CASE STUDIES

“The only thing more expensive than hiring a professional, is hiring an amateur”…Red Adair.

 

Despite being recognized authorities in the field of designing and planning movement and storage facilities, we are often called in after mistakes have been made, and costs incurred unnecessarily.

 

Often, the business that is expanding will consult with their own resources (staff, contractors, architects..etc) about what is possible, and plans will be made accordingly, often on the back of misleading assumptions.

 

The case studies below demonstrate the value we can provide to you in our process of designing, building, fitting out and equipping storage facilities.

CASE STUDY 1 – Improved storage and handling

Problems

 

In 1997, Engineered Solutions were engaged by a client running a beverage warehouse in the North West of England. They were turning over about £2.8m, but struggling to cope with increased demand. One of the major constraints was a chaotic handling and storage process.

 

Everything was block stacked, with resultant high breakages, and associated stock issues (traceability, turnaround). Essentially, the problems of poor organisation were being manifested and magnified as the business boomed. Existing suppliers were happy to supply poor equipment choices into their client, despite knowing that changes in the handling equipment could help.

 

The turn round process

 

The costs kept mounting as they struggled with their existing process of block stacking with yard trucks which required 70% of the floor space to operate, and even then caused massive damage.

 

Working with them, we have helped them to be able to obtain £9m turnover from the same space – through applying knowledge, experience and common sense.

  • Every item in the warehouse measured up and the best racking equipment specified.
  • 16 possible layouts considered and most suitable one selected.
  • Racks set out to utilise 70% of the floor space, leaving room for mechanical handling equipment.
  • A faster order picking system devised for the client.
  • Storage heights developed especially to maximise available space utilisation.
  • A special fork truck selected from one of our suppliers that have a proven track record of longevity, maintenance, service and resale value.
  • Installed the new system and worked with operatives to ensure a smooth transition.
  • Old equipment not thrown away. They were used in association with some revised safety systems and operating procedures that we helped to produce.

The result

 

The result is that the business which had run out of space now has an organized workspace with spare capacity, and they are now handling the increased volume with the original set of people. Money has gone straight on the bottom line.

 

The cost?  About £1000.00 per month for 5 years.

 

The pay back? Was measured in weeks.

Case Study 2 – Project Management

"There are only two ways to handle situations: you can change them, or you can change the way you look at them. There is enlightenment to be had in changing the way you look at things." Taken from "The Little Book Of Calm" by Paul Wilson (1996)


Engineered Solutions were recently asked to provide some indications of total cost of a new building to a prospective client who was looking to build a storage facility (or shed as we like to refer to them).

 

Our estimate:             £800 thousand.

Actual cost:                £1.7 million.

 

Terminology is key, procedure is king, planning and organisation is essential, without this your finances will be confused, mis-applied and resource wasted.
 
The questions you ask must be the right ones.

 

Reasons for the difference? Essentially, Projects need massive amounts of information to run quickly and smoothly, wild changes – particularly with strategy mid term are a very common mistake made through lack of understanding of how projects work.

 

Actual building cost £450,000, ground works £380,000, landscaping, mezzanine floors and operating fit out by others accounted for the rest….our estimate was correct, the question was wrong.

 

To understand more about the complexities of building a “shed” then please click here to visit our project management section.