No Substitute For Experience When Building A Warehouse

Building a warehouse seems like a pretty basic undertaking, right? At its core, a warehouse is four walls, a roof, and some dock doors. However, there are a variety of “little” things that can have a huge impact on how the facility operates.

That’s why choosing a designer/builder experienced in warehousing is so important when embarking on a new project. A builder with knowledge gained only by completing millions of square feet of work, will be best qualified to make recommendations on where to get the maximum benefit for dollars spent. There is no substitute for this experience.

A skilled builder of warehouses will discuss a variety of elements that can keep operating costs down, such as:

• Selection and placement of racking. This is the single biggest component governing the efficiency of a warehouse or distribution center. A company will never overcome an inefficient in-the-box design, which underlines the importance of selecting a builder/designer who can provide this valuable engineering support. Few builders can.
• Motion-sensor lighting. Reduces energy consumption by lighting only the spaces that are in use.
• HVLS fans. High Volume Low Speed (HVLS) fans move a great deal of air over a wide area, which helps reduce heating and cooling costs.
• Steel reinforced trailer pads. Constant dropping of trailers in the same spot tends to break up concrete over time. Steel reinforced pads help prevent such costly repairs.
• Super flat floors. This specialized concrete work is a prerequisite for taller racking. The benefit comes in being able to utilize the full cube space of the structure. 

There’s nothing basic about building a warehouse or distribution center. Since the efficiency of the facility is determined long before product arrives, it’s important to select a builder/designer who is highly experienced in such projects. They will be able to present further ideas to streamline operations, reduce overtime costs, and trim utility expenses.

What Is Contract Operations And What Value Does It Bring?

Business is all about focusing on your core competencies to deliver value to customers. Savvy owners know this, and can quickly determine what functions to keep in-house and which ones to outsource to an expert. This is why companies choose contract operations.

Contract operations basically means turning over warehouse or distribution center operations to a third party — someone skilled in such activities. This distribution expert will take on recruitment and management of staff; purchase of MHE and racking; implementing warehouse management systems; and is responsible for all storage, handling, and shipping. Contract operations could be provided at a company’s own facility or delivered at an off-site warehouse.

Advantages of such an arrangement include:

• A lower, more predictable cost structure. Capital expenditures (MHE, racking, etc.) are built into a fixed rate schedule that simplifies budgeting.
• Improved warehouse performance. An expert approach, well-defined and implemented SOPs, and advanced technology in warehouse management systems combine to yield better efficiency and greater productivity.
• Location assistance. Often, providers can assist in identifying the optimum location for a warehouse to help reduce transportation costs. Such a service is valuable as transportation is the biggest supply chain expense, at five times the cost of storage.
• Better allocation of resources. By not having to manage warehouse operations, companies are able to focus on their core competencies that deliver value to customers.

For many companies, contract operations is a good fit. However, they must select a service provider who understands their unique needs. This is particularly important if the stored items are food products, which require specialized knowledge and SOPs.