When you start a small business, you are usually just looking to survive. However, once everything is up and running, you want to do more than just survive — you want to thrive. RMH Systems can help your small business, whether it’s shipping and receiving, a hardware store, or a clothing store, thrive by offering you solutions for your warehouse that will improve your warehouse operations and optimize your warehouse logistics to eliminate wasted time. Keep reading below for tips on how to increase warehouse profits, and then contact us today to get started!

TIPS TO INCREASE WAREHOUSE PROFITS

Hire a warehouse consultant.

Sometimes you just need an outside perspective, especially if you are the business owner who is so close to the business, it’s hard to see it. RMH Systems has been looking for inefficiencies in warehouses for decades. We’ve innovated some of the best equipment and implemented ideas that have transformed warehouse operations, as our client testimonials indicate. We are experts in warehouse planning and design and can help you, whether you are looking to expand, you’re moving into a new building, or you just want your current warehouse to run in tip-top order. When you partner with us, we’ll first run an audit to see what you are doing now. Then we’ll form a strategy and plan and then collaborate to make your warehouse run how you envision.

Consider requiring appointments for delivery.

We’ve all been there when 10 people show up wanting to drop off goods. It usually degenerates into a chaotic mess, costing way too much time, as frantic searches for paperwork ensues and tempers flare. We here at RMH Systems understand that deliveries don’t always run on time. From the car accident on the freeway to the snow storm that blew in out of nowhere, shipping and receiving of goods can vary. However, one way to help prevent goods from just sitting around in your warehouse unopened and unprocessed is to schedule delivery appointments. This spreads out the deliveries, gives you time to process what has just arrived, and time to prepare for the next one.

RMH recommends either blanket assigning vendors windows or assign recurring vendors the same window each day or week as needed. If you share a loading dock with another company, this is absolutely critical or you will constantly be running into each other. Furthermore, your staff should be trained on having the paperwork ready as well to speed up loading and unloading times. This should keep surprise deliveries down to a minimum

Implement ABC analysis for inventory items.

ABC analysis involves assigning items a letter, either A, B, or C, based on their importance in the supply chain. A items are sold the most and thus only account for 10-20% of the inventory since it’s frequently being sold. C items are sold the least and make up about half of the inventory items. B items fall in the middle. A items are recommended to be under tighter controls and monitoring since they generate the largest revenue. They should be tightly monitored, even with lock and key. The supplies of A items should be checked more frequently as well in order to keep sufficient supply on hand for orders. RMH Systems recognizes this may not be efficient for every business, depending on the number of products you offer, but it is worth investigating, especially if you are finding yourself constantly running out of your most popular items.

Picking order analysis.

In our last blog post, we talked about examining how you organize items on the shelves of your warehouse. Here, it’s important to analyze your picking order, or how you pull an item off the shelf for delivery. There are many types of warehouse picking orders you can implement as part of your warehouse logistics strategy (which RMH Systems can help you with), but suffice it to say for now that picking order affects how fast you fulfill customer orders, the accuracy of the order, and the time it takes for your staff to do so. We want to emphasize that improvements in your picking order methodology can drastically affect your supply chain productivity.

Money talks.

Warehouse operations are not easy. It takes a lot of manpower to run a warehouse successfully, even if you’ve invested in a good amount of warehouse automation. From fulfilling orders, unpacking products, picking and packing goods for reshipment, and fielding customer questions, your staff is busy. Offering incentives to encourage better workflow could go a long way to increasing your productivity, which increases your profits. Plus, creating goodwill amongst your employees by rewarding them on top of their pay is just good business sense. Your employee retention rate will increase, as will employee happiness in the workplace.

Why RMH Systems

RMH Systems is the best in the business when it comes to warehouse logistics, design, and operations. We offer warehouse consulting services in order to maximize your warehouse workings so you can continue to invest and grow. For over 20 years, we’ve been providing not only warehouse logistics design and services and racking inspection services, but we’ve also led the way in warehouse equipment needs, such as offering pallet flow racks, drive in pallet racking, double deep pallet racks, wire decks, and our very own K3 Sprinkler Guards for your warehouse storage needs. Contact us today to get started!