Spinning Your Wheels Over Transportation Costs? Our “Shuttle Buster” Program Can Help!
By Robert G. (Gary) Bender on Mar 14, 2017
Are you shuttling product from your production plant to a nearby off-site warehouse? Many successful companies have elected to expand production lines at their plant by using space previously designated for warehousing. In doing so, without additional land or capital for a new “on site” warehouse, this decision has resulted in warehousing being moved off-site.
This election, while understandably a good and expedient short-term solution, has significant additional costs associated with operating an off-site warehouse including:
- Shuttle costs between the production plant and off-site warehouse;
- Handling costs associated with moving product to an off-site warehouse (double handling); and
- Breakage, theft, and inventory tracking issues associated with operating an off-site warehouse.
More and more companies, after running their return on equity models, have determined that the best use of their capital supports adding production but not “sticks and bricks” investing in warehouse buildings. As a solution to this practice, Corporate Realty Advisors has developed our Shuttle Buster program with the intent of moving warehousing back on-site (adjacent to the plant if possible) or very close to the plant.
Most significantly, this program provides the following benefits for our clients:
- A brand new warehouse located as close as possible to the production plant without any out-of-pocket or capital costs by the client.
- Tax and economic incentives associated with the construction of a new warehouse building.
- Elimination, or a significant reduction, of all shuttle costs between the production plant and the off- site warehouse.
- Elimination, or signification reduction, of all breakage, theft and inventory losses.
- Finally, and critically, control of inventory and an average annual savings that will likely equal a multiple of 2x the square footage of your off-site warehouse. By way of example, savings associated with the Shuttle Buster program will approach $400,000 annually for a 200,000 square foot off-site warehouse.
If you would like to learn more about our exciting and innovative Shuttle Buster program, please contact us to arrange a more detailed overview.