For any business leader, reducing warehouse costs is a priority. However, quick measures that have a temporary effect can be frustrating. The first move when you are looking to cut costs
at the warehouse is finding affordable warehouse space for rent
. When you get this done right, you can manage recurrent costs, such as rent, and take it under control. But there’s more that you can do.
Below are tips to help you cut warehouse costs significantly and sustainably.
Space is an expensive commodity in Singapore, and you cannot afford to misuse what you have. The best way to protect yourself against rising warehouse rental costs and inflation is by optimizing the space utilized. Ask yourself if your aisles are covering the optimum space, and if there will be free flow of equipment and people. How are you shelving your products? Every square inch of the warehouse is a high-value resource, you should use it optimally.
Having space for various business functions is essential. For example, the ancillary office
is beneficial to carry out admin work to support your main core operations. Our property at Soon Wing Industrial Building offers offices for rent in Aljunied
, with nearby popular industrial locations like Genting Lane. This 8-storey building is accessible via various highways and it is within 5-min walking distance to Mattar MRT. There are 5 office warehouses for rent
, ranging from 400 to 1,100 sqft with a 3.8m ceiling height and 5 kN/m2 floor loading. They are furnished with windows, aircon and lights to provide a conducive working environment. Facilities include shower amenities on every floor, 3 loading bays, in-house canteen, 24-hour security guard & access and a complimentary season parking.
Small errors, inaccuracies, mishaps and accidents can destroy inventory in your warehouse worth thousands of dollars each year. Spoilage and physical damage can also account for shrinkage in your supply chain. This will cause you to face indirect losses as you will have to replace the missing inventory or restore supply chain facilities that were tampered or damaged during the incident. When you have unavailability of inventory, this could often mean missed business or market opportunities to bring you profits and fulfil demand, affecting your business competitiveness as well.
Proper packaging, movement control and training of staff will help you cut direct inventory losses significantly. Security measures such as access control and having a CCTV system installed will also go a long way in helping you avoid losses due to pilferage or shrinkage.
Make technology your friend
Investing in the right technology can help you cut down on warehouse costs sustainably. If you have yet to implement one, make plans to install a comprehensive Warehouse Management System (WMS). It provides real-time visibility and actionable alerts, including tracking and monitoring shipments, automated alerts to ensure everything is going smoothly, and real-time shipment analytics to optimize delivery routes. A warehouse management system will also go a long way in enabling you to make informed business decisions that will cut costs and boost productivity.
Training your staff
How your team works can play a part in how they contribute to warehouse costs. Any cost-cutting measure you take at the warehouse will require their involvement, so they will need to play their role in adhering to them accordingly. Train your staff regularly on the best practices, business procedures and safety requirements. You will succeed in reducing costs both in the short-term and the long-term.
For a bigger ancillary operation, our property at 680 Upper Thomson has commercial spaces for rent near Ang Mo Kio
. This 2-storey industrial building is situated within the Tagore Industrial Estate with close proximity to retail and eating establishments at Thomson Plaza and Thomson Estate. It is also located near to industrial and residential developments, and tenants can enjoy a scenic surrounding which offers an optimal business environment. There is one spacious ancillary office unit for rent at 3,896 sqft with aircon, lights and windows. Carpark facilities are available via season parking, and there is an in-house café as well as childcare services on the ground floor.