May 17, 2020

The World's Largest Warehousing Sites

world-s-largest-warehousing-sites
Freddie Pierce
4 min
In the second half of 2011, Armstrong & Associates collected information on contracting warehousing companies whose total revenues exceed $13 billion
Most companies operate under the corporate belief that inventory sitting in a warehouse and not on a retailers shelf is bad for business. This is pretty...
Most companies operate under the corporate belief that inventory sitting in a warehouse and not on a retailer’s shelf is bad for business. This is pretty much Rule No. 1 in business school. But there are some companies out there that make warehousing industry seem evil. Wal-Mart, for example, attempts to cut out the warehousing sector altogether by expediting the entire supply chain process. Wal-Mart wants a product to go from raw materials are to a buyable item on a shelf in a matter of days. They don’t want products sitting in a distribution center in some far away location, which again makes complete sense in terms of economics.

There are lots of companies, though, that don’t have the same luxury that Wal-Mart does. They need massive warehousing and storage capabilities. These are the companies that are supported by the logistics providers that we see operating around the world. Consolidation in the logistics industry has forced companies to come up with a new solution to provide supply chain services. It seems that more and more, those answers come by way of giant and mega warehouses. It’s still about speed, delivery and automation, but it’s on a much larger scale. We went on a mission to find a few of those warehousing sites that can stake claim as one of the largest in the world. What we found is that even though they are some of massive in size and volume, the companies that built these warehouses had to apply a certain degrees of innovation to remain competitive and drive out costs for its customers. Without further ado, here are the world’s largest warehousing sites that we came across:

Company: Constellation Europe
Location: Avonmouth (Bristol, England)
What they store: Adult beverages.
Constellation Europe is one of the world’s largest drink companies that produce a host of wine brands including Kumala, Hardys, Banrock Station, Echo Falls and Robert Mondavi. The warehouse can hold 57 million bottles of wine and it’s been said that 15 percent of the alcohol drunk in the United Kingdom is supplied by Constellation Europe.
Warehouse size: 858,000 square feet.
Just to give you an idea of the enormity of warehouse and floor plan, it’s estimated that 4,000 cars could be parked on the roof and that the internal volume of the inside is equivalent to the volume of 14,000 double decker buses. It took three years to finish building the warehouse, which is dubbed ‘Constellation Park’.
Cost: €100 million
Improvement: Constellation Europe improves costs with the giant warehouse because they do on-site bottling, which allows wine to be shipped in bulk to Avonmouth. This cuts down on the transportation costs and the carbon emissions that would come from moving the thousands of tons of glass that would be required to fill Constellation Park normally.


Company: Partner Logistics
Location: Wisbech (Cambridgeshire, England)
What they store: Frozen Products.
The warehouse was developed for potato processing giant Lamb Weston Meijer, which holds a lion’s share of the storage at 20,500 square meters, but it is also being used by Birds Eye and Pinguin. The storage facility, which is the third and largest of its kind in England helps enhance Fenland’s status as the center of excellence in agri-food processing and logistics.
Warehouse size: 554,000 square meters
The floor plan is 1.5 times the size of a football pitch, and at 36 meters high, the warehouse can store up to 77,000 pallets at temperatures of -27 degrees Celsius. It took over 5,000 tons of steel to complete the warehouse, which opened in July 2010.
Cost: €50 million
Improvement: Partner Logistics ensured that the super cold store was fully automated, integrated, optimized and deployed state-of-the-art equipment. The automation has driven the risk out of business, which allows companies to focus its resources in the core areas of business.


Company: US Army
Location: Camp Carroll (South Korea)
What they store: Military vehicles.
You might think the US Army is out of place on this list, but military needs storage just as much as anyone else. The Camp Carroll warehouse isn’t complete just yet, but it is being designed to harbor a variety of vehicles for what the US military likes to call a Heavy Brigade Combat team. Vehicles in the combat team are Abrams tanks, Bradley Fighting Vehicles, among other and they will all be held under a single roof in South Korea starting in 2012.
Warehouse dimensions: 350,000 square feet.
The warehouse is a two-story humidity controlled environment that will support the $6 million Abram tanks and the almost-as-expensive Bradley Fighting Vehicles. The Abram tanks weigh over 67 tons and the Bradleys tip scales somewhere above 27 tons.
Cost: $29 million
Improvement: These tanks are investments for the US Army and they wish to protect them like anyone would. Normally these vehicles are stored outside, which leads to nearly $2 million in repairs annually, so the move into a humidified and controlled environment will reduce costs. It won’t be long before the US Army sees a massive return on its investment.


These warehouses looking infinitely more bad ass in our digital magazine. Check it out! WAREHOUSES
 

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Jun 9, 2021

Biden establishes Supply Chain Disruptions Task Force

supplychain
Supplychainriskmanagement
Procurement
Biden
3 min
US government lays out plans for supply chain transformation following results of the supply chain review ordered by President Biden in February

The US government is to establish a new body with the express purpose of addressing imbalances and other supply chain concerns highlighted in a review of the sector, ordered by President Joe Biden shortly after his inauguration. 

The Supply Chain Disruptions Task Force will “focus on areas where a mismatch between supply and demand has been evident,” the White House said. The division will be headed up by the Secretaries of Commerce, Transportation, and Agriculture, and will focus on housing construction, transportation, agriculture and food, and semiconductors - a drastic shortage of which has hit some of the US economy’s biggest industries in consumer technology and vehicle manufacturing. 

“The Task Force will bring the full capacity of the federal government to address near-term supply/demand mismatches. It will convene stakeholders to diagnose problems and surface solutions - large and small, public or private - that could help alleviate bottlenecks and supply constraints,” the White House said. 

In late February, President Biden ordered a 100 day review of the supply chain across the key areas of medicine, raw materials and agriculture, the findings of which were released this week. While the COVID-19 health crisis had a deleterious effect on the nation’s supply chain, the published assessment of findings says the root cause runs much deeper. The review concludes that “decades of underinvestment”, alongside public policy choices that favour quarterly results and short-term solutions, have left the system “fragile”. 

In response, the administration aims to address four key issues head on, strengthening its position in health and medicine, sustainable and alternative energy, critical mineral mining and processing, and computer chips. 

Support domestic production of critical medicines

 

  • A syndicate of public and private entities will jointly work towards manufacturing and onshoring of essential medical suppliers, beginning with a list of 50-100 “critical drugs” defined by the Food and Drug Administration. 
  • The consortium will be led by the Department of Health and Human Services, which will commit an initial $60m towards the development of a “novel platform technologies to increase domestic manufacturing capacity for API”. 
  • The aim is to increase domestic production and reduce the reliance upon global supply chains, particularly with regards to medications in short supply.


Secure an end-to-end domestic supply chain for advanced batteries

 

  • The Department of Energy will publish a ‘National Blueprint for Lithium Batteries’, beginning a 10 year plan to "develop a domestic lithium battery supply chain that combats the climate crisis by creating good-paying clean energy jobs across America”. 
  • The effort will leverage billions in funding “to finance key strategic areas of development and fill deficits in the domestic supply chain capacity”. 


Invest in sustainable domestic and international production and processing of critical minerals

 

  • An interdepartmental group will be established by the Department of Interior to identify sites where critical minerals can be produced and processed within US borders. It will collaborate with businesses, states, tribal nations and stockholders to “expand sustainable, responsible critical minerals production and processing in the United States”. 
  • The group will also identify where regulations may need to be updated to ensure new mining and processing “meets strong standards”.


Partner with industry, allies, and partners to address semiconductor shortages

 

  • The Department of Commerce will increase its partnership with industry to support further investment in R&D and production of semiconductor chips. The White House says its aim will be to “facilitate information flow between semiconductor producers and suppliers and end-users”, improving transparency and data sharing. 
  • Enhanced relationships with foreign allies, including Japan and South Korea will also be strengthened with the express proposed of increasing chip output, promoting further investment in the sector and “to promote fair semiconductor chip allocations”. 
     

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