5 ways to reduce warehouse management costs

Warehouses take skill, effort, and meticulous management to run efficiently.

Premises, stock, and staff costs result in a huge financial outlay, and so it is worthwhile to regularly review whether any changes can be made to reduce outgoings and save money. Here are 5 ways to reduce warehouse management costs.


Lighting accounts for a very large proportion of warehouse production overheads, and so reviewing this could save a lot of money in the long run. Because machinery is being used, bright lighting is extremely important to ensure full visibility. Switching to LED bulbs will not only ensure your warehouse is exceptionally well lit and free from shadows but will also reduce energy costs. Adding lighting sensors can also save vast amounts. There is no point in lighting a whole warehouse if there are only small parts of it being used. Motion sensor lighting will ensure that the areas being used are fully lit, and areas that are not being used remain unlit.


Heating is another area where cost savings can be made. If you do not already use business grade heating oil, switching to it could save a lot of money. It is specially made for commercial boiler applications and can be purchased at a lower cost than red diesel or gas oil. Another way to save money on hefty heating bills is to ensure any accesses are closed when not in use. Check if there are any gaps between doors and, where necessary, seal them. The cost of heating a warehouse can be huge, so it makes sense to make savings where you can.

Warehouse management systems

Whilst there are associated costs, the savings a warehouse management system (WMS) may bring could far outweigh the outlay. A WMS is software that supports warehouse functionality and distribution and allows businesses to control and administer warehouse goods from receipt until they are distributed. Many systems also make suggestions in terms of layout adjustments and space allocation to make the picking process more efficient and easier. It also reduces errors being made so it could save you a lot of money over time.

Optimise space

Every square foot of your warehouse costs money, so making sure you are optimising the space can help your finances. Consider whether your layout could be altered in any way to create additional storage space and make sure you are optimising vertical space as well as floor space. Mobile platforms allow you to create versatile multi-level storage areas and walkways that can be adapted should you need to rearrange things.


Providing regular training will help to ensure that employees are working to their full potential. It’s a good idea to listen to staff and ask their opinion from time to time as they can provide valuable feedback if something isn’t working as it should. It will not only help your businesses but will make staff feel motivated and happy that their views and opinions are being considered.