When It Comes To Budget Decisions, Don't Skimp On the Warehouse

Meagan Douglas
Thu, Mar 1, 2018
Businesses that skimp on their budgets risk turning their warehouses into disorganized messes.
Businesses that skimp on their budgets risk turning their warehouses into disorganized messes.

Companies can't afford to skimp with their warehouse budgets. Doing so can set organizations up for systemic problems that create added costs and potential losses over time.

The blending of our digital and physical lifestyles is creating a rapid uptick of demand in the warehouse space. E-commerce organizations are diversifying and expanding their warehouse footprints to keep up with new requirements, and manufacturers are refining their processes to accelerate operations and improve efficiency. As supply chains become even more critical for businesses and operations get more complex, companies need their warehouses to stand as bastions for organization and productivity.

Check out our whitepaper, "Warehouse Automation Trends" to learn how the right investments in the warehouse can transform operations.

Don't Try to Build a Budget Warehouse

Of course, any business needs to have fiscal responsibility around its warehouse spending. But taking a budget approach - putting as little money as possible into the warehouse and taking shortcuts along the way - puts organizations on a path to potential disaster. This risk is evident in a report from The Load Star that detailed multiple organizations that have found themselves running into problems due to excessive cost cutting in the warehouse.

"Companies need their warehouses to stand as bastions for organization and productivity."

The first organization ran into a simple, but extremely problematic, situation. Desires to minimize staff and avoid putting resources into the warehouse led to a supply chain that became a disorganized mess. By investing less in warehouse management, the organization ended up with such poor working conditions that it faced stiff fines from regulatory bodies, cutting deeply into any savings that may have been generated by cost-conscious decisions, the report explained.

According to the news source, a couple of prominent organizations aren't dealing with fines but have been faced with significant reputation-related damages as highly publicized media reports have highlighted poor working conditions, safety hazards and similar issues in their warehouses.

These stories point to the growing complexity of the modern warehouse. Organizations that fail to invest in the people and technologies that keep everything running can set themselves up for long-term damages that undermine the business.

Putting Resources Into the Warehouse

While you won't have to look far to find a horror story or two about bad warehouse environments, the industry is making rapid progress in advancing its technological footprint and becoming more efficient. Transparency Market Research found that global spending on warehouse management systems will rise considerably moving forward, leading to an increase in market value at a compound annual growth rate of 14.1 percent for the 2017-to-2025 period.

What's more, warehouse management solutions and similar advanced technologies often create better work environments for employees. Voice picking technologies can provide hands-free mobile data collection, promoting safety. Analytics solutions, often fueled by integration between data collection tools and enterprise resource planning systems, can inform organization decisions and promote safer movement through facilities.

Organizations that make strategic investments in their warehouses can create better and more profitable work environments. RFgen can help organizations achieve such a goal. We offer a full suite of data collection and integration solutions, empowering businesses to keep up with the demands of the modern warehouse.

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