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Measures To Reduce Warehousing Costs(2 Of 2)

- Sep 13, 2017 -

Reducing warehousing costs should be conducted on the premise of ensuring the lowest total logistics cost and not reducing the overall service quality and target level of the enterprise:


5. Accelerate the turnover, increase unit output capacity. An important issue is the modernization of the static storage and dynamic storage, fast turnaround will bring a series of benefits: capital reserve capital turns quickly, high efficiency, cargo damage is small, the warehouse throughput is increased and the cost decreased. The concrete methods, such as adopting the unit accumulation memory and establishing the quick sorting system, are helpful to realize the fast in fast out.


6. Take diversified operations and revitalize assets. Warehousing facilities and equipment input, only in full use of the situation to obtain income, if not put into use, or only inefficient use, will only lead to increased costs. Storage enterprises should make timely decisions and make use of leasing, borrowing, selling and other means of operation to revitalize these assets and improve the utilization of assets and equipment.


7. Strengthening labor management. Wage is an important component of warehouse cost, and the rational use of labor force is the basic principle of the wage of maintenance staff. China is a country with advantages in labor force, low wages, and more labor force is a reasonable choice. Effective management of labor and avoidance of inefficiency are important aspects of cost management.


8. Reduce management costs. The management cost is the enterprise management activity and the management activity expense and the cost disbursement, including management fee, service expense, and transaction cost and so on. Strengthen such cost management, reduce unnecessary expenditure, but also reduce costs. It is necessary to strengthen management when expenses of management and cost cannot produce direct income and return, and cannot be completely cancelled.


Warehousing activities are necessary to promote the development of production and meet the market supply. Warehousing cost is relatively easy to control and manage in the logistics cost. With the improvement of the technology level in the logistics activities, the storage efficiency is also increasing, and the storage cost is also changing. To understand the importance of warehousing in logistics activities, the existing problems and the contents of warehouse cost control, we can take corresponding measures to solve problems, reduce costs and improve efficiency.

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