How can a warehouse add value to the goods in storage?
Among the key tools that allow adding value to goods, improvement of the organization’s logistics-related processes should be looked into as a means of addressing the case in point. Indeed, a closer look at the subject matter will show that the value of goods can be increased significantly by boosting the difference between the face value of the product and its market price. The specified difference, in its turn, can be fueled by improving the existing logistics strategy; particularly, the process of transportation needs to be enhanced. A choice of the transportation company that would offer its services at a much more reasonable price could be viewed as a solution to the situation. Additionally, a more elaborate choice of the routes, which will allow for a significant reduction in gas consumption, will also help the organization allocate its costs in a more adequate manner.
What are the various measures of warehouse performance?
Since the performance of a warehouse is affected by a variety of factors, including not only economic and financial ones but also the variables belonging to the realm of politics, society and culture, it is crucial that the warehouse performance should be assessed with the help of a comprehensive test. Herein the need to design a set of measures, which will help carry out the required assessments in a proper manner lies (Rolstadas, 2012).
Therefore, the analysis of the costs taken by the organization can be viewed as the first step towards identifying the changes in the warehouse business performance. A more detailed and better thought-out strategy of using the firm’s financial resources will doubtlessly help bring the rates of expenditure down. Additionally, the analysis of the external factors that define the organization’s performance in the target market should be named among the most essential assessment parameters.
What are the challenges in calculating warehouse performance indicators?
It should be borne in mind, though, that the calculation of the company’s performance indices is a complicated process that involves a detailed analysis of the existing variables (Ilieş, Turdean, & Crişan, 2009). The process of tying all the elements together and carrying out a detailed analysis of the effects, which every single external and internal factor has on the organization’s evolution, clearly warrants the title of one of the most complicated tasks.
How can warehouse management reduce costs?
The costs, which the warehouse is currently taking, can be reduced significantly by addressing some of the weaknesses in the organization’s strategy regarding the use of its resources. According to Ilieş et al. (2009), the storage area, which the warehouse has to offer, is not being used to its full capacity. Therefore, the company misses an opportunity to put its resources to a proper use. The reconsideration of the area usage, therefore, must be viewed as the first step towards the reduction of the company’s costs.
Another obvious problem, the usage of the inventory, which the warehouse employees have at hand, deserves to be brought up. By updating the equipment utilized in the warehouse, as well as putting it to proper use, one will be able to enhance the performance of the specified organization considerably. For instance, the value of Days in Hand should be reduced so that the company should not carry as many losses as it does now.
Reference List
Ilieş, L., Turdean, A-M., & Crişan, E. (2009). Warehouse performance measurement – A case study. Annals of Faculty of Economics, 4(1), 307–312. Web.
Rolstadas, A. (2012). Performance management: A business process benchmarking approach. Berlin: Springer Science & Business Media. Web.