Storage is an essential aspect of any business, especially for those that deal with physical goods, high-value items, or documents. However, the wrong type of storage can often seem to be a costly and inefficient use of resources and time.
In this blog post, we will explore how the right storage system can improve your business's bottom line, and how Southwest Solutions Group (SSG) can help clients improve their storage solutions and achieve higher returns on investment.
The Correlation Between Storage Efficiency and Profitability
Storage efficiency refers to storing more items in less space while creating easy access, organization, and preservation. Storage efficiency can have a direct impact on the profitability of a business, as it can affect the following factors:
Space utilization: The more items that can be stored in a given space, the less space is wasted or underutilized. This can reduce the need for renting or buying additional space or allow for more productive use of the existing space.
Resource allocation: The less space used for storage, the more resources can be allocated to other aspects of the business, such as production, marketing, or customer service. This can improve the quality and quantity of the output, as well as customer satisfaction and loyalty.
Time management: The more organized and accessible the storage system is, the less time is spent on searching, retrieving, or moving items. This can increase the efficiency and productivity of the staff, as well as the turnaround time and delivery speed of the orders.
Item preservation: The more secure and suitable the storage system is, the less damage or deterioration the items suffer. This can reduce loss or replacement costs and the risk of legal or reputation issues.
Therefore, improving storage efficiency can help a business reduce expenses, increase revenues, and enhance its competitive advantage.
SSG’s Role in Improving Clients' Bottom Lines
SSG is a leading provider of efficient storage solutions for various industries, such as healthcare, education, government, museums, libraries, and more. We offer a wide range of products and services to help your business or facility increase productivity and optimize workflows. Our products and services include high-density mobile shelving, modular casework, rotary cabinets, automated storage and retrieval systems, and design and installation. Our mission is to help clients optimize their storage space and increase their profitability, by providing customized and cost-effective solutions.
Benefits of Working with SSG:
Space savings: Reduce your storage footprint by up to 50%, by eliminating aisles, utilizing vertical space, or consolidating multiple storage units.
Resource savings: Our products can lower energy consumption, maintenance costs, and labor requirements, by using automated, ergonomic, or environmentally friendly features.
Time savings: Improve the accessibility, visibility, and organization of the items, by using movable, rotating, or computerized systems.
Item protection: enhance the security, safety, and preservation of the items, by using locking, fireproof, or climate-controlled systems.
Analyzing the ROI of Upgraded Storage Solutions
To illustrate the impact of efficient storage on bottom-line profits, let’s look at an example of one of our clients: The National Cowgirl Museum and Hall of Fame in Fort Worth, TX. This museum is dedicated to honoring and celebrating the women of the American West, and it has a collection of over 4,000 artifacts, such as saddles, clothing, photographs, and paintings.
In the early 2000s, SSG installed a high-density mobile shelving system for the museum's collection storage vault, which allowed the museum to store more items in less space, while maintaining easy access, organization, and preservation. The system consisted of framed art storage, 3D object storage, and saddle storage. The entire mobile system occupied a 2,000 square feet room and was future-proofed to allow room for growth.
Over the years, the museum's collection grew, as more people donated or sold items to the museum. The museum was running out of space and came to a crossroads. They needed to expand or upgrade its storage system. Our storage specialists proposed adding extensions to the existing system or replacing it with a new system that would utilize the vertical space more efficiently.
By optimizing space, the museum reduced its storage footprint from 26,000 square feet to approximately 15,120 square feet—a space reduction that significantly impacts operating costs.
For instance, it costs around $10 per square foot annually to light, heat, cool, and maintain the space. By shrinking the storage area, the museum saved approximately $334,000 in energy costs over 20 years. Additionally, with current commercial construction costs averaging $1,000 per square foot, the reduced footprint translated to a potential savings of $1.52 million in construction expenses if the museum were to rebuild.
Investing in a modern storage system provided the museum with an immediate return on investment by avoiding these significant costs. Smaller buildings not only reduce energy consumption but also free up valuable green space, making high-density storage a financially and environmentally sound choice.
Ready to Transform Your Storage?
Storage efficiency is a key factor that can affect the bottom line of a business. It can reduce expenses, increase revenues, and enhance your competitive advantage. By analyzing the ROI of upgraded storage solutions, clients can evaluate the benefits and costs of the solutions and make informed decisions that can improve their business performance.
If you are looking for a storage solution that can save you money, space, and energy, don't wait any longer. Take advantage of our modern and efficient high-density storage systems and see the difference they can make for your business. Whether you need to store books, artifacts, documents, or anything else, we have the right solution for you. Fill out our contact form to receive a free quote or contact us directly at 866-856-5792!
