How To Reduce Warehouse Costs in 2024

Implement Warehouse Automation

Warehouse automation can help reduce warehouse costs in the long term, as it minimizes human error, increases efficiency, and reduces costly product damage. Implement automated warehouse solutions such as conveyor belts, warehouse robotics and automated storage and retrieval systems (AS/RS) to reduce your warehouse costs for 2024. Automated solutions can help drastically reduce your warehouse costs.

The benefits of automation include:
– Warehouse Kitting: save space
– Optimized Space
– Bulky warehouse storage systems such as standard static shelving and pallet racks can take up precious space in your warehouse.

Improve your inventory control and inventory visibility with our automated storage solutions.
Automated storage solutions can help you make use of every inch of your warehouse’s floor space by maximizing your storage density. In addition, automated storage solutions eliminate the footprint required by static shelving and pallet racks, to improve your operational efficiency. As a result, you won’t need to move into a bigger warehouse if your business grows — you can save money by remaining in your current facility while effectively storing more items.

Maximize Space & Protect Your Inventory –

Optimizing your warehouse space can help reduce warehouse costs, as efficient utilization reduces the need for a bigger facility and minimizes energy expenses. Maximize space in your facility by implementing efficient warehouse storage solutions, such as vertical lift modules (VLMs), and integrating a WMS for strategic product placement — for example, placing high-turnover items closer to shipping areas to minimize retrieval times.

Key factors in financial loss when it comes to inventory include stock damage and theft — both internal or external. If you’re not actively protecting your inventory, you’re risking financial loss. Restrict access to storage areas that contain your high value inventory, to help prevent theft to reduce your warehouse costs. Restrict access to storage areas that contain your high value inventory, to help prevent theft.

Analyze Your Warehouse Operations- 

Analyzing your warehouse operations can help you pinpoint inefficiencies and optimize your resource allocation and processes, leading to substantial cost savings. Assess your warehouse operations by conducting regular audits, utilizing data-driven performance metrics, implementing a warehouse management system (WMS) and getting feedback from your employees.

Modula WMS is a comprehensive warehouse management software that improves the accuracy, efficiency, and visibility of all operations. It integrates with our Modula vertical lift modules and any local ERP systems to provide a complete warehouse solution. This allows you to store and manage your data in a centrally located, easy-to-manage system. Thanks to its scalability, it can grow with your business as your warehousing needs change over time.

A WMS can manage the flow of inventory from the time it is received until it is shipped, and improve visibility over your inventory levels by providing reports on supply chain metrics such as:

– Stock on hand
– Stock outs
– Cost of goods sold
– Slotting – Safety in warehouse
– Reduced Labor Dependency
– Picking is considered one of the most tedious and costly warehouse processes in a manual warehouse.

Automated picking solutions can help by delivering items to your warehouse picker, eliminating the travel time spent walking from one pick location to another. This dramatically improves productivity across your warehouse, making it possible to do more with less manpower. Just like any other workplace, warehouse employees are prone to potential accidents, including falls and overexertion. If you’re not protecting your employees from workplace accidents, you risk higher rates of injuries and absenteeism — both of which are costly scenarios.

Automated systems like vertical lift modules and horizontal carousels can help create a safe working environment for your employees, reducing injuries, downtime and workers’ comp payouts. From falls to overexertion, automation can help reduce warehouse accidents.

Our automated solutions include:

1. Vertical Lift Modules 
Make use of your existing warehouse space by utilizing every inch of your available ceiling height. Our vertical lift modules come in three models:
a) The Lift: Boost efficiency, picking speeds and accuracy by up to 90% with our most popular vertical lift module.
b) The Slim: Leverage the same innovation as the Lift, but in a more compact design. Ideal for smaller warehouses.
C) OnePick: Completely automate your processes with the OnePick. Ideal for facilities that require full automation, such as eCommerce warehouses.

2. Horizontal Carousel
Working with limited ceiling height? You can count on our horizontal carousels. The horizontal carousel allows you to save space, boost throughput, reduce labor costs, and store and retrieve items as needed with minimal labor. The horizontal carousel consists of carriers (bins), which are mounted on an oval track that rotates horizontally and delivers stored goods to the picker. Each shelf can be divided into totes, bins, and partitions to create an efficient and well-organized storage space. Horizontal carousels are commonly used in warehouses and distribution centers for their ability to quickly handle large quantities of inventory. When seasonal demands arise, you can boost your picking accuracy by up to 99% with barcode readers and other tracking solutions.

3. Order Picking Solutions 
Are your picking operations quick enough to meet challenging consumer demands? Save time and money with order picking solutions. Our automated warehouse picking solutions allow your operators to simultaneously fulfill multiple orders. Order picking solutions reduce warehouse cost, make it easy to transfer inventory within your warehouse, and allow your operators to simultaneously fulfill multiple orders.

Our Modula Warehouse Order Picking Solutions include:

A) Mobile Picking Station: Process large volume orders quickly
B) Picking Cart: Move inventory to and from different areas within your warehouse
C) Put to Light: Direct your warehouse pickers to the correct picking zone
D) Mobile Picking App: Manage your picking operations whether on-site or on the go

At Donnegan Systems, our storage systems and automated solutions are designed to help you streamline operations and reduce costs throughout your warehouse, from storage to picking and beyond. Contact us today to see what we can do for you.

If you are interested in learning more about any of the solutions listed above, or if you are interested in a free space assessment from our team of storage experts please send us an email or give us a call.

Email: marketing@donnegan.com

Phone: 800-222-6311

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