Warehouse logistics is an essential part of supply chain management. Warehouses are structures where goods are stored, and allow products to be distributed around the world effectively. Thus, it is imperative that a warehouse manages its space in a productive way and consumes limited energy, in order to generate long term profits.
The following are some tips which large as well as small scale warehouses must take into consideration in order to reduce energy consumption and save money:
- Manpower and warehousing
The largest area where warehouses spend a substantial amount of resources is its operations. A warehouse has to spend on labour and manage productivity to cover the cost. In third party logistics, labour costs can account for 60 to 65 percent of the total expenses of warehouse fulfillment.
An effective workforce should be hired to ensure the best possible manpower. The manager needs to control the environment of the warehouse by providing insight into the job. Employees need to be properly trained so that resources can be completely utilized.
The manager needs to push the output requirement by setting performance standards that are realistic and plan-based. Employees should have a clear goal and objective in mind as manpower is the biggest asset of a warehouse. Proper management of the workforce can save up to 30% of overall resource, therefore manpower should be correctly realized to save time and money.
- Packaging and processing
Warehouses not only provide storage and protection of the goods but also offer various other services that help the customer save time and money. The services are provided by trained staff which promotes efficiency.
The most important service provided by a warehouse is the packaging and processing of the products. Warehouse logistics ensure proper packaging and sealing of products so they are ready for shipment and facilitates inventory control. After meeting all the safety standards, the products are loaded onto shipping trucks and are ready for dispatch.
- Warehousing services promote savings
Every company aims at increasing productivity and cutting costs. To achieve this, firms need to find ways for the management of procurement, storage, logistics and distribution. To make these goals achievable, warehouse services come into the picture.
Warehousing services are necessary for production. Production is pointless if there are no provisions for the storage of the manufactured goods. From raw materials to finished goods, every stage requires storage facilities. Warehouse logistics provide facilities for the storage of goods and also ensures protection against spoilage, theft, etc.
Warehousing reduces a number of business risks. If you are storing the goods off-site by outsourcing the warehousing services, it will minimize the risks of embezzlement, fire, damage, etc. Warehousing logistics includes insuring your goods with insurance companies to ensure full-proof safety in case of any damage or theft.
- Seasonal businesses and warehousing
Several businesses produce goods or get the most effective yield during a particular period. The biggest example of such a business is the firms dealing with agro-based products. Warehousing services have proved to be a big asset for seasonal businesses. Firms in the agriculture sector use different warehouses, situated near the key markets, which reduces the transportation cost and time and meet the demands more effectively – spot stocking. Most of the agricultural firms in the US and Canada are using spot stocking instead of direct shipping.
According to the Cold Storage Survey by the United States Department of Agriculture, there are over 800 commercial and public warehouses in 48 cities, storing agro-based products for 30 days or more to target markets. The revenue of the farm product storage and the warehousing industry has risen at a rate of 0.2 % from 2015 to 2020.
- Growth and expansion with warehousing
Warehousing services open portals for expansion. The pressure of the storage of raw materials, spare parts, components, and manufactured goods does not let companies concentrate on their core activities. In addition, they won’t be able to manage large orders if they lack storage facilities. By outsourcing warehouse facilities, firms don’t need to worry about storing the goods, and are able to take larger orders and expand.
Meeting the demands for the products and their timely delivery is crucial for every business firm. Warehouse logistics offer an efficient solution to meet supply requirements on time and deliver wherever the demand arises with freight shipping from Canada to the USA, making the service very helpful in growing businesses.
The warehousing industry has been growing at a rate of 3.7% from 2014 to 2019. Firms have begun focusing on consumer spending and manufacturing output, leading to an increase in shipments of consumer goods in the past 5 years. This, in turn, has led to an increase in the demand for warehouse space. In the next 5 years, it is expected that the increase in trade will generate greater demand for warehouse services as foreign manufacturers often demand domestic third party warehouses to store products for the US markets.
- Power saving in a warehouse
Warehouse services are one of the biggest users of power. The key areas of power consumption are lighting and temperature control which includes cold storages, hot cases, humidity control, etc. Temperature control is necessary as different classes of products are stored at different temperatures. Managing these areas of power consumption is a great way to save power.
From the USA to Canada, power density for display areas of a warehouse should be 10 W per sq. meter. Staff areas should be 3 W per sq. meter, while lobby and entrances require 15 W per sq. meter. Adjustment of lighting to these power standards is a great step towards power saving.
Outsourcing your warehousing services is an effective strategy that will save time as well as finances. Firms have started realizing the potential of the third-party warehousing services and are channeling funds towards these service providers, the testimony of which is the contribution of 75 billion USD by the warehousing sector to the US GDP in 2019.
- Posted by admin
- On May 27, 2020