KMH Systems Inc

New Year Profit Methods

News , , ,

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.

Training

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.

Liquidate

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…

    Warehouse Resolutions

    6 Warehouse New Year’s Resolutions

    News , , , ,

    When you’re thinking about what you’d like to do in 2016, here are 5 resolutions KMH can help you keep and profit from for the whole year. When it comes to your warehouse operation, since you work on it all day, every day, the New Year is a good time to look at improvements you can make.

    Work Safer

    Accidents happen often enough, since there are tens of thousands of these types of collisions–and serious injuries–every year. Have a plan, it should be enforced by clear rules, and by training. Accidents are costly in too many ways and are truly worth an ounce of prevention for a smooth day and year.

    Analyze & Consolidate

    From an order picking standpoint, if you aren’t automated, the reality is that you should look to reduce steps more than eliminating them. To do this, logical inventory slotting is critical. Can items that are often shipped together be stored together in flow storage, shelves, or racks? Can items that are very high volume be stored at the most convenient place? Can items that are required in terms of an assembly or manufacturing process be slotted beside each other in storage positions? One common method is to replace static storage with carton flow, since gravity flow uses floor space more efficiently. Be sure to plan for flexibility and scalability so you can adjust as you grow.

    Consider Automation

    You can leverage a tremendous amount of time savings by implementing carousels, conveyors, or other automated solutions that let people work. KMH can perform a free Operational Audit to show you ways to save by implementing simple and even dynamic conveyor and automation systems that lower your cost per unit shipped.

    Increase your ROI

    You can lower your operational costs by letting us help you review and understand your investment into every stick of equipment, every piece of software, and every person working in your facility. You can stop making decisions on initial purchase price, and work toward making decisions on the full cost of ownership.

    Leverage Your Operational Costs

    Electrical usage & pneumatics usage are going to factor heavily in your up time. Utilizing the right drives, motors, and reducers can significantly reduce cost over time. Turning off the lights is a simple “no brainer” to lowering your electric bill over the course of the year as well. Regular maintenance of heating, ventilation, cooling, and refrigeration systems if you have them—including changing filters regularly—is important for good operation and to avoid wasting energy.

    Upgrade To More Efficient Lighting

    Lighting is typically one of the largest consumers of energy in a warehouse; accordingly, it often can represent the best opportunities for savings. KMH can help you find lighting savings by installing the most appropriate lighting technology and showing you how to control it effectively. If you are planning to install new lighting technology, our reps can perform a lighting survey and present you with all the options you need for saving and the money you will save on the change.

    Call 888-564-7978 for your free operational audit so we can help you keep everyone safe.

    Request Your FREE Operational Audit…