Background

The company identified an opportunity to relocate their finished goods packaging warehouse to a location adjacent to their production facility.  A cost benefit analysis study was commissioned to determine the suitability of the new site to cater for storage volumes.

Challenge

Determine the potential operational cost benefits of relocation by considering the feasibility and impacts of:  

• Reduced storage space and improved storage capacity at the new facility
• Reduced travel distances for stock transfers from production to the warehouse

Calculate the potential cost benefit of reduced distances between the production facility and warehouse

Key Project Outcomes

• Reduced transportation and warehousing rental costs
• Increased offsite storage cost
• Recommendation to explore site options with minimum building size of 50K-55K sqm to cater for current maximum stockholding