Warehouse site costs, including security and maintenance, may only cost an average of 5% of total warehouse costs but the penalty for neglecting this vital area could have far-reaching consequences. Neglect of sprinklers, for example, could cause a total warehouse loss if the sprinklers fail to activate during a fire. This occurred at the Donnington MOD stores back in 1983, leading to the country’s most costly fire loss up that time (over £160m).
In the event of fire losses, temporary warehouses can be useful while repairs or rebuilding takes place. Of the three main types, the steel-frame supported fabric structures of the type offered by Rubb Buildings are the most popular. The term temporary is, perhaps, a misnomer because such buildings typically last at least 25 years. Their translucent, flame retardant roof material can be married with steel-clad walls to offer better security, and being translucent the roofs can cut lighting bills compared with conventional buildings. Quick to erect, typically 1,000 mt2 a day, these buildings can also be rented and easily relocated.
Cleaning may seem a non-value added chore but efficient cleaning systems should help cut handling costs. Stretchwrap left in aisles are the bane of handling equipment and cleaning machines, leading to premature wear and burning out of overheated bearings and motors. If floors are not kept clean regularly they can build up thick layers of dirt and grease, affecting traction and raising accident risks. Floor neglect can also mean higher maintenance costs elsewhere, as with forklifts. Potholes and subsidence in particular are major sources of high forklift maintenance costs, damaged products and racking.
General neglect of cleaning can be very bad news for food warehouses, in particular, as any build up of dust on palletised loads could be returned by food retailers to warehouses and risk the latter being delisted.
Another potential risk area for food stores is infestation by insects and vermin. Buildings, therefore, should be kept in a good state of repair so that no pests can ingress through dilapidated window frames, doors and roofs. Many leading food retailers now insist that warehouses use rapid roll doors to cut down the risk of rodent and bird ingress. Such doors will also, of course, substantially cut energy bills.
Security, alas, is a growth business as crime levels continue to rise. Many warehouse fires are started maliciously, perhaps as much as 50%, and staff theft is a major problem Although perimeter, closed-circuit television and intruder alarms are expensive to install, evidence suggest that closed-circuit television sharply cuts break-in rates and can lead to reduced insurance premiums.
Adequate training is vital yet this area is often given low priority. This is a pity because warehouse labour turnover rates are high and job satisfaction low, whereas with good training job satisfaction will rise. With such a rise, will come productivity gains through faster picking and lower returns from errors. Reducing labour turnover 50% to 30% a year could mean a 10% productivity gain, according to the United Kingdom Warehouse Association (UKWA) whose Guide to Training (2) shows the impact on costs of good training.
Warehouse & Logistics News
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