Welcome,

  With the beginning of summer just around the corner I wanted to discuss options for cutting costs and saving money in your warehouse’s summer season. In this week’s newsletter’s we will take a look at a few ways to achieve a summer savings. Small changes in daily operations and low cost investments can help you experience summer time cost cutting swell. I’d like to acknowledge www.multichannelmerchant.com  as certain topics discussed by this source contributed to this week’s newsletter.

Sincerely,


Paul Hernandez-Cuebas
Editor


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June 27, 2006
Volume 2 Issue 67

Keeping Summertime Operational Costs Low

    According to The Guide to Energy Management Opportunities in Warehousing from the Warehouse and Education Research Council (WERC), energy and utilities typically account for 4% to 9% of total warehouse expenses. In order to keep those costs at minimum during the hot summer months take a look at the following tips:

  • Insulate, Insulate, Insulate! – Unfortunately if your warehouse isn’t a brand new facility, chances are that the older building you operate out of wasn’t properly insulated back when it was first built. In many cases this has turned out to be sad but true, as energy costs were no where near today’s highs. Insulation in your walls and roof not only act as a buffer during harsh winter months but also helps to keep your warehouse cooler in the summer. Furthermore, by installing insulation around your loading dock doors you can prevent air conditioned air from escaping in the summer as employees ship and receive goods. The good thing is you don’t have to empty your bank account to provide this. Dock door sealers can come in many shapes sizes and prices from low tech compressible foam to more advanced air curtains.

  • Specifically consider adding vinyl strip doors to your warehouse, as seen in the above photo. Vinyl strip doors keep warm air or cool air trapped and prevent dust and other airborne debris from spreading. They even help control temperature and noise in a specific area while still allowing easy access by people or vehicles. They will help you not only control your environment, but reduce utility costs, dust, and other hazards. Also consider artificial lighting sources. If your warehouse allows you to consider installing skylights then I urge you to seriously consider this option. Skylights help to supplement costly artificial lighting with free natural light. Yes FREE! Skylights help to conserve energy and save money in the warehouse. Although you always want to keep your facility floors as clean as possible, the WERC recommends that apply a high-gloss sealer to them as well. This shiny surface will help to magnify whatever natural light is available in your facility (as well as any artificial lighting too, helping you to eliminate the use of some of these lights).

  • Opportunities are everywhere! One that is generally overlooked is the use of motion sensors. You should always install motion sensors in unfrequented areas of he warehouse to control lighting, such as in your reserve stock area. Often local energy suppliers provide incentives for customers that work with them to install energy efficient products. Take the example of Northeast Cooperatives, a Vermont based organic food distributor. They received $110,000 in 2001 from a local utility provider to install a more efficient refrigeration and lighting system in their warehouse. As if that wasn’t reward enough, NC is now saving a reported $140,000 a year in energy costs. “Our original Freon refrigeration unit used the most environmentally friendly technology that was available to us at the time, but it was located outside and used a great deal of power,” says NC’s CEO George Southworth. “With technical assistance from our local utility provider we were able to install an indoor, ammonia based refrigeration unit that is more cost effective, easier to run, and requires less maintenance.”  

CUT YOUR COSTS TO KEEP YOUR COOL IN THE HOT SUMMER HEAT!

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