Due to the additional costs associated with opening and operating cold storage and other temperature controlled facilities, FW Warehousing is well aware of the importance of minimizing total operational costs in order to maximize ROI. To help control costs and the costs associated with supply chain and/or distribution channel networks, FW offers the following cost containment/cost reduction strategies:
- Network Design – Consider the locations the facilities and the facilities of the company’s supply chain partners and/or distribution channel partners. Do their locations allow the use of most affordable and efficient transportation modes for raw materials, components or finished products? Should alternate routing be considered? Should an organization source raw materials or components closer to their plants? Are there too many distribution centers, or would adding additional distribution centers reduce the average shipping distance to a firm’s customers?
- Transportation – Changes to freight programs can also result in major cost savings. Companies may be able to consolidate multiple LTL shipments into less frequent truckload shipments. Cost reductions may be realized by using rail or intermodal rather than long-haul OTR trucking. Reducing the usage of expedited freight service will also lower transportation costs. Companies may also be able to find ways to spend less on parcel shipping and local couriers. Negotiations may be made with carriers after assessing usage and rates. Companies have even implemented annual bidding programs with freight carriers to lower their rates.
Lighting – The addition of motion-sensor activation for lights in offices and irregularly utilized areas within your facilities can significantly reduce utility bills.
- Insulation/Energy Management – Additional insulation and related measures to reduce air infiltration and/or heat loss, such as weather-stripping and caulking. Also, specially designed dock blankets and door seals at loading docks can keep facilities warmer in winter and cooler in summer, improving worker comfort while reducing energy usage. In cold storage facilities, companies should do everything possible to maximize the cube of the facility while minimizing its footprint. The densest possible storage in the smallest space with the fewest possible areas for heat infiltration is best. Modular curtain wall systems can create flexible multiple-temperature zones in cold storage facilities.
- Landscaping – For the grounds surrounding your facilities, consider replacing manicured lawns, annual flowers and other plants that require fertilizer, pesticides, watering and significant grounds crew labor with heartier native plants that require little or no watering, no chemical treatments and minimal maintenance.
- Fuel – Companies must be consolidating fuel purchases in order to negotiate the greatest possible savings (diesel for truck fleets, gasoline for auto fleets and propane for forklifts at all your facilities).
FW Warehousing is headquartered in St. Louis, Missouri with Midwest warehouse distribution centers in Kansas City, Indianapolis and St. Louis totaling more than four million square feet. Founded in 1949 with a focus on food-grade storage, FW later broadened its services to include contract warehousing, dry storage, hazardous material and chemical storage, temperature-controlled storage, product distribution and B2B and B2C fulfillment.
FW Warehousing has more than 50 years of experience in third-party 3PL logistics and has been ranked in the top 100 Third Party Logistic Companies in the country by Inbound Logistics magazine.
For more information about FW Warehousing, cold storage and other 3PL capabilities, visit the FW Warehousing Website.