Available Warehouse Space - Is it Suitable?
A manufacturer and distributor of consumer electronics products with recent acquisitions of two similar electronics companies.
The management team was considering consolidating the distribution operations to one facility in Toronto. An existing facility in Mississauga was under review for consideration as the consolidated operations.
The key questions regarding the suitability of the target facility included:
- What is the current and future (5 year) storage and space requirements for the consolidated operations?
- Should reverse logistics and repair operations be included within the consolidated distribution operations?
- Are there any major constraints with the target facility such as dock doors, floor loading, and/or clear height restrictions that will result in excessive retrofit costs?
- Of any retrofit costs, which costs should be assumed by the owner of the facility?
Engineers were assigned to the project. Various data were obtained to allow proper analysis of current and future physical requirements.
The Supply Chain Systems team conducted a thorough evaluation of the current and future consolidated storage, space and throughput requirements. These requirements were compared against the physical attributes of the Mississauga facility.
Discussions with facility engineers took place to understand the load capacity of the facility considering the product characteristics and their storage requirements.
Based on the data and facility analysis, various conclusions were made. They included:
- The overall space and clear height were appropriate to meet requirements
- The dock doors and associated dock equipment would require considerable retrofit and cost to meet requirements
- The floor slab was of insufficient capacity to meet requirements
- The sprinkler system was insufficient to meet requirements
- The dock apron was constrained by the property line such that maneuvering of 53’ trailers would be difficult.
- The dock apron would require considerable excavation to meet design requirements.
It was recommended by Supply Chain Systems that the target facility not be considered for the consolidated distribution operations. The client agreed and is pursuing other warehousing alternatives.