Submitted on Wed, 2014-07-02
By Jim Laverty

Every CEO wants to know how they can grow their business and make the company become more profitable.

Supply Chain Profitability

The key to unlocking your company’s more profitable future just may be hiding on your warehouse floor. Nowhere in your business do you have the direct ability to control costs like within your supply chain. Your warehouse and your entire supply chain is where you can manage your productivity and output, manage your labor, and manage customer service-related costs. With direct control over each of those factors, a well-managed and optimized warehouse operation are key to creating a more profitable business. Your warehouse is already having a huge impact on your bottom line, so learn to control it to improve your profitability today.

 

How to Reduce Costs: Step 1. Understand Your Costs

The quickest and most effective way to become more profitable is reduce your costs, but first you need to understand your costs. With a sophisticated toolset to view and manage your supply chain, you can significantly reduce the costs your business incurs. Use metrics from your supply chain to discover where your costs are coming from.

  • Where are your bottlenecks? Analytics real time data and reports will show you hidden inefficiencies or bottlenecks that can be cut from your supply chain.
     
  • Where is your revenue coming from? A real-time view of what’s on your warehouse floor and where items are in your supply chain will mean that you are accurately billing each customer.
     
  • What are your labor costs? Advanced labor management tracking and techniques will help you better unlock the potential within each worker.

With a clear view of all the vital analytics from your business operations, you can measure the direct impact your warehouse operations have on costs, and use that data to continuously improve your profitability. Monitoring and maximizing operations on your warehouse floor will go a long way to achieving your strategic goals.

 

How to Reduce Costs: Step 2. Maximize Warehouse Data Internally

Allowing your data to freely flow throughout the company, instead of being bound by the four walls of the warehouse, will influence larger strategic business decisions. By sharing data from your warehouse, your organization will have complete transparency to track every facet of your supply chain and to uncover valuable analytics in real-time. You’ll have important production data for your customer service team, billing information for your accounting department, staff analytics for your human resources department, and productivity metrics for your operations department. Every company is unique, but real-time analytics provide the blueprint for how to reduce costs throughout your entire organization. Utilizing this data throughout could have a measurable impact on your bottom line.

 

How to Reduce Costs: Step 3. Continual Improvement with New Technology

Your warehouse doesn’t need to be stagnant. It can be a dynamic cost saver and money maker for your company. Being open and able to implement advanced new operations technologies will allow you to constantly evolve and stay ahead of your competition. Technologies that can effectively remove cost from your supply chain include robotics, mobile devices, and voice picking. Voice picking alone is proven to increase worker productivity by 35%. Utilizing a fully supported cloud platform for your warehouse management system will ensure that you have a cost-effective means to connect to the latest and greatest ways to achieve your organization’s goals.

 

Most businesses have too narrow a view of how cost reduction in your supply can improve organizational profitability. Learn more about how you can reduce costs supply chain and give our experts a call to learn more about running a profitable supply chain.

Blog Type: 
IRMS WM Blog
Innovative Technology Solutions