How to reduce warehousing expenses

Whatever your role in the company is, you always want to reduce warehousing expenses. When we say expenses, we mean both time and money. You as a company owner must know the importance of time. It is almost as important as knowing how to distribute your funds. So, we have created an article for every one of you who wants to diminish the costs of warehousing and meet your desired outcomes with more profit. There are many things you can do to reduce warehousing expenses and we will talk about the most efficient ones. Work smarter, not harder is the mantra that made us create this article. So, without any further ado, let’s dive in!

What should you focus on to reduce warehousing expenses?

What are the most important things to focus to reduce your Lebanon storage expenses?


Labor is usually the most costly expense when it comes to running a warehouse. It may even come up to 50% of all expenses. Spreadsheets are the usual way of tracking progress and maintaining a schedule when it comes to labor. This is a very inefficient way of task management. This is why you need to know your data better so you can make an analysis and create less expense. That is why you need to create a labor-management program so you can reduce warehousing expenses by 30%. One of the best ways of implementing labor management is by investing in employee training. Most cargo companies in Lebanon use this method and report great success in diminishing expenses.

Calculate your expenses so you can analyze what to do

Other than that you should closely monitor the time your employees start working and what is the end of their shift. See if you can find something you can use to manage your expenses better. If you can move their shifts in any way that will make you profit, do not be afraid to do so. Another thing you can do is that you can hire temporary or contract workers. In addition, you should monitor individual productivity and reward employees that do better. You can also pay for their performance, not a set wage. This will also encourage your employees to stay overtime and arrive early. Your duty as an employer is that you should reward those workers that do so.

Operations management

To do this efficiently you need to see which are your most trustworthy and productive employees. Also, you should create teams and give out tasks so they can compete. This competition will increase productivity, and working as a team will improve the system in which you receive reports and performance measurement. If a team is doing extraordinarily well make sure to reward them for their productivity.

You should also get rid of all the inventory you do not need. You can do this by assembling a review board and their job will be to remove any excess and obsolete inventory. Another thing that is very important in the operations department is optimizing space. Larger warehouses are more expensive than smaller ones. So every inch of it is worth a dollar. Experiment with methods of more efficient rafting and work towards filling all of your effective warehouse space. Getting the right equipment to do so is a must. This is important because aisle space is also space you can use. If you get smaller but more efficient machinery, you will make the aisles indirectly affect your productivity levels.

Talk to your employees about the work

You should also have supervisors on the floor at all times. This is one of the best advice many logistics companies in Lebanon are going to give you. Their focus is on error reduction, and your employees will work harder if they know that there will be a supervisor ready to correct their every error. It will also create a good atmosphere inside your warehouse with employees working with each other with much more synergy.

Optimizing equipment usage

This is an important step in reducing warehousing expenses. We’ve already mentioned that you should get new equipment that fits your aisles perfectly. Another step is standardizing your equipment. Standardizing your equipment will reduce the expenses you have on maintaining them because they are the same models. In addition, you can use the same equipment to do more things. For example, have the employees that unload the stuff from the machines, pack and crate the items for shipping.

If you apply the same ideas for your machines, you will reduce warehousing expenses by a huge margin. You can also look up renting warehouse equipment. If you calculate that the expenses will be lesser if you rent, do not be afraid to do so.

getting better machinery results in reducing warehousing expenses
You need to get better machinery

Other things to consider

If you did all of the above things but are still not satisfied with the reduction of expenses, you can try doing some of this. The main idea is to do all of the above, in combination with the tips we will talk about now.

You should increase communication with your employees. When your employees can talk to you about anything they are unsure of, do not just scorn them. Offer them your knowledge and they will do the job more efficiently. This is key when it comes to organizing your warehouse and reducing expenses. The productivity of your employees will suffer greatly if they are aware that they are not working in an open and clear environment.

Another thing to consider is standardizing your processes. This is vital because you will reduce the probability of error due to the difference in the processes. If your employees know exactly what they are supposed to do, they will make good work into a routine and excel in it. Work smarter not harder!

You can also use the five-step approach. The five-step approach is: define, measure, analyze, improve, and control. This is important because everyone will know the “why’s” and “how’s” of everything that is being done.

With all that said, we hope that you were successful in reducing warehousing expenses!

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