4 Tips to Reduce Warehousing Costs & Generate More Profits


To achieve any measurable success in today’s climate of maximum competition, it is imperative that warehouse productivity be increased while operational costs are reduced.


Read on to learn more about four essential practices to put your warehouse on track to spending less and making more profits! 


1. Avoid In-House Warehousing Investment


Investing in non-core competency areas can eventually translate into a financial lockdown. Furthermore, establishing an in-house large supply chain management department will only add to the existing business pressures.


As inventory, transportation, and logistics costs continue to increase by leaps and bounds, it is no longer feasible for businesses to conduct supply chain activities in-house which is where 3rd party logistics comes into play. 


2. Public Warehousing Facilities – shared spaces


Because public warehousing spaces are shared by multiple customers, your business will only be required to pay for a portion of that space. 


When you partner with Shift Logistics, you can effectively bring down your storage and fulfillment costs by paying only for the space you use, be it one pallet or 10,000 sq feet. Moreover, we charge only for the orders that we ship, which significantly reduces warehousing costs and helps you earn more and more profits! 


3. Avoid Incurring Sky-High WMS costs


A warehouse management system (WMS) is of paramount importance in the modern warehouse to manage inventory, shipments, pick and pack operations, and a variety of other functions. While these technological marvels are indispensable, they are not inexpensive. In fact, depending on the size of your operation, a fully-featured system can easily cost six figures. 


Instead of incurring these huge costs yourself, you can collaborate with a third-party logistics partner like Shift which already boasts a state-of-the-art warehouse to help brands accelerate their shipping and order fulfillment


4. Effective Slotting Optimization


The step-by-step process of analyzing inventory data for the purpose of categorizing and organizing inventory throughout a warehouse or distribution center can do wonders for your business and help you cut down on warehouse costs! This ultimately leads to warehouse productivity and profitability while also improving overall operational efficiency.


Third-party logistics providers like Shift come equipped with warehousing professionals who can ensure effective slotting and warrant key benefits such as – superior inventory control, decreased handling costs, accurate demand planning, and much more! 


A logistics strategy of cost reduction is absolutely essential for companies that are hoping to increase profitability.


This is where Shift Logistics can aid in your business’s growth, with our expert team and the latest facilities to provide support for all of your order fulfillment needs!