Cash-savvy tips from industry’s experts

Materials handling

Consider the truck’s residual value

Consider the truck’s residual value from the outset, advises Narrow Aisle, particularly if the user is considering entering a lease rental package with its supplier. “If a forklift is being leased, then its residual value (RV) will have an impact on its monthly rental price. (A truck’s RV is its expected market value at the end of a lease period and monthly payments are calculated on a combination of the initial cost of the truck and its anticipated residual value. For example if a new forklift costs £25,000 and its RV has been set at £10,000, the monthly rental fee is calculated on the difference between the two amounts. This means that forklifts that command the highest residual value should be available on a cheaper monthly rental”
Use a versatile, articulated truck

By using a versatile, articulated truck to replace a combination of other types of forklift for offloading outside as well as for operation within the warehouse, customers can reduce capital outlay on fleet costs, and make further savings on maintenance for cost effective handling, says Aisle-Master.

Pick your orders by voice

Pick your orders by voice, says Knapp, as these typically show an increase in picking performance of up to 35 per cent over paper picking, and up to 15 per cent over hand-held scanner applications
Look for efficiency, price, return on investment and financial stability

Look for efficiency, price, return on investment and financial stability of the supplier when looking at systems to invest in and if a distribution centre is not a new development, select a system that effectively integrates into existing operations, says SSI Schaefer
A powerful WMS will help clear the blockages in your warehouse

A powerful WMS will help clear the blockages in your warehouse so as to allow the smooth flow of product in and out, and help ensure that your business beats the credit crunch, says Proteus
Invest in automated systems

Invest in automated systems that can integrate within current facilities reducing unit distribution costs, says SSI Schaefer
Reduce stock-holding

Reduce stock-holding and automate your storage, to ensure “considerable cost savings”, says Knapp
Switch from cardboard to plastic

Switching from cardboard to plastic for storage and distribution containers offers immediate costsaving benefits and business advantages
Get your suppliers to label consignments properly

Get your suppliers to label consignments properly, with unique bar coded tracking labels, and also provide electronic shipment information, says ATMS

Look for easy in / easy out flexible deals

Look for easy in / easy out flexible deals, and avoid long-lease situations when seeking to rent a warehouse, advises Towngate. Plus, reduce capital costs by taking on a fully racked out warehouse to your specification, and the cost of the racking can be rentalised.
Energy consumption represents a major cost for warehouse operators

Energy consumption represents a major cost for warehouse operators, but significant savings can be made with an improved lighting solution. Traditional Hi-bay light fittings can consume 450w of energy compared to T5 High Output alternatives that will reduce consumption by half, with a typical payback of 1.5 years. SDI group.
Send invoices via e-mail

Send invoices via e-mail, and cut stationary, labour and postage costs as a result, says Vigo Software. Given that a second-class stamp alone costs around 30p, Vigo promises the cost of this software would be recuperated in a year if sending 150 invoices per month.