Optimizing existing warehouses: when modernization is more economical

Many established warehouses work reliably - but tighter delivery windows, heterogeneous IT landscapes and ESG requirements are increasing the pressure on flexibility and availability. Instead of building new warehouses, targeted warehouse optimization allows you to make existing systems efficient and future-proof - without interrupting operations.

This article shows when there is a need for action, which measures are suitable for existing warehouses and how you can prepare for them and, last but not least, how you can transparently measure success with practical KPIs.

When there is a need for action

How can you tell that the time has come to modernize your warehouse? Recurring malfunctions and spare parts shortages are often early indicators. If workarounds characterize everyday life and configurations are only possible with special programming, the operational risk increases. If energy consumption also increases without any increase in performance and functions such as standby or load management are missing, a structured analysis of the current situation is advisable.

Companies that observe several of these symptoms should consider modernization measures. Warehouse modernization as part of a targeted retrofit is both economically sensible and important to ensure availability and avoid downtime.

Mini-Check: Your warehouse could be ready for a retrofit if ...

1. Controllers are more than 10-15 years old or spare parts are difficult to obtain.
2. The software can no longer be flexibly adapted to new processes.
3. Workarounds characterize operations and picking performance stagnates.
4. Energy consumption increases without performance increasing.

The complete checklist with evaluation matrix can be found in the retrofit check here in the guide.

The consequential costs of a lack of modernization

What happens in the warehouse when companies decide to wait and see? Outdated systems gradually generate higher operating costs: inefficient processes, longer throughput times, increasing repair costs and downtime costs in the event of breakdowns. Typical inefficiency losses are also caused by:

• Longer routes during picking
• Manual interventions instead of automated processes
• Lack of transparency regarding stocks and material flows
• Compliance risks in the absence of software updates that can no longer meet legal requirements

In particular, downtime costs in the event of failures are one of the biggest risks associated with outdated systems. If critical components fail, it is not just the warehouse that comes to a standstill - the entire value chain can be affected. Particularly in logistics-intensive industries (manufacturing, mechanical engineering, e-commerce), this results in measurable sales losses within hours. Forward-looking modernization systematically reduces these risks.

Retrofit or new build: the economic comparison shows clear advantages

So is now the time for a new warehouse? Not necessarily! Instead of a complete new build, a systematic warehouse retrofit offers convincing economic arguments. A systematic warehouse retrofit is usually 30-50% cheaper than a new build because existing structures can continue to be used. In addition, no additional space is required and implementation takes place during ongoing operations with minimal disruption.

Economic effects in practice:

• 30-50% cheaper than new construction
• 10-20% less downtime
• 15-25% more throughput
• 2-3 year payback period
• Up to 30% fewer unplanned repairs

* Experience from over 800 retrofit projects carried out by HÖRMANN Intralogistics

What is possible in existing warehouses today

What specifically can be modernized without converting everything? As the digital heart of the warehouse, modern warehouse management systems are a perfect starting point. Here, software migration integrates new functions, standardizes interfaces and keeps availability high - without having to redesign the logistics architecture.

Autonomous mobile robots are also a good option for supplementing existing conveyor technology by absorbing peak loads or reducing manual routes. They can be easily integrated into existing control systems and transport pallets without a driver, for example.

Energy management can be optimized by retrofitting the control technology with automatic standby and load distribution functions - the warehouse thus reacts adaptively to capacity utilization.

A practical example from the wire industry shows the efficiency of the possibilities: During the modernization of a three-aisle high-bay warehouse, storage and retrieval machines were replaced, the conveyor technology was expanded and the entire warehouse management software was recreated. The result: greater flexibility and a future-proof control and software basis with continuous operation.

More practical examples and specific case studies now available here in the guide.

How to measure the success of your warehouse optimization

Successful warehouse optimization is reflected in measurable key figures. Modern warehouse control systems provide precise data on throughput times, energy consumption and system availability. This transparency makes it possible to continuously monitor the return on investment and identify optimization potential at an early stage.

Practice-proven KPIs include reducing unplanned downtime by 10-20 percent, increasing picking performance by up to 25 percent and reducing energy costs through intelligent load management. Companies that systematically record these KPIs typically achieve payback periods of between two and three years - clear evidence of the cost-effectiveness of targeted modernization measures.

Continuous data analysis also creates the basis for predictive maintenance and strategic expansions. In this way, warehouse optimization develops from a one-off investment into an ongoing improvement process that secures long-term competitive advantages.

A clear roadmap for warehouse optimization

Successful modernization follows a clear, structured approach that brings together technical feasibility, economic efficiency and strategic business objectives.

What makes the approach special:

• Precise as-is analysis: current status of mechanics, electronics, software and flow of goods is recorded - each device is given a technical profile
• Recognize potential: Determine where modernization is particularly worthwhile - technically and financially
• Prioritize measures: Staged plans for quick effects and long-term sustainability
• Planning with foresight: Transparent documentation of effort, costs and time frame
• Realization without production stoppage: conversion with replacement processes and flexible time windows

Companies report predictable payback periods of around two to four years, reduced downtime costs and noticeably higher plant reliability after implementation - the key to successful warehouse optimization lies in taking preventative action before bottlenecks disrupt operations.

Conclusion

Warehouse optimization is far more than just technical maintenance - it is a strategic path to the future of logistics. Those who modernize existing structures intelligently combine short-term efficiency gains with long-term competitiveness. Targeted retrofitting therefore offers a real alternative to expensive new buildings, can reduce warehouse costs and increase performance at the same time.

Take action before your warehouse becomes a bottleneck. A systematic inventory will show you specific modernization potential and economic benefits. Let our retrofit expert Christian Otterbeck advise you on the possibilities of targeted warehouse optimization and find out how to make your warehouse fit for the digital future.

More examples, checklist & roadmap - The complete guide shows warning signals, toolbox and cases in detail. Request it now!