How to Cut Labour Costs with a Cloud WMS

Worried about labour costs? A cloud WMS could be the answer. Read now.

January 23, 2023

Warehouse managers discussing warehouse labour costs

Managing a warehouse is a complex task that requires a skilled hand to oversee inventory, staff, and overall operations. But as labour costs continue to rise, it’s becoming increasingly difficult for businesses to maintain profitability. 

According to ID Logistics, labour can account for up to 70% of a warehouse’s budget. As the job market tightens, employers are under pressure to offer higher wages and better benefits to attract and retain workers.

In fact, the average salary for a warehouse worker has risen 6.8% in the last year, reaching an average of £22,646, while the overall job market has seen a decline of -6.4% in the same period (Adzuna).

To stay competitive, you must look for ways to reduce labour costs while maintaining high efficiency. One way to achieve this is by implementing a cloud warehouse management system (WMS). With a cloud WMS, businesses can optimise their warehouse operations, streamline communication, reduce errors, and reduce labour costs. 

This article will discuss how a cloud WMS can help reduce labour costs in your warehouse. By leveraging the power of cloud technology, you can take advantage of the latest features and technologies to maximise efficiency and minimise labour costs.

Warehouse staff discussing warehouse labour costs

Implementation of Automated Processes

A cloud warehouse management system offers many benefits, including cutting labour costs through automation.

By utilising features such as barcode inventory tracking, manual inventory checks have become a thing of the past. Streamlining inventory management and reducing labour are achieved through this.

Additionally, a WMS allows for the implementation of automated picking processes. By identifying specific items for fulfilment and their location within the warehouse, the system directs a picking machine to collect them and transport them to the appropriate packing station, further reducing labour.

But that’s not all.

A WMS also includes route optimisation, which determines the most efficient route for walk picking, further increasing efficiency.

Increased Productivity and Efficiency

In the world of warehousing and logistics, one fundamental way to reduce expenses is by boosting efficiency and productivity. And one powerful tool for achieving these goals is a cloud WMS.

One example of how a WMS can streamline operations is through its use of barcode scanning. Implementing this technology allows you to easily update inventory in real-time as items are picked, scanned, and placed in carts.

Closely monitoring stock levels, spotting discrepancies, and adjusting your workflow as needed are enabled by this.

By quickly fulfilling orders and keeping a tight rein on inventory, you can do more with the same amount of labour, resulting in cost savings. And by leveraging a cloud-based WMS, you have the added benefits of remote access, scalability, and streamlined data management.

All these can help you keep your labour costs in check and your operations running smoothly.

Streamlined Order and Inventory Management

Supply chain visibility is crucial for managing labour costs in today’s business landscape. A cloud WMS can provide this visibility, allowing you to monitor better and control the flow of inventory and shipments.

With a WMS, you can easily track inventory as it moves through your WMS allows you to easily track inventory as it moves through your supply chain, providing real-time updates on where and when an item is expected to arrive at your warehouse. This enables you to plan and allocate resources accordingly.

In addition, you can use a WMS to track shipments as they leave your warehouse and travel to their final destination. You will be able to identify potential issues early and take appropriate action to address them, minimising the risk of unexpected delays.

By improving visibility into the supply chain, you can increase productivity and ultimately reduce labour costs, as you will need fewer employees to address issues as they happen.

With a cloud-based WMS, this visibility is available 24/7, even remotely, allowing you to always stay on top of your inventory and shipments, thus reducing labour costs.

WMS systems are designed to track and trace all service-based tasks and movements with what is known as an entire audit trail. The audit trail will leave a detailed record of every warehouse task, transaction and movement. It is also used to monitor the performance of each task and process and identify any improvement areas. 

The audit trail allows businesses to easily report on and analyse the efficiency of their warehouse operations. Additionally, this is especially useful for businesses looking to identify areas for improvement or those needing to comply with specific standards or regulations.

Improved Supply Chain Visibility

A cloud warehouse management system is a game-changer for supply chain visibility. You can anticipate and avoid delays by tracking inventory and shipments in real-time, increasing productivity and reducing labour costs. 

Imagine having crystal-clear visibility into your inventory as it moves through the supply chain, knowing exactly when and where it will arrive at your warehouse.

With a WMS, you can proactively plan and adjust, eliminating the need for extra staff to address unexpected issues. In short, a cloud WMS is a powerful tool for streamlining your supply chain and maximising efficiency.

Optimised Labour Utilisation

A top-notch warehouse management system can help you optimise utilisation and reduce costs.


Leveraging labour analytics to track employee performance against specific tasks and work instructions. Each operator has a User ID, and the system tracks every touch point creating an entire audit trail. You’ll get a perfect performance, as it stamps the time/date.  

For example, with a warehouse management system, you can use labour analytics to identify which jobs are performed by which employees and the optimal allocation of labour.

To do this, you can set up work instructions for every position within your warehouse and then use the data generated by the warehouse management system to track employee performance against their work instructions. Doing so will allow you to get the most out of your employees and help reduce labour costs.

Automated Data Collection and Analysis

Real-time insights are crucial to staying ahead of the competition in today’s fast-paced, data-driven world. And that’s precisely what a cutting-edge warehouse management system can provide. You can make smarter, more informed decisions about staffing levels by giving you access to real-time data about your operations. 

With the ability to track work times, assignments, and orders, you’ll be able to identify bottlenecks and inefficiencies, enabling you to make changes that can help you save on labour costs, avoid overstaffing and improve your overall warehouse management.


A cloud WMS is an essential piece of warehousing software that can help you reduce labour costs. By leveraging the power of cloud technology, you can take advantage of the latest features and technologies to maximise efficiency and minimise labour costs. 

Additionally, it can help you increase productivity and improve visibility into the supply chain to manage inventory levels better and forecast labour needs. Overall, a cloud WMS will help you do more with less, which will ultimately help you reduce labour costs.

Clarus WMS can help you streamline your warehouse operations. It provides real-time data and analytics and a range of features designed to help you reduce labour costs, improve efficiency, and increase your bottom line.

It also offers automated processes and integration with existing systems, such as accounting and inventory management software. In addition, Clarus WMS is easy to use and can be customised to meet your specific needs. 

Our team of experts can provide you with the training you need to get up and running quickly. With Clarus WMS, you can start seeing results in no time. 

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