6 Signs Your Warehouse Is Underutilized

You’re probably familiar with the concept of over-utilization. If your warehouse is under-utilized, you may be running at half capacity or less. This means that you’re wasting floor space, labour, and equipment that could be used elsewhere to make more money for your business.

While it’s easy to spot over-utilization, it can be tricky to determine whether your warehouse is underutilized. We’ve put together a list of three signs your warehouse is under-utilized:

  1. You Are Over-Packing or Under-Packing Orders

If you’re packing all of the items on an order into one box, then it will likely cost more to ship than if you had packed them into several boxes. This is because shipping companies charge by weight (and volume) rather than by piece. To avoid paying extra shipping costs, make sure that each item has enough space inside the box so that it doesn’t get damaged during transit.

  •  You Are Losing Inventory Due to Theft or Damage

If an item goes missing from inventory and can’t be found anywhere in your warehouse or shipping area, then it may have been stolen or damaged beyond repair during transit (or even before). While theft can occur at any time, there are things that you can do to prevent it from happening in the first place. Use security cameras throughout the facility so you can monitor activity around equipment and vehicles when no one is around.

  •  Your inventory levels are low

Another way to determine if your warehouse is underutilized is by looking at how much inventory you have on hand compared to what’s needed for business operations. If there’s not enough inventory, then that means your employees are spending more time looking for products instead of shipping them out the door. This leads to slower service times for customers and ultimately fewer sales for your company.

  •  Productivity levels are low

Productivity levels are another good indicator of whether or not your warehouse needs more space or resources to become more productive in its daily tasks. When productivity levels drop due to a lack of space or resources, then this signals that something needs to change within the facility before things start falling behind schedule again.

  •  Your equipment is old or outdated.

You should always invest in new equipment so that you can get the most out of your warehouse space and ensure smooth operations at all times. This will also help prevent accidents while working with heavy machinery and other dangerous materials that can cause injuries to workers or customers alike if they aren’t properly maintained or handled by an expert technician who knows how to operate them safely without causing any harm or damage whatsoever!

  • You don’t have enough employees to cover the shifts

If you’re short on employees during certain shifts, it’s likely because your facility is too big for your current needs. A warehouse supervisor can help you determine whether or not you have enough space and employees to cover all of your shifts. If not, he or she can recommend ways to cut down on costs and improve productivity in other ways.

What TGL Offers

 At TGL, we provide warehousing solutions in dry goods, ensuring your goods are handled with the best care possible. Our strategic alliances with container terminals and related operators, whether in Free Trade Zones or the Customs Territory, further give you less-costly options in keeping your goods.

We understand the importance of providing swift, affordable, and safe delivery of your goods and are readily available in assisting your business to achieve its business goals while maximizing profit and reducing cost through our logistics solutions.

With a team of over 50 years of combined experience in freight forwarding, out-country and in-country logistics, compliance/documentation, and core technology services, we bring to the table a firm promise to provide a reliable platform for end-to-end logistics solutions for businesses.

Get in touch with our experts to discuss your logistics requirements

Email: info@tgl.ng

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