Savings

Why is your warehouse 'eating' 2,700 PLN per month?

By Marek Woźniak, Process Analyst·November 12, 2024·6 min read

Last month, we visited a facility near Grójec where the owner wondered why profit was stagnant despite having 14 employees. After two days with a pencil in hand and a stopwatch, we found the culprit: forklifts were driving 42 kilometers too much per week due to poorly positioned racks. These aren't textbook theories; it's the specific smell of exhaust and wasted man-hours that cost exactly 2,714 PLN every month.

Empty runs: burning money in the exhaust pipe

Most manufacturing business owners focus on the price of electricity or raw materials, forgetting what happens between the racks. At a facility in Radom that we audited in March 2024, forklift operators spent 23% of their time on so-called empty runs. Why? Because the receiving area was located 38 meters away from the most frequently dispatched goods. It seems like a little, but at 47 trips a day, one employee lost 1.5 hours just moving without a load. Factoring in the hourly rate and machine service, it's a pure loss.

The solution didn't require expensive IT systems. It was enough to analyze which 12 products rotate the fastest and move them closer to the loading ramp. We applied a simple rule: whatever leaves daily must be within 11 seconds of forklift travel. Two weeks after changing the layout, fuel consumption dropped by 14%, and warehouse workers stopped complaining about overtime that no one wanted to pay for. We know the smell of grease and know that seconds count on the floor, not pretty Excel charts.

We often encounter resistance that 'it's always been this way and it was fine.' But the reality is that the cost of maintaining one square meter of floor space in 2024 has increased by 19% compared to last year. You can't afford to keep dust on products that sell once a quarter in a place where there should be fast rotation. Rearranging the hall took us 3 evenings, and the return on this operation occurred after the first full billing cycle. These are the specific savings that no one talks about out loud.

A forklift is not a taxi; it shouldn't be making empty runs across an empty hall.
Empty runs: burning money in the exhaust pipe

Air under the ceiling you're paying rent for

Another mistake we regularly catch during audits at Orzeł Strategii Group is unused hall height. Many entrepreneurs store goods up to a height of 2.2 meters, while their warehouse has 6 meters of clearance. This means you are paying for heating and rent for 4 cubic meters of air above every pallet. In one plant near Warsaw, adding an extra storage level on 34 racks allowed them to stop renting an external container, yielding 1,300 PLN in immediate monthly savings.

Instead of building a new hall for hundreds of thousands of zlotys, it's better to invest in used high-bay racks. The cost of installing 18 additional pallet slots was 8,400 PLN. The investment paid for itself in less than 7 months. The key, however, is the right choice of forklift – not every pallet jack can lift goods to 5 meters, so we start the analysis by checking the fleet you already have. We don't advise buying new machines if the old ones can still work after a minor logistical correction.

At Orzeł Strategii Group, we count every penny. If we see that racks are overloaded or spaced too far apart, we say it straight. Space optimization isn't just about more goods; it's about better airflow and lower ventilation bills. In July 2024, we helped a furniture company recover 156 square meters of space just by changing the rack angle by 90 degrees. Sounds trivial? Maybe, but it allowed them to install an additional packing line without expanding the building.

17 minutes searching for one bolt – the hidden cost of chaos

Chaos in small parts is a real plague for smaller production plants. We've seen situations where a production worker with a salary of 45 PLN gross per hour searched for a specific valve for 17 minutes. If this situation repeats 3 times a day for 5 employees, you lose nearly 3,100 PLN per month just on 'walking and asking.' No fluff: this is money thrown in the trash, because in that time the machines could have been earning on the next order.

Implementing a system of simple labels and color zones (even without an expensive code scanner) can shorten picking time by 31%. In a company near Płońsk, we introduced a rule: every box has its place marked with tape on the floor. The cost of the tape? 120 PLN. The effect? No more downtime on the line because 'we ran out of gaskets again' when they were actually at the other end of the warehouse under a pile of boxes. These simple solutions build real profit.

At Orzeł Strategii Group, we don't believe in complicated management systems that no one understands. Our Process Analyst, Marek, always says: the system should be so simple that a new employee knows where to put a size ten wrench after 15 minutes of training. If your people have to wonder where something is, it means you're losing margin. During the last audit at a metal parts manufacturer, eliminating shipping errors (product mix-ups) saved them 2,340 PLN per month in courier costs and complaints alone.

Warehouse order isn't aesthetics; it's pure profit mathematics.
17 minutes searching for one bolt – the hidden cost of chaos

Lighting and temperature – quiet expenses

Few people link warehouse layout with electricity bills, and that's a mistake. Racks blocking windows force the use of artificial light 24 hours a day. In one of the halls we visited, moving racks 2 meters toward a windowless wall allowed for natural light in the packing zone. The electricity bill the following month was 480 PLN lower. It might not be an earth-shattering amount, but on an annual scale, it's nearly 6,000 PLN staying in your pocket.

The situation is similar with heating. If the receiving area is constantly open and the warehouse doesn't have air curtains, heat escapes faster than you think. Optimization consists of arranging goods so that those least sensitive to temperature stand by the gates, creating a natural barrier. These details are what make Orzeł Strategii Group effective – we look at the hall as a single organism where every element affects the financial result at the end of the quarter.

To be honest, most companies we audit have the potential to lower costs by at least 12% within the first 30 days. We don't do this by cutting salaries, but by eliminating stupid logistical errors. An example? Poorly placed forklift chargers that forced operators to drive across the whole hall just to plug in a battery. Moving the sockets closer to the break area shortened dead time by 12 minutes per shift. The numbers don't lie.

How to recover this money in 19 business days?

Many people ask us: 'How long will it take?'. The answer is: usually, we wrap up in 19 business days. The first week is observation and counting. We don't interfere with work; we stand aside and watch how goods flow. The second week is preparing the change plan and consulting with foremen – they know best what irritates them on the floor. In the third week, we implement changes, usually on weekends or night shifts, so as not to stop production.

We aren't corporate consultants in ties. We put on protective gear, enter the hall, and point: here is where money is escaping. After completing our work at Orzeł Strategii Group, you get a simple 3-page report. There's no fluff, just specifics: what we changed, how much it cost, and how much you will save annually. Our average effectiveness is a return on the audit cost within the first 4 months of implementing the recommendations.

Remember that every day of delay is another 90 PLN loss (counting those mentioned 2,700 PLN per month). If you feel like 'controlled chaos' prevails in your warehouse, that chaos is likely costing you more than you think. It's worth investing in a reliable audit instead of wondering why the competition can offer lower prices. They probably counted their forklift empty runs long ago.