How Energy Management Can Reduce Energy Costs In A Warehouse

an image of a warehouse - How Energy Management canReduce Energy Costs In A Warehouse

Energy is one of the most expensive parts of managing a warehouse. Warehouses, like any other huge industrial structure, consume a lot of energy. 

There are plenty of things you can do – big and small – to cut down on energy consumption in your warehouse and save money on your energy bill.

One of the best ways to boost profits is to implement an effective energy management strategy. Investing in power reduction solutions to reduce energy expenses in your warehouse will yield a quick return on investment.

What Is Warehouse Management?

Warehouse management is the process, control, and optimisation of warehouse operations from the entry of inventory into a warehouse until items are moved, sold, or consumed.

These processes revolve around receiving and shipping in the broadest terms.

Receiving entails taking inventory, identifying it, checking it, and storing it. Picking, packaging, labelling, weighing, and delivering products from the warehouse to the consumer are all examples of shipping processes.

Mismanaged warehouses face a slew of issues, all of which influence financial performance:

  • Employees and teams that are disjointed
  • Inventory and equipment that aren’t easily accessible
  • Processes that are both confusing and redundant
  • Floor plans that are inflexible and constrained, reducing the effectiveness

This isn’t good for business. If warehouse management isn’t in order, serving consumers, vendors, and your own company becomes nearly complicated. 

Warehouse management software allows you to accomplish more with less effort. You may reinvest the time, money, and energy you save into accelerating your company’s growth. 

Difference Between Inventory Management And Warehouse Management

While there are some similarities between inventory management and warehouse management, there are some significant variations too.

Inventory management is only concerned with the items stored in a warehouse. 

Inventory management is a component of your supply chain that encompasses things like regulating and overseeing purchases — both from suppliers and consumers — stock storage, controlling the amount of merchandise for sale, and delivery of products.

As explained above, warehouse management, on the other hand, is more concerned with the “movement” of individual things as they move from reception to shipment via the warehouse.

Principles of Warehouse Management

For a warehouse to run efficiently, your strategy must be founded on a solid base.

Let’s consider some of the essential warehouse management ideas to keep in mind as you design your strategy.

Make Data-driven Decisions

The most significant error a warehouse manager can make is to assume that everything is working well because nothing appears to be wrong. Even if no difficulties appear to be present, the warehouse may not be operating at total capacity. 

In truth, the team’s procedures may have several enhancements that are being neglected daily.

It’s important to realise that being data-driven requires more than just “analysing” any data you’ve obtained that may assist you in making a better decision.

On the other hand, data-driven warehouse management entails first looking at your data and then choosing based on what that data tells you.

By fine-tuning your approach to warehouse management based on actual evidence, you’ll ensure that every action you make leads to higher production.

Make An Investment In Technology

Investing in the right technology, from warehouse and inventory management systems to data-collection tools, may help your warehouse run effectively and efficiently.

Nevertheless, it’s critical to find the tools to assist your warehouse workforce with your unique operations.

It would be best to think about how your warehouse management tools will work with the rest of your organisation’s technology stack.

It’s critical to stay current with any new tools or technology that arises throughout time.

Furthermore, you don’t want to merely utilise freshly available technologies for the sake of using them; you want to know if a new piece of technology can enhance your warehouse operations in any way.

Focus On The Customer

Everything in your warehouse is done to ensure that your clients receive their orders on time. It’s important to remember that the client, not your company, decides what “exactly as planned” implies. 

Your warehouse operations should be customised to meet the needs and expectations of your clients while still ensuring maximum productivity on your end. You can improve your warehouse operations and your customers’ experience by keeping your customers’ demands in mind.

Ways Energy Management Can Reduce Costs

After successfully following all these things mentioned above, what is the next step if you still pay out a massive amount of money in your warehouse?

Organisations have many techniques to reduce operational costs while leveraging all remaining, and inevitably critical, assets and processes, no matter how difficult they may appear.

As a company that provides energy management services in Nigeria, we understand that it isn’t always easy for warehouses without energy management personnel to cut costs in this area. So here are some simple steps you can follow:

Use LCD Lights

Many warehouses still employ metal halide lights, which have gained popularity due to their superior light quality. They can’t be switched on and off on demand because of their slow warm-up time. Thus, it is frequently left on for long periods. 

However, that does significantly influence the energy bill, especially if you need a lot of extensive lighting for your business.

Consider converting to LED bulbs if you’re searching for an easy way to save energy in your warehouse. They are the most energy-efficient bulbs available, with a light quality that is comparable to metal halides. 

LEDs may be turned on and off as needed, which saves you money on wasted lighting time. 

You can also add occupancy sensors, which switch on and off automatically based on motion, or vacancy sensors, which require manual intervention to turn off without movement in the room after a set period. 

Sensors are a straightforward approach to reduce lighting expenses in warehouses because there is so much movement in and out.

While switching to LEDs has an initial cost, it will save money in the long term on both energy and replacement costs.  Since a single LED has the same lifespan as two to five metal halides, switching to LEDs will save you money on maintenance. 

Heating, Ventilation and Air Conditioning (HVAC)

Controlling your HVAC system is an excellent method to keep your employees’ comfortable while lowering your energy bill.

Many warehouses have generally used air ventilation systems to manage the air temperature.

But some ACs can be more cost-effective and energy-efficient, especially in areas where doors are regularly opened. 

Instead of a regular AC, an inverter AC may be better to reduce costs. Also, ensure that all unnecessary cooling or heating systems are turned off when they are not needed.

Evaluate The Effectiveness Of The Overall System

Assessing the effectiveness of your equipment and control systems can aid in the identification of areas for improvement and cost savings. 

Check your warehouse management system’s runtime and controls to ensure that all conveyors and machines are timed correctly.

In addition, ensure that these systems are turned off when there is no activity. These small changes can add up to significant savings.

Maintain Equipements When Due

Aim to maintain machinery and systems regularly as well. You might discover areas where you might improve. Whether your warehouse has a belt and roller system, for instance, check the motors to determine if they may be upgraded. 

If it’s time to upgrade the entire system, consider using motor-driven rollers instead of roller belts or slide belts.

Sensors trigger motor-driven rollers, which then shut down after a few seconds of idleness to save energy and make them more energy-efficient than the alternatives.

When machines are not maintained regularly, they can consume more energy.

Train Your Employees About Energy Saving Methods

Your staff are essential to a well-functioning warehouse as well as increased energy efficiency. 

Building an energy-efficient culture and encouraging employees to participate in energy-saving efforts can make a significant difference. Start giving employees training on how to make the most of energy-saving devices. 

You might also institute an energy certification program so that staff can develop their skills and knowledge while also assisting you in identifying energy-saving opportunities. 

You can also form your energy-efficiency team to assist in enlisting staff participation and identifying energy savings.


It is a smart approach to include energy management into your day-to-day operations. 

Energy managers may be in charge of evaluating and controlling systems, tracking energy expenses, scheduling maintenance checks, and meeting with employees to address energy-saving issues. 

Yet, you must have a holistic approach to how you want to save energy. The approaches listed above are an excellent way to start. Take it further by discussing with an energy management company. Call us on 08144000052 or email

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