The two most significant overhead costs for the majority of warehouse or distribution operations are costs associated with labor and the building.
Unfortunately, most Tenant / End Users are simply unaware of their true storage or capacity requirements. Or more commonly, a way or method in which they may be able to reduce the expenses associated with their building space.
Consider this actual warehouse owner’s experience with WC Warehouse Consultants:
• The Customer has leased a 180,000 sq. ft. warehouse
• Customer determined they needed an additional 70 to 80,000 sq. ft.
• Given its location, the cost of this additional space was valued at $39,750.00 per month (75,000 sq. ft. @ $ .53 per sq. ft. “gross”)
• The WCWC solution was conceptualized, then determined to be a high-density storage design.
• The storage capacity requirement was achieved by using this method.
• The “net, net” savings to the Customer (amortized over five (5) years) totaled $1,976,000.00.
An efficient lean warehouse design concept was put into practice. Cost reduction incentives or principles were applied. As a result, this Customer will enjoy a significant reduction in their cost of operating the warehouse for the next 5 years.