Reducing storage costs helps companies maintain their competitiveness and financial health. Do you know why and how to do it?
The numbers indicate the importance of reduce storage costs. According to National Confederation of Industry (CNI), There was an unwanted accumulation of product inventory in the initial months of the second half of 2018. This excess generates unforeseen expenses, increasing the cost of the entire logistics chain. These costs are very significant: in two years, logistics costs R$ 15.5 billion more due to the poor infrastructure.
With this information in hand, managers need to think about strategies to reduce operating costs. It's a mistake to think that this is linked to cutting staff: it's possible... reduce storage costs without changing the staff structure.
How can we reduce storage costs?
Making this decision impacts not only the company's financial health. One storage With lower operating costs, it is more competitive because it can offer more aggressive pricing to attract consumers.
However, this isn't something that happens overnight: it requires organization and strategic planning. Bertolini, a leading company in its segment in South America, can help you with the following tips:
1. Understand what your expenses are.
There's no way to measure something you don't know. So, the first step is... reduce storage costs It's about understanding which expenses have the biggest impact on your company. Generally, the main cash outflows are caused by:
• Fixed expenses and overhead costs (electricity, water, rent, etc.)
• Materials
• Labor
• Technology.
Put all of this down on paper to get an overview of the situation. This will help you identify the key areas for concern, which is essential for developing a plan. With this information in hand, you can start reducing operational costs.
2. Make use of automation.
The use of automation software is becoming increasingly common in organizations. This is one of the biggest... challenges for logistics operations, which must adapt to new realities. Tools such as Warehouse Management Systems (WMS) only bring benefits, as they provide integrated management and accurate data.
In 2020, Bertolini launched a innovative intralogistics automation project. Click here to learn more about Mor's client case studies.
3. Perform demand forecasting.
As we saw at the beginning of this article, the accumulation of unwanted inventory is a reality for many companies. This makes it difficult to... reduce storage costs, since the operation requires more space than planned.
The best way to overcome this problem is through demand forecasting. Analyze sales from recent years and take holidays into account to predict periods with more and fewer deals closed. This information helps adjust expectations.
4. Invest in vertical storage.
Finally, we cannot leave out the vertical warehouse as an ally to reduce storage costs. This practice utilizes shelving and other solutions to make the most of the building's ceiling height. With the aid of forklifts, it is possible to store products at elevated heights, allowing the stock to accommodate even more material.
Studies indicate that 21% of retail sales are affected by poor inventory management. Therefore, the main advantage of vertical storage is better space organization and increased storage capacity for supplies. At the same time, it reduces costs, as the company does not need to rent or buy larger, more expensive plots of land.
