3 Top Ways to Make Your Warehouse Profitable

When one of the largest ecommerce companies in the world is facing a potential warehouse worker shortage, then it’s a sure sign that the warehouse industry as a whole shares that challenge. A June 2022 Vox story references Amazon’s internal research that hints that the ecommerce giant could run out of people to hire for its warehouses as early as 2024. If this happens, it will impact their growth plans and service quality. The warehouse industry should watch closely – Amazon’s experience could serve as a warning to others in the industry.  

It’s not just a shortage in manufacturing and warehousing that affect warehouse operations. The transportation industry is also contending with a worker shortfall. They’re the ones picking up cargo from warehouses. The warehousing and manufacturing industry has been unable to return to their pre-pandemic levels of staffing, according to the U.S. Chamber of Commerce. 

Two other factors having a significant impact on warehouse operations are supply chain problems and inflation. The problems with the supply chain have touched every single consumer and industry including warehousing.  

The global supply chain has yet to regain its footing. It started with the pandemic, followed by the loss of 1.4 million jobs in the manufacturing industry. Research from Accenture reveals that 94% of Fortune 1000 companies have encountered supply chain interruptions. Additionally, three-fourths of the participating companies state that the supply chain has had a strongly negative or negative impact on their companies.  

Then inflation threw a yet another wrench into things. With the cost of everyday items becoming almost unaffordable for some, inflation has forced many consumers to change their buying habits. All industries, including warehousing, must find creative ways to work with both the labor shortage and higher prices.  

On top of everything else, warehouses have a responsibility to prioritize the safety of their workers and visitors. When they don’t, it puts their facility at risk for workplace injuries and the high medical costs associated with them. Data illustrates that some of the most dangerous places to work are in manufacturing and warehouse facilities.  

Numbers from the Bureau of Labor Statistics highlight these facilities face an even greater risk than the construction industry. The table lists recordable nonfatal occupation injuries in manufacturing as 365,200 for 2021.  

Unlike other industries, warehousing can’t take advantage of remote work. In light of everything, how can warehouse managers maximize operations? Here are three ways to do just that: 

1. Improve Operational Efficiencies 

One of the most critical things warehouses need to do is maximize their operational efficiencies. Amazon, according to Vox, has been adding performance-training tools, robots, and reengineered processes to bolster its efficiencies. Amazon reengineered its manufacturing processes to be as lean as possible.  

These processes removed needless tasks while increasing worker productivity. Unfortunately, the article says these efforts have led to high injury and worker churn rates. Amazon claims its higher injury rates are the result of doing a better job in documenting injuries compared to its peers. However, a worker who asked to remain anonymous claims their managers told them not to refer injuries to doctors because it will require going on record with OSHA. 

Some say Amazon is an anomaly because there are no other companies that compare to them. While Walmart is a giant, the company started out as a brick-and-mortar business. Amazon has been an ecommerce company from day one. 

Nonetheless, three things affect warehouse efficiencies: people, technologies, and processes. You can bring in the best technologies in the world, but they can’t do anything without people and processes. Technology can automate repetitive tasks, improve resource management, and provide consistent data for forecasting to help with decision-making. 

Processes need to be documented and continuously refined. Warehouses need processes for everything: including safety, tasks, and machine operations.  

2. Prioritize Worker Training 

Training is ultimately much cheaper than the price of an injury or fatality. Many reports show companies that go the most days without worker injuries make training and safety a priority. They also hold safety briefs or training on a daily basis. Workers need to conduct safety checks every day at both the start and the end of the day. Preparing and shutting down tools and equipment the correct way increases safety.  

All training needs to remind workers to always report safety hazards. Allow them to submit anonymous reports to remove any fear associated with reporting. Research referenced in an EHS Daily Advisor article has found that workers only speak up about 39% of the time. If you remind workers to report problems and assure them it will be anonymous, they’ll be more likely to report without fear of repercussions.   

Training doesn’t have to be formal. It can be as simple as a daily briefing that reviews basic safety, like doing safety checks and inspections. Leaders can also demonstrate the right way to prepare and shut down equipment along with correct usage. Another factor to review is personal protective equipment. Workers are at risk when they wear the wrong gear for the task. They need to wear the correct PPE for their work. 

Safety training needs to be repeated many times to keep standards and procedures top of mind and prevent complacency. Safety training is critical, and it’s important to have an effective translator on hand if you have workers whose first language isn’t the same as the company’s primary language. 

3. Boost Security 

There are two ways to increase warehouse security. When you use both, it can add multiple layers to your security and enhance safety. It’s possible to integrate an access control system with remote video surveillance. 

Video Surveillance with Remote Monitoring 

Putting up security cameras is only half of the formula to maximize warehouse safety and security. The other half is monitoring. Without monitoring, security cameras become passive security technology. This means it’s likely no one will catch anything happening until long after it has already happened. 

The advantage of video surveillance with live video monitoring is that it comes with multiple layers of security. Recall that workers don’t always report safety issues. The trained security operator monitoring surveillance can watch for safety hazards and report them. They observe the entire property including inside the warehouse and outside the building, such as the parking area and entrances. 

Watching the monitors for hours can turn into a tedious job. That’s why the most effective video surveillance systems incorporate video analytics. This technology eases the monitoring operator’s load. Of course, video analytics aren’t perfect. It may not be able to ascertain what’s happening on a scene. This is why it alerts the monitoring operator who can verify what’s actually happening. The operator is trained on appropriate protocols and can then take next steps according to site requirements.   

One of the advantages of video surveillance with monitoring is that the operators are located elsewhere. Maybe even in a different city or state. This can be useful when a city deals with the devastation of a natural disaster. The monitoring centers are in a safe location, which allows them to keep an eye on your warehouse even during an emergency.  

In addition to increasing safety, live video monitoring can help deter crime, lower liability, and increase warehouse productivity. The visibility of the security cameras alone can drive some trespassers away from your warehouse. When they don’t attempt to turn around and leave, then the security professional can issue a verbal warning. The intruders will be able to hear the warning over the speakers.  

Some brazen thieves can’t be deterred. At that point, the security operator can contact police. Often, the law enforcement will reach the warehouse before the criminals get away. When they don’t arrive in time, then the video analysts can review the footage and provide that to the police to use in their investigation. The video footage can often help make out identifying information such as faces, vehicle make and model, or vehicle license plates.  

Recorded footage can also help provide you with evidence you may need for the police, insurance, and anyone else who needs it. Some cases, especially liability and fraud, are hard to win without recordings. Also, management may learn about something that happened long after the fact, but at the time of the occurrence there was nothing obviously suspicious about it for the security operator to investigate. Management can contact the video surveillance company to request the footage. 

One of the problems of passive video surveillance is false alarms. This isn’t an issue when you have people watching your cameras. Look for a video surveillance company with warehouse experience. They know what activities are part of the day-to-day and what are not. Every industry has its own unique video surveillance requirements.  

Since training is important, the footage from security cameras can help with that. The warehouse can work with video analysts to find and put together video clips showing the right and wrong ways to use equipment and wear PPE. Workers can then learn from examples. 

Video surveillance tends to lead to a fast return on investment- often within months. You can also level up your security by integrating an access control system.  

The partnering of remote video surveillance and an access control system allows the company to match the time stamp from the access with the video to see what happened at a certain time. 

Access Control System 

An access control system controls access to the warehouse. You can also manage access to different parts of the facility, such as limited-access rooms and secure cages. If you have a parking lot and entrance gate, then the access control system can manage who can get in. Whenever someone leaves the company, it’s quick and effortless to shut off their access.  

Unlike other automated entry systems, an access control system can track who accesses any area of the warehouse. As mentioned before, it’s possible to integrate an access control system with remote video surveillance.  

Stealth Monitoring can customize a right-sized solution that heightens warehouse security and safety. In choosing Stealth, you’ll work with security professionals who have experience in securing warehouse facilities like yours with access control, live video monitoring, and analytics-based surveillance. Have questions about security to help ensure your warehouse safety? Contact us. Texas Private License Security Number: B14187