Why Are My Operating Costs So High? Hidden Warehouse Inefficiencies Might Be to Blame
- Westbow Systems
- Apr 24
- 3 min read
Updated: 6 days ago
Feeling the Pressure of Rising Operating Costs?
If you’re noticing a squeeze in your profit margins but can’t quite pinpoint why, you’re not alone. Across Western Canada, businesses are facing mounting operational expenses—and many don’t realize how much of it comes down to inefficient use of space.
Here are some of the most common symptoms we hear from clients:
Running out of storage space, leading to off-site rentals or even property expansion
Soaring energy bills, especially in larger or temperature-controlled facilities
Poor inventory visibility, causing missed sales, overstocking, or expired goods
Slow picking times and inefficient workflows, making order fulfillment more costly
Cashflow problems, as money goes toward new construction instead of growth
Do any of these feel familiar?
If so, the real issue might not be your building, your team, or your processes. It might be your storage system—and how it’s configured.
Let’s talk. Book a consult with Westbow Systems to identify hidden inefficiencies in your storage setup.
What's Really Behind These Problems?
1. You're Paying for More Space Than You Need
When inventory starts overflowing, many businesses jump to lease more square footage. But often, the problem isn’t a lack of space—it’s how the existing space is being used.
Inefficient shelving, wide aisles, or disorganized layouts mean you're wasting valuable square footage—and paying for it month after month.
2. Energy Costs Are Tied to Inefficient Layouts
Oversized or poorly configured storage areas require more lighting, heating, and cooling. If you're storing goods in oversized or outdated systems, you're likely conditioning way more space than necessary.
In climate-controlled environments, this alone can lead to thousands in avoidable utility costs every year.
3. Inventory Issues Start with Access
If workers struggle to reach inventory, or you have items stored off-site, it slows everything down. That means missed sales, more handling, and products that expire or go obsolete because no one knew they were there.
It’s customer satisfaction problem.
4. Operational Inefficiencies Kill Productivity
If it takes your staff several minutes to retrieve a single order—because of long travel distances, unclear labeling, or cluttered aisles—you’re losing time and money every hour of every day.
Small inefficiencies add up to massive costs over time.
5. You’re Investing in Expansion Too Early
When storage feels tight, many companies start planning new construction. But if your existing space isn't optimized, you're likely investing in additional square footage you don’t truly need yet.
It ties up capital you could be using to grow your business.
So What’s the Fix?
If any of these symptoms are happening in your facility, the solution could be a smarter storage strategy.
Instead of adding more square footage or staff, first ask: How can we get more from the space and systems we already have?
Innovative Storage Strategies That Solve These Problems
High-Density Mobile Shelving
Ditch fixed aisles and store more in the same footprint. These systems nearly double your storage capacity by mounting shelves on mobile carriages.
Mezzanine Storage
Create a second level inside your existing warehouse. Mezzanines are one of the most cost-effective ways to add space without construction.
Pallet Racking
Use the full height of your warehouse to keep inventory organized and accessible—without taking up more floor space.
Slotting Optimization
Strategically position your fastest-moving inventory to reduce walking time and increase pick speed.
Integrated Layout Design
Streamline workflows by designing storage around how your team moves—not just what you store.
Want to identify your biggest efficiency opportunities? Request a site review with Westbow Systems.
Why Westbow Systems?
At Westbow Systems, we’re solving storage problems. We work with businesses across Western Canada to design systems that reduce operating costs, increase productivity, and delay capital expenditures.
Our approach is simple: Understand your needs. Maximize your space. Improve your bottom line.
Don’t Let Storage Drain Your Profits
High warehouse costs aren’t always about growth or demand—they’re often about inefficiency.
Before you lease more space, hire more staff, or break ground on a new building, ask yourself: Have we done everything we can with what we already have?
Smart storage changes that answer.
