KMH Systems Inc

New Year Profit Methods

If your organization needs help taking lost revenue back from unseen costs here are 10 strategies you can start to employ today that will provide a payoff.


Labor is the largest cost in a non-automated warehouse, training with regular discussions, both in terms of improving productivity, reduces errors and damage.

Lower Inventory Holding Costs

Increase space through narrow aisle handling equipment, mezzanines, layout, or more appropriate storage modes.

Reduce Lead Times

Any reduction in lead time provides a one-time, permanent reduction in cycle stock inventory.

Don’t Stock It

If you don’t need it on a regular basis don’t stock it. With shipping at an all-time fast rate and lower cost don’t hold your money in inventory you don’t regularly ship or use.

Reduce Touches

Do product flow and order flow no longer make sense and crisscross the floor? Take a fresh look at the physical processes and steps involved in product flow and order fulfillment. Generally speaking, less steps equal fewer touches equal lower costs.

Maximize Vertical Space

Where space can be limited, it’s important to take advantage of every inch of available space (floor to ceiling). Vertical solutions can lead to safer working conditions as well as increased efficiency in the warehouse. Doing so increases ergonomic benefits and drives greater efficiency and productivity in everyday work.

Packing Options

Researching bulk purchases of all your packaging and material needs can lower your annual costs. Utilize the internet to compare costs, sales and quantity savings will lower your cost per unit shipped without changing your sale price of your product.

Inventory Management

Schedule a FREE Operational Audit and get a second opinion on your inventory management. KMH can give you a look at all the ways you can lower your costs, increase your productivity and leverage your uptimes.

Vendor Management

Insist on costs, terms, and conditions with vendors that make sense for your company. Create a vendor sheet that you can easily reference as a reminder of the vendors you prefer. Your vendor information could include sales, margin, on-time delivery, significant problems, etc. Review it several times a year.


Reduce slow selling stock as close to in-season as possible to gain a higher cost recovery.

Call 888-564-7978 for your free operational audit so we can help you work smart and increase profits!

Request Your FREE Operational Audit…