Warehouse managers face constant demand to move inventory out faster, more efficiently, with increased accuracy, all while maintaining worker safety and meeting customer expectations. Added to this recipe for stress is the pressure for managers to reduce warehouse costs and increase profit margins. Sound familiar?
It’s not surprising that reducing overhead costs and the warehouse waste stream is the primary goal of many enterprises. It’s also not surprising that doing this without compromising safety and order accuracy presents a formidable challenge. If you a searching for solutions, you are not alone.
But there are ways this can be achieved, and your software platform should be paving the way for you. Here are 5 ways you can reduce warehouse costs right now using telematics.
1. Reduce maintenance costs.
A recent case study revealed that as much as 75% of forklift maintenance expenses can be caused by operator error. You might not realize this unless you know the actual costs associated with forklift maintenance in your facility and what percentage is caused by operator error or careless mishaps.
Armed with easy-to-interpret telematic insight, managers can quickly see if a large chunk of escalating maintenance costs is from avoidable repairs caused by operator error.
Next on your list should be preventive maintenance, which often gets postponed due to deadlines and stress to keep product moving. Maintenance schedules need to be monitored and fleet vehicles properly tagged out for repairs.
- Your software platform should ensure that forklifts receive their regular maintenance, on time, to avoid unexpected and more costly breakdowns.
- Tag out should prevent use of equipment in need of repairs and help avoid subsequent injuries and mishaps.
2. Move inventory faster and more efficiently.
Your fleet monitoring system should tell you what is slowing product movement and identify optimal forklift routing through entrances and exits in a facility and even reveal numerous ways to improve safety and efficiencies.
Idle time, traffic in aisles, and moving inventory more times than necessary due to poor routing are detrimental to your bottom line. Changing these patterns can really help keep things moving.
3. Leverage highly skilled workers to accomplish more.
When scheduling operators, skill level, efficiency, and their overall productivity should impact your choices in job assignments. You can save time and money by making assignments based on facts and insight, knowing exactly which operators will be best for the tasks at hand. Using telematic data, you can identify needs — like driver training, reallocating labor, and slotting optimization.
Telematic operator report cards provide answers at your fingertips. For example, you should know:
- What skills does each operator have or excel at?
- What challenges them and where is the greatest potential for mishaps or delays?
- If time is of the essence, who always makes the most efficient use of time, getting a task done quickly and without compromising safety?
In a nutshell, real-time visibility into the movement and performance of your fleet, operators, and maintenance can help to reduce you warehouse costs dramatically and boost your bottom line.