Warehousing costs have been rising globally due to increasing labor expenses, land prices, energy consumption, and the growing need for 24/7 operation in e-commerce, manufacturing, and retail supply chains. As a result, warehouse operators are turning to automation to reduce costs and improve long-term efficiency.
HEGERLS, a global warehouse storage and automation provider with 30 years of experience, has become a trusted partner for companies seeking to optimize operations while controlling expenses. From pallet shuttle systems and four-way shuttles to AGVs, ASRS cranes, and intelligent racking, HEGERLS delivers solutions that significantly reduce operational costs.
This article explores the key cost pressure points in modern warehousing and how HEGERLS helps businesses reduce costs through innovative and scalable automation systems.
The Rising Cost Challenges in Modern Warehousing
Warehousing is facing unprecedented cost pressures. According to DHL Logistics Trend Report 2024, overall warehouse operating costs increased by 7–12% annually, driven by:
Labor shortages and rising salary levels (global average +9% YoY)
Higher land and rental costs, especially in Asia and Europe
More SKUs and fast-order cycles requiring flexible systems
Increased energy costs and sustainability demands
Inefficiencies from legacy racking and manual operations
Many facilities still rely heavily on forklifts and manual picking, leading to higher labor costs, safety issues, and low space utilization.
Key Cost Drivers in Warehousing
Labor Costs: Labor accounts for 45–65% of total warehouse operating costs. As wages rise globally, automation becomes essential.
Space Utilization: Traditional racking wastes vertical space and requires wide forklift aisles.
Energy Usage: Conventional warehouses suffer from inefficient layouts, long transport paths, and outdated machinery.
Equipment Maintenance: Forklift and manual machinery maintenance can be costly and unpredictable.
How HEGERLS Solutions Reduce Operational Costs
High-Density Storage Systems
HEGERLS pallet shuttle systems and four-way shuttle systems increase storage density by 40–80%, reducing the need for warehouse expansions or additional rental costs.
Cost savings include:
Less space required for the same inventory volume
Eliminates wide forklift aisles
Enables deep-lane storage for pallets
Example: A client in Southeast Asia saved USD 200,000/year simply by reducing storage space rentals after switching to HEGERLS shuttle racking.
Automated Shuttle & AGV Integration
HEGERLS integrates its shuttle systems with AGVs to automate pallet movement from receiving to storage.
Benefits:
Reduces forklift usage by 70%
Fewer operators needed per shift
Lower risk of product damage
Continuous 24/7 workflows
This directly cuts labor expenses and improves safety.
Reducing Labor Dependency
HEGERLS four-way shuttle and ASRS systems can replace multiple manual operations:
Picking
Transporting
Stacking
Inventory checking
A typical installation reduces manpower by 30–50%.
Improving Space Utilization
With HEGERLS automation, warehouses can store more in less space.
Four-way shuttle systems enable multi-directional movement
Shuttle racks provide deep-lane storage
VLMs (Vertical Lift Modules) optimize vertical cube utilization
This significantly reduces facility renting and expansion costs.
Minimizing Maintenance & Downtime
HEGERLS uses advanced components and predictive maintenance features to reduce machine downtime.
Motors and controllers from world-class suppliers
Smart diagnostic systems
Fewer mechanical moving parts than forklifts
Result: Up to 35% reduction in annual maintenance costs.
Energy-Saving Warehouse Solutions
HEGERLS systems are engineered for low energy consumption:
Regenerative braking technology in shuttles
AGV smart charging
Low-voltage, high-efficiency motors
Reduced forklift traffic decreases fuel consumption
Warehouses typically reduce energy usage by 20–30% after automation.
Real Market Data — 2024–2025 Warehouse Cost Insights
Based on market research from McKinsey, DHL, and Interact Analysis:
Global warehouse automation adoption will grow 14% annually through 2027
Automated systems reduce errors by up to 90%
High-density storage solutions can lower warehousing cost per pallet by 20–50%
AGV/AMR usage is expected to double in Asia and Europe by 2026
HEGERLS products align directly with these global trends.
HEGERLS Case Study — Proven Cost Reduction
A HEGERLS installation for a European FMCG warehouse yielded:
42% increase in storage density
38% reduction in labor requirements
50% lower forklift operating costs
25% shorter order cycle time
Full ROI achieved in 48 months
This demonstrates how HEGERLS solutions translate into real-world, measurable savings.
Why HEGERLS Is the Ideal Automation Partner
30 years of global warehouse engineering
Integrated solutions: racking + shuttle + AGV + WMS
CE & ISO-certified manufacturing
Projects in 60+ countries
Strong after-sales service and remote support
Customized systems for cold storage, manufacturing, e-commerce, and 3PL
HEGERLS solutions are designed not only to automate operations but to reduce total costs and maximize long-term profitability.
Conclusion
Warehouse costs continue to rise, and efficiency is now the key competitive advantage. HEGERLS empowers warehouse operators with the tools they need to reduce labor dependency, maximize space, cut energy consumption, and minimize downtime.
By adopting HEGERLS automation systems—such as shuttle racking, AGVs, ASRS cranes, and intelligent warehouse software—businesses can transform their operations and achieve rapid ROI.
Ready to reduce your warehouse operational costs?
Contact HEGERLS today for a customized automation solution.
FAQ – How HEGERLS Helps Reduce Warehouse Operational Costs
How does HEGERLS help reduce warehouse labor costs?
HEGERLS automation systems—such as pallet shuttles, four-way shuttles, AGVs, and ASRS—significantly reduce manual handling requirements.
Warehouses typically experience:30–50% reduction in manpower
Fewer forklift operators
Lower labor-related safety risks
Reduced overtime costs
By automating pallet movement and storage, warehouses can maintain stable productivity with a much smaller workforce.
Can HEGERLS automation really increase storage density?
Yes. HEGERLS high-density storage systems can increase usable storage space by:
40–80% depending on the warehouse layout
Eliminating most forklift aisles
Enabling deeper lanes and multi-directional movement
Using full vertical cube height
This reduces the need for additional facility rentals or expansion.
How does HEGERLS help reduce energy costs?
HEGERLS systems use:
High-efficiency motors
Regenerative energy feedback on shuttle braking
Intelligent energy-saving modes
Battery-optimized AGV charging
Reduced forklift usage
Most HEGERLS customers see 20–30% energy savings after upgrading.
Can HEGERLS systems integrate with existing warehouse operations?
Yes. HEGERLS specializes in customized integration:
Shuttle + existing racks
AGV + pallet racking
ASRS + inbound/outbound lines
Our engineers design around your current workflows to minimize downtime and installation interruptions.
Are HEGERLS automation systems suitable for cold storage?
Absolutely.
HEGERLS shuttles, four-way shuttles, and racking can operate in –40°C cold storage with:
Frost-resistant motors
Low-temperature batteries
Anti-condensation protection
Cold storage operators benefit heavily from automation because labor costs and energy costs are extremely high.
What industries benefit the most from HEGERLS cost-reduction solutions?
The industries achieving the biggest savings include:
Food & Beverage
Cold Chain Logistics
3PL Warehouses
E-commerce Fulfillment
Manufacturing
FMCG
Pharmaceuticals
Any business dealing with high pallet turnover or space constraints will see strong ROI.
Does HEGERLS provide after-sales service and technical support?
Yes. HEGERLS offers:
Global on-site installation
Remote diagnostics
24/7 support
Replacement parts
Annual maintenance packages
System upgrade options
This ensures long-term operational stability and reduces downtime-related costs.
