Common Measures To Reduce The C...not To Reduce The Quality

- May 30, 2020-

Reducing storage costs should be carried out under the premise of ensuring the lowest total logistics cost and not reducing the overall service quality and target level of the enterprises.


1. Use the FIFO to reduce the risk of storage. FIFO is one of the criteria of storage management. It ensures that the storage period of each stored item is not too long, and the risk of storage is reduced.


2. Increase the storage density and the utilization of the storage capacity. Its main purpose is to reduce investment in storage facilities and increase the utilization rate of unit storage area, so as to reduce costs and reduce land occupation.


3. Effective storage and location system is adopted to improve the efficiency of warehousing operations. The meaning of storage location is the location of the stored object. If the positioning system is effective, it can save much time to search, store and remove, prevent errors and facilitate inventory. The storage location system can be managed by advanced computers or by general manual management.


4. Use effective collection and inventory method to improve the difficulty of warehouse operation. Monitoring of quantity and quality of storage materials is conducive to mastering the basic situation of warehousing, and also conducive to scientific control of inventory. In the actual operation, some errors will make the accounts inconsistent. It is necessary to grasp the actual storage situation in time and accurately, often check the accounts with the account card to ensure the integrity of the storage materials. This is essential for manual management or computer management. In addition, regular monitoring is also an important work in detecting the status of the goods being stored.


5. Speed up the turnover and increase the output of unit volume. The important issue of storage modernization is to change the static storage into dynamic storage, and the quick turnover will bring a series of benefits: fast reserve, high capital efficiency, and small goods damage, increase in warehouse throughput, lower cost and so on. Specific practices such as the use of unit collection and storage, the establishment of a quick sorting system, is conducive to the realization of fast forward, fast out, big in and out.


6. Take a variety of operations to revitalize the assets. The input of storage facilities and equipment can only get the benefit of full use, and it will only increase the cost if it is not put into use or only low efficiency. Warehousing enterprises should make timely decisions and take advantage of various ways of leasing, borrowing, selling and so on to revitalize these assets and improve the utilization ratio of assets and equipment.


7. Strengthen labor management. Wage is an important part of warehousing cost, and the rational use of labor is the basic principle of the salary of nursing staff. China is a country with labor advantages, and its wages are relatively low. However, effective management of labor, avoiding overstaffing, working hard or inefficient is also an important aspect of cost management.


8. Reduce the cost of management. Management cost is the cost and cost of business activities and management activities, including management fees, business fees, transaction costs and so on. This kind of cost management should be strengthened to reduce unnecessary expenses and reduce costs. It is necessary to strengthen management when the expenses of management and management often fail to generate direct benefits and returns, and can not be completely abolished.


Welfor is specialized in producing various pallet rack, cantilever rack, medium duty rack, mezzanine and platform, slotted angle shelving, push back rack, longspanrack, rivet rack, drive in rack, carton flow rack, stacking rack and other related storage equipment.


Welfor strictly implements ISO9001, FEM10.2.02, SEMA, AS4084 and RMI standard in all operations. Welfor offers a wide range of products to meet all of your order fulfillment & material handling needs: pallet rack and cantilever rack. Whether you are looking to populate an entire warehouse or you are in need of a single piece of equipment, Welfor has a solution for you.