Case Study: Clothing Store from Leipzig Cut Storage Costs by 40%

Before

Client: Z, an urban clothing brand from Leipzig. A team of six, an assortment of 80 items, sales through their own website and Etsy. Before coming to us, the goods were in a commercial warehouse in the suburbs of Leipzig for €18 per pallet per month. An average of 30 pallets at a time: €540 per month for storage alone.

On top of that: €4 for each shipment (pick & pack), €1.50 per unit for packaging. Up to 400 shipments per month during peak season. It came out to about €1,600 on pick & pack + storage = €2,100 monthly.

The main problem wasn't the price, but the shipping time. The warehouse only worked until 4:00 PM on weekdays. An order received after 2:00 PM would be shipped the next day. On Friday after 2:00 PM — until Monday.

Our Solution

First, we calculated the cost at our warehouse in Bursa, Turkey. Pallet storage: €8 per month. Pick & pack: €0.80 per shipment, €0.36 per unit. Open until 7:00 PM, on Saturday until 2:00 PM.

On paper, the savings were significant. But the client was worried: the goods are leaving Germany, delivery within the EU will be longer.

What We Did

We agreed to do the transfer in two waves so as not to stop sales.

The first wave was 20 pallets with the most popular models. A truck from Leipzig to Bursa, two days on the road. At the same time, we carried out acceptance, photographed each batch, and entered it into our WMS system. The client connected to our API and gained access to real-time stock status.

Ten days later, we launched the first shipments from Bursa to Germany. Delivery time to a recipient in Berlin: 3–4 business days via DHL Standard. The client previously had 1–2 days locally. The difference was small, no one complained.

After three weeks, we transferred the remaining 10 pallets. The old warehouse was closed.

The Numbers

For January–March 2026:

- Storage: €240 per month (was €540). Savings of €300. - Pick & pack: €960 on average (was €1,600). Savings of €640. - Total: €940 per month, or €2,820 per quarter.

The percentage of savings is 41%. The plan was 35%, but it turned out a little more due to fewer shipments than predicted (low winter season).

What Didn't Work

There was one downside: the delivery time to the eastern states of Germany increased from 1 to 3–5 days. This did not affect complaints from customers, but we had to remove the "delivery tomorrow" promise from the website.

The second downside: for the first two weeks after the transfer, the percentage of errors in pick & pack increased — our team was getting used to the assortment. By the end of the first month, the indicator returned to normal.

Client Conclusion

After three months, Z plans to expand the range from 80 to 120 items. The money saved is going into marketing and purchasing. The team has not grown, because pick & pack is on the side of the warehouse.