Factors Affecting Warehouse Cost Reduction: A Case Study of ABC Company

Abstract

This study investigates the factors influencing warehouse cost reduction through a case study of ABC Company. The objectives are to identify key cost-reduction factors, examine effective warehouse management practices, and propose appropriate technologies to enhance competitiveness. A mixed-method approach was employed, using questionnaires and interviews to collect quantitative and qualitative data. The results indicate that effective warehouse management practices have a strong positive relationship with technology adoption (r = 0.750) and a moderate negative relationship with warehouse costs (r = -0.620). This suggests that well-structured management directly supports cost reduction through accurate inventory planning, efficient inbound and outbound operations, and waste reduction. In addition, the use of warehouse technologies shows a moderate negative relationship with warehouse costs (r = - 0.580). Technologies such as Warehouse Management Systems (WMS), IoT/RFID, and data analytics improve accuracy, reduce errors, and speed up operations, leading to lower overall costs. Overall, sustainable warehouse cost reduction requires effective management practices, appropriate technology adoption, and workforce development to support operational efficiency and long-term competitiveness.