How can warehouse management reduce costs?


Warehouse costs represent a large proportion of overall logistics costs. Therefore, as a warehouse manager/director of operations, you will be constantly striving to improve and reduce warehouse costs.

The economy is not stable. It takes a well-planned strategy to boost warehouse efficiency while reducing operational costs in order to maximize earnings for firms. The competition is fierce and warehouses can fall prey to the temptation of spending too much money on unnecessary things.

Distributor professionals should be focusing on reducing warehouse expenses. It is important to find ways to improve the efficiency of your business processes so that you can reduce costs. In this article we have discussed how can warehouse management reduce costs. Keep reading to know more.


Reduced Cost of Warehouse Management

A warehouse needs to have the right product in a buy-ready condition at just the right time in order for the supply and demand principle to work properly. Convenient and safe warehouses can offer value to a company value. You can accomplish this by applying these six factors:


  • The item is protected.
  • Accessibility
  • Equipment
  • Space
  • Labor
  • Equipment

If you maintain these rules, it will be easy to find out where your money goes and how to reduce costs.

Ways to reduce cost



Inventory visibility across your entire supply chain provides important and obvious benefits, especially with the new wave of online shoppers, shifting retail trends, as well as global shifts and changes in spending.

Owners of businesses are often too busy to notice this and neglect it. It can be irritating if you have to rely on an employee’s memory for product location. This is especially true in companies that enforce social distancing, and when employees are absent.

Sincere businesses who cannot meet these requirements will soon lose out to those who rise to the occasion. It goes without saying that addressing consumer demand begins with inventory visibility.

Energy Settings:

It is time to reevaluate the lighting options available and the thermostat number.

The easiest way to cut operational costs is not to damage a facility’s existing infrastructure. Instead, look closely at your energy consumption. A warehouse might be filled with energy-sucking lights that have been ordered on an automatic basis for years. It is possible to swap your bulbs for more energy-efficient ones whenever you can. provides a great breakdown here.

Reevaluate the climate control plan in your warehouse. Some facilities require tight control to ensure hygiene and process safety. But many others do not. Look at your needs and make adjustments. You will be able to positively impact the financial health of your business and also do your part for Mother Earth.

Optimize your storage spaces

If you’re even remotely interested in warehousing, you’ll be able to tell that there are many options. While these systems can seem expensive initially, they are designed to save square feet. This is a powerful factor that could lead to a cost-saving option downsizing or the ability to store more inventory.

Make sure that you choose vertical storage and communicate your design plans with your supplier. Transparency ensures that all parties are clear about their goals, so you can maximize your space.


You should first locate your zone and make an effort to reduce costs within your warehouse.

  • Location in your warehouse that is most easily accessible
  • You should know where to store the items that are most frequently used
  • It is best to position larger, heavier, and more slow-moving inventory towards your back.

This can help staff pick faster and more accurately, as well as cut your overheads – with order picking accounting for up to half of the total warehouse operating costs, slotting optimization can help you save money.


Automated Picking Technologies

If your company has a large inventory, it may be time to invest in automated picking technology to supplement the job of your picking staff. Many collaborative robots are built to speed up selecting procedures, though the initial investment might be high depending on the amount of technology chosen.

This number is especially powerful for operations that have been financially burdened by human errors or who are interested in long-term pick technologies that do not require any modification to their existing infrastructure. This process will ensure an increase in productivity. This can lead to a significant amount of additional cash over the long term.


In the wake of COVID-19, several retailers are attempting to go e-commerce. Technology advances at a rapid pace. Your solution must be adaptable and up to date in order for you to improve every part of your supply chain. Because of the unique technology that has been developed, modern distribution strategies can be found all over the world.

Warehouse management systems, or WMS, can help individuals businesses find specific solutions for the major challenges they face today. This includes transitioning to a cloud-based system so staff can enforce social distance and work from home. It also helps improve visibility and inventory management, all with the ultimate goal of providing exceptional customer service.

A WMS allows you to manage all aspects of your supply chain. They can solve your business problems easily. WMSs can automate, optimize and improve all aspects of your supply chain to ensure up to 99 percent accuracy in inventory. And bizbloqs is offering the best service when you compare with other companies


A general plan should be created and a matrix developed to measure success. Each employee must know their performance goals as well the overall goals for the company. You should evaluate every step for potential improvement. This should be repeated frequently.


Cross-train and ensure that every employee is properly trained so that the work doesn’t stop due to sick days or doctor appointments. Make sure to find ways to retain your employees. Motivation and flexibility help keep employees motivated. You can schedule workers and hire temporary help during busy times.


Technology is crucial to controlling warehouse costs. And in present, there are many options available that can help you improve efficiency, reduce mistakes and save money.

You can identify the areas where cost-cutting measures will be most needed by digging into every aspect of your business. As each measure is implemented, costs decrease, it is possible to finance the more costly options using savings. And bizbloqs offer the perfect solution on how to reduce costs.

Every change will lead to other cost-saving opportunities in the related areas. Each warehouse is unique, so some ideas may not work for everyone. Keep in mind that every measure can bring you huge potential benefits over the long term.


Want to know more:

  1. Which of the following is a function of warehouse management software?
  2. What is order management?
  3.  What is warehouse management from the view of logistic management?






Willem Ten Asbroek

Willem Ten Asbroek

CEO, Bizbloqs Management Solution B.V.

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Welcome to the BizBloqs product selector. This is a tool we designed to guide you to the right subscription for your business.

If you are not sure how to answer a question, or you are not comfortable with the recommendation, please simply contact us and discuss it with one of our experts. It is our duty and pleasure to guide you to the best of our ability, making sure you arrive at the right well-informed choice that suits your needs perfectly.


BizBloqs offers Business Processes as a Service (BPaaS) and has created a range of subscriptions that service the specific needs of customer profiles we have encountered often in the market.

Our solutions are designed in such a way that we can service the smallest businesses for their basic needs, while the same platform can service the most complex and elaborate logistic requirements as well. This level of scalability allows all our customers to make their subscription grow with their needs, no matter how rapidly they grow or increase the complexity.


I only need very basic features and care most about my outbound process.


Gambit is our entry-level solution that covers the basic needs for companies that are looking to digitize their order fulfilment processes.

The emphasis of this subscription is on the outbound processes, handling all common requirements with ease. Gambit includes the ability to integrate a web shop on the frontend or an ERP system in the backend.

Furthermore, you can connect your Gambit solution to a supported transporter of your choice. Your order fulfilment and stock management have never been easier.


I only need basic features, but inbound and outbound processes are both very relevant for my requirements.


Pawn is the second-tier subscription of BizBloqs. It offers all the capabilities of Gambit, but also adds full control over the purchasing process. If you are looking to take your business to the next level by digitizing all your warehouse processes altogether, Pawn is the right solution for you.

It offers location management out of the box, supporting one location per article as the standard. All basic processes any small or medium business might need are included, all based on the years of experience and elaborate expertise of BizBloqs. We have taken the best practices of implementations in the past so you can benefit from the best of our capabilities.


I need some advanced features; my situation requires location management and/or we need digital support for batch picking. You could say my needs resemble a wholesaler, reseller or large web shop.


Knight takes your digital logistic capabilities to the level you might see at large companies with a professional setup. In fact, BizBloqs services several companies at this level with its Knight solution. It offers the possibility to manage an article across multiple locations and offers digital management for your batch picking.

Knight is the right solution for you if you need to optimize fairly complex processes or large operations. If location management is a big part of your business, Knight is the right subscription level for you. This solution is popular amongst wholesalers, resellers and web shops in particular.


I want a standard solution, but with all the bells and whistles. I manage multiple locations and zoning across my warehouses and deal with a lot of orders.


Bishop is the ultimate standard subscription with a wide range of features beyond the capabilities of Knight. It allows for dynamic location management, which allows you to keep track of your stock on the move at all times.

You can manage multiple locations and assign various location zones as per your requirements. Bishop can handle a great number of orders without effort. If this ultimate subscription still doesn’t meet your needs, you would need to consider a custom solution that is tailored specifically to your requirements.


Clearly it will not be possible to make a straightforward recommendation for your needs. That’s perfectly fine, we have the expertise and experience to address your challenges. You will need to work with our experts to digitize your processes and define your workflow.

Our solutions are designed in such a way that we can service the smallest businesses for their basic needs, while the same platform can service the most complex and elaborate logistic requirements as well. We can do this without development in almost all cases, simply by configuring our solutions to reflect your situation perfectly.