What is a new warehouse that can be additionally built, reduced in size, or demolished in a short period of time with a short amortization period?

Table of Contents
1. Logistics Management Department, Machinery Manufacturing Company M
2. assignment
– We want to pull materials from our external warehouse, but we can’t ignore the risk of expanding our warehouse…
– Key Points of the Assignment
3. resolution
– Key Points of Solution
– The simple structure of the warehouse maintained excellent warehouse performance, while construction costs were cut by 40% from the conventional cost!

Logistics Management Department, Machinery Manufacturing Company M

We want to reduce the cost of external warehousing, but that doesn’t leave us with enough storage space…

Company M, a manufacturer of construction equipment, decided to review costs, optimize individual operations, and streamline operations once again for the next fiscal year. The logistics department was no exception, and was instructed by upper management to review the costs of an external warehouse that had been in use for a long time.

issue

We want to pull materials from our external warehouse, but we can't ignore the risk of expanding our warehouse...

Company M had been using several external warehouses in addition to its own warehouses for temporary storage of raw materials. The cost of external warehouses is not cheap, but at the time the contract was signed, the company decided that it would be more risky to go to the trouble of building its own warehouses.
In the midst of this, at the end of the fiscal year when the contract expired, we decided to take a fresh look at the costs associated with retaining the warehouse.

Mr. S of the Logistics Management Department receives instructions from upper management to begin streamlining the entire logistics process.
Specifically, we were instructed to move from the external warehouse we had been using to our own warehouse. We decided to first make a trial calculation to see if this was possible,” said Mr. S.

S. and his colleagues in the Logistics Management Department considered several methods and continued to gather information, but were completely out of ideas as they could not find the best alternative.

Key Points of the Issue

1. Aimed to streamline overall logistics with only its own warehouse, but lacked storage space
2. It is not realistic to take the budget and construction time to build a new warehouse that is the same as the other warehouses.
3. If additional warehouses are built, the risk that they will not be needed in the future cannot be ignored

solution

Key Points of Solution

1. Tent warehouses with simple structures can be constructed in a construction period of about 4 months.
2. Cost structure that is profitable within 3 years of construction
3. Easy to downsize and dismantle when the warehouse is no longer needed in the future

While maintaining the excellent performance of a warehouse with a simple structure, construction costs could be cut by 40% from the conventional cost!

While gathering information on warehousing, Mr. S heard from one of his business partners that they had succeeded in significantly reducing the cost of constructing their own warehouse by using a membrane tent warehouse.
Mr. S became interested and immediately contacted the provider, Taiyo Kogyo. Taiyo Kogyo had developed and offered a flex house system using a membrane structure, which was simple in structure, easy to install and dismantle, and could significantly reduce costs and construction time.

When we asked for specifics, we learned that the warehouse could be completed within about four months of the construction plan. We were grateful for the short construction period because it made it easier to make business plans even though the future of production demand was difficult to predict,” said Mr. S.
They also said that even though it is a tent, it also has basic precision and security features, making it safe to use. Having learned that there were already a number of companies that had used tents in their warehouses, Mr. S and his team began to positively consider the use of tented warehouses.

With regard to cost, which was one of the biggest concerns, it turned out that compared to the cost of constructing the same in-house warehouse as before, this would lead to a significant cost reduction of approximately 40%. When we calculated the cost of constructing a new tent warehouse as a trial, we found that not only the cost of using an external warehouse could be reduced, but the construction cost of the new storage facility itself was also calculated to be profitable if used for about three years.

Unlike a normal warehouse, the structure of the building is simple, so if the additional warehouse is no longer needed in the future, it will be easy to downsize and dismantle,” said Mr. S. “I was relieved to know that.

The Logistics Management Department immediately calculated specific costs based on the assumption that a tent warehouse would be used, and decided to explain this to upper management. As concerns about cost, construction period, and safety were dispelled, Company M immediately decided to introduce the tent warehouse. Immediately, the company began preparing to pull up materials that had been stored in the external warehouse.

In addition, all materials that were previously temporarily loaded on the premises or elsewhere due to lack of storage space are now stored in the new warehouse.

Product Overview
> Tent Warehouse