How to get the right warehouse
June 1st 2006

You may have pored over brochures and talked at length to suppliers to determine the best warehouse layout, equipment and systems. But unless the building itself is in the right place, with the right dimensions and services - and at the right price - the result will be a compromise at best. sbh.uk's Steve Lamb looks at the key issues to consider

The right place

Your existing site may still be the best location, in which case extending the facility may be the best solution. But in many cases the space isn't available or changes in the structure of the business may mean the current location is no longer suitable. A review of the business's logistics needs should not only address the right location but the most suitable size and configuration for the new facility, which will determine the type of site required.

Every business will have its own unique list of factors to consider. But any relocation project needs to reflect the way in which goods and materials arrive and are distributed.

Is a national centre the best answer or will the savings be outweighed by transport costs, and would regional centres provide more flexibility and lower freight costs?

Locations close to motorway routes are the most sought-after, but they may prove more costly and labour may not be readily available.

And if your business involves importing containers from the leading ports, perhaps being close to the point of entry makes more sense than carrying goods across country.

With growth in rail freight, a rail-connected facility might provide a fast and effective way to bring bulk goods into storage.

Getting the building envelope right Having acquired the site and drawn up a broad specification, now is the time to think carefully about the detail. The building should in effect provide an envelope for the storage and handling systems and processes required - the design starts inside and works outwards.

However as everyone has a budget to work to, it's not always so straightforward. High bay warehouses provide better use of the cube, but will cost more to build and to heat. And high-rise handling equipment will need a more level floor than a conventional fork truck.

One of the biggest reasons why projects run over budget is a lack of thought and planning to include all the facilities a modern warehouse should provide. Caught up in detail, clients often overlook what should be obvious requirements, including:

Electrical services: have you provided for lift truck battery charging, the possible need for a standby generator, or simply adequate supplies for today and the future?

Goods access: are there sufficient dock levellers to meet peak deliveries and shipments? Have you specified the right type of levellers and most obviously, is the dock height correct for your vehicles?

Health and Safety: as legislation is becoming more all-embracing, it's vital to ensure that items such as barriers, handrails and other equipment to keep staff safe are installed. Not to mention sprinkler systems and special storage zones for high-risk materials and products.

External works: will you need fuel islands and vehicle wash stations?

Environmental issues: legislation coming into force this year includes new standards for energy use, storing hazardous materials and fire precautions. In every case they add further management responsibilities and the penalties for breaching the rules can be severe.

This is far from an exhaustive list but does show the kind of services that in real life are often overlooked until well into the build programme, when the cost may be far higher than if they had been included in the initial plans.

Think about the future

While the new warehouse may be today's ideal, business demands rarely stay the same for long. So it's likely that what you may need in a few years time will be somewhat different. With some thought for the future you can take steps that will help save costs and reduce disruption if you have to extend and modify the warehouse later on.

Laying services to where you may wish to extend the offices may incur less cost and disruption than waiting until the need arises. And for example positioning a high bay AS/RS system so that a future building extension merely requires extending the racks and rail guides may not incur any additional costs. However it will enable the system to be extended later with far lower cost and minimum disruption.

With such pressure on logistics management to perform daily it's often unrealistic to expect them to find the time and to have the expertise to tackle what can be very complex issues. So businesses with major storage and distribution activities are increasingly turning for help to consultancies such as sbh.uk, who can provide specialist expertise, and who understand the need to deliver on time, on budget and to the right specification.

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