10 EFFICIENCY AND REDUCING COSTS MANAGEMENT SOLUTIONS

Transportation accounts for the majority of costs in the process as well as requires careful consideration and flexible changes to control and reduce the increase in costs. On the other hand, labor costs are on the rise in many markets, but economic growth is slowing down.

10 EFFICIENCY AND REDUCING COSTS MANAGEMENT SOLUTIONS

Transportation accounts for the majority of costs in the process as well as requires careful consideration and flexible changes to control and reduce the increase in costs. On the other hand, labor costs are on the rise in many markets, but economic growth is slowing down. At the same time, the problem of raising minimum wages forces managers to find a solution on how to achieve maximum productivity per hour worked. The amount of inventory always accounts for the majority, so if divided, arranged in rows combined with strict position control will help track the status of the goods at the warehouse and throughout the implementation process. .

There are 10 solutions to optimize warehouse management efficiency while saving operating costs, specifically:

1. Control the amount of inputs and outputs

The process requires the attention of managers because process errors will be a threat to the company's profitable growth. Cooperate exclusively with the carrier, increasing the likelihood of success in negotiating cost-cutting at some stage without compromising the quality of service.

2. Bonuses

In fact, the right salary incentive policy can help improve labor productivity. Enterprises should consider whether or not it is necessary to design the above policy when labor productivity is inevitable at present or is likely to be achieved in other ways.

3. Simplify processes - cut costs

The physical process and the steps involved in the product flow as well as the order fulfillment process. In short, the simpler the process, the less labor intensive it is required, so the lower the costs.

4. Achieve the set KPIs

Be aware of the level of labor productivity and delivery costs, cost per package and per delivery. Cost-cutting measures can be assessed and taken. These indicators are measured and set specifically, managers need to send regular feedback to employees, informing about the performance of each individual and department. When there is interaction, productivity will be higher.

5. Build an effective management team

What needs to be done to optimize the entire business process. Managing all aspects of the process significantly affects costs, employee morale and order fulfillment quality. So what are their individual needs? What information should be provided from businesses to help management team understand the nature of goods, customers and suppliers? What training resources are available online or locally?

6. Input supply chain

Develop terms and conditions of purchase, commitment to on-time delivery, quality requirements for items, guide the routing and phase of import process, product packaging, labeling and identification product standards for the supplier. Promoting quality, value-added services up the supply chain to suppliers, ensuring products are always ready to be shipped or delivered.

7. Voice-Enabling Technology

Tackling rising costs at businesses of different sizes, processes and departments - from receiving raw materials to shipping and returning products - helps to better control inventory, while increasing high productivity.

8. Third-party fulfillment (3PF)

Cooperating with 3PF partners, businesses are not bound to invest in advanced facilities and systems. For small companies, the management team needs to focus on marketing and sales, ensuring growth is maintained. But when there is a need to increase warehouse space, storage capacity or order capacity, partnering with a 3PF is an optimal choice.

9. Software service (SaaS)

The SaaS model is an affordable option. Even so, it is important for managers to understand the long-term costs of SaaS compared with one-time acquisition of traditional systems and annual support. When you make a detailed comparison of the storage functionality in SaaS and WMS, you will find a number of functions that help reduce costs and improve service quality.

10. Continuous development of the process

Do an assessment, make a plan, set improvement goals and responsibilities, evaluate progress, and start the process over again.