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There's a way to minimize storage cost. Do you have a try?

Warehousing activities are indispensable for promoting production development and meeting market supply. The cost of storage is easy to control and manage in the logistics cost. With the improvement of the technical level in the logistics activities, the improvement of storage efficiency and the change of storage cost. In order to clear the importance of warehousing in the logistics activities, the existing problems and the content of storage cost control, we can take the corresponding countermeasures, solve the problems and reduce the cost and improve the efficiency.
 
First, the importance of logistics storage management
 
1. indispensable important link in modern logistics
The importance of warehousing for logistics system can be further understood from the perspective of supply chain. From the perspective of supply chain, the logistics process can be regarded as a series of "supply" and "demand". When the rhythm of supply and demand is not consistent, the two processes can not be well connected, the production products can not be consumed immediately or there is no demand, but there is no product satisfaction. At this time, it is necessary to set up the reserve of products and store the products that can not be consumed immediately. Meet the needs of later. Between supply and demand, there is not only the "flow" of the material, but also the "static" of the object. The static state is stored in the object, and the object is still in rest in order to better connect the two processes of supply and demand.
 
2. guarantee the quality of the goods before they enter the next link
The inspection of the quality of goods in the storage link of goods can effectively prevent the inflow of fake and inferior products into the market, and protect the rights and interests of the consumers, and to some extent also protect the reputation of the manufacturers. Through warehousing to ensure the quality of the main two links: one is the quality inspection of the goods when the goods are stored, whether the goods are in conformity with the storage requirements, and the unqualified products are strictly prohibited. The two is in the storage period of the goods, to minimize the physical and chemical changes of the products, as far as possible to reduce the error of the goods in stock.
 
3. guarantee the smooth progress of the social reproduction process
The warehousing process of goods is not only a necessary guarantee for the smooth circulation of commodities, but also a guarantee for the development of the society in the production process.
 
4. speed up the circulation of goods and save the cost of circulation
Although the goods are stored in the warehouse, it is still in a state of rest, which brings time and financial costs, but on the whole, it will not only bring about the loss of time and the increase of financial cost. On the contrary, it can help to speed up circulation and save operation.
 
5. prepare for the goods to enter the market
Storage can be completed before the goods enter the market, finishing, packaging, quality inspection, sorting and other procedures, which can shorten the work time of the follow-up links and speed up the circulation of goods.
 
Two. The significance of storage cost control

Storage cost refers to the sum of manpower, material, financial and risk costs consumed by warehousing enterprises in the process of storing goods, including handling, storage, circulation processing, and sending and receiving goods. The level of warehousing logistics cost management is of great significance for the whole logistics cost management. The main manifestations are as follows:
 
1. to solve the difference between supply and demand time
Some commodities are seasonal production and annual consumption; some commodities are annual production, seasonal consumption, and some are seasonal production, seasonal consumption or perennial production and annual consumption. In any case, there is a certain interval between products from the production process to the consumption process. Through the storage process, the goods dissolve the contradiction between supply and demand, and create new benefits in time.
 
2. to realize the transfer of goods from production to consumption
Storage activities can solve the contradiction between production and consumption in space, time, variety and quantity, play the link and bridge role of storage connection production and consumption; connect producers and consumers in the separation of commodity production and consumption; connect the disagreement between commodity production and consumption time; regulate the difference in the mode of production and consumption; weigh the transport of goods. Load, reduce transportation cost. Such as mass production, FCL transportation, split in the process of warehouse to retail and other functions.
 
Three, problems and cost control
 
1. in the management of the cost of material storage
The material used for storing materials during storage is a large proportion of warehousing costs. The greatest potential to reduce the cost of storage is to save the lining and cover materials and the expenditure on artificial costs, to find the material management methods that can save some cost and cost, to ensure the quality of material management, to carry out technological innovation and reform, to fully excavate the potential of equipment. In the management of warehousing costs, we should also carry out separate and classified management, strengthen economic accounting, and further reduce storage costs.
 
2. handling the management of handling costs in the library
Goods and warehouses mainly rely on loading and unloading operations. The depreciation cost of equipment for loading and unloading machinery is the largest. Therefore, the storage department should first pay attention to the economy and practicality of the selection of mechanical equipment, and should prevent the practice of increasing the depreciation of the storage equipment, regardless of the actual needs.
 
3. in the management of storage cost
There are two main aspects of the storage cost of labor: one is the wages, bonuses, welfare and allowances of the warehousing managers, and the two is the wages, bonuses, allowances and welfare expenses of the warehousing workers. The management of storage labor costs should be focused on reducing the wages of non production workers as much as possible, because this part of the cost and cost expenditure is not directly related to the volume of storage operations. It should continuously improve labor productivity and reduce the cost of living labor in storage costs. In addition, choosing a reasonable form of labor organization and wage form will also have an important impact on reducing labor costs.
 
Four, measures to reduce the cost of storage

The reduction of warehousing costs should be carried out under the premise of ensuring the lowest total cost of logistics and not decreasing the overall service quality and target level of enterprises.
First, we should use "first in first out" way to reduce the risk of storage. FIFO is one of the guidelines of storage management. It can ensure that every storage period is not too long, and the risk of storage is reduced.
To improve the storage density and capacity utilization rate. Its main purpose is to reduce investment in storage facilities and increase the utilization rate of unit storage area, so as to reduce costs and reduce land occupation.
Thirdly, effective storage and location system is adopted to improve the efficiency of warehousing operations. The meaning of storage location is the location of stored objects. If the location system is effective, it can save much time to search, store and take out, prevent errors and facilitate inventory. Storage location system can take advanced computer management or general manual management.
Fourth, we should use effective collection and inventory methods to improve the difficulty of warehouse operation. Monitoring of quantity and quality of storage materials is conducive to grasp the basic situation of warehousing, and to control inventory scientifically. In the actual operation, some errors will make the accounts inconsistent. It is necessary to grasp the actual storage situation in time and accurately, often check the accounts with the account card to ensure the integrity of the storage materials. This is essential for manual management or computer management. In addition, regular monitoring is also an important work to detect the status of the goods being stored.
The accelerated turnover, improve the unit output capacity. The important issue of storage modernization is to change the static storage into dynamic storage, and the quick turnover will bring a series of benefits: fast reserve, high capital efficiency, small goods damage, increase in warehouse throughput, lower cost and so on. Specific practices such as unit collection and storage, and establishment of quick sorting system are beneficial to achieve fast forward, fast out, large in and out out.
To take a variety of management, make an inventory of assets. The input of storage facilities and equipment can only get the benefit of full use, and it will only increase the cost if it is not put into use or only low efficiency.  Warehousing enterprises should make timely decisions and take various ways of leasing, borrowing and selling to revitalize these assets and improve the utilization ratio of assets and equipment.
Strengthen labor management. Salary is an important part of warehousing cost, and the rational use of labor is the basic principle of salary for nursing staff. China is a country with labor advantages, and its wage is relatively low, and using more labor force is a reasonable choice. But effective management of labor, avoiding overstaffing, working hard or inefficient is also an important aspect of cost management.
The lower the cost of operation and management. Management cost is the cost and cost of business activities and management activities, including management fees, business fees, transaction costs and so on. To strengthen this kind of cost management, reduce unnecessary expenditure, also can realize the cost reduction. It is necessary to strengthen management when the expenses of operation and management often cannot generate direct benefits and rewards, and can not be completely abolished.
 
Warehousing activities are indispensable for promoting production development and meeting market supply. The cost of storage is easy to control and manage in the logistics cost. With the improvement of the technical level in the logistics activities, the improvement of storage efficiency and the change of storage cost. In order to clear the importance of warehousing in the logistics activities, the existing problems and the content of storage cost control, we can take the corresponding countermeasures, solve the problems and reduce the cost and improve the efficiency.
 
Source: warehouse community

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