Warehouse Consolidation Cuts Storage Costs for Manufacturing Customer

A manufacturing customer with underutilized dedicated warehouse space for hazardous raw materials needed a smarter, compliant, cost-effective storage solution. Wagner delivered.

~30% REDUCTION IN STORAGE COSTS
100% REGULATORY COMPLIANCE MAINTAINED
0 DISRUPTION TO MANUFACTURING OPERATIONS

Overview

A manufacturing customer required warehouse space to store hazardous raw materials used in its production process. The customer was operating within a dedicated warehouse facility, which had originally been sized to support anticipated growth in material volumes.

Over time, inventory levels stabilized below projected levels, leaving the customer responsible for substantial unused warehouse capacity and the associated costs. While there were opportunities to introduce additional SKUs into the facility, the operation would still leave a meaningful portion of the space underutilized.

The customer faced a compounding problem: a facility too large for actual needs combined with materials that couldn’t simply be moved anywhere. Hazardous materials storage demands proper regulatory compliance, strict product segregation and specialized handling procedures.

The Challenge:
Underutilized Space. Uncompromising Compliance.

The customer needed a solution that could both reduce warehouse costs and maintain full compliance with hazardous material storage requirements.

Wagner Logistics’ Approach:
A Comprehensive Analysis. A Tailored Solution.

Wagner conducted a full review of the customer’s inventory profile, hazardous material classifications, storage requirements and inbound material flow.

The analysis identified an opportunity to integrate the customer’s inventory into a multi-client warehouse within the Wagner network, which was already equipped with the required safety infrastructure and operational controls.

This consolidation model allowed Wagner to right-size the customer’s storage footprint while leveraging shared labor, equipment and facility infrastructure to drive meaningful cost savings.

The solution involved:

  • Designing a right-sized storage footprint aligned with the customer’s actual inventory requirements, eliminating payment for unused space
  • Implementing hazardous material storage protocols that met regulatory and safety requirements
  • Maintaining proper product segregation and safety procedures within the warehouse
  • Leveraging Wagner’s shared labor, equipment and facility infrastructure
  • Providing reliable material access to support the customer’s manufacturing operations

By integrating the customer into a multi-client environment capable of handling hazardous materials, Wagner eliminated the inefficiencies of underutilized dedicated space without compromising safety or compliance.

The Results

The consolidation delivered both operational and financial improvements while maintaining strict hazardous materials handling standards.

  • Approximately 30% reduction in storage costs
  • Elimination of unused dedicated warehouse space
  • Safe and compliant hazardous material storage and handling
  • Access to shared labor, equipment and operational infrastructure
  • Increased flexibility and scalability within Wagner’s multi-client warehouse environment

Why It Matters:
Storage That Scales with Customer Reality

Many companies are paying for the warehouse they planned for, not the one they actually need. This solution demonstrates that right-sizing a warehouse footprint — even when hazardous materials are involved — is achievable without sacrificing safety, compliance or operational continuity.

Have a Supply Chain Challenge? Bring It!

Ready to right-size your storage footprint? Wagner is ready to bring the solution, hazardous materials and all.


(800) 817-1264

1201 E. 12th Ave.

North Kansas City, MO 64116

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