Wednesday, May 14, 2014

Avoid These Costly Warehouse Construction Mistakes

Construction projects are all about decisions...lots of them. It doesn't matter if you're constructing a house or a warehouse, each choice can impact the "livability" of the structure as well as its resale value. 

Companies approaching a new warehouse or distribution center construction project should weigh their options and decisions carefully to avoid some of the common mistakes and consequences listed below. 

  • Building too small. Companies not planning for future growth or expansion can end up running out of space sooner than expected. Careful study of current volumes as well as future projections will help avoid this mistake, ensuring a site plan that addresses storage, parking, and other future considerations.
  • Building in the wrong locations. Minimizing transportation and handling of products is integral to efficient supply chain management. While a good price on available land or building on company owned property may appear to make sense, it actually may be more costly in the end. Inefficiencies of building in a poor location will quickly deteriorate any upfront savings. Performing a network analysis will help identify the best site for the facility, taking into account all business requirements, options, and constraints. 
  • Building the height of the structure too low. Constructing a warehouse that's too low can negatively impact the flexibility of operations and storage space, as well as hurt its resale value. Building taller will reduce the facility's footprint and can accommodate taller racking, which can reduce travel time for Material Handling Equipment (MHE).
  • Selecting the wrong racking and layout. Implementing a poor layout and storage system will directly impact your worker safety, labor efficiencies, asset utilization, and can even impact your product. For example, if you are constructing a cooler warehouse, choosing racking that is too tall could restrict airflow and create inconsistent product temperatures. Selecting the right layout will maximize the value per square within the facility. 

Partnering with a builder that has experience in warehouse operations will help companies avoid these mistakes, which can have long-lasting impacts on operational efficiency and flexibility. 

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