The Hidden Cost of Inefficient Warehouse Layouts

Are you losing money without even realising it? Your layout might be to blame.

For facilities managers juggling daily operations, layout often becomes a “set and forget” aspect of the building. But the reality is that inefficient layouts create hidden costs – from wasted square footage and operational delays to missed opportunities for automation and expansion.

At KTCS, we regularly see facilities underperforming not because of ageing buildings, but because of outdated, inflexible, or poorly optimised space planning.

What Does an Inefficient Layout Look Like?

It’s not always obvious. You might not notice a poorly designed layout until you:

• Struggle to scale operations due to inflexible infrastructure

• Experience slow picking, packing or material handling

• Receive complaints from staff or notice recurring near-misses and incidents

• Notice high utility costs due to blocked airflow or inefficient lighting zones

• Have safety concerns due to cramped fire exits or narrow walkways

• Miss out on automation opportunities because your floor plan can’t accommodate it

Even newer buildings can suffer from legacy design issues or ill-fitting upgrades made over time.

The Real Cost of Poor Space Planning

Let’s break it down with examples:

1. Underutilised Space

Imagine a 60,000 sq ft warehouse with 20% underused space. At an average cost of £6 per sq ft per year, that’s £72,000 wasted annually on space that delivers no return. In London or high-demand areas, that figure could rise to £120,000 or more, with typical rents reaching £10–£12 per sq ft.

2. Inefficient Racking Layout

We’ve worked with clients whose racking wasn’t optimised for their product flow, leading to:

• Longer pick times

• Higher labour costs

• Poor stock visibility

Simple redesigns using narrow aisle racking or mezzanine expansion can deliver ROI within months.

3. Workflow Bottlenecks

Poorly placed loading bays or cross-traffic between zones can reduce throughput, delay dispatch, frustrate staff and increase manual handling risks. One client increased operational efficiency by 30% after layout reconfiguration – without extending the building footprint.

Why Flexibility Matters More Than Ever

With evolving regulations, hybrid working models, and shifting inventory demands, layout flexibility is essential. Facilities that can adapt quickly to change are more resilient – and more profitable.

Look out for:

• Modular infrastructure that supports reconfiguration

• Built-in capacity for automation or WMS upgrades

• Design-led zoning to separate quiet, hazardous, or high-traffic areas

Space Planning Isn’t Just for New Warehouses

A common misconception is that layout upgrades only apply to new builds or full refurbishments. In reality, KTCS helps clients implement phased layout improvements in live environments – reducing disruption and unlocking efficiencies fast.

Whether it’s warehouse racking reconfiguration, office partition redesign, or full fit-out planning, small changes often deliver big results.

How Efficient Is Your Warehouse Facility Layout?

If you’re unsure how well your facility layout supports current and future operations, start with our free 5-minute Facility Resilience Scorecard. It assesses layout efficiency alongside key areas like compliance, sustainability, and risk management.

You’ll get a personalised report with actionable insights. Email info@ktcsltd.com to access.

How KTCS Can Help

At KTCS, we don’t just identify layout inefficiencies – we fix them. Our construction consultancy team works with facilities managers across the UK to:

• Reconfigure layouts for operational flow and space optimisation

• Plan phased refurbishments with minimal disruption

• Upgrade racking, partitions, and infrastructure for flexibility

• Ensure compliance with the latest regulations, including fire safety and accessibility

• Coordinate all works across M&E, data, fire systems and structural design

Whether you’re in a legacy building, scaling rapidly, or looking to future-proof, we offer design-led, practical solutions that make your facility more efficient – and more resilient.