In lieu of flat or declining growth rates, there is a lot of pressure on companies to reduce their operating expenses in an effort to protect margins. This causes difficulty for supply chain executives who are challenged with reducing the company’s labour costs, but at the same time, customers are placing more orders with smaller quantities.
This makes sense because customers are also under pressure from their own companies to lower costs by reducing inventory levels and this translates to more cost to serve for your business.
Your business then has to figure out how to do more with less, within the distribution operation. There are a number of ways the business can increase efficiency depending on the company’s starting point; one of these ways is having good shelving and racking suppliers.
Shelving and racking manufactures are very important because nearly 50% of warehouse labour resources involve picking, packing, racking and shipping outbound orders, and so a business should focus on these operations first.
When you mix multiple Stock Keeping Units (SKUs) in the same bin location this reduces your racking productivity. For example in a warehouse a bin location may represent a shelf level that contains 6-11 SKU pick facings. An operator can be directed to the shelf level and then will have to search through different SKUs to find the item to be picked. If they were packed differently this could improve the accuracy.
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Good shelving and racking manufacturers will explain to you the different ways in which you can improve your productivity. Bin sorting is one, travel time is another. By packing items into a single travel instance, this will reduce the picking for a particular item, the smaller the order the better opportunity it is to pack multiple items into a single travel instance.
Shelving and racking suppliers in Johannesburg such as Krost Shelving are experienced in providing services for a number of companies in different industries. Although operations are large, they take a hands-on approach with each client by visiting your premises and giving you a free design for your business, making it possible to cater to even smaller businesses.
Improving a warehouse operation is an endeavor that can be approached from a number of angles, it is important to choose shelving and racking suppliers that have a lot of experience in order to ensure that your needs are met, at the same time you can reduce costs and increase productivity.
Krost Shelving is among the best shelving and racking suppliers in Johannesburg and delivers to the majority of Southern African countries, in an age of maximizing productivity and reducing cost you will not be disappointed with your choice.
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