In a study about how damaged goods impacts business profit, a damage percentage of 1/100 in a business is higher than wanted. A warehousing operation should be closer to 1/1,000. Achieving this can be realistic, but it’s good to understand just what leads to warehouse content loss.
No matter what industry you’re working in, business owners must understand that some stock will end up damaged or lost. But there are some simple steps that can be taken to prevent stock damage while still running an efficient and safe warehousing operation. Here are some easy ways in which to achieve this goal and cut down on profit loss.
Make a Plan
Warehouse managers should work on making a plan to reduce stock damage. Keep communications open with warehouse staff and compile as much information as possible in relation to how items are getting damaged or lost. Any information and data that can be gathered will help paint a picture as to what you can do as a team to cut losses and risk and see what your main issues are.
Have Regular Staff Meetings
Warehouse leadership should make sure to involve their staff in regular meetings and encourage training sessions with workers. This will provide everyone educational opportunities and moments to keep guidelines on how to handle stock in efficient and safe ways. Procedures on how to load, stack, and secure freight should be regularly communicated to open the floor up for discussion and suggestions as well as create training opportunities.
Protecting your warehouse from the elements, especially in a place like Florida that sees regular strong storms and some flooding, is important when ensuring the integrity of your stock. Heat can melt plastic and humidity can make packages loose and soggy, hurting the contents of what’s inside permanently. Make sure to keep the optimal heating, cooling, and humidity controls up to their right levels in order to keep warehouse products safe and protected.
Rearrange for Maximum Productivity
Layout of a warehouse plays a pivotal role in how efficient operations are executed. It may be time to reorganize your warehouse if your losses are consistent. Keep items stocks by weight and shape and if possible, keep heavier items near the front of the warehouse and on lower shelves so items are easier to get to and moved around correctly.
Insure Your Products and Space
In the event of loss or damage, or even theft, commercial warehouse contents insurance is an option for warehouses to have. This kind of coverage protects all contents inside as well as the integrity of the employees inside operating with the products. It’s important to have commercial warehouse contents insurance in order to provide for a company financially following any type of loss. While this won’t physically stop damage or loss from happening, it will help provide a backstop when something does take place.
About The Hilb Group
Deciding what coverage you need and what limits and deductibles make the most sense can be tricky. Founded in 2009, the Hilb Group has been helping clients to make sense of their options and make the smartest choices for their circumstances. Whether you need Warehouse Insurance or any other type of business or personal coverage, we encourage you to contact our friendly, experienced, and capable team today. Call us at (800) 776-3078 for a consultation.