The warehousing industry is an essential part of any growing economy. The industry has been instrumental in aiding the growth of e-Commerce and maintaining a steady supply of products in markets spread across the globe. Issues like high turnover rates and rising lease costs have painted a gloomy picture for profits warehousing sector. The good news, however, is that with planning and effective strategy formulation, you can transform your warehousing business into a model of increased efficiency and profitability.
By thoroughly evaluating factors such as the amount of space, the warehouse labor, and automation possibilities, you can create strategies to improve the efficiency and profitability of your warehouse operation. Below are five strategies you can put into play to ensure your warehouse’s profitability rises.

Reduce space wastage

Wasted warehouse space limits the processing capability and overall efficiency of a warehouse. The layout should be such that the products move efficiently throughout the warehouse and are as densely packed as possible. By stacking items on high-reaching, organized shelves, the use of space is improved while at the same time ensuring that inventory remains easily accessible either by forklift or human hands.

Get rid of slow-moving inventory

By getting rid of slow-moving inventory, warehouses can free up storage space and reduce housing costs. The slow-moving stock is not only expensive to store but also runs the risk of becoming obsolete.


By automating manual tasks, warehousing companies are able to fulfill orders more effectively. This, in turn, translates into quicker inventory turnover rates which increases the profit margins. The units per hour handled by a person versus units per hour handled by a machine are two totally different scenarios.

Match the warehouse workload to the employee capabilities

By carefully evaluating your employees’ capabilities and planning their workload accordingly, you can eliminate costly overtime and increase profits. Ensure that your warehouse is adequately staffed and outfitted with all the equipment necessary for optimal functioning.

Make the quest for profitability a continuous improvement process

Set up an effective warehouse management system. This increases productivity by closely monitoring whether or not the strategies put in place are actually working or not. Set objectives, create an enabling environment, monitor progress and identify any kinks that need to be worked on. Employee feedback is essential as it provides access to qualitative insights. Closely monitoring the effectiveness of strategies put in place allows you to make changes where necessary ensuring your business stays profitable at the end of the day.

Achieving a profitable and efficient warehouse entails formulating strategies that acknowledge the available resources while also factoring in other variables. Other aspects such as your choice of location can weigh in heavily on whether or not your operation will be profitable. A thorough review of the labor resources available in the area surrounding your warehouse can give you an advantage in your operations.