Warehouse Cost Reduction: How to Yield Immediate Results

We’ve found the best method to reducing overtime operationally is to simply bite the bullet and advise your team there will be no overtime unless you personally approve it, and you don’t plan to do so. Typically within a week or two following this direction, you’ll find the same work is being done with fewer man-hours, and you’ll realize immediate savings. The downside to prepare for is that during those two weeks, customer service will slip until all realize you’re serious and pick up the pace. The key to success in managing overtime is not to waver during those two weeks by approving exceptions to your rule.