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How much more profitable can your warehouse be? History may tell us.

Henry Ford famously declared that “if I had asked people what they wanted, they would have said faster horses.”

The turn of the 20th century saw the transition from steam travel power which dominated how products and people moved on boats and railroads to internal-combustion engines (ICE).  Not only did Henry Ford see the benefits of ICE powered automobiles, but he also recognized the benefits of taking a holistic approach to production. He revolutionized production by operating a factory through systems that worked together in an assembly line format which enabled Ford to crank out more cars with less expense, so that even his employees could afford the Model T.

Today, the 21st century introduces AI and automation to realize greater warehouse efficiencies in terms of physical and human capital. The benefits of FLEXSPACE Mobile Racking Systems expand the traditional view of storage capacity, optimize warehouse design, and maximize infrastructure investment to achieve sustainable profitability. Seeing the possibilities of what can be is what Henry Ford saw with not only ICE automobiles, but warehouse efficiencies and bending the cost curve.

FLEXSPACE Mobile Racking Systems help organizations whether greenfield or brownfield (existing warehouses) optimize the design of warehouse space from the inside out by achieving greater revenue potential/storage capacity within the building footprint. Additional factors to achieve sustainable profitability include:

Maximized Storage Capacitymore business in a smaller space. Increasing the density of storage capacity within a smaller building footprint is central to the value proposition of mobile racking systems. Especially in a temperature-controlled environment where operating costs are high, the ability to generate more revenue in the same or smaller footprint increases profitability.

Decreasing Building Footprint the ability to shrink the building footprint without sacrificing storage capacity decreases the upfront and ongoing cost of property.

Improved Pallet Accessibilitysingle-select access to every pallet space, decreases pallet damage, increases labor productivity, decreases picking errors, and increases occupancy/ revenue.

Decreased Operating Costs a smaller building footprint lends itself to less equipment, less labor requirements, decreased travel times, and decreased overhead all contributing to greater margin performance.

As we see continued labor inflation and higher input costs such as property costs and aging infrastructure, the ROI of semi or full automation is falling and becoming increasingly attractive.

History is telling as we saw with the transition from one source of power, steam to ICE, and Henry Ford’s ability to create innovation on the factory floor. The parallels from yesteryear to today are: as we look to embrace the power of digital technology and automation, to have the vision and innovative mindset to achieve greater warehouse efficiency, productivity, and ultimately profitability.

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