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. 

How Will FSMA Impact Carriers and Food Transportation?

While the Food Safety Modernization Act (FSMA) continues to be a work in progress, one thing is for certain – it will generate greater accountability. That accountability will extend through the supply chain to include carriers transporting food products for humans and animals.

The Food and Drug Administration’s (FDA) goal is to develop standards to ensure the safety and integrity of food products. Building off the Sanitary Food Transportation Act, FSMA will test carriers’ documentation skills. In addition, the new rules will bring equal accountability to shippers, carriers, and receivers of food products.

Setting standard operating procedures for tasks such as cleaning trailers, locking and sealing loads, and properly refrigerating products isn't particularly challenging. However, developing a process of collecting, organizing, and storing this information for easy retrieval at a later date is where carriers may face an obstacle.

New standards will make technology almost a prerequisite for carriers.

For instance, document management systems likely will be the norm for linking inspection paperwork to bills of lading. Likewise, the industry could see GPS systems in trucks become standard for carriers, as regulations demand tighter tracking and traceability of food products while they are on the road.

As FSMA approaches, it’s important that food manufacturers review the standard operating procedures of their logistics providers. Questions to ask are:

• Do they have established criteria for inspecting trailers before loading?
• How are these records maintained?
• How quickly can they be produced for review?
• Do they have standards for inspecting products upon arrival?
• How do they ensure trailers maintain the proper temperature for products?
• Do they have real time/GPS tracking and tracing capabilities with their equipment?