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Strategies to reduce storage costs

by:CNS     2021-07-03
Strategies to reduce storage costs 2021-06-20 19:37:29 In order to achieve a certain level of customer service, the distribution center must have a certain amount of inventory. But inventory will take up a lot of working capital and increase the storage cost of the distribution center. Therefore, increasing the speed of inventory circulation and reducing the amount of inventory have become a necessity for distribution centers to reduce storage costs and improve economic benefits. First of all, the distribution center must strengthen inventory management, deal with useless inventory goods in a timely manner, and reduce unnecessary inventory. Secondly, it is necessary to establish good communication with customers and suppliers, improve the accuracy of demand forecasts, shorten the purchase cycle, and reduce the number of inventories to the minimum on the premise of meeting the availability of inventory. It is necessary to implement information management of inventory, accurately grasp inventory information, adopt scientific inventory control methods, and optimize the allocation of inventory quantity and variety structure. Use information technology to speed up the in and out of goods and increase the turnover rate of inventory. Use the computer deposit and withdrawal system to achieve 'first in, first outGuangzhou-Nanjing logistics companies must use advanced racking systems and mechanized equipment in warehousing operations to improve the utilization rate of the warehouse and the degree of automation of warehouse operations, reduce labor intensity, and reduce the cost of warehousing operations. Through the organic combination of computer technology, network technology and communication technology, the virtual warehousing method is realized, and the centralized management of dispersed inventory can effectively reduce the total inventory, reduce the cost of inventory, and reduce unnecessary capital investment. Fundamentally reduce storage costs.
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