The Hidden Costs of Poor Warehouse Layout — and How to Fix Them
- savyrack
- May 4
- 2 min read
Updated: May 19
Your warehouse layout might be costing you more than you realize.
From wasted space to dangerous operations, poor planning can drain your profits — quietly but steadily.
Here’s what you need to know about the hidden costs of a bad warehouse layout — and how to fix it.
1. Wasted Storage Space
Improper aisle widths, unoptimized racking, and dead corners can waste 20%–40% of warehouse space.
Every square meter unused is a direct loss in potential storage revenue.
✅ Solution:
Implement space-saving systems like double-deep racking, drive-in racking, or mezzanine platforms based on your goods type and forklift equipment.
2. Lower Picking and Handling Efficiency
If pickers or forklift operators must zigzag through badly organized racks, your labor costs skyrocket.
More time per pick = fewer orders completed per shift.
✅ Solution:
Design picking zones, fast-move goods areas, and optimize rack heights for accessibility.
3. Higher Risk of Accidents
Poorly placed racks, narrow aisles, and messy layouts lead to a much higher risk of forklift collisions, goods falling, and worker injuries.
✅ Solution:
Recalculate aisle widths based on forklift type and traffic, add rack protection barriers, and maintain clean sight lines.
4. Difficult Inventory Management
A chaotic warehouse layout makes it harder to implement FIFO (First In, First Out) systems or stock rotation.
It also increases mis-picks and stock loss.
✅ Solution:
Align your layout to your warehouse management system (WMS) or basic FIFO principles to simplify tracking.
📈 Conclusion
Warehouse layout is not just about putting up shelves — it’s about maximizing every dollar of your operations.
At SavyRack, our experts offer free warehouse layout consultation and design customized storage solutions to help you unlock up to 3X more usable space — with no extra design fees.
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