Key Cost AreaS 

Transport 

Transport is a significant cost in most types of business’s, and it is important to ensure you are getting the right service for the right price. It is important that over time you review your carrier’s performance in relation to the price that you are paying. I have strong relationships with the leading Tier 1 & 2 carriers along with a reputable 4th party freight specialist which is a great option when looking for flexibility with the type and size of freight you are sending. 

Space Management 

Space is money and poor utilisation of space can result in unnecessary costs that can have a significant effect on productivity.

Some of the areas where poor space management occur are: 

• Poor utilisation of the space within the height of a
   warehouse. 

• No flexibility for the size of the pick face required. 

• Layout of designated walkways. 

• Packing areas. 

• Not picking upwards via a stock picker if pick profile
   allows. 

Labour Management 

One of the biggest costs in any warehouse operation is the labour required to complete the daily tasks required. There are so many ways to reduce the labour that can result in significant increases in productivity and consequently increase your profitability as a business. 

This requires operations management to focus on the key areas listed below: 

• Plan your labour requirement the night before. 

• Plan your labour on known picking productivity.
  (Units, Cartons, Pallets per hour.) 

• Have a mixture of full time staff and agency staff that
  can be managed by daily picking volumes. 

• Measure your workers daily productivity. 

• Reduce overtime where possible. 

• Scan receive, pick and despatch wherever possible. 

 

Materials Handling Equipment 

It is important to understand the type and quantity of materials handling equipment required for your warehousing operation. There are different types and sizes of equipment available in the market. Selecting the right size and type of equipment for your operation will bring significant productivity improvements.

 

ie:           

• Forklifts

• Pallet Movers

• Hand Pallet Trollies

• Wave Pickers

• Stock Pickers

Consumables

The requirement to use many different consumables in a warehouse operation can lead to elevated costs when either using the wrong type of product or paying too much for the product you are using.  I can assist with the selection of a number of excellent suppliers who offer great service at the right price. 

These are just some of the consumables I can assist with: 

• Cartons 

• Packaging Tape (Clear and Printed) 

• Stretch Wrap 

• Labels 

• Bubble Wrap 

• Void Fill (Manual and Automated) 

Pallet Hire 

I am sure over time we have all experienced poor pallet management and the resultant loss of tremendous amounts of money. When Pallet Management gets out of control it finds itself in the too hard basket making the recovery of lost pallets almost impossible. Having a dedicated person responsible for the management of pallets along with an accurate monthly reconciliation is critical for all warehousing operations. 

This is an area where I can offer a solution that will improve pallet control and put a stop to pallet losses. 

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