Earl C. Rich, CRM

INSOURCINGRECORDS STORAGE

DISCUSSION TOPICS

Budget cuts:

FY2011 to FY2012 – 44% reduction

Staff reduction:

FY2010 to FY2012 – 31% reduction

BACKGROUND

• Location, location, location

• Windows and floors and docks, oh my!

• Ceiling height and upstairs neighbors

• Change of Occupancy

• Air Conditioner health

PREP WORK- BUILDING SELECTION -

• Box removal costs– Removal fees– Access fees– Prep fees

• Delivery decisions

• Project timeline

PREP WORK- VENDOR NEGOTIATIONS -

• Furniture

• Demolition

• Carpet Removal

• Doors & Windows

• Sprinkler Head Replacement

PREP WORK- BUILDING PREP -

• Shelving Considerations– Height– Width– Depth– Weight Capacity– Aisle Requirements

• New or used?

PREP WORK- SHELVING -

UsedNew

PREP WORK- SHELVING ANALYSIS -

• Software Considerations– Analyze current RIM software– Determine functional requirements– On-site; hosted; or “home grown”

• Barcode Scanner– Works with your RIM application– Determine communications needs– Ruggedized for warehouse use

PREP WORK- SOFTWARE & SCANNER -

ScannerSoftware

PREP WORK- SOFTWARE & SCANNER ANALYSIS -

Acorde FRM replacement

1.Already in progress

2.Cost-effective solution

3.Utilizes existing software

4.Customizable environment

Motorola MC-3190

1.Rugged

2.Cost-effective

3.Bluetooth, WIFI, and Cradle

4.Customizable environment

• Shipping– Used third party trucking company– One shipment of 1,000 boxes each week– Palletized and shrink-wrapped

• Tracking– Total inventory listing at beginning of project– Manifest for each pallet sent the day before– Labels generated from the manifest

LOGISTICS- SHIPPING & TRACKING -

• Quality Assurance– Check manifest against boxes delivered– Verify labels match each box number– Check total boxes scanned at end of day

• Logistics Issues– Box quality issues– Return shipment of pallets– Need room for processing boxes

LOGISTICS- QA & ISSUES -

PROJECT COSTS

Item CostBarcode Scanner $1,690Box Delivery $6,325Box Removal $42,277Building 3 - Carpet $11,500Building 3 - Demolition $3,100Building 3 - Doors $13,437Building 3 - Shutters $7,998Building 3 - Sprinklers $8,020Decking Delivery $1,861Miscellaneous Items $400Parking Pad $850Shelving $27,636Shelf Decking $12,712Shelving Delivery $1,650Shelving Installation $4,574Warehouse Equipment $2,208

PROJECT WRAP-UP- HIGHLIGHTS -

• Total Project Costs:$146,238

• Payback Period:8.66 months

• Annual Savings:

$262,000 +3% Annual Growth

• Staffing Impact:No increase in staffing level

THE USUAL SUSPECTS

Earl C. Rich, CRM

QUESTIONS?