How to Save Money in Your Warehouse

While warehouses have always been an essential part of the retail and logistics industry, in the modern ecommerce age, they're becoming indispensable. Whether you're just starting or are established and looking for a way to cut costs without compromising customer experience, how can you save money in your warehouse?


Keep Up With Maintenance

One of the worst ways to lose money is by taking your facility offline due to broken down equipment. According to one survey, 98% of organizations say they lose more than $100,000 for a single hour of downtime. Around 33% of enterprises say the same amount of disruption can cost anywhere from $1 million to more than $5 million.

Keeping up with maintenance — and focusing on preventative care and scheduled downtime — will keep you from losing enormous amounts of money if something breaks and throws your schedule for a loop.

Opt for Used Equipment

Heavy equipment, such as forklifts, is a vital part of running a warehouse. They can also be incredibly expensive, especially for small businesses or those that are just starting out in the industry. Instead of breaking the bank to purchase new, choose used or refurbished equipment. While it won't be the latest model on the market, it can help you get the job done without an exorbitant price tag.

Optimize Your Storage Layout


How do you organize inventory in your warehouse? It might seem like the most efficient option is to organize by item number, especially if you have a large number of small products. However, if you see a lot of traffic, it isn't always the best option.

Take the time to optimize your storage layout, so items that sell frequently are closer to your packing stations. This step reduces the time you spend picking orders and can help you save money.

Invest in Tech Upgrades

A decade or two ago, paper inventories and manual picking were sufficient to keep warehouses functioning. Yet with the ecommerce industry expanding and orders coming in at all hours, it's not enough anymore. Investing in tech upgrades might cost you in the beginning, but in the long run, it will improve efficiency, reduce costs and prevent losses that could become expensive.

Make Your Facility Energy Efficient

Warehouses have a lot of big open space — enough so that it can be challenging to make it energy efficient. It will take an investment to improve your facility so that you're not wasting power. However, simple changes can reduce your utility bills, saving you money throughout the year.

For instance, upgrading your lighting to LED bulbs can reduce energy usage by 25% to 80% compared to traditional incandescents. You can also insulate the building to make it easier to control the indoor climate.

Save Money and Boost Warehouse Profits

In today's ecommerce-heavy world, warehouse efficiency is essential to ensure that you're making the most out of what is one of the most lucrative industries in the world. That doesn't mean you need to spend all your profits or bleed money to succeed. Making a few changes can save you quite a bit and help pad your bottom line.

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