The Warehouse Case Studies shown outline or highlight actual application details. Each were designed by WCWC and/or its principal, Richard Larson. All are current applications operating today.
Out of respect for the privacy of our customers, their names have not been provided in these warehouse case studies. However, pertinent references are available upon request.
Business Type: Food Products, Manufacturer & Distributor
Location: Los Angeles County, CA
Key Considerations & Application Requirements:
- Ownership purchased building.
- Significant increase in storage capacity (for “WIP” and Finished Goods) required.
- Sprinkler / Fire Suppression deemed inadequate to support required storage design.
Solutions & Results:
- Redesigned warehouse pallet rack. Increased pallet storage from 900 pallet positions to 1900 in same area of space.
- Redesigned, increased sprinkler capacity “GPM” to suit/support new pallet capacity.
- Eliminated need (creating substantial savings) for additional building space or the need to contract storage with an outside warehouse company.
Business Type: Professional Warehouse Services, Third Party Logistics (3PL)
Location: Orange County, CA
Key Considerations & Application Requirements:
- Customer was beginning a search for a larger warehouse space. 60 to 70,000 additional square feet were anticipated.
- Existing lease rate exceeded the current market rate.
Results:
- Optimized / maximized pallet storage density in existing building. Provided the re-design, the larger building (with much greater monthly expense) was no longer necessary.
- Successfully assisted with a “blend & extend” of the existing lease. Substantial financial benefits & considerations resulted.
Business Type: Manufacturer & Distributor of Plastic Goods for the Food Industry
Location: Los Angeles & Orange Counties, CA
Key Considerations & Application Requirements:
- First Project – Relocated entire distribution center. Involved “knock down” of all existing rack material, relocated & reinstalled into new configuration at new site.
- Second Project – Converted an underutilized, obsolete Drive-In (FILO) storage system into a higher density Pallet Flow (FIFO) system.
- Third Project – Participated in a renegotiation of existing building lease.
Results:
- The “ROI” for second project had a 6.2 month payback. Substantial savings, per month, were realized after that.
- The financial results for the third project, simply stated, were a “homerun” for the Customer.
Business Type: International High-End Automobile Brake Manufacturer
Location: Orange County, CA
Key Considerations & Application Requirements:
- Required an immediate “custom, retail” warehouse.
- Analyzed / quantified the storage capacity requirement. Due to limited space, a “high density” full pallet and picking operation was chosen.
Results:
- A “turnkey” solution was provided.
- From inception (our first meeting) to final installation, all work was completed within ninety (90) days.
The projects that got away…
the opportunities lost & the (avoidable) premiums to be paid.
Business Type: International Electronics Manufacturer
Location: Inland Empire, CA
Key Considerations & Application Requirements:
- A relocation to a 600,000 square foot warehouse with a 32’ “clear” roof height. “ESFR” Fire Suppression system.
- Customer preferred (traditionally employed) a floor “bulk stacking” method. Versus, any concept of “cube utilizing” pallet rack storage system or method.
Results:
- Despite a local effort and support, the corporate decision was made on the East Coast.
- Upon completion of a cubic density analysis, approximately 45 to 50% of the square footage (approximately, 300,000 sq. ft.) would not have been necessary.
- The projected “ROI” for the initial capital investment – 8 to 9 months.
- For reference, the “gross rate” = $ 6.36 per sq. ft., per annum.
- A five (5) year base lease was executed.
IMPORTANT UPDATE (2014): The 600,000 sq. ft. building has been recently subdivided. The monthly obligation was simply too much to carry. Half of the existing space (which is all they would’ve ever needed) or 300,000 sq. ft. needs to be sub-leased.
Business Type: Home Goods Products Distributor
Location: Los Angeles County, CA
Key Considerations & Application Requirements:
- The Customer is consolidating from two buildings into one.
- Customer stores a high percentage of (Class IV, Group A) plastics. This storage creates a demanding sprinkler/fire suppression requirement.
- The building’s existing fire suppression / sprinkler “High Pile” system is below current standards.
Results:
- Customer signed the lease agreement prior to thorough building “due diligence.” Thereby, effectively forfeiting their ability to (re)negotiate the required enhancements.
- Customer will now bear the full expense and responsibilty for all building upgrades required to suit their “intended use.”
- The final, ultimate design will be very restrictive and financially infeasible to ever modify for the entire sixty (60) month lease term. Nor will this sprinkler investment ever be financially feasible to relocate and re-use in another location.
