Warehouse Design and Cost Model

When planning a move to a new warehouse or if you want to restructure or benchmark your existing warehousing operation it can be difficult to know where to start. You want to know not only the capital costs and charges, but also what the running costs will be and if the information is to be useful it has to be accurate. Yet you do not want to spend an inordinate amount of time on the exercise nor spend a fortune in fees getting ‘experts’ to do it for you.

You can talk to architects and building designers and they will give you costs for the building but they know little about the design and layout of racking and what sort of trucks will be most suitable. Likewise you can talk to materials handling or warehouse designers but they will not be able to advise on aspects such as land development ratios, construction methods and relative operating costs for various heights of building.

To meet this need a consortium of property consultants, quantity surveyors, warehouse designers and racking, automated crane, truck and software suppliers have come together to develop the Warehouse Model, which has now been in use for over 5 years. Updating occurs 6 monthly when the consortium meet to update costs and make any recommended adjustments.

From input of basic data the Model calculates building sizes and truck, racking and personnel requirements for alternative methods of storage and building heights and provides both capital and operating costs for each of the designs. Validation of the results has been provided by a major 3rd party logistics contractor, who recently tested the Model against a current operation, and found the calculated costs to be within 2% of actual costs.

Typical time to adapt the model to your requirements and run a range of scenarios is in the range of 5-8 days, including meetings.

Basic input data required is:

· Average and peak throughput in pallets
· Average and peak stock-holding
· Stock turn
· Cases per received pallet
· Pallet size and height
· % Receipts by source
· Operating hours per shift/day/week/year
· Proportion of case picking
· Average cases per picked pallet
· Number of pick faces
· Purchase or lease of MHE
· % Allowance for holidays, absence, sickness and training

Typical output screens illustrating some of the comparative data are:

Call us or email us for to see if we can help you.