The space of a warehouse in square meters does not cost as much as other commercial properties, but it is not always an easy decision to expand the business. 

The recommendations below can help you improve warehouse efficiency. An operations audit can help you identify some unseen problems and find opportunities to improve efficiency. Just remember that a single audit will probably reveal some cost-cutting measures, but not all. 

1. Optimizing the space in the existing warehouse. 

The best improvement is the implementation of a deposit management system.

First, you should optimize the space you have, and then find alternatives in storing the goods in other spaces. In addition to getting more storage space in your warehouse, this can greatly improve the efficiency of storage space. We wrote more about this here.

2. Update your mobile technology in the warehouse. 

Most companies understand that technology can improve efficiency and increase order handling speed. These are equivalent to cost savings, but only if you use the right equipment. 67% of stores intend to use mobile devices to manage inventory in the future.

Most start with barcode scanners when they think of deploying mobile devices in the repository. However, employees can also use smartphones and tablets with dedicated software to receive optimum ordering and lifting routes.

Modernization of technology, including mobile systems and the use of pick-to-light, RFID and pick-to-voice technology, reduce rates with a lifting error of up to 67% compared to traditional manual methods. This represents a significant saving when you calculate the costs associated with processing returns, shipping costs, customer service workforce and more. 

3. Standardize and audit workflows. 

From the moment a product reaches the warehouse until shipment, each activity and process for moving that product should have a set workflow. Without a workflow, employees are either working in a way that is optimal for them or most comfortable.

What is efficient or comfortable for the employee may not be the most effective or profitable method for the company.

With suitable workflows, you can make sure that every employee works accordingly to the same standards. Most importantly, you can monitor the individual performance of your employees based on benchmarks set for that segment of the workflow.

When problems arise that may affect operational costs, a quick audit can usually reveal workflow errors. If it is a performance problem, management can work with the employee to quickly correct the deviation and restore the workflow.

Before checking and changing the workflow in the warehouse, remember that employees are the heart of this process. Workflows are based on people, not only to complete the task, but also to improve and streamline your warehouse operations. 

4. Automation in the transportation process of the stored goods.

 As the business grows, you may need to reconsider the process of taking over the goods from the warehouse.

For example, the average order picker can choose between 60 and 80 products per hour when routes are optimized in the warehouse. This lifting rate can be enhanced by up to 300 pieces per hour when using automatic sorting and transport methods, which can move the product through the warehouse.

Of course, there is an additional cost in modernizing and adding automation. However, by reducing transport time, you can greatly increase productivity and ultimately reduce costs.