How to Save on Storage Costs
As the cost-of-living crisis rolls on, businesses are faced with higher overheads and rapidly rising energy bills, especially when it comes to warehousing. So, how can you save on your storage costs? Keen to find more cost-effective ways to hold and move stock, many businesses are reconsidering their warehouse strategy. We share some practical tips below.
Reduce shrinkage
A common issue occurring when you store parts and items is shrinkage. This is inevitable to a certain degree, caused by breakages, spoilage, how the stock was unpacked and shelved, and sometimes theft. But there are things you can do to reduce shrinkage. Asides from limiting the people who have access to certain areas, which is not ideal, you should implement certain procedures. Produce and share a stock management process with staff.
Minimise wastage
For certain parts and items, you might be tempted to over-order, especially if you’ve had supply chain issues. But this can cause inventory problems and unnecessary extra spend. You could end up with too little space for business-critical stock. And this could also result in having a surplus of old items that become obsolete. Your inventory software should be able to analyse and audit stock to identify the items that are needed the most and the frequency.
Avoid long leases
If you rent your premises or additional warehousing space, check your lease terms and avoid getting locked into a long-term lease which you might not need. Depending on the nature of your business, you might have seasonal ebbs and flows when it comes to storing certain items of stock. For home appliance companies, the colder months see a rise in boiler problems, which can lead to parts shortages. So, carefully review your storage requirements.
Consider a Just In Time solution
Just In Time (JIT) distribution is a great solution if you have limited space or you want to reduce your storage costs. JIT means ordering stock as and when you need it, minimising your storage needs. At GenRev, we provide Just In Time services to a wide range of companies. Your required parts are delivered to where they need to be, when you need them. If you have field engineers or technicians, we can even deliver items to their vehicles.
Storage for small consumables
We also offer a Parts Storage, Pick and Pack service, giving your business fast access to small consumables, whenever you need these items. A natural next step from our Just In Time solution, we’ll store, pick and pack your parts on your behalf. We can then deliver to your chosen destination before the start of the next working day.GenRev’s Just In Time distribution is the ideal solution for any business looking to save money on their storage costs. We can help you reduce wastage, resources, money and time spent on expensive warehousing, and your business will become more efficient as a result.
If you want to save on storage costs and streamline your overheads, talk to us about our Just In Time distribution services. Contact us to find out more.
