Regardless of what industry you’re in, running a warehouse is a significant investment. You have to design your layout, organize the movement and storage of inventory, hire and manage staff, and keep everything safe and up to code.
Inventory remains one of the most tangible and significant investments of any retail, eCommerce, or manufacturing business. Many business owners fail to realize that inventory can account for up to 30% of the total budget. So, for every $100,000 in products you store, you could be paying up to $30,000 to hold and move them around your warehouse.
Ask a facility manager to list the biggest challenges they face, and they almost unanimously include “space” in their top three, if not number one. This is often a symptom of growth outpacing the ability to expand into more space, but is most often the result of space being used ineffectively. In a perfect world, your facility is full of robots, modular racking that adapts to changes quickly, and A WMS with an AI feature that automatically places everything in its optimal space, ensuring every inch is utilized and every unused inch is known and tracked.