How to Balance Cost and Quality in Warehousing

coworkers discussing how to balance cost and quality in warehousing

In order to make money, you need to spend money is a familiar adage, yes. However, spending your money frivolously is useless. As such, it is important to learn how to balance cost and quality in warehousing!

Invest in quality equipment

If you want to run a reliable logistics business, you need excellent equipment to support your operations. And you can absolutely not do that by trying to cheapen out on the quality of your equipment. In fact, even if you try to balance cost and quality in warehousing by reducing the quality of the equipment you purchase, it will just have negative effects. Low-quality equipment needs to be replaced a lot more often. Otherwise, it would eventually be unsafe to use. And because in the context of warehousing, we are talking about forklifts, ladders, and a whole host of other dangerous tools and equipment to use with the slightest damage, this means you’d be hemorrhaging money just to keep your workers alive. Just buying quality equipment that will last from the start, even if it’s more expensive on paper, is the better call.

Work is more efficient with proper equipment, too!

Check for waste and inefficiencies

Another way to balance cost and quality in warehousing is to examine your operations for inefficiencies. It’s possible that by altering your warehouse's layout and storage methods, you can make it operate more cheaply. For example, cross-docking can lift some of the pressure from your warehouse. And might even allow you to increase traffic to it, whereas you were thinking about having to expand it before.


Enhance your warehouses

As the moving and storage experts from point out, sometimes, the best way to balance cost and quality in warehousing is to examine your facilities first. If you run a climate-controlled warehouse, then making sure that it’s properly insulated is key to making it cheaper to maintain. All the power you use to keep the temperature steady is an immense expense. Of course, keeping the warehouse in general good repair and making sure it’s clean and tidy is also essential. It will help prevent accidents and damage to your inventory, which can become a serious source of additional costs!

Look into quality used supplies

It may sound like odd advice after discussing ensuring that your equipment is high quality. However, you should not immediately shy away from purchasing used warehousing supplies. Of course, we are not talking about crucial equipment. However, the quality of things such as pallets, shipping containers, and even storage containers is rarely compromised by light prior use. And purchasing these used supplies can cut costs by almost forty to fifty percent. Of course, you need to ensure they are not damaged and the other person is trying to scam you. But as long as you are careful, you can relatively easily balance cost and quality in warehousing this way!

Optimize your inventory

When people talk about optimizing the inventory of their warehouse, they typically focus on making it more easily accessible and convenient to find particular articles. However, a lot of people forget this: If you master stacking and the proper use of shelving, you can considerably cut the amount of space you need to store a particular inventory. As a result, you might be able to downsize your warehouse and save money that way! We should also note that renting warehouse space is one of the biggest expenses in logistics, so this would go a long way.

Never try to save on essential expenses for your warehousing

The final thing you should know about trying to balance cost and quality in warehousing is that there are some expenses that you should never try to cut. An excellent example of this is your workers’ pay. If you have excellent employees who do not just meet but exceed your expectations, you should not hit them with pay reductions or try to reduce your number of employees, thinking that the rest can pick up the slack. You motivate your employees to work using their pay. And the reason why they are so efficient might just be the fact that they can properly divide their work and no one overexerts themselves! Messing with the very core of your operations almost always ends badly, especially if everything is working well already! If you mess up here, you might even have to outsource your warehousing in a hurry.

Keep your employees motivated and happy!

Balancing quality with costs effectively

Now that you know how to balance cost and quality in warehousing, you can further improve your business! By avoiding waste and improving your operations, your business will become much more profitable!

For over 30 years, 18 Wheels Logistics has strived to be the most customer-centric trucking, warehousing, and logistics company around. Based in Vancouver, British Columbia, Canada, 18 Wheels relies on experience and integrity to make customers happy and remain on the cutting edge of shipping and logistics management.

If you have any questions about this article or you would like to talk to us about your shipping needs, please call us at (604) 439-8938.