Cost Saving

How to Reduce Warehouse Costs with Warehouse Product Slotting

How to Reduce Warehouse Costs with Warehouse Product Slotting

by | Jan 10, 2025 | , , ,

The primary aim of product slotting is to enhance productivity by reducing travel time for pickers. For example, fast-moving products should be placed closer to the staging or packing areas, where they’re picked more frequently. This minimizes the distance that workers must walk, cutting down on the time spent retrieving products and allowing more orders to be processed each day. The benefits of product slotting are significant. In warehouses where this practice has been implemented correctly, businesses have seen productivity increases of 10% to 30%…

How to STOP Order Profitability Leaks – Logistics Costs

How to STOP Order Profitability Leaks – Logistics Costs

by | Dec 27, 2024 | , , ,

Customer and product profitability might not seem like the most exciting topic—until you realize how much it affects your bottom line. Over the years, I’ve seen countless businesses lose money on customer orders without even knowing it, all because they lack proper visibility. The problem often gets shelved because it feels too difficult to fix. Addressing loss-making products or customers requires cross-functional collaboration, and that’s where things start to fall apart…

Easy Logistics Cost Reduction – But Few People Do This

Easy Logistics Cost Reduction – But Few People Do This

by | Dec 6, 2024 | , , ,

Reducing logistics costs can seem overwhelming, with so many factors to consider and constant pressure to deliver results. However, focusing on just on specific area can drive significant savings. Let me start by showing you a diagram that helps explain why logistics cost reduction can feel overwhelming. Imagine senior executives pushing you to cut costs, and you’re faced with so many areas to consider…

Cost to Supply v Cost to Serve and Why You Need to Understand It

Cost to Supply v Cost to Serve and Why You Need to Understand It

by | Sep 13, 2024 | , , ,

Cost to supply is closely related to cost to serve but flips the focus to your suppliers’ costs for delivering goods to your business. Understanding these costs is just as crucial as knowing your own cost to serve customers. This insight helps you make key decisions, like determining whether direct store delivery or using your distribution center (DC) is more cost-effective…

Energy and Labour Costs: 2 Top Warehousing Challenges in 2023

Energy and Labour Costs: 2 Top Warehousing Challenges in 2023

by | Nov 14, 2023 | , ,

Recent studies have shown that among the challenges frustrating warehouse and distribution centre managers this year, rising energy and labour costs are two of the most often cited. Of course, there is no quick and easy way to curb increases in the cost of energy and labour, but now is an excellent time to start thinking about practical ways to reduce energy usage and increase labour productivity and efficiency…

Cost to Serve Analysis—And the Costs of Neglecting It

Cost to Serve Analysis—And the Costs of Neglecting It

by | Sep 12, 2023 | , ,

Have you conducted a cost-to-serve (CTS) analysis for your enterprise? Many companies have never drilled down into the costs involved in selling specific SKU categories, individual SKUs, or providing particular services connected with those sales, to specific customers or customer categories. And that is the sole purpose of cost-to-serve analysis…