Reduce Your Warehouse Cost by using Kaizen Principles

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Cristyn Narciso
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I found this course very informative and easy to understand. I am just getting started in working with supply chains/manufacturing and enjoyed this free course.
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Ankit Kumar
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Very basic but yet an effective course. An easy explanation of different processes of a Supply Chain. The mentor has explained everything through pictures and flow charts which made it easy to understand. He has also provided the slides used in the course for later reference. Good for anyone who is new to the Supply Cain. I really wish him to create a more detailed and advanced course.
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Laverne Angela Gadiah
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Thank you for a very clear, easy to follow and concise course. It was informative and definitely on point.
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We have seen in our previous article, wherein we have described  Kaizen focuses on eliminating the 7 types of wastes, (also known as 7 deadly wastes), VIZ:

  • overproduction, (producing more than what has been scheduled)
  • waiting (poor balance of work leading to excessive attention of the operators)
  • transportation, (long moves, wrong methods of re-stacking, etc)
  • excessive Inventory, (too much of material before the actual processes lead to the hiding of problems)
  • over-processing, (not protecting the parts for transporting to another method)
  • motion, (walking to get the elements due to the space being occupied by high work in progress, (WIP)
  • defective manufacturing, (material and labor wastages lead to bottlenecks resulting in losses in capacity.

In this article, we consider how with the application of Kaizen Principles, you can reduce the warehouse costs. Before that we would explain succinctly why should we think about bringing down the prices in your warehouses?  Irrespective of the fact whether your vertical business falls in the areas of cargo handling, transport, light industry, etc., Kaizen Principles can help you to focus on quality rather than quantity by improving the warehouse operations.

Warehousing operations are known to suffer from inefficiencies that bloat the costs and reduce profitability.  For instance, when the forklift operators do not have adequate information on the location of the items they need to pick up, they waste precious resources as they cannot chalk out optimal route for putting away that would have otherwise helped them to replenish and retrieve their actions. Believe it on an average 2.5 minutes are wasted during ‘retrieval cycle.’ Given the fact there are hundreds or even thousands of ‘cycles’ per week, the colossal waste that can occur in your warehouse is beyond anybody’s imagination.  It is then but natural to consider ways and means to bring about more efficient operations as that means quicker response times for completing the productions processes and customer fulfillment.

Taiichi Ohono who considered as the father of the Toyota Production System, (TPS) had the vision to substitute the American driven style of mass production with lean production to create value for the customers by reducing waste and bringing about a higher level of efficiency.

Where Kaizen Principles target in Warehouse Management

It has direct relevance in reducing the wastes and improving the operations in four areas, VIZ,

  • defects
  • transportation
  • human motion
  • waiting

How you can benefit Layout Planning a specific tool in warehousing management

The importance of Layout Planning underscored by the fact that it provides the right balance between storage and processes.  As a Kaizen tool, it enables one to integrate the men and material as personnel, equipment, material handling, etc. to optimally utilize these resources. With Kaizen, the layout planning in your warehouse can be design in such a way that it is possible to achieve the following:

Minimize the movement

When the traveling distance reduced, the cost can be diminished, and productivity can be enhanced.

Unidirectional flow

When the materials move in the same direction, it avoids backtracking.

Efficient space handling

Efficient space handling helps in organizing and allocating the materials in such a manner that it is easier to find and pick them. It also helps in the better utilization of the warehouse space, which goes in either reducing the rental cost or maximizing the capacity.

Maximize the flexibility

IT is possible to do this as it provides for the flexibility to meet the fluctuations in demand for storage or change in storage conditions.


In conclusion, it can be that the conventional thinking that a warehouse is meant to store the goods no longer holds good. It performs several other functions, as receiving, inspecting, stacking, sorting, picking, packing and shipping from which it is clear storage alone is not the sole function, which a warehouse does. Hence the professional application of Kaizen Principles is a must for your warehouse. We, at upKaizen, are experts dedicated to solving your manufacturing problems by developing the principles of Kaizen customized to your needs and applying them to eliminate wasters, optimize the costs, improve the operational efficiency and enhance your revenues and profitability.

Please visit us at, and we promise the highest levels of services and customer fulfillment.



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