If left unchecked, warehouse storage costs can quickly eat up your budget. One way to reduce warehousing costs from spiraling is to budget for and implement a shorter duration of warehousing. Absent any other process enhancements, unexpected deliveries leading to over-budget costs are bound to disappoint. Adding process enhancements and refusing early shipment is absolutely essential to controlling warehousing costs on your large-scale capital projects.
Four Ways to Limit Your Warehouse Storage Time
- Create a procurement schedule tailored to your project’s specific needs
- Consider factors such as vendor-specific lead times, internal processing time, need-by dates, and desired warehouse time
- Stick to the procurement schedule to avoid unexpected deliveries and over-budget charges
- Use warehouse space efficiently and effectively to prevent straining your budget
Stay within Budget: Refusing Early Shipments
Another way to limit warehouse cost overruns is to refuse early shipments. If items arrive too early, don’t accept them. Instead, work with your vendor to reschedule the delivery for a more appropriate time. By doing this, you avoid the need to store items for an extended period of time, which can result in additional storage charges and other problems. This approach is particularly useful if you’re using an external warehouse. If you’re using other methods, including storage in a shelled space or JIT, refusing early shipments might be a hardline requirement. And JIT mobilizations require incredible coordination during tight timeframes. Anything other than the desired timing could lead to unexpected costs or undesirable process workarounds.
Get Expert Assistance
We understand the demands and challenges that come with managing a warehouse efficiently, and if you’re struggling to manage your warehouse storage costs, you’re not alone. Contact us today to learn more about how we can help you create a Procurement Schedule that’s tailored to your specific needs and assist you in building an ROI comparison between different receiving methods.