Reducing shrinkage is a simple way to increase profitability in contract warehousing. Nearly all of the damage in a warehouse can be attributed to the following few areas.
Biological change, spoilage of food and fermentation are the most common cause of damage to foods in contract warehousing. Often poor packaging or damaged packing is the biggest cause of biological change.
Prolonged storage of items can cause shrinkage as well. Food will deteriorate over time. Rotating stock, doing a superb job of forecasting inventory and reducing ordering errors is a simple way to prevent merchandise deterioration as a function of age. By keeping careful track of when inventory arrives and making sure the oldest is always the next to go, will help keep the system regular and reduce the chances of shrinkage in the warehouse
Physical damage as the result of human handling is another major source of shrinkage. Accidents do happen and some things are unavoidable due to circumstances outside of anyone’s control, but understanding how a package was damaged is key to preventing more damage in the future. Temperature changes or inadequate temperature control is another source of damage to food merchandise in general warehousing, which is why warehouse managers need to keep an eye out for any imperfections within the warehouse where moisture or pests may be able to sneak in.
Maintaining a clean work environment is the best method for preventing contamination by pests. Making sure the building is sealed up and repairing holes in the buildings’ exterior right away, is not only good for pest control but also helps reduce heating and cooling costs. Odor control is essential with when working with materials that are prone to absorbing foreign odors that will make the product unattractive or unsafe.
Theft is also a major contributor to shrinkage. Steps to reduce theft include tight inventory controls and eliminating employees bringing bags in and out of the warehouse.
FW Warehousing is headquartered in St. Louis, Missouri with Midwest warehouse distribution centers in Kansas City, Indianapolis and St. Louis totaling more than four million square feet. Founded in 1949 with a focus on food-grade storage, FW later broadened its services to include contract warehousing, dry storage, hazardous material and chemical storage, temperature-controlled storage, product distribution and B2B and B2C fulfillment.
FW Warehousing has more than 50 years of experience in third-party 3PL logistics and has been ranked in the top 100 Third Party Logistic Companies in the country by Inbound Logistics magazine.
For more information about FW Warehousing and its complete warehousing, fulfillment and logistics capabilities, visit the FW Warehousing About Us webpage.