Quick Maths with Vitesse Part II – Cost of Living Increases

Inflation may be coming down but the cost of running a warehouse continues to rise with pressure from energy prices and rental increases, on top of the annual cost of living adjustment to maintain your biggest asset, namely your workforce.

If only there was a way to fund these cost increases by optimising the productivity of your workforce.

Let’s look at how to pull off this financial balancing act with some Quick Maths:


How much have you budgeted for the annual cost of living increase in your operations?

3% maybe 5% or perhaps more?

How much does this translate into cost for your operation?

The actual cost increase to the business depends on the number of employees and their salaries.

A quick calculation = 250 employees earning £25k per annum, costs circa £7m to employ.

Add 3% = £210k the equivalent of hiring 7.5 new employees.

Add 5% = £350k the equivalent of hiring 12.5 new employees.


Annual increases whilst important are costly, equating to more cost for arguably no more output.

Customers are often asked to foot the bill and it’s hard to sell ‘more for the same’ to anyone.

By examining ways of increasing capacity and serving customers faster or by reducing the number of hours deployed to serve those customers, Vitesse productivity optimising software can help identify where efficiencies and cost savings can be made.

Better still, implementation will be self-funding.  Talk to us today.


Louis Hill

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