DC Velocity - August 2015

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of equipment during periods of peak demand. A DC that can use its WMS to ramp down operations at key times and reschedule them for nonpeak periods can reap a big return.

“The cost of generating one more kilowatt of electricity at 4 p.m. on a hot day in Texas is quite significant,” Mathers says. “So this is one way for companies to reduce their power bill and their carbon footprint.”

2Rein in forklift costs. Seasonal and cyclical factors can have a big effect on warehouse energy costs. Rising oil prices can boost the cost of operating trucks and forklifts, and the extremes of winter cold or summer heat can punch a hole in any heating or air conditioning budget.

“The pressure to save money in ware-
houses goes up with variables like fuel
costs,” says Thomas Kozenski, vice presi-
dent of industry strategy for JDA Software
Group Inc. “Because people have budgets,
if gas prices suddenly go bananas, they’ve
got a problem. And they will do some-
thing—anything—to cut those costs.”
One way to slash fuel costs is to use the
WMS to identify wasteful forklift travel
patterns. Whether the facility runs lift
trucks powered by propane or by bat-
teries, it will save money and energy by
finding shorter, more efficient routes,
Kozenski says.

Another approach is to calculate the smallest number of forklifts a facility needs to get the job done. A surefire way to avoid rising fuel bills—and emissions—is to avoid buying that extra forklift in the first place.

“That could allow a user to use eight forklifts, whereas if you didn’t have a WMS, you might need 10 or 12 forklifts to get the work done,” Kozenski says.

3Cut packaging waste. A WMS appli- cation can also shrink warehouse costs by cutting waste in packaging. If you’re running a high-volume fulfillment and shipping operation, chances are, you’re shipping part of your profits out the door every day.

“Part of sustainability is figuring
out how you can use less material to
get the job done,” says Kozenski.
“You get boxes at home delivered
by UPS, filled with popcorn, white
Styrofoam, or shredded newspaper.”
Many WMS platforms can calcu-
late the optimal “package profile,”
that is, the minimum size box and
smallest amount of packing material
needed to prevent damage to the
package’s contents during shipping.
The result is an instant reduction
in material costs and environmen-
tal impact, but there are additional
benefits.