saves time and money.
Technology is key to controlling warehousing costs. Today, there are several options that improve efficiency, reduce mistakes and save money. RFID (radio frequency identification) portals automatically identify and track containers as they enter and exit the warehouse, so you always know where your product is located, thus reducing costs caused by lost or misplaced goods.
Voice-directed picking systems are becoming popular because they enhance productivity, efficiency and safety by requiring only a user’s voice—unlike paper or mobile computer-based picking systems that require both hands.
How much is warehouse rent? Learn about the expenses involved in renting a warehouse and advanced leasing practices to help avoid unnecessary costs.
Learn about the various shipping process steps and common issues with warehouse shipping operations in this guide from Prologis.
Can your business benefit from in-house logistics, or would outsourced fulfillment using a 3PL warehouse be better suited for your needs? Learn about in-house logistics and 3PL warehouses.
Every connection starts with a conversation. Our team is here to help.