Warehouse Cost has experienced a massive reduction often. This aims to increase the amount of profit by reducing expenditure. Well, how to reduce the use of Warehouse Cost or warehouse operating costs that can be done by a manufacturing company? Find out the 5 tips below!

Cutting Material Costs

The first thing a company can do to reduce warehouse expenditure is to cut material costs. This method can be achieved by changing the design of the products that are owned to be more simple by utilizing all the resources that they have.

By using a simple but powerful design, this step will have an impact on the use of raw materials used. More importantly, avoid leaving production waste so that everything will appear more efficient.

Optimizing Employee Performance

As explained earlier, to get a simpler product design, it requires the involvement of employees to redesign. It is not only of it, but employees in other divisions are also well optimized so that warehouse operational costs can be reduced.

The company must be able to invite employees to work quickly to ensure the fulfillment of consumer needs in a timely manner. To achieve this one, companies are also required to provide training to improve the quality of their performance so they can be more productive in production chain.

Doing Inventory Control Every Time

In the manufacturing industry, the longer the stock is stored, the more the budget must be spent. The first thing to do is always to make sure supply chain management in the storage sector has a clear record of inventory in the warehouse.

Unfortunately, stocks that are in a long period of time need more care so they do not become contaminated by bacteria. This obviously has an impact on the many costs such as maintenance and insurance costs that must be incurred.

Utilizing Technology Assistance

It is no secret if the use of technology will help streamline work and increase its’ productivity. In addition, technology is able to accelerate the manufacture of products, which leads to savings in the company's operational costs.

With the advantage of technology, many things from production chain management can be automated so that the company is also able to save operational costs in the long run. One of the usages of technology is the existence of an Enterprise Resource Planning (ERP) system.

ERP itself functions to manage and integrate various operational activities such as analyzing workflows, identifying obstacles, and automating all complex processes in manufacturing business.

Negotiating Suppliers

Finally, the company can save warehouse operating costs by asking for price reductions for vendors or suppliers related to the business being run. What is more, you have to make sure a reduction in prices with more realistic figures.

For the sake of getting a price reduction, there is nothing wrong by inviting companies to do mutual beneficial cooperation with each other. Billing payments are also best done on time so that the company gets more trust.

Thus, a few tips to reduce Warehouse Cost that can be applied. One warehouse that offers efficiency in supply chain management using high technology can be found in Karawang New Industry City (KNIC).

Its strategic position is where its location is close to the toll road, Jabodetabek LRT, train station, airport, and port. This strategic location also facilitates the delivery of goods everywhere. The basic concept of KNIC itself is a world-class integrated industrial city so that the presence of world-class infrastructure can be seen in this region.


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