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Logistics Management - How to go Greenfield

In the September 2007 issue of Logistics Management, Maida Napolitano, Senior Engineering Consultant at Gross & Associates and contributing editor to the magazine, discusses the process steps involved in the design of a new distribution center, or Greenfield facility.

The following is an excerpt from the article:

“Over the past 10 years, my colleague, Bill Elenbark, and I have worked together on a number of greenfield projects with a wide variety of clients for Gross & Associates, a consulting firm based in Woodbridge, NJ. Together, we’ve christened many brand-new facilities, sited them in better locations with improved layouts, more efficient equipment and a whole lot more of space. We both agree that the key to success is planning and scheduling details - beware of the manager who can’t be bothered by them.

Now a senior engineering consultant for the company, Elenbark’s expertise lies in distribution network modeling and determining the location of a new warehouse, while I’ve been mostly involved with new facility design and implementation. In this article, which includes insight from two of our top greenfield clients, I’ll relate all of the process steps Bill and I go through when locating, designing, planning, and implementing a new DC. In turn, logistics professionals can get a better feel for what needs to be accomplished if a greenfield project is in the plans.”

To read the rest of the article in Logistics Management, please follow this link:

How to Go Greenfield

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    #9   Close out the merchandise. In many trade lines there are companies that specialize in buying close-out merchandise. They may resell by mail order, through off price stores or as 'special purchases'in full price stores. Look in trade journals, The Wall Street Journal and local newspapers to find who handles your class of product. Sometimes your present customers may be interested in a one time deal to use as a promotion. Do not overlook your employees as close-out customers. With luck, you may even find another outlet for your regular merchandise. You can use close-outs to sell raw material as well as finished goods.
    #45   Use computer directed putaway. If the inbound material does not require elaborate checking in procedures and a computer can assign empty locations for each pallet, the material can be put away directly into storage eliminating the need for receiving staging space. If the receipt contains less than full unit storage quantities, the computer can locate a partially filled location of the same product and direct the putaway to fill the location.
    #4   Sell to present users. Use your sales or warranty history to find the people who have bought the product. Let them know that you have more available for immediate delivery. Consider telling them that you are discontinuing the product and closing out the remaining inventory. Offer a discount because they are loyal customers. Offer owners of older versions the chance to upgrade at low cost.