Saving Cost & control

Dear Collegueaes,
I'm a warehouse manager in FMCG field ( Dairy & Jucies) my supply chain GM asked me how can I save cost in my warehouse or cost control monthly. that caused by the sales number is behind after the board meeting. so how can I acheive that especially I have alot of expiry dairy products with shelf life maximum 9 days. ????? :(
 

silliker

Banned
Re: Saving Cost & control

There are a lot of things that you will consider in preserving the stocks that will give much desire to slowly dispose some of the products to prevent spillage in the control room and try to move the first to arrive.
 

Richard Watson

New member
Re: Saving Cost & control

As warehouse manager you are managing the buffer between production and sales. Can you function a true FIFO basis, or must you always ship fresh.
The other issue is how you handle the warehouse service of incoming receiptes and outgoing shipments. Is is steady? or does it require surges of activiity to accomplish the service levels expected, and demanded.
If thew arehosue activities are expecetd to sevre, then how can the surges be provided for with costs that are coantined, staggered shift patterns? say early and late.
 

reachstan

New member
Re: Saving Cost & control

sorry for being off topic, but can anyone help with posting a new topic? I searched the site for "post a new thread " button but couldn't find one. anyone tell me how to start a new topic?
 

explorerx7

New member
Re: Saving Cost & control

You could recommend that the production of some of these goods be adjusted to limit the amount of stock that would become obsolete because of their short shelf life.This measure could be adopted until their better sales results are achieved. You could also ensure that the goods that first came into the warehouse would be the first to leave if this was not been consistently done before. The less expired goods you have the better you are able to justify the electricity costs, having to pay electricity for goods that eventually cannot be sold would result in a negative production cost.
 

xTinx

New member
Re: Saving Cost & control

This is just my two cents but you can consider the following:
1. Warehouse sale or buy-one-take-one promo for items that are about to expire
2. Add the items as giveaways or freebies to goods sold at stores
3. Have a cookout using those items as ingredients (this could serve as free advertisement)
 

David_TR

New member
Re: Saving Cost & control

I think it'd be pretty important for you guys to consider product lifespan in this case. Some kind of discount might be needed to move product faster, and as mentioned before a FIFO system would be really helpful for products that expire as fast as yours will.
 

Corzhens

Member
Re: Saving Cost & control

This is just my two cents but you can consider the following:
1. Warehouse sale or buy-one-take-one promo for items that are about to expire
2. Add the items as giveaways or freebies to goods sold at stores
3. Have a cookout using those items as ingredients (this could serve as free advertisement)
Your #1 may go against the profitability of the stocks so this may not be highly considered. Your #3 item is a good one because it can serve as a novelty to attract potential customers. And if the conduct of the cookout is accommodating, I guess that free advertisement can serve its purpose. That is the main issue with perishable goods, it is like you are always pressured by that deadline called expiry date.
 

pramod

New member
Re: Saving Cost & control

There are a lot of things that you will consider in preserving the stocks that will give much desire to slowly dispose some of the products to prevent spillage in the control room and try to move the first to arrive.

Supply Chian
 

Charu Sharma

New member
Re: Saving Cost & control

There are so many ways to reduce cost in warehouse management some of them are :
1. Manage the labor force, Labor is the largest controllable expense item in your distribution center
2. An effective warehouse cost reduction strategy is to streamline the operation and apply industry best practices in order to reduce the handling and cost of fulfilling an order.
3. Controlling inbound and outbound freight can make the difference between a profit or loss for your business.
4. Many companies are still using Excel for their staffing software. Excel cannot save you as much money year over year as a good workforce program
5. effective warehouse cost reduction strategy is to streamline the operation and apply industry best practices in order to reduce the handling and cost of fulfilling an order.
 
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