In the realm of modern logistics, this promising solution is gaining traction worldwide. Here in North America at our Brimich Logistics Inc. facilities, this innovative approach is being implemented. As one of the first facilities in North America to adopt this system, we are proud to say it has helped to align with the growing emphasis on sustainability in our supply chain practices.

Industry Snapshot

From perishable foods to life-saving pharmaceuticals, maintaining precise temperature control throughout the supply chain is not just a preference; it’s a necessity. There are two dominating factors causing food waste in the Logistics and Supply Chain industry:

1. A lack of high-quality reliable Cold Storage temperature control
2. Inefficient handovers causing unforeseen breaks within the supply chain.

Brimich Logistics Inc. is dedicated to offering dynamic customizable solutions for clients, so that we can each strive in this area.

Brimich Logistics Inc.

Among early adopters of these CO2 systems is Brimich. Our very first Cold Storage CO2 facility was opened at 470 Hardy Road in Brantford Ontario in 2021. This adaptive strategy has become one of the most crucial value-added services for clients’ dynamic and ever-changing needs. To date, a portfolio of core high-profile clients are uniquely serviced at our 130,000 square foot CO2 Cold Storage facility in the Oak Park industrial area in Brantford, Ontario.

This initiative has lasting impacts on the client’s bottom line, efficiency within the Cold Storage supply chain and environmental benefits. Ultimately this service offering directly improves company bottom-lines and the quality of product the end consumer receives. Proper temperature control is vital for keeping frozen foods fresh as approximately 13% of all globally produced food is lost each year due to poor supply chain processes.

At Brimich, we strive to continuously adapt to this dynamic and vast industry. Our goal is to remain impactful and innovative in an industry where the end-consumer expectations of quality, time and offerings is ever-changing and deeply dynamic. Our passion is to focus on solutions that increase the durability of the supply chain processes our clients experience, while standing with integrity throughout the entire process.

Market Size: A Growing Giant

The Cold Chain Logistics market has been on a steady rise, propelled by the increasing demand for perishable goods worldwide. According to recent studies, the global Cold Chain market size was estimated to be over $200 billion in 2021 and is projected to continue its upward trajectory.

By 2030 the market is expected to be valued at $782.27 billion. Factors such as globalization, urbanization, and changing dietary preferences contribute to this expansion.

The Crucial Role of CO2 Cold Chain Storage

Within the realm of Cold Chain Logistics, Carbon Dioxide (CO2) as a refrigerant has re-emerged as a key player, revolutionizing the way perishable goods are stored and transported. Unlike traditional refrigerants such as Freon, CO2 offers several environmental and operational advantages. Its non-toxic and non-flammable nature makes it safer for both workers and the environment.

The importance of CO2 Cold Chain Storage extends beyond its environmental benefits. Its high cooling capacity and efficiency ensure precise temperature control, critical for preserving the quality and safety of perishable goods.

Moreover, CO2-based refrigeration systems are increasingly recognized for their reliability and cost-effectiveness. As businesses strive to optimize their operations and reduce operational costs, CO2 Cold Chain solutions offer a compelling proposition – combining performance with sustainability.

Using CO2 as a refrigerant is like recycling or delaying emissions. This is because CO2 is an industrial by-product emitted from factories. By using CO2 resources captured from this process, CO2 gas mimics environmental recycling processes.

Leading Regions in the Industry

While the demand for Cold Chain Logistics is ubiquitous, certain regions have emerged as leaders in driving innovation and adoption within the industry:

• North America: With a well-established infrastructure and stringent regulatory standards, North America boasts a mature Cold Chain Logistics market. The region’s advanced technology adoption and emphasis on food safety have propelled the growth of Cold Chain solutions, including CO2-based refrigeration systems.
• Europe: Europe stands at the forefront of sustainability initiatives, driving the adoption of eco-friendly Cold Chain practices. Countries like Germany and the Netherlands are renowned for their advanced logistics infrastructure and commitment to reducing carbon emissions. CO2 refrigeration technologies are gaining traction across Europe, supported by government incentives and regulations promoting environmental sustainability.
• Asia-Pacific: Rapid urbanization and changing consumer lifestyles in Asia-Pacific have fueled the demand for Cold Chain Logistics, particularly in emerging markets like China and India. As these economies continue to grow, the need for efficient and sustainable Cold Chain solutions becomes more pronounced. CO2 refrigeration systems offer a promising solution to meet this demand while addressing environmental concerns.

A Promise From Us

Not all logistics problems have the same solutions, which is why we work alongside clients to build a unique customized solution. With Brimich, all your CO2 Cold Chain needs will be met with a reliable representative who can combine local presence and global reach. We strive to bring simplicity and predictability, while also reducing risk and administrative workloads on your business.

We create solutions that are governed by a strong commitment to helping your supply chain performance and efforts towards carbon neutrality!

You know which environment is best for your products. Whether you’re in the food and beverage industry or deal with pharmaceutical products, optimal temperature control is critical. Therefor selecting the right type of cold storage facility is also a matter of good decision making.

Cold Storage Facilities Defined

Cold storage facilities are specialized environments where consistent temperatures are meticulously maintained to ensure that perishable items are stored under ideal conditions, preventing spoilage and extending shelf life.

Cold storage isn’t a one-size-fits-all solution; it ranges from large-scale warehouses to smaller on-site units. You’ll find that there are generally two main types of cold storage: refrigerated warehouses and climate-controlled facilities. Refrigerated warehouses are widely used in the cold storage market and are typically employed to store food products at temperatures just above freezing, while climate-controlled facilities can maintain a range of temperatures and are often utilized for products that require more precise temperature management, such as certain pharmaceuticals.

By choosing the appropriate cold storage option, you ensure that your products remain in peak condition until they reach consumers. These specialized facilities not only contribute to conserving the integrity and efficacy of products but also comply with strict industry regulations, guaranteeing that your business adheres to the highest standards of quality and safety.

Types of Cold Storage Facilities

Cold storage facilities come in various forms, each designed to meet specific requirements for temperature regulation and storage capacity. Understanding the distinct types is crucial for making informed decisions about storing perishable goods.

A few specific examples of monitored cold temperature storage include:

• Cold storage warehouse
• Refrigerated container
• Blast freezers
• Double stacked cold storage
• Pharmaceutical grade cold storage
• Dedicated custom storage
• Bulk cold stores
• Climate controlled storage
• Food industries

Let’s have a closer look at the details of some of the more common types of cold storage facilities.

Cold Storage Warehouse

A cold storage warehouse is a large-scale facility dedicated to storing goods that require controlled temperatures. These warehouses typically have extensive refrigeration systems to maintain specific temperature ranges and are essential for wholesale distributors and large manufacturers. See how cold storage warehousing works to get insight into their complexity and importance.

Brimich Logistics Cold Storage Warehousing – 470 Hardy Rd Brantford

Refrigerated Containers

Refrigerated containers, also known as reefer containers, offer a flexible and mobile solution for cold storage needs. They are portable units that can be shipped globally and are ideal for transporting temperature-sensitive products over long distances. Their versatility makes them an asset in the cold supply chain.

Blast Freezers

Within blast freezers, products are rapidly brought to extremely low temperatures. This fast-freezing process is essential for preserving the quality and safety of items like seafood and prepared foods. Blast freezers ensure the freshness of products is locked in by minimizing the time required to pass through the temperature danger zone.

Cold Rooms

Cold rooms are modular spaces that can be adjusted in size and are commonly used in restaurants, food service, and pharmaceutical industries for short-term storage. They are designed to hold products at steady temperatures and can range from walk-in coolers to more substantial refrigerated chambers. Learn about different types of cold rooms and how they work to tailor your storage solution effectively.

Temperature Management and Control

Effective temperature management and control within cold storage facilities are imperative to maintaining the integrity of stored products. Your understanding of the precise requirements for different goods regarding temperature and atmosphere will dictate the success of their storage and longevity.

Refrigeration Systems

Your choice in refrigeration systems is critical as it directly affects both energy efficiency and the longevity of the stored products. Modern systems are designed to meet diverse temperature range needs and are equipped with advanced controllers that facilitate maintaining consistent temperatures. Systems like the panel VESTA-046 or panel VESTA-047, which interact with temperature probes, enable precise control over your facility’s climate.

Temperature Range Requirements

The temperature range required in your cold storage facility will vary depending on the type of products stored. Pharmaceuticals, for instance, need strict temperature control to retain efficacy, as highlighted in the discussion of their temperature-controlled storage needs at ColdChain3PL. For food products, maintaining the correct temperature is not just about preservation but also about maintaining nutritional value, as vitamin C loss in vegetables can increase significantly if not stored at the optimal temperature, detailed in a chapter from Springer Series in Advanced Manufacturing. A controlled atmosphere is also essential in extending the shelf life of perishable goods while maximizing energy efficiency, often requiring a sophisticated refrigeration system to manage effectively.

Cold Storage Applications

When you consider cold storage applications, you’re looking at a spectrum ranging from keeping perishables like food and pharmaceuticals safe, to preserving the integrity of specialized commodities.

Food Preservation

In the realm of food preservation, cold storage facilities are indispensable. You rely on them for the extended shelf life of meat and dairy, which are stored at stringent temperatures to prevent spoilage and maintain food safety standards. Vegetables and fruits also require cold storage to retain freshness, often in dedicated chill stores that keep temperatures between 2 and 8 degrees Celsius. This not only preserves the sensory and nutritional quality but also maximizes the commercial value of produce.

Pharmaceutical Storage

When it comes to pharmaceutical storage, temperature control is critical. Vaccines and various pharmaceuticals need specific conditions which are met by precision-engineered cold storage units. These facilities ensure that medicines retain their efficacy and are safely distributed to meet public health needs. The stringent requirements can vary: while some pharmaceuticals are maintained just above freezing, others, especially certain vaccines, require ultra-low temperatures, sometimes as low as -70 degrees Celsius.

Specialized Commodities

Cold storage is also vital for specialized commodities that are not immediately associated with temperature sensitivity. These can include high-value artwork, which must be kept at controlled humidity and temperature to prevent degradation. Likewise, certain chemicals that are sensitive to temperature changes are stored in cold environments to ensure their stability and prevent unwanted reactions or degradation.

Your understanding of these applications underscores the importance of cold storage in various sectors. Properly managing these facilities is key to the integrity and longevity of products that are crucial for everyday life and global commerce.

Industry-Specific Cold Storage Considerations

When considering cold storage solutions, you must identify facility needs that align with the intricacies of your industry, from integration with your supply chain to adherence to strict regulatory standards, and the implementation of advanced technology for optimal performance.

Supply Chain Integration

In your industry, whether it’s the fast-paced world of e-commerce or the demanding requirements of food and beverage distribution, efficient supply chain integration is critical. You need a cold storage facility designed for seamless connection with transportation networks, inventory management systems, and order fulfillment processes to ensure freshness and timeliness—from the producer to the end consumer. For example:

• Transportation: Proximity to major highways, ports, and airports.
• Inventory Management: Real-time tracking and automated restocking systems.

Regulatory Compliance

You are accountable for maintaining compliance with industry-specific regulations set by government agencies. In the pharmaceutical industry, this means adhering to strict temperature control standards to preserve the integrity of drugs and vaccines. Your facility must be equipped with:

• Monitoring Systems: Continuous temperature and humidity logging.
• Documentation: Accurate and accessible records for compliance audits.

Technology and Innovation

Embracing technology and innovation in your cold storage facilities can provide a competitive edge. Implement advanced solutions to maximize energy efficiency, cost-effectiveness, and product quality. Here are key technologies to consider:

• Energy-Saving Systems: Sustainable design elements to reduce energy consumption.
• Automation: Robotic picking systems and AI-driven inventory management to increase accuracy and reduce labor costs.

By focusing on these specific aspects tailored to your industry, your cold storage facility can significantly boost efficiency and compliance, while adopting the latest technological advancements to keep up with market demands.

Challenges in Cold Storage

When operating cold storage facilities, you’re tasked with overcoming various hurdles crucial for preserving the quality and safety of stored goods. These challenges span maintaining product integrity, ensuring energy and cost efficiency, and preventing the contamination of perishable goods.

Maintaining Product Integrity

To protect against spoilage and maintain the quality of temperature-sensitive items, you must manage consistent low temperatures within cold storage environments. Temperature fluctuations can severely impact product integrity, leading to potential waste and increased costs. Keeping a strict temperature regime minimizes the risk of degradation, ensuring the items remain in optimal condition for use or sale.

Energy and Cost Efficiency

Operating cold storage units demands significant energy, particularly as they maintain energy-efficient, low temperatures around the clock. Striking a balance between operational costs and energy expenditure is key. Upgrading to advanced cooling systems can result in long-term savings, despite the higher upfront investment. Implementing energy-efficient practices reduces not only your environmental footprint but also your overall expenditures.

Risk of Contamination

The challenge of preventing contamination in cold storage facilities is critical. Cross-contamination can render large quantities of product unsafe for consumption, causing extensive financial loss and health risks. Implementing rigorous sanitation protocols and designating specific zones for different product types can help mitigate this risk. It’s essential that staff are trained to understand and follow practices designed to uphold the highest levels of cleanliness and product handling standards.

Frequently Asked Questions

In navigating the complexities of cold storage warehousing, certain questions are commonly sought after for clarity and direction in decision-making.

What are the key features to consider when designing a cold storage facility?

When designing a cold storage warehouse, prioritize factors such as energy efficiency, insulation quality, redundancy systems for temperature control, and the facility’s layout to maximize space utilization and workflow efficiency.

Which companies are considered leaders in the cold storage industry?

Leaders in the cold storage industry include Lineage Logistics and Americold, both known for their extensive networks of temperature-controlled warehouses and innovative logistics solutions.

How does temperature regulation differ across various types of cold storage warehouses?

Temperature regulation can vary significantly, with some cold storage warehouses offering a range of refrigerated and frozen options to accommodate diverse product types and longevity requirements.

What essential equipment is required for the operation of a cold storage warehouse?

Essential equipment for cold storage operations includes high-quality refrigeration systems, insulated panels, temperature monitoring controls, and material handling equipment designed for low-temperature environments.

How does a Class 5 cold storage facility differ from other classification levels?

A Class 5 cold storage facility is specifically designed for controlled-temperature commodities requiring storage at temperatures between -20°C and -10°C, which is different from other classes that might cater to chill or ambient storage.

What are some effective business strategies for managing a cold storage operation?

Effective business strategies for managing a cold storage operation include implementing advanced inventory management systems, regularly optimizing energy usage, and ensuring that all staff are trained in cold storage best practices.

Imagine having to track all your inventory without the aid of technology – fun, right? Not at all. Luckily we have, and have had an evolving modern digital method of tracking inventory in the form of a warehouse management system.

A warehouse management system (WMS) is an integral tool that can significantly streamline your warehouse operations. By implementing a WMS, your inventory management becomes a more transparent and efficient process. The system provides real-time updates, ensuring accurate inventory levels and reducing the likelihood of overstocking or stockouts. You will have a clear view of your inventory at all times, which can help in making informed decisions when it comes to purchasing and logistics.

Your organization can achieve a new level of order and accuracy with the help of a WMS. This system is designed to optimize all your warehouse tasks by sequencing jobs, directing picking, and suggesting replenishment strategies to save your employees’ time. As a result, your team can focus more on critical tasks rather than manual data entry or error correction. Bringing AI into the mix, the system can forecast needs and set priorities for tasks based on the most efficient routes and methods, thereby boosting productivity.

Leveraging a WMS contributes to better integration with an Enterprise Resource Planning (ERP) system. This integration facilitates seamless data flow between systems, allowing for smoother automation of processes and enabling better decision-making based on comprehensive data analysis. Consequently, automation in a WMS not only accelerates warehouse activities but also minimizes human error and enhances overall efficiency. Your business stands to gain a competitive edge with a robust warehouse management system at its core.

Core Components of Warehouse Management

Effective warehouse management is crucial for reducing costs, optimizing efficiency, and enhancing accuracy in inventory and order processing. Below are the fundamental components you should consider integrating to maximize your operation’s potential.

Inventory Management and Accuracy

Your inventory is the backbone of your warehouse. Implementing real-time inventory tracking ensures accuracy and visibility across all your stock levels. Sophisticated systems utilize cloud-based solutions and automated systems to update inventory data instantly, minimizing errors and maintaining precise inventory control. This often involves technologies like barcoding, RFID (radio-frequency identification), and integration with ERP (Enterprise Resource Planning) systems to synchronize inventory information.

Receiving and Put-Away Efficiency

Upon receiving new stock, efficiency in the receiving and put-away process is vital. A robust system will facilitate rapid unloading, inspection, and recording of incoming items. The put-away strategy should be optimized to enable quick access and space utilization, often using FIFO (First-In-First-Out) or batch and lot tracking methods to maintain freshness and compliance.

Picking and Packing Strategies

Streamlining your picking and packing process with established strategies like zone, wave, or batch picking can substantially boost productivity. Automated systems can direct warehouse personnel to the correct storage locations, minimizing travel time and increasing the speed of order processing. Proper packing ensures that orders are secure and ready for shipment with the correct documentation, reducing errors and returns.

Shipping and Order Fulfillment

Efficient shipping protocols and order fulfillment systems are essential for timely deliveries, customer satisfaction, and repeat business. Integrating your management system with carriers can automate shipment scheduling and tracking, providing up-to-date information about each order’s status. Matching orders with optimal shipping methods based on cost, speed, or carrier preference is a critical feature of advanced warehouse management systems.

Labor and Workforce Management

Managing your workforce strategically can lead to improved performance and reduced operational expenses. Warehouse management systems can forecast labor demands and schedule warehouse personnel effectively. By analyzing labor patterns and productivity, you can align your workforce with your operational needs, ensuring that staff is utilized where and when they’re most needed.

Integrating Technology for Enhanced Performance

Integrating advanced technology within your warehouse management system significantly increases performance efficiency across all operations. From artificial intelligence optimizing logistics to mobile solutions improving real-time communications, the focal point is on streamlining the supply chain.

Artificial Intelligence in Warehouse Operations

Artificial intelligence (AI) transforms how you manage inventory tracking and predict supply needs. AI-powered analytics provide deep insights into your warehouse’s functioning, enabling you to harness data for improved decision-making. By predicting trends and analyzing past performance, you optimize your inventory levels and reduce waste.

Role of Automation and Robotics

Automation streamlines your warehouse’s repetitive tasks, such as sorting and transporting goods, increasing productivity and reducing errors. Robotics, such as automated guided vehicles (AGVs), seamlessly integrate into your operations, enhancing speed and precision in material handling. These technologies work in tandem to boost your warehouse’s overall throughput.

Software Systems: Cloud-Based vs On-Premises

Deciding between a cloud-based WMS and an on-premises solution impacts your operational scalability and data accessibility. Cloud-based systems offer you real-time data access from anywhere, enhancing your supply chain visibility. In contrast, on-premises WMS may afford greater control over customization and security, vital for your company’s specific needs.

Mobile Solutions and Voice Technology

Mobile devices armed with barcoding and voice technology give you the flexibility to perform on-the-go inventory management, leading to error reduction and time-saving in order picking. Implementing pick-to-light systems and utilizing sensors throughout the warehouse further drives efficiency and accuracy in your logistic operations.

Examples of Warehouse Management Systems

ProVision

ProVision is a high-end warehouse management system solution that is user-configurable to manage a wide range of warehouse operations and activities. This warehouse management system is popular among several reputable supply chain and logistics companies, including Brimich Logistics.

Infoplus

Infoplus is the ideal warehouse management solution for small to mid-sized companies in a wide range of industries. This warehouse system is a web-based solution and features core inventory management, demand forecasting, and inventory optimization.

Oracle SCM Cloud

Oracle is a cloud-based warehouse management system that is geared towards distribution manufacturing, inventory management, and fleet management. An additional feature of Infoplus is product development that companies can use to create a bill of material from a conceptual design.

Optimizing Warehouse Operations

Implementing a warehouse management system (WMS) can significantly enhance your operational efficiency by streamlining warehouse processes, boosting productivity, and reducing labor costs.

Workflow Optimization and Lean Management

By adopting a WMS, you ensure your workflow is calibrated for peak efficiency. Key performance indicators (KPIs) such as order fulfillment rates and travel time within the warehouse are optimized, leading to a more lean management system. This means that your employees can navigate the warehouse quicker and with more accuracy, effectively reducing unnecessary steps and time spent on each task.

• Productivity Boost: Tasks are prioritized and directed through the most efficient paths.
• Labor Costs: Precise management of labor reduces excess staffing requirements.

Quality Control and Customer Satisfaction

A sound WMS aids in maintaining high quality control standards, which directly impacts customer satisfaction. Your ability to trace and handle products throughout the fulfillment process is sharpened, so errors in inbound receipts and outbound deliveries are minimized – ensuring that the right product reaches the customer in perfect condition.

• Quality Assurance: Systematic tracking of products to prevent errors.
• Customer Experience: Enhanced by delivering orders accurately and on time.

Tracking and Reporting for Continuous Improvement

Real-time tracking and reporting functions of a WMS grant you oversight over every aspect of your warehouse operations. With complete visibility into your supply chain management, you can continually refine your processes, leading to sustained operational efficiency.

• Continuous Improvement: Data-driven insights help refine warehouse processes.
• Monitoring: Key metrics are tracked to oversee and improve warehouse monitoring and reporting.

Strategic Business Impacts

Implementing a warehouse management system (WMS) can have significant strategic impacts on your business by optimizing supply chain efficiency, adapting to evolving market conditions, and enhancing customer relations.

Supply Chain Synergy and Cost Reduction

Enhanced ERP Integration: Your WMS should seamlessly integrate with enterprise resource planning (ERP) systems, leading to real-time inventory accuracy. This synergy facilitates:

• Effective labor forecasting, optimizing workforce allocation.
• Improved pick accuracy, reducing error rates and returns.

Cost Reduction Strategies:

• Operating Costs: Streamline warehouse operations to reduce wastage and lower costs.
• Demand Forecasts: Utilize accurate data to improve ordering and stock levels, minimizing overstocking or stockouts.

Adapting to E-commerce and Market Trends

E-commerce Growth Management: As your online sales grow, a robust WMS helps you handle increased order volumes and maintain customer service quality. This supports:

• Omni-channel Fulfillment: Enable seamless integration across sales channels for a unified customer experience.
• Scalable Solutions: Adapt to changing market trends with a WMS that scales with your business needs.

Enhancing Customer Experience and Loyalty

Delivering on Customer Expectations:

• Traceability: A WMS offers improved traceability, giving your customers visibility into their order status.
• Customer Experience: Accurate and speedy fulfillment raises customer satisfaction and fosters loyalty.

Employee Morale and Service Quality:

• A well-organized warehouse boosts employee morale, which in turn can lead to better customer service.

Frequently Asked Questions

This section answers common queries about the specific advantages of integrating a Warehouse Management System (WMS) into your logistics operations.

How can a Warehouse Management System improve inventory control?

A Warehouse Management System streamlines your inventory control by providing accurate real-time inventory tracking and minimizing the chances of overstocking or stockouts. With a WMS, you’re equipped with the tools to maintain optimal inventory levels.

In what ways does a Warehouse Management System enhance customer service?

By ensuring that accurate stock levels are maintained and that orders are processed efficiently, a Warehouse Management System helps deliver orders to your customers correctly and quickly, thereby enhancing customer satisfaction and trust in your service.

How does a Warehouse Management System contribute to the efficiency of order fulfillment?

A Warehouse Management System optimizes order fulfillment processes by automating tasks such as picking and packing, and by directing workflow intelligently. This contributes to a faster turnaround time from order receipt to shipment.

What is the role of a Warehouse Management System in reducing errors in warehouse operations?

A Warehouse Management System reduces the likelihood of human error in warehousing operations by automating data capture and utilizing barcode scanning or RFID technology. This enhances accuracy in order processing and inventory management.

How does a Warehouse Management System support real-time data reporting and analysis?

A WMS offers real-time data reporting and analysis tools which support quick decision making and provide valuable insights into your warehouse operations. This data can be leveraged to improve efficiency, reduce costs, and forecast future inventory needs.

Contact Brimich Logistics to Manage Your Inventory

If you feel your business could benefit from the addition of a new or updated warehouse management system, contact Brimich Logistics today for a free no-obligation quote.

Does your business need organized warehousing, or is distribution the current challenge? Let’s have a look at which elements of warehousing and distribution services represent the best combination for your logistics needs.

What is Meant by Warehousing and Distribution?

In a nutshell, warehousing focuses on product storage, whereas distribution refers more the service of getting products to customers.

The reality is, warehousing, particularly through 3PL companies and distribution services share a multitude of similar internal operations and capabilities, yet are distinctly different in terms of their core functions within the supply chain.

Warehousing and distribution services apply to virtually every aspect of moving products throughout the supply chain. Just as there are many different types of businesses, there are just as many types of logistical solutions for moving your products.

How Do Warehousing and Distribution Services Differ?

While each service is capable of moving inventory and storing product, how this process works is unique to each service.

For example, compared to simple distribution, warehousing services concentrate more on storing cargo and inventory for relatively longer periods. Distribution on the other hand focuses more on the predictable and timely flow of products as they move through the supply chain.

As a service, warehousing is part of both types of these logistical functions, but the individual design will favour how inventory is managed. Will products be stockpiled for weeks or months – such as industrial and raw materials? Or does the inventory need to go from manufacturer to end user within days as quickly and efficiently as possible with minimal warehousing – as within the fresh food industry.

Typical 3PL Warehouse Services

Once your business grows to a certain level, outsourcing services in general is part of a solid plan to strategically scale the business and manage growth.

Typical 3PL warehouse functions and value-added services include:

• Long and Short Term Storage
• Product-Specific Environments
• Co-packing & Assembly
• Rework/Sorting
• Reverse Logistics
• Quality Checks
• Container De-stuffing
• Custom Packing
• Product Labelling

Different Types of Warehouses

For every segment of industry concerned with physical production, there is a type of warehouse tailored to the storage of those products.

For instance, your business may revolve around the frozen food industry – which would require sub-zero temperature control at every step along your supply chain. Or you may be in the pharmaceuticals sector which again, requires climate control and warehousing that’s certified safe from contamination.

In terms of the types of products handled and environmental controls, warehousing facilities are typically comprised of:

• Ambient Temperature Warehousing
• Temperature Controlled Warehousing
• Cold Storage Spaces
• Freezer Warehousing Spaces
• Industrial and Light-industrial Warehousing.

Types of warehouses are more than just storage facilities for inventory. They’re also categorized by their function within the supply chain. A few examples would include:

• Distribution Centres
• Fulfillment Centres
• Private and Public Warehouses
• Contract Warehouses
• Bonded Warehouses
• Cross-Docking Warehouses
• Cooperative Warehouses
• Hazmat Warehouses
• Reverse Logistics Warehouses
• Government Warehouses

Services Handled by Distribution

While 3PL warehouses are used for storing products and offer additional product handling services, distribution centres also store products as well as other functions such as cross-docking, product mixing, order fulfilment, packaging and more.

Distribution as a service is an essential part of any business large or small. Additionally, distribution’s importance has grown considerably with the trend towards outsourcing in a global economy.

Services offered by distribution providers would include:

• Short Term Storage
• Direct and Indirect Channelling
• Order Fulfilment
• Product Consolidation
• Product De-consolidation
• Cargo Sorting
• Assembly
• Packaging
• Light Manufacturing

Different Types of Distribution

At the top level, distribution systems are defined by the channels they serve. Distribution channels can be short or long and fall into two main categories: direct and indirect, along with various hybridizations of the two.

Let’s look at a couple of examples:

• Direct distribution: In this channel, the manufacturer or producer directly to the consumer. Examples would be local bakeries, breweries, niche operations or small printing businesses. With the advent of e-commerce and it’s ability to serve markets at fractional costs, these types of businesses have flourished over the last few years.
• Indirect Distribution: This channel uses multiple partners or intermediaries to distribute goods and services from seller to customer. Many global consumer companies will not sell direct to public. For example, a large brand-name laundry detergent company requires representation to help get their products to market.

Why Use Warehousing and Distribution Services?

Outsourcing parts of the business process has become an effective way for firms to cut costs. According to a  Deloitte report, 59% of businesses surveyed said the reason behind their choice to outsource a business process was to save money.

“In third-party logistics, a company outsources all or much of its operations related to the distribution and logistics to a specialized company. According to a global survey among logistics and supply chain executives which was carried out in July 2021, 63.5 percent of shippers were outsourcing their warehousing activities to 3PL providers.”

Source: Martin Placek – Statista.com Sep 28, 2022

Without good management, warehousing and distribution processes can take a toll on businesses in terms of cost. Instead of this aspect weighing down your business, a smart solution is to outsource and streamline these processes by letting the experts handle them.

How Do Outsourced Warehousing and Distribution Services Help Your Business?

By outsourcing warehousing and fulfillment services, businesses adopt a forward-thinking approach that will benefit them in numerous different ways. As a growing company, the pressures of storing and delivering your own products can quickly become expensive and time-consuming. So why not outsource the process to a trusted third party? Here are some reasons you should consider:

• Expertise: Fulfillment and distribution service providers, such as The Brimich Group, give businesses the option of letting experts manage their supply chain. Brimich has a team of experts that handle managed warehouse services and logistics tasks on a daily basis to take care of your organization’s needs. This way you have better service, quicker turn-around, and increased fulfillment rates.
• Technology: To keep up with the competition, businesses must buy and deploy management software to have complete control of the supply chain and logistics. When you partner up with a professional team specializing in inventory and distribution services provider, they’ll have the right technology in place. They will also give you access to data specific to your business so you know exactly where and what is being shipped at any given time.
• Cost-effective: From human resources, software, machinery, to other types of equipment, keeping a warehouse maintained and in order is costly. It’s a significant investment that may not be possible for most small and even medium-sized businesses. With a third-party, you can offset warehousing and logistical distribution services to reduce costs.

Warehousing and distribution, when maximized for effectiveness, also helps improve OTIF shipment ratios. In terms of inventory storage, a well-managed warehousing system also provides significant advantages in the larger sense such as:

• Improved Product Processing: Warehouses often employ capabilities designed to efficiently store, pack and move goods.
• Organized Inventory Management: Centralizing your inventory with the help of WMS equipped warehousing provides a snapshot of where and how much inventory is in the system at any given time.
• Customer Service Agility: Being able to respond to client demands and expectations faster means better overall relationships – especially when errors happen.
• Reduced Risk: Organized warehousing helps buffer rapid price changes in the market. With proper management you can stockpile products in the right quantities and always have a steady supply.

Questions to Ask When Picking a Service Provider

If you’re not familiar with the ins-and-outs that make up a good warehousing or distribution service provider, here are a few points to consider when making your decision:

1. How many years have they been in business?
2. What kind of industry expertise do they have?
3. What storage capacities do they have?
4. What types of warehouses do they operate?
5. What technology do they employ, and will they give you access to keep track of your inventory and deliveries?
6. Does it operate 24/7?
7. What safety measures are used and is the storage safe?
8. Where are the warehouses located? Are they distributed warehouses or hub and spoke?
9. Do they meet all your storage requirements?
10. What kind of leasing terms do they have?

Whether your business is facing issues with warehousing and distribution or you’re just looking to cut costs, outsourcing these services to a reliable provider is a great solution.

With operations in both the USA and Canada, Brimich Logistics and Packaging is proud to serve local clients in Southern Ontario including Brantford, Etobicoke and the GTA. For more info, contact the Brimich team today!

When it comes to storing sensitive inventory items, climate controlled-warehousing is a game changer. But exactly how does it differ from other types of warehousing?

It’s not the heat, it’s the humidity. This is the most defining factor in the relationship between climate and temperature controlled warehousing. Let’s take a closer look and make sure a climate controlled facility really is the right fit for you.

What is a Climate Controlled Warehouse?

By definition, a climate-controlled warehouse is a storage facility equipped with environmental control systems that maintain a consistent and precise range of interior factors. These include temperature, humidity, and air quality designed to preserve the quality and integrity of stored goods.

Depending on the nature of the supply chain sector, the environmental control systems of a climate-controlled warehouse may include heating, ventilation, air conditioning, dehumidification, and air filtration equipment to regulate and monitor storage conditions.

For products that must avoid hot and cold extremes, “Climate Controlled” is another way of describing “room temperature”, or normal storage conditions that must maintain a range between 56°F (13.3°C) and 75°F (23.9°C) in a consistent atmosphere.

What’s the Difference Between a Climate Controlled Warehouse and a Temperature Controlled Warehouse?

It’s not the heat, it’s the humidity. This is the most defining factor in the relationship between climate and temperature controlled warehousing.

In other words, a temperature controlled facility focuses on temperature conditions whereas a climate controlled warehouse manages both temperature and humidity.

Climate and Temperature Controlled Warehousing Compared

Climate Controlled Warehouse:
Advantages: Dehumidifiers and air quality monitoring help you keep mold, dust mites, mildew, etc. from growing on your goods.
Disadvantages: Operationally top-heavy and not easily accessible.
Building Type: A climate-controlled facility is generally a much larger area comprised of multiple floors.
Operational Cost: Compared to temperature-controlled facilities, climate controlled units tend to cost approximately 15 to 20 % more.
Environmental Management: Climate controlled warehouses incorporate modern equipment such as HVAC along with thermostats to control and maintain optimal interior environmental conditions – the use of dehumidifiers instead of air conditions constituting the primary difference.

Temperature Controlled Warehouse:
Advantage: Ability to protect inventory from drastic temperature extremes associated with external conditions.
Disadvantage: Does not control relative humidity levels.
Building Design: Temperature controlled warehouses are typically part of larger warehouse facilities and relatively small compared to climate controlled units.
Operational Cost: Relative to climate controlled facilities requirements and size, temperature controlled warehouse are not that expensive. Being more agreeable to budgetary constraints, they can be easier managed based on customer requirements.
Environmental Management: Similar to climate controlled units, temperature-controlled warehouses need to be constantly monitored to maintain temperatures. As AI technology and equipment have advanced, the same monitoring work can be done more efficiently and send alerts for extraordinary temperature fluctuations.

Importance of Climate Controlled Warehousing

While a temperature-controlled warehouse maintains a consistent temperature range, a climate-controlled warehouse maintains a stable temperature, humidity, and air quality. Climate-controlled warehousing is critical for the storage of sensitive goods which can be damaged by fluctuations in humidity and air quality in addition to temperature.

Types of Products That Require Climate Controlled Storage

The range of products that flow through the climate-controlled supply chain are fairly diverse and part of our daily lives. Some of the items that may require climate-controlled storage include:

• Pharmaceuticals
• Nutraceuticals
• Electronics
• Artwork
• Wine
• Food items with a short shelf life
• Sensitive documents
• Cosmetics
• And natural fibers such as wool and silk.

These products and many others can be sensitive to fluctuations in temperature, humidity, and air quality, and require precise environmental control to ensure their quality and longevity.

What Certifications are Required?

In Canada, the regulatory certification required to operate a climate-controlled warehouse depends on the type of products stored. For example, along with SQF and HACCP certification, food products may require compliance with the Safe Food for Canadians Regulations (SFCR), while pharmaceuticals may require adherence to the Good Manufacturing Practices (GMP) guidelines.

Safe Food for Canadians Regulations formed January 15, 2019

In the United States, the regulatory certification required to operate a climate-controlled warehouse depends on the location, type of products stored, and whether the warehouse engages in interstate commerce. For example, food products stored in a climate-controlled warehouse may require compliance with the Food Safety Modernization Act (FSMA), while pharmaceuticals may require adherence to the Current Good Manufacturing Practices (cGMP) guidelines.

Current Good Manufacturing Practices originally finalized in April of 1969

Both countries have additional certifications that can be pursued, such as the ISO 9001:2015 for quality management systems and the ISO 22000 for food safety management systems.

How Climate Controlled Warehousing Works

A climate-controlled warehouse system works by using environmental control systems to regulate nature of the storage space within the facility. The specific mechanisms of a climate-controlled warehouse system may vary, but generally involve the following components:

1. Temperature control: Temperature control systems are used to maintain a consistent temperature range within the warehouse. This may involve heating, cooling, or both, depending on the climate and the products being stored.
2. Humidity control: Humidity control systems are used to maintain a consistent level of moisture in the air. This can help prevent the growth of mold, mildew, and bacteria, which can damage products and compromise their quality.
3. Air quality control: Air quality control systems are used to filter and circulate the air within the warehouse, removing contaminants and ensuring a clean, healthy environment.
4. Monitoring and automation: Climate-controlled warehouse systems often include monitoring and automation tools that allow operators to track environmental conditions in real-time and make adjustments as needed to maintain optimal storage conditions.

Together, these components work to create a controlled environment that preserves the quality and integrity of the products being stored in the warehouse.

Benefits of a Climate Controlled Facility

Compared to facilities that are only temperature controlled, using a climate-controlled warehouse to handle your products offers several key benefits:

1. Preservation of product quality: Because a climate-controlled warehouse maintains precise levels of temperature, humidity, and air quality, these warehouses can help preserve the quality and integrity of products that are highly sensitive to atmospheric conditions.
2. Extended shelf life: By maintaining optimal storage conditions, a climate-controlled warehouse can extend the shelf life of products, reducing waste and increasing profitability.
3. Protection against damage: Fluctuations in temperature and humidity can cause products to warp, crack, or otherwise become damaged due to a lack of environmental control. A climate-controlled warehouse protects against these risks, reducing the likelihood of product loss or damage.
4. Regulatory compliance: Some products, such as pharmaceuticals and food items, require specific storage conditions to comply with regulatory guidelines. A climate-controlled warehouse can ensure compliance with these regulations, reducing the risk of regulatory penalties or product recalls.

Overall, a climate-controlled warehouse provides a higher level of control over an interior environment and offers better protection for sensitive products over a facility that is only temperature controlled.

Trust Brimich for Your Environment-Controlled Warehousing Needs

With over 500,000 square feet of food-grade ambient warehousing and more than 275,000 square feet of food-grade cold storage space, Brimich is fully capable of handling your temperature controlled storage needs.

Contact us today to learn more about our HACCP compliant and SQF certified food-grade facilities.

Whether extended storage is a natural part of your business, or a matter of adapting to supply chain flows, long term warehousing satisfies a specific set of criteria you should be familiar with.

Why Would You Need Long Term Warehousing?

You may need long term warehousing for any number of reasons. For instance, you may want extended warehousing terms to maintain a reasonable amount of inventory to avoid stock-outs of seasonal products, or perhaps you’re in a business (such as one that archives paperwork) where holding inventory long-term is part of your normal operations.

Moreover, as the supply chain continues to recover and adapt to a post-pandemic new normal, some inventory levels are also being affected as the system plays catch up. In all cases, long-term storage is a necessary part of the process that keeps your customers satisfied.

Additionally, there are other key factors attached to long term warehousing:

• General storage – The primary function of warehousing and dependant on customer’s needs.
• Price stabilization – Time has a critical effect not just on the price of warehousing, but on financial market fluctuations as well. Exchange rates rise and fall as do commodity values.
• Safety of goods – Warehouses holding inventory must offer reasonable protection of the goods and safeguard against the risks of extended storage.
• Grading and packing – Many warehouse logistics providers provide added value services for grading, packing, and further processing of goods.
• Bulk production – Storing large quantities of raw materials in the warehouse allows manufacturers to draw on materials as needed.

What Defines Long-Term Warehousing?

While technically there’s no precise measurement for exactly what qualifies as long-term warehousing, the phrase implies storage of commercial goods for an extended period of time.

In some cases, depending on the parties involved, it may mean inventory that sits unsold in the warehouse for more than a few weeks or months. Another way to express the length of time in storage would be to say the inventory is ‘slow-moving”, 180 to 365 days for example, as in the case of many fulfillment providers.

The achilles heel financially is in the goods that take up space over extended periods also incur the extra costs of warehousing, which in turn are usually passed along in the form of extra fees until the inventory turns over.

Short term storage by comparison could be considered anything less than three months. Short term warehousing also puts more focus on the requirements of movement, turnover and replacement.

Overall, warehousing continues to be at a premium, therefor traditional long-term warehousing requires careful assessment. Additionally, slow-moving inventory requires additional overhead which creates a challenge for 3PL providers who often operate on a lease basis. As the supply chain evolves, so do logistics partners who need to develop storage models and have appropriate long-term storage policies in place to manage risks.

Types of Warehouses Geared Towards Long-Term

Long-term warehouses typically come in three types:

• Bonded warehouses – Typically found near sea ports and border crossings, bonded warehouses are licensed government facilities used to accept imported goods for storage until they are free of customs duties.
• Private warehouses – For larger companies, owning and operating private warehouses gives them complete control over their storage and distribution needs.
• Public warehouses – As a common method of storage in a consumer-driven society, public warehouses provide storage facilities to the general public for a fee. These types of warehouses can also be co-opted and are beneficial to smaller businesses due to their logistically convenient locations and scale of economy.

How Much Does Long Term Warehousing Cost?

Obviously, the cost of long-term storage is dependant on the region you’re holding your goods in. For the purposes of this article, we’ll reference data relevant to the North American market. Moreover, we’ll look at the cost of outsourcing warehousing from the customer’s point of view; the most common factor being cost per pallet.

Since much of your cost is based on vertical space (your footprint on the warehouse floor), warehousing storage costs will also be dependant on how much space you need and how efficiently your products can be palletized, or stacked.

(Prices are listed in USD)

(Source: WarehousingAndFulfilment.com)

The above figures should be considered as estimates and will of course be subject to your service provider and perhaps to a greater degree, the location.

Factors That Influence Warehousing Costs

Evaluating your long term storage needs is based on a few fundamental factors:

• The amount of space you require
• The type of warehousing required (for example: temperature controlled, hazardous materials etc)
• The warehousing cost per square foot
• Estimated operating expenses (subject to the agreement type)

Let’s have look at how these figures combine as an example formula:

(Rental Space x Warehouse Base Rental Cost) + Total Operating Expenses = Monthly Rate

As mentioned, there are variables which can affect the final number. For instance: warehouse size, capabilities and location. You’ll also need to factor in additional costs often associated with a longer-term warehousing contracts: electricity, water, insurance, and janitorial and HVAC services.

To determine the actual cost, let’s use the above formula to calculate an estimated fee based on a footprint of 10,000 square feet.

Assumed values:

Rental Space: 10,000 sq. ft.
Warehouse Base Rental Cost: $1.50 sq. ft. per month
Total operating expenses (Triple net lease: NNN): $0.50 sq. ft. per month

The resulting calculation would be:

(10,000 x $1.50 per month) + (10,000 x $0.50 per month)

Or, $15,000 base rate + $5,000 operating expenses = $20,000

How Can You Reduce Warehousing Costs?

Reducing your long term warehouse storage costs is, like any other type of overhead, a matter of controlling expenses within your control. A few points worth understanding and examining in detail would be:

• Reduction of excess inventory
• Frequency of shipments
• Improving inventory flows
• Cost-effectiveness of current warehouse space
• Warehouse operation efficiencies or deficiencies
• The viability of outsourcing warehouse services

Should You Rent or Buy a Warehouse?

Whether you should rent or buy a warehouse is ultimately a matter of company size, operational costs and sensitivity to risk.

Given the opportunity to be in a situation where you need to make a decision, each option has its own set of pros and cons:

If you decide to Rent:

If you decide to Buy:

Final Comments

Do you really need a long term warehouse? Or can you outsource your warehousing needs to a fulfilment centre or 3PL partner that can handle all the details of storing your inventory as it moves through the supply chain?

Until your business grows to the point where a self-reliant wholly-controlled warehousing system makes sense out of your dollars, you at least have options.

Choosing the right warehousing and storage solution that matches your current situation and where you see your business in the future should be a matter of discussion with someone who knows the intricacies of logistics and warehousing needs. For more information on warehousing, whether long term or short term, contact Brimich Logistics today!

Unless your business relies heavily on holding large levels of stock at all times, the idea of holding inventory that collects dust just doesn’t make sense. With “want it yesterday” levels of demand and JIT solutions, this is a thing of the past. Still, just in time occasionally requires just in case safety stock to accommodate the ebb and flow of todays supply chains.

Why the Need for JIT Safety Stock?

Recent upsets in global supply chain operations, a pandemic, trucking shortages, inventory shortages, delayed deliveries, international conflicts etc have made a mess of inventory management. These seismic shifts have undermined the ability to count on predictable replenishments of materials required to keep many operations running smoothly.

Under extreme conditions, such as what we saw during the beginning of the pandemic, we see how consumer demand has the ability to eat up existing inventory virtually over night.

The pandemic created extreme stockout Issues

Under “normal” conditions, safety stock would be used as a reliable buffer against calculable, predictable ebbs and flows in the logistics landscape.

Now faced with unprecedented cost increases, a “Great Resignation”, and companies being forced to do more with less, the bullwhip fallout of the pandemic has created voids within supply chains around the world.

In order to fill the gaps, lean manufacturing and Just in Time (JIT) inventory strategies need to be reassessed to adapt to what is essentially the new normal: a highly disrupted and unpredictable flow of goods on a global scale.

Hence the need for a hybridized JIT safety stock.

JIT Inventory Management and the Kanban Process

The JIT method of inventory management relies on the premise that stock can be rotated according to a predictable availability of materials. Unfortunately, this method doesn’t account for the unpredictability of consumer demand. Nor does it account for the ripple effect that occurs when one stage of the value stream suffers from a materials shortage causing previous stages to grind to a halt.

Kanban Principles

In a similar fashion, the Kanban manufacturing process developed by industrial engineer Taiichi Ohno at Toyota, relies heavily on the steady control of work-in-process directly attached to customer demand. As finished goods approach the point of replenishment, the value chain engages to produce inventory to fill the void.

Each stage of assembly maintains a level of work-in-process inventory waiting to move on to the next link in the production cycle.

The beauty of Kanban is in utilizing minimal JIT inventory counts. The problem is, if there is a disruption in material supply, each operation in turn is affected on down the line.

What is the Key Risk of JIT?

The inherent risk of the JIT method is the potential for the domino effect. Cascading problems happen when the JIT inventory chain breaks down:

1. Delayed Delivery: Shortages or circumstances cause the vendor to be unable to maintain a delivery schedule
2. Stock-Out: Results in lost sales, lost gross profit and damaged customer confidence
3. Inventory Carrying Costs: Lost sales create backups which increase carrying costs from holding inventory

Just as on an assembly line, if a problem occurs at one point along the process, it affects further points downstream. In the context of the supply chain, there are a number of other factors that can easily become points of failure including:

• The pick-pack-ship process
• Transportation
• Port transit
• Customs clearance
• Dependencies on local suppliers

Ultimately, the real crux of the problem though is rooted in the hyper-sensitivity to time itself. In other words, if time was not part of the equation, there wouldn’t be a problem.

Is the JIT Method Still Valid?

Because the alternative to not using a JIT method of production automatically implies holding excess inventory, yes, JIT is indeed, still absolutely valid. But the process itself needs to adapt to remain agile enough to weather the highs and lows of an unpredictable supply chain.

One innovative solution to managing inventory in a hyper-paced market is offered by re-thinking how existing warehousing and transportation fit into the supply chain.

Using bank-based financing at exceptionally low interest rates, inventory is moved off supplier and customer balance sheets through a cost-effective globalized network.

With the ability to fulfill just in time deliveries, the result acts very much in the same way as holding safety stock.

problem: less flexibility through limited supplier dependencies.

JIT Safety Stock and the Global Market

Not every company operates in a linear market where demand is consistent enough to warrant a predictable level of safety stock. Yes, the food industry for one would be an exception. But if you’re attempting to count on a consistent, dependable and timely supply of buffer inventory between North America and China, you may have issues.

Moreover, in order for JIT to be effective, your suppliers should ideally be in your back yard. They should also consider your business a top priority.

In terms of the state of the global supply chain and lean manufacturing methods using JIT, there are no massive upheavals – for the moment.

In a recent article posted by SupplyChainDive referencing a Gartner research report, the response to a poll on increasing safety stock showed a total of 54% percent of respondents were either currently investing in inventory, or were planning to within the next two years.

In other words, JIT manufacturing methods are still very much and accepted by global industries.

Managing JIT Safety Stock

There are a number of key factors that you can use to calculate the amount of safety stock to keep on hand. Main factors include:

• Inventory velocity
• Current demand
• Future Demand
• Sales volume
• Supplier lead times

Generally speaking, an ideal level of safety stock should be inventory quantity consumed per day multiplied by lead time required in days.

But how do you manage safety stock levels when key predictive factors are highly unpredictable? Namely, lead time and customer demand during that lead time.

Safety Stock diagram

Mitigate Points of Delay

Set expectations through visibility. Transparency in every aspect of the supply chain goes a long way. For instance, partnering with dependable logistics providers who use WMS softwares and cloud-based inventory tracking lets both vendors and suppliers keep an eye on material flows.

Knowing where your products are at any given point in time alleviates stress and, in the case of a business owner, empowers them to make informed decisions on how to manage stock levels should they begin to run low.

Adopt a VMI (vendor managed inventory) strategy. If your suppliers are willing to take responsibility for ensuring inventory availability, and can be counted on to deliver, you increase your ability to have stock on hand when you need it.

Partner with suppliers who have a history of dependability. Company cultures stem from the people that control how the company operates. When a supplier has a consistent reputation for delivering the goods on time and in good order, it’s generally a good bet.

Final Thoughts

Who wants to carry excess inventory? Nobody.

Just in Time methodologies in supply chain management offer minimized inventory levels, equalized balances between receivables and payables, and reduced capital costs. What’s not to like?

Does safety stock guarantee continuity and stability? Not necessarily, but if your business does use a JIT strategy, it is possible to find the sweet spot that balances carrying charges against the potential for lost sales. Either way you’re better off with safety stock than without it.

Fuelled by the legacy of a pandemic, global warehousing demand is expected to throttle up a whopping 7% year-over-year to $326 billion by 2024. Considering this accelerated growth rate, do we have enough in the tank to keep sustainable warehousing up to speed?

What is Sustainable Warehousing?

Sustainable warehouses incorporate low-impact environmental strategies, practices and design techniques that reduce energy consumption and minimize waste production.

As part of a movement towards a greener logistics framework, these warehouses are taking advantage of technologies within the logistics industry that reduce carbon footprints and maximize the use of recyclable materials.

“The warehousing space demand was 300 million square feet in Q3 of 2021 for North America. The space requirement [in the U.S] is expected to reach approximately 420 to 450 million square feet by 2022.”

Source: https://www.prnewswire.com/news-releases/global-warehousing-market-size-estimated-to-be-valued-at-285-billion-in-2022-says-beroe-301502784.html

What is the Environmental Impact of Warehousing?

At first glance the environmental impact of warehousing can be seen more than anything. Business parks will often contain a number of warehouse and distribution buildings. The large physical footprint required and sheer size of many facilities is enough to make them immediately recognizable.

Additionally, the amount of land they occupy tends to eat up a significant portion of natural environment during their developmental phase. Fuel consumption by heavy equipment may be a temporary requirement during this phase, but carries on afterwards as transportation vehicles conduct ongoing shipping activities.

Furthermore, warehouses require power in order to operate which must be supplied by local services. This results in increased demand on local infrastructure to meet their energy needs.

Finally, as with any operation there’s waste generation. The amount of waste is directly related to the type of warehousing required and how effectively it handles, or has the ability to control it.

With the warehousing industry growing at an accelerating CAGR between 6% to 7%, driven mostly by the demand for refrigeration for the frozen food, there’s little doubt the environment will feel the impact unless measures are taken to curb negative affects.

Do Warehouses Cause Pollution?

It’s a fact that for the last few years, larger logistics and warehousing companies such Amazon have been dramatically expanding their network of distribution hubs.

The warehouses associated with these hubs attract a rise in truck pollution which is ultimately felt by surrounding neighbourhoods, particularly from diesel fuelled vehicles. And by the very nature of an increase in number, these facilities generate more associated waste.

Industry 4.0

Considering the impact the transportation and logistics industries have on energy consumption, new technologies are continuously being developed to help alleviate environmental pressures.

Industry 4.0 technologies such as smart manufacturing, smart factories (and by extension) smart and sustainable warehousing solutions are an effort to get in line with the preservation of resources and thus reduce environmental footprints.

Sustainable Warehouse Design

Sustainable warehouse design is not exclusive to the building itself, but encompasses all the peripheral elements that affect it including transportation methodologies and product packaging.

Interior

A more green-friendly warehouse incorporates energy-efficient equipment and building materials. For instance, lighting is one of the largest contributors on a warehouse’s demand for energy demand. Using LED technology or low e-ceilings not only lowers power consumption, but reduces heat generation – which is particularly useful in refrigerated facilities.

Compared to traditional construction, the use of non-toxic building materials, such as paints, adhesives, sealants etc, improves air quality. Moreover, the use of modern insulation materials reduce the need for continuous heating or cooling thereby reducing overall energy use.

Exterior

The exterior of a sustainable warehouse can leverage multiple energy offsetting strategies such as solar panels, reflective roofing, rainwater recycling and management, and promoting green space around the facility.

Logistically speaking, where the building is situated can make a huge difference on sustainability. Locating a warehouse close to current infrastructure reduces transportation times, and therefor emissions. By taking advantage of existing roads, ports, railways, utilities, waterlines and other services already in place, the stress on the environment is also more manageable.

Sustainable Packaging

As mentioned, a sustainable warehouse is not the whole solution, but part of the solution. Sustainable packaging also plays a huge part in offsetting the need for more energy and helps to foster a more circular system through recycling.

For instance, Logifruit, a logistics service provider located in Spain specializes in the sanitization, management and rental of reusable packaging. Their forward-thinking efforts towards a circular economy have achieved a 20% reduction in their own carbon footprint.

Logifruit’s circular model includes renting, sharing, repairing, reusing, renewing and recycling as many existing materials as possible and as often as possible to create added value.

Warehouse Sustainability Ideas

Techniques that can make a warehouse more sustainable can include:

• Building or upgrading using energy efficient materials
• Recycling any materials possible
• Using efficient, environmentally friendly packaging
• Building upward to instead of outward to reduce land use
• Using electric or alternative clean-energy machinery and equipment
• Compacting and automating storage systems
• Leveraging efficient design and location
• Applying preventative maintenance measures

Companies with Sustainable Warehousing

Companies that are trending towards sustainable warehousing run the gamut of size and related industries. From smaller innovative companies such as Logifruit and Saica to FMCG powerhouses such as Patagonia, Calvin Klein and Coca-Cola.

Closing Thoughts

The trend towards controlling or even reversing our impact on the environment is evident in the amount of effort being taken by virtually all sectors of the supply chain. Although there’s no crystal ball to give us a completely clear picture of what the future holds, we have a much better chance of making progress by actively pursuing and implementing warehousing practices that are more sustainable.

At Brimich, we’re constantly improving our operations to reduce our carbon footprint and employ strategies that improve energy efficiencies. For an idea of how we can help you keep your business on track using smart transportation and warehousing technologies, contact us today.

Managed warehousing services provide a new level of inventory control and convenience for both manufacturers and entrepreneurs alike – but is it the right solution for you?

What is a Managed Warehouse Service?

A managed warehouse service allows companies to outsource their inventory storage and shipping requirements thereby streamlining the order fulfilment process. The process includes warehousing a company’s products, picking and packing, shipping and delivery to the end user.

With storage space in high demand, and hyperconnected urban fulfilment continuing to escalate, effectively managing a network of third-party warehouses becomes that much more challenging.

Ideally, better quality warehousing facilities should be in logistically efficient locations.

What are the Essential Managed Warehouse Processes?

Whether you’re new to warehousing or more familiar with traditional inventory management, warehouse processes are essentially the same. Core warehousing competencies include such elements as:

• Receiving inventory
• Warehousing and storage
• Order processing
• Returns processing
• Processing returns (reverse logistics)
• Picking and packing
• Assembling and kitting
• Tracking
• Cross-Docking
• Shipping
• Reporting

What do Managed Warehouse Services Include?

A well-oiled service requires partnerships with experienced 3PL providers who have access to or control warehouses managed by a team of experts who specialize in:

• Warehouse availability and locations
• Current rates and renewals
• Storage negotiations
• Warehousing insurance types and evaluations
• Contract administration and negotiation
• Material handling operations
• Transportation networks
• Food-grade safety and compliance

Who Should Use Managed Warehousing?

If you’re a relatively small business selling products online, a managed warehouse service is an ideal solution for eCommerce fulfillment.

For instance, you may have limited space to store products, or you may sell products from different physical locations that need to wind up in one order.

Or you may be a medium sized business that’s growing to the point where you must off-load your warehousing processes because you lack the expertise and storage space.

Using a 3rd party warehousing systems allows you to boost profitability by having all your products deliverable from a single warehousing source or network. This expedites the delivery process which in turn creates happy customers.

Order Fulfillment in a Nutshell

Regardless of the size of your business, order fulfillment encompasses all the steps required to send out your orders.

When your customer finishes the payment phase, your 3PL gets an electronic copy of the purchase order which triggers the pick and pack process.

The last step in order fulfillment is transferring the parcel to a carrier for the last mile of delivery to your customer.

Types of Fulfillment Warehouse Services

Fulfillment warehouses can specialize a wide range of individual services. But most provide the essential fulfillment services such as storage, picking, packing, shipping and tracking.

At Brimich, we also offer additional services such as

• Cross Docking
• Co-packing & Assembly
• Rework/ Sorting
• Reverse Logistics
• Quality Checks
• Container De-stuffing
• Shrink Wrapping
• Custom Packing
• Labelling (UPC & Barcode printing)
• E-Commerce Drop Shipping Services
• Providing EDI to Customers (Standard & Customized solutions)
• A broad range of detailed management reports

Knowing what warehouse services are available to you helps add value and profitability to your business. Additionally, an experienced 3PL partner can help you develop a strategy that allows your company to move products intelligently.

The Importance of Warehouse Locations

Strategically significant warehouse locations are the backbone of efficient logistics. A quick drive around the perimeter of virtually any growing community of significant size will undoubtedly have numerous warehousing locations in all phases of development – from established to newly broken ground.

In traditionally dense areas such as the greater Toronto area, every opportunity is taken to maximize the value of real estate when geared towards warehousing – especially when located close to major city centres and transportation arteries.

As older buildings are removed at the end of their life-cycle, newer modernized facilities spring up filling the void in short order.

Even though E-commerce companies can market to consumers anywhere around the world, the three most important factors in warehousing are still “location, location, location”.

The Future of the Fulfilment and Warehousing Market

Driven by consumer demand and emerging economies, the size of the fulfilment market, and by extension the increased need for warehousing services, shows no sign of stopping anytime soon.

The global e-commerce fulfillment services market size was estimated at USD 86,449.97 million in 2021 and is expected to reach USD 96,257.94 million in 2022.

source: https://www.grandviewresearch.com/industry-analysis/ecommerce-fulfillment-service-market

E-commerce Fulfillment Services Market Size

According to this same report, a projected growth rate of 9.5% is expected from 2022 to 2030.

With Complexity Comes Vulnerability

The convenience that a managed warehouse service offers is the result of redefining the logistics system in general. Over time, more layers of complexity are added as the supply chain adapts to the changing landscape.

On the downside, shortages and delays have far more impact on a system that relies on all the parts moving as they should. In other words, even a small wrench thrown into this machinery can bring things to a grinding halt.

But the same could be said for virtually any arm of today’s supply chain as was evidenced by the world wide shortages experienced in early 2022.

Final Thoughts

Managed warehouse services provide by a 3PL partner can help take your eCommerce business to the next level. You benefit from having an experienced warehouse staff without the hassle of hiring workers yourself.

Moreover, strategically located warehouse facilities can reduce delivery times. You also may be pleasantly surprised at the affordability fulfillment services, especially when you factor in the savings from diminished errors and returns.

If you have a business that needs assistance with fulfilment, warehousing, or logistics in general talk to us at Brimich. We’re always ready to help you grow.

There are some elements that are always in demand such as reducing delivery times, controlling transportation costs and increasing overall efficiency. But how do current trends affect these systems, and what future challenges can be overcome by adopting emerging warehousing technologies?

What is Warehouse Technology?

Warehouse technology is the hardware, software, and mechanisms that drive the logistical process of moving goods from the point of production to the point of sale.

“At a 14.6% CAGR, Warehouse Automation Market is Projected to Reach USD 38.23 Bn by 2027”

Brandessence Market Research

Warehouse technology has evolved from simple tools like conveyor belts, forklifts, and pallet jacks to computerized systems that are designed to streamline operations and maximize productivity.

Warehouse technology can be broken down into a few main categories;

• Cloud technology in warehouses
• Warehouse Management Systems
• Automatic Storage and Retrieval Systems (ASRS)
• Automatic Guided Vehicles (AGVs)
• Robotic Process Automation (RPA)
• RFID in Warehouse Automation
• Automated Inventory Control Platforms

1. Cloud technology in Warehouses

Cloud technology provides access to data through the internet without needing to store information on-site. This data can be anything from inventory records to sales figures. Companies are increasingly adopting cloud technology in their warehousing operations.

Cloud-based software can be integrated with existing warehouse management systems and is easier to modify as customer requirements change. Cloud technology can also improve communication between departments through centralized data and analytics and is beneficial for warehousing operations in all industries; it can be scaled to meet the specific needs of each company.

2. Warehouse Management Systems

Warehouse management systems help track the movement of goods along the supply chain and keep an eye on inventory levels.

There are three main types of software: A Warehouse Management System (WMS) is used to plan and execute all warehouse activities.

An Asset Tracking System (ATS) helps track inventory and its location whereas Warehouse Execution Systems (WES) are used to manage the workflow of employees working in the warehouse.

Over time, warehouse technology has evolved from simple tools like conveyor belts, forklifts, and pallet jacks to computerized systems that are designed to streamline operations and maximize productivity.

It’s no surprise that WMS is the fastest-growing segment of the warehouse technology industry – boosting warehouse productivity by 50% and reduce costs by 10%. In fact, 95% of the world’s top corporations use some form of warehousing technology.

3. Automatic Storage and Retrieval Systems (ASRS)

Automatic storage and retrieval systems (ASRS) are computerized storage systems that manage inventory flow and optimize space. These systems are engineered to eliminate the need for human operators while also improving safety and efficiency.

ASRS systems can be designed to store a range of products, from raw materials to finished goods. They may be used in warehousing, distribution centers, and retail environments to store anything from pharmaceuticals and chemicals to food and beverages.

These automated storage systems use robotics and control systems to manage inventory, and can do everything a manual shelving system can, but they can store more products with less space.

ASRS systems have also been positively impacted by AI technologies, like machine learning, that allow third-party system integrators to tailor systems to meet the specific needs of different clients

4. Automatic Guided Vehicles (AGVs)

Automatic Guided Vehicles or AGVs are unmanned automated vehicles designed to transport goods in a warehouse. AGVs can be programmed to move autonomously within a warehouse and can integrate with other systems, like WMS and ASRS. AGVs are also used to transport materials in industrial environments, such as mines, steel mills, and oil fields.

Many companies are implementing warehouse technology to automate their operations. One way this can be done is by using AGVs to transport materials between storage locations. AGVs can be designed to travel along any type of path – from straight roads to curvy railroads – and can be programmed to follow specific routes.

AGVs can be used to move both small and large loads, and they can also be used in dangerous environments.

5. Robotic Process Automation (RPA)

Robotic process automation (RPA) uses computer software to automate business processes. It’s a specific type of software that mimics the actions of a human operator.

RPA is used to execute repetitive tasks, like monitoring inventory levels, calculating taxes, or confirming the accuracy of customer orders. RPA software is programmed to follow a series of instructions so it can be used to execute complex tasks.

Robotic process automation is suited for high-volume, high-variety operations, which makes it an ideal technology for warehousing operations. It can be used to audit supply chains, as well as to automate complex warehouse tasks.

Moreover, warehouses can use RPA technology to create digital warehouses. This helps to streamline operations and increases efficiency.

Furthermore, the software can be used to create digital scanning systems to record the shipping of products, or it can be used to create digital picking systems to select products for shipment.

6. RFID in Warehouse Automation

RFID or Radio Frequency Identification technology uses radio waves to communicate information about the object to an electronic reader.

This technology is used in warehousing to track the movement and location of goods through the supply chain. Companies use RFID tags to track the flow of goods through the supply chain. They can also be used to manage inventory and improve customer service by providing real-time analytics.

RFID technology is beneficial for warehousing and logistics operations in all industries because it can be scaled to meet the specific needs of each company. It can be used to track all types of inventory in all environments. RFID readers are designed to read tags from a distance, making it easy to track inventory.

RFID tags are usually made with a piece of silicon that holds a chip. The chip is linked to information about the object, such as the product’s manufacturer, location, and unique identification number. When the tag passes near the reader (which is mounted in a warehouse or on a transportation vehicle), it’s detected and the information is transmitted to the reader. The reader transmits the information to a computer system, and it’s stored in a database.

7. Automated Inventory Control Platforms

Automated inventory control platforms are centralized computer systems that manage inventory. These systems integrate with other warehouse technologies to control the flow of goods through the supply chain and manage inventory records. In comparison, these software systems are less expensive and have a quicker ROI than automation.

They can also be used to create online marketplaces and provide customer analytics. There are two ways in which inventory can be controlled – manually or automatically:

• Manual control is when an employee manually inputs data into an inventory computer application
• Automatic control is when a computer or machine is used to collect data, often through sensors and scanners.

These systems are beneficial for warehousing operations in all industries because they can be scaled to meet the specific needs of each company.

Customizable to fit the needs of any operation, these platforms can track inventory, manage orders, and provide historical data. They can also be used to manage third-party logistics providers and provide data that’s helpful in strategic decision-making.

Challenges to Efficient Warehousing

At the grass roots level, the warehouse is often the first point of contact between a company and its customers. As such, it is critical that it be well maintained and operated efficiently.

The development of intelligent or “smart warehouse technology” through their logistics partners will help companies with the following challenges:

• The fulfillment of small orders
• Occurrences of human error
• Warehouse operators shortages
• Reducing delivery windows
• Omnichannel and ecommerce and shipments

Other top issues that companies face in optimizing this process are accuracy in inventory management, availability of goods, and the cost of goods.

These issues can be overcome through the implementation of new technologies, such as warehouse automation, sensor-based tracking, and blockchain technology.

Warehouse efficiency goes beyond just the logistics of moving goods from A to B. There must also be an emphasis on safety, accuracy, and customer satisfaction. With the tools available today, companies can achieve greater efficiency in every aspect of their warehousing operations.

Key Benefits of Warehouse Technology

As the competition in the global market increases, manufacturers are bringing these new warehousing systems and technologies into their supply chains to stay ahead in the race.

In the same way, manufacturers of warehouse equipment are upgrading their systems to make them more efficient, less costly, and easy to use. With the help of new technologies, warehouses can become more profitable.

A few key benefits include:

• Increased productivity and efficiency
• Reduced labor costs
• More efficient inventory management
• Faster production flows
• Diminished risk of processing errors

On the downside, more technology means less people, and fewer jobs. On the upside, less people means fewer resources, for example lights, HVAC systems, etc which are required to keep humans safe and comfortable in warehouses.