Warehousing And Logistics
Warehousing andlogisticsEnergy efficiency opportunities for warehousing and logistics companiesenter
Warehousing and logisticsPrefaceReducing energy use makes perfect business sense; it saves money,enhances corporate reputation and helps everyone in the fight againstclimate change.The Carbon Trust provides simple, effective advice to help businessestake action to reduce carbon emissions, and the simplest way to do thisis to use energy more efficiently.This overview for warehousing and logistics businesses introducesthe main energy saving opportunities and demonstrates how wellestablished cost effective technology and management improvementssave energy, cut costs and minimise overheads.2
Warehousing and logisticsContentsPreface2Introduction4Energy consumption in warehousing & logistics5Key opportunities for energy savings6Renewable Energy11Case Study13Action Checklist14Your next steps15Go online for more information163
Warehousing and logistics4IntroductionNon-refrigerated warehouses operating with legacy lighting solutions can typically reduce electricity costsby 70% by moving to LED, with further savings through heating measures.Minimising overheads is key to maintainingprofitability in the competitive warehousing andlogistics sector. Ensuring that energy costs are as lowas they can possibly be will help the bottom line and inaddition to the economic benefits there are social andenvironmental advantages through reducing energyconsumption.In addition, as large client organisations look tofurther reduce their carbon footprints, they arefocusing on opportunities to cut emissions in theirupstream and downstream operations. Conditions ofcontract and performance reviews are commonlyasking for assurance of good energy andenvironmental performance and management fromtheir partners in the warehousing and logistics sector.Links to other Carbon Trust guides are highlightedthroughout this publication as suggested sources forfurther information and reading.Top tips For warehousing and logistics firms energyuse is concentrated across a few key systems Significant savings can be achieved byoptimising lighting, heating and whereapplicable refrigeration systems Due to the scale of the buildings involved,roof mounted Solar PV arrays are often aneffective longer term investment to offsetenergy use and costs Low and no cost savings can easily beachieved by improving controls, improvingnight time and weekend shut down routinesand through better energy management.Who is this publication for?This guide is aimed at owners, operators andmanagers of warehousing and logistics firms, fromsingle site operations to those with multiple premises.The guide focuses on capital measures to improveheating, lighting, and other warehouse energy use forambient warehouses. For refrigeration measuresplease see our Refrigeration systems guide. In addition,low and no-cost measures and actions with shortpayback periods are highlighted. The guide will helpcompanies: Understand the current energy performance oftheir business Assess the potential for savings at their business Raise energy awareness and the standard of energymanagement amongst staff Put together long term strategies to minimiseenergy use.
Warehousing and logistics5Energy consumption in warehousing and logisticsEnergy use for warehousing and logistics businesses is typically confined to a small number of systems,however the energy performance of these systems can vary dramatically.Figure 1 shows where warehousing and logisticscompanies use most energy and hence where thebiggest savings can be made; namely lighting, heatingand where applicable, refrigeration.IT 1%Fans and pumps 1%The United Kingdom Warehousing Association (UKWA)has estimated that there are over 1,500 individualwarehousing units in the UK with a total floor area of420 million ft2 of property. This is equivalent to 41 km2,large enough to cover the entirety of the city anddistrict of Oxford.Based on typical2 electrical energyconsumption of 33 kWh/m2 and gasconsumption of 47kWh/m2. Thisequates to 3.2 TWh (3.2 billionkWh) of energy used forwarehousing in total, withassociated carbon emissions of698,000 tC02e per annum.The UK has seen a recorddemand for warehousing andspace, driven largely by the move toon-line retail. CBRE has reported UKlogistics take up of 17.4 million ft2 for thefirst half of 2018 which exceeds the entire 2017Figure 1:take up. The demand for warehouse space has almostdoubled over the past 10 years3.Typical percentage breakdown by energy use, based on 15,000m2 ambient warehouse1Energy Efficiency Warehouse operation UKWA /Carbon Trust2The Non-Domestic National Energy Efficiency DataFramework: Energy Statistics 2006-12, DECC 2015– Warehouses 500-1,000m23CBRE Logistics, The Property Perspective, H1 20181
Warehousing and logistics6Key opportunities for energy savingsImproving the energy efficiency of the main energy using systemsThe following section details how warehousing andlogistics energy consumption can be cost effectivelyreduced for each of the main energy using systems,namely:a. Lightingb. Heating and ventilationc. Forklifts, cranage and automationd. Energy managementa. LightingLighting accounts for between 65% and 95% of energyuse in ambient warehousing. Good quality lighting isessential to safe operation; however, this is oftenachieved through energy inefficient solutions. Thereare many simple and inexpensive ways to reducelighting energy consumption and costs whilemaintaining adequate light levels:1. Turning off lighting in unoccupied areas and switchingoff lighting when sufficient natural daylight is present. Many warehouses have discrete areas which are litbut not always occupied. For example, overflow baysor areas storing seasonal products. The lighting inthese areas can often be turned off either through the400W DischargeRunning Cost - 385* (per fitting per year)existing switching or with minor electricalmodifications. Many warehouses have areas where natural daylightthrough roof or wall lights provides adequate lightwithout the need for artificial lighting. By simplyhaving a strategy in place to switch off lighting whengood levels of natural daylight are present, significantsavings can be made.220W FluorescentRunning Cost - 212* (per fitting per year)2. Replacing inefficient light sources such as SON / MetalHalide and fluorescent with low energy LED products. Carbon Trust surveys have indicated that mostwarehouses are lit by discharge lighting, typically250W or 400W SON or metal halide luminaires.Advances in lighting technology in recent years haveled to the emergence of more effective alternativessuch as high frequency fluorescent and LED. Inaddition to providing improved efficacy (the lightoutput relative to the power input) these fittings areeasier to control than the legacy discharge fittingswhich suffer from long restrike times. InstallingLED lighting also reduces maintenance costs duethe longer life of LED lamps.150W LEDRunning Cost - 131* (per fitting per year)Based on a single luminaire of the wattage stated; electricitycosts of 10p per unit; ballast losses of 10% for discharge andfluorescent and continuous operation 365 days per year.*
Warehousing and logistics3. Using automatic lighting controls to detect occupancyand natural light levels to minimise lighting operation.Often good levels of natural light are provided bywarehouse rooflights. This applies even where lightinghas already been upgraded to efficient sources: Occupancy sensors - Warehouses can benefit fromoccupancy sensors. Modern sensors are effective,even with the use forklifts and allow infrequentlyused areas to only utilise the lighting when required.Lights are automatically turned on when there issomebody there to require them and are turned offafter a period of vacancy. Sensors can achievesavings of 30% or more on lighting costs and can bezoned by aisle or area depending on the individualrequirements of your operation. Daylight sensors - Light sensors or ‘photocells’ canbe used to control artificial lighting when there issufficient natural daylight. Many warehouses alreadyhave roof-lights and cleaning or replacement of old ordamaged roof-lights can also improve the ingress oflight into your warehouse. As daylight hours varythroughout the year, sensors help to provide closercontrol and thus, substantial savings. Daylightsensors are particularly effective when coupled withdimming to provide a variable level of artificial lightsubject to the available natural daylight. External lighting – Where external lighting is ontime-clock control this can fall out of sync withdaylight hours. Review of the settings or installation ofphotocell controls can also provide additional savings.7b. Heating and ventilationHeatingDepending on products stored and the standard of building fabric, many warehouses can operate satisfactorilyyear-round without the need for heating. This is ideal from an energy efficiency perspective and heating shouldonly be provided when required.For staff wellbeing, health and safety regulations state that employers must ensure that the temperature in theworkplace is ‘reasonable’ at all times. In accompanying codes of practice it suggests that the temperatureshould be a minimum of 16 C unless the work involves a lot of physical activity where this can drop to 13 C. Forthose working directly in a warehouse the latter requirement would be most likely to apply and would often bepreferable to warmer conditions.Permanently occupied offices, staff welfare facilities or toilets would require a permanent heating solution andfor these small areas, best practice with regard to energy efficiency should be applied. In terms of heating theopen warehouse space the following systems are commonly used:Heating systemDescriptionUsually gas fired, directWarm Airheaters with localcontrol.ProsQuick effective way ofheating a large space.ConsEnergy PerformanceSignificant heat lossGood where in athrough doors,well-insulated, buildingstratification and need to with good control andheat entire space.appropriate set points.Poor, but option toLow TemperatureHot Water / SteamBoiler system with fanTends to be legacycoil units and radiators. solution with high losses.Expensive to operateimprove performanceand maintain.with insulationand control.Gas or electric systemsRadiantwhich radiate heat tolocal areas.Can direct heat to theLocal areas heated only,Good where wellareas required, withouttemperature acrosscontrolled and situatedthe need to heatspace may fall belowin optimal positionsentire space.product needs.for staff.High volume, low velocity Can avoid stratification,Air rotationwarm air circulationsystem.even temperature across Higher investment cost.the space.Very good, where wellplanned and designed.
Warehousing and logisticsIn all cases the standard of building insulation andbuilding air-tightness should be prioritised. When newwarehousing space, extensions or refurbishments areplanned the opportunity should be taken to review theoverall standard, improve existing insulation andensure that any new facilities meet or exceed buildingregulation standards.Figure 2: Breakdown of heat loss for a typicalindustrial building with a central valley gutterEven the most efficient heat sources require good timeand temperature control. Warehouse operatorsshould differentiate between storage temperaturerequirements and staff comfort. It may well be thecase that the heating system can be set back toprovide frost protection only, for most of the year.VentilationMany warehouses rely on natural ventilation, through windows, doors and roof vents, however where there is aneed for mechanical ventilation, careful consideration should be given to options for heat recovery and also theefficiency of the fans to be used and their control.Stratification is caused by cold air entering a building, displacing the warm air inside towards the roof, with theincoming cold air remaining at floor level. Destratification fans can counteract this by moving the trapped warmair downwards towards floor level. By making better use of the heat energy trapped at high level your heatingsystem can reduce its output, and significant savings can be made.8
Warehousing and logisticsc. Forklifts, cranage and automationCranageForkliftsCranes provide warehousing and logistics companies with a practical lifting solution which frees uplimited floor space and keeps traffic ways clear, reducing the risk of accidents, personnel injury andproduct and facility damage. It can often be the case that they improve operational efficiency and from anenergy perspective if purchasing a crane the highest efficiency motor classification should be specified(IEC 60034-30-1 defines International Efficiency classes from IE1 – Standard to the highest class IE5. IE4Super Premium Efficiency motors or above would be recommended for cranes).Forklifts can typically account for 7-10% of awarehousing or logistics company’s non-road energycosts. A range of fuel sources and the advantages /disadvantages of each are outlined below: Electric - The best solution for air quality in thewarehouse and best suited to indoor use on a goodsurface. Also, quiet and often more manoeuvrablethan diesel or LPG. Where night time electricity tariffsare taken advantage of for recharging, costs can belower too. The main disadvantage is the higher initialpurchase price and of course the need to schedulerecharging. Diesel - Better for outdoor use and on gradients orwhere higher power is required. Also, better from abasic fuel efficiency perspective than LPG, but noiseand fumes restrict application to certainenvironments. LPG - Suitable for some indoor use where adequateventilation is present and well suited to outdooroperation. Better range than electric systems withless frequent requirement to refill. Noise and exhaustfume issues still need to be considered. Fuel cell - In use by some of the global logisticscompanies, but essentially still in the early stages ofdevelopment. Typically fuelled by hydrogen whichavoids air quality issues and addresses the rechargingissue of electric forklifts. Cost currently prohibitive forsmaller users, but this may change over time.Automated warehousingBy automating a warehouse, product inventoriescan be stored over a smaller area than in aconventional warehouse. This improvesenergy performance straightaway and inaddition the need to illuminate and heat muchof the space can be eliminated.9
Warehousing and logisticsd. Energy managementFurther informationIt is important to ensure that all stakeholders in the business are aware of the benefits that energyefficiency can bring to a warehousing and logistics business. In addition, all staff need to be engaged,involved and committed to an energy management programme.The key actions and techniques to achieve this include:More information can be found on energy managementtechniques in the following Carbon Trust guides: An introduction to energy management (CTV045 ) Development of an effective energy policy and strategy, with appropriate targets for reduction Good standards of energy analysis and metering, monitoring & targeting (MM&T) Good investment policies which prioritise investment in energy efficiency based on whole life cost Energy surveys – a practical guide (CTG055) Monitoring and targeting (CTG077) Making the business case for a carbon reduction project (CTV067) Regular reviews of facilities with active opportunity identification Staff engagement and training in parallel with communication of aims and objectivesGet commitmentGet support from the topBuild the business caseDevelop an effective culture0102Understand the issuesUse the energy management matrixUnderstand current energy usageAnalyse stakeholder needsIdentify attitudes and motivation03Monitor performanceAssess the programmeReview progress, against targetsMonitor continuous improvementAchieve performance standards1005Figure 3:04Five steps towards an energy management strategyPlan and organiseDevelop an energy policySet objectives and targetsProduce an action planDevelop a purchasing policyImplementInitiate priority actions and investmentsCarry out training and raise awarenessOvercome resistancePublicise performance
Warehousing and logistics11Renewable energyUsing renewable energy can offer significant environmental and economic benefitsRenewable energy is part of the energy hierarchy, whichdefines the order in which energy saving and ‘green’energy measures should be prioritised. The energyhierarchy was conceived in 1998 as part of the LocalGovernment Position Statement on Energy and statesthat organisations and individuals should pursue energyissues in the following order:Reduce the needfor energyUse energymore efficientlyUse renewable energyContinued use of fossil fuelsshould be clean and efficientAs highlighted in this guide the first priority is to reduceenergy consumption, through better management andthrough investment in more energy efficient systems.Due to the higher relative investment costs, only thenshould investment in renewable energy technology beconsidered.Solar PhotovoltaicsSolar Photovoltaic panels (also known as PV panels) convertsunlight directly into electricity. With a reduction in pricesin recent years the return on investment can be attractive.Photovoltaic materials are usually solid-statesemiconductors which generate electrical current whenexposed to light. Panels are available in a variety of glassand plastic based systems, including aluminium-framedpanels, plain cladding, solar roof tiles and custom builtglazing with integral PV cells.With large available expanses of roof area, the warehousingand logistics sector is a good match for PV solutions. Inaddition, the synergy between the need for forklift andelectric vehicle charging and battery storage of excess PVpower can be put to good effect in well matched systems.New-build sites in particular are ideal for PV installationsbecause architects are able to design the roof structures tobe compatible and fully integrated, for example, using PVsolar roof tiles and ensuring access for maintenance.Typical small-scale UK installations are around 15 to 25 m2.A 3 kWp system could comprise 15 panels taking up an areaof 20m2 and will generate roughly 2,500kWh per annum.Maintenance costs for the cells are low and generally onlyinvolve electrical checks and the cleaning of the panels.The estimated payback time for a system rangessignificantly and will depend on circumstances of each site,though it should be noted that some payback periods canbe quite lengthy (7 to 10 years). The estimated life of a solarpanel is around 25 years.
Warehousing and logisticsSolar arrays up to 5 MW are currently eligible for Feed-in-Tariff (FiT)payments with the highest amounts available for the smaller 10-50kWsystems. However the feed-in-tariff scheme will end in April 2019. Theexample below shows the difference in payback for a typical 40kWp PVproject with and without the FiT payment. Whist the payback period isincreased, there is still a case for investment.With FiT(4.17p higher rate)Array SizeWithout FiT40 kWpArray Cost (Based on typical 36,000commercial rates)Annual Energy generated(Midlands – assuming no34,000 kWhexport)Annual financial benefit(Assuming electricity unit 5,498 4,0806.6 years8.8 yearsrate of 12p)Simple project payback12Whilst other renewable energy generation options are available for the Warehousing and logisticssector, solar PV is by far the most cost effective and practical option. For more information on solarPV and other renewable energy solutions please see the latest Carbon Trust guide Renewable energyand CHP (CTV010v3).
Warehousing and logistics13Case StudiesWarehouse lighting case studyWarehouse heating case studyA leading distributor of specialist building products replaced their lightingsolution with a low energy alternative, which also increased lamp life, reducingmaintenance requirements and improved light quality.A car parts manufacturer moved from old inefficient oil fire space heating to anefficient gas fired solution with optimised controls in their 3,250m2 warehouse.The energy efficient LED solution reduced lighting energy costs by 75% andprovided the company with a return on investment in just 28 months. Re-lampingrequirements were also eliminated in the short to medium term.The solution incorporated destratification fans to ensure good distribution of thewarm air and the more efficient system provided annual savings of 11,500. Thisled to a simple payback period of just 2.5 years.
Warehousing and logisticsAction ChecklistCarry out this straightforward checklist to determine which actions your business should take to improvetheir energy performance.Examples of energy efficiency and energy management improvementsBenefitPut in place routine end of day and end of week walk-rounds to ensure all unnecessary lighting andequipment is switched off, where possible review energy profiles to confirm savingsMinimise energy wastagePrioritise staff energy awareness to ensure that day to day energy issues are tackled routinely and put inplace an energy policy and strategyMinimise energy wastageReview lighting controls and introduce presence detection and daylight dimming solutions wherepractical and cost effective to do so20 – 80% saving on lighting energyReview existing luminaire types and move to well controlled low energy LED solutions where costeffective to do so50 – 90% saving on lighting energyReview heating controls and improve time and temperature set points to minimise heating use10 – 30% saving on heating energyReview efficiency, condition and effectiveness of your existing heating solution and consider replacementwith more efficient alternatives30 – 50% saving on heating energyConsider installing de-stratification fans to distribution warm air across the warehouse and make use ofwarm air trapped at high level during the winter heating season 25% saving on heating energyConsider installing door-interlocks to ensure that heating only operations when loading doors are closedMinimise loss of heating energyEnsure forklifts are charged at night to take advantage of lower tariffsCost savingReview hot water requirements, tap temperatures and flow rates and optimise to reduce energyconsumption. (Aim for a flow rate of 4 litres / minute and a tap temperature of 40oC)20 -50% saving on hot water costIn the longer term consider options to install renewable energy solutions such as solar PV. The largeroof areas of warehouses are often well suited to solar arraysReturn on investment in 7- 10 years14
Warehousing and logistics15Your next stepsThere are many easy low and no-cost options to help save money and improve the operation of your siteStep 1: Understand your energy useStep 3: Prioritise your actionsStep 5: Make the changes and measure the savingsLook at your site and identify the major areas of energyconsumption. Check the condition and operation ofequipment and monitor the power consumption over say,one week to obtain a base figure against which energyefficiency improvements can be measured.Draw up an action plan detailing a schedule ofimprovements that need to be made and when, along withwho will be responsible for them.Implement your energy saving actions and measure againstoriginal consumption figures. This will assist futuremanagement decisions regarding your energy priorities.Step 2: Identify your opportunitiesStep 4: Seek specialist helpStep 6: Continue to manage your office’s energy useCompile an energy checklist. Walk round your building andcomplete the checklist at different times of day (includingafter hours) to identify where energy savings can be made.An example checklist is on page 14.It may be possible to implement some energy savingmeasures in-house but others may require specialistassistance. Discuss the more complex or expensive optionswith a qualified technician.Enforce policies, systems and procedures to ensure thatyour business operates efficiently and that savings aremaintained in the future.
Warehousing and logistics16Go online for more informationThe Carbon Trust provides a range of tools, services and informationto help you implement energy and carbon saving measures, no matter what your level of experience.Website – Visit us at www.carbontrust.com for our full range Our client case studies – Our case studies show that it’s often easier and lessof advice and services.expensive than you might think to bring about real change. www.carbontrust.com www.carbontrust.com/our-clients Tools, guides and reports – We have a library of publications detailing energyThe Carbon Trust Green Business Fund – is an energy efficiency supportsaving techniques for a range of sectors and technologies.service for small and medium-sized companies in England, Wales and Scotland. It www.carbontrust.com/resourcesprovides direct funded support through energy assessments, training workshops, Events and workshops – We offer a variety of events, workshops and webinarsranging from a high level introductions to our services through, to technical energyefficiency training. www.carbontrust.com/eventsSmall Business Support – We have collated all of our small business supportand equipment procurement support. www.carbontrust.com/greenbusinessfundSME Network - Join a community of over 2000 small and medium-sizedbusinesses to discuss your strategy and challenges to reducing carbon emissionsand improving resource efficiency. Sign up for free to share knowledge, exchangeuseful resources and find out about the support and funding available in your area,in one place on our website.including the details of your local energy efficiency workshops. www.carbontrust.com/small-to-medium-enterprises/ work
The Carbon Trust is an independent company with a mission to accelerate the move to asustainable, low-carbon economy. The Carbon Trust: advises businesses, governments and the public sector on opportunities in asustainable, low-carbon world; measures and certifies the environmental footprint of organisations, products andservices; helps develop and deploy low-carbon technologies and solutions, from energyefficiency to renewable powerwww.carbontrust.com 44 (0) 20 7170 7000The development of this publication has been funded throughthe Carbon Trust Green Business Fund, an energy efficiencysupport service for small and medium-sized companies inEngland, Wales and Scotland.Whilst reasonable steps have been taken to ensure that the information contained within this publicationis correct, the authors, the Carbon Trust, its agents, contractors and sub-contractors give no warrantyand make no representation as to its accuracy and accept no liability for any errors or omissions.Any trademarks, service marks or logos used in this publication, and copyright in it, are the propertyof the Carbon Trust. Nothing in this publication shall be construed as granting any licence or right to useor reproduce any of the trademarks, service marks, logos, copyright or any proprietary informationin any way without the Carbon Trust’s prior written permission. The Carbon Trust enforces infringementsof its intellectual property rights to the full extent permitted by law.The Carbon Trust is a company limited by guarantee and registered in England and Wales under Companynumber 4190230 with its Registered Office at: 4th Floor, Dorset House, 27-45 Stamford Street, London SE19NT.Published in the UK: February 2019. CTV073 The Carbon Trust 2018. All rights reserved.CTV073
warehousing in total, with associated carbon emissions of 698,000 tC0 2 e per annum. The UK has seen a record demand for warehousing and space, driven largely by the move to on-line retail. CBRE has reported UK logistics take up of 17.4 million ft 2 for the first half of 2018 which exceeds the entire 2017
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between 2013 and 2023. Through the skills gap analysis and strategies, WorkForce Central (WFC) can plan for the changing workforce needs of the transportation, warehousing and logistics industry in Pierce County. Transportation, warehousing and logistics in Pierce County represents 14 percent of total industry employment across Washington.
WHY OUR WAREHOUSING SERVICES ARE SO RELIABLE The logistics and warehousing of materials across the supply chain is a vital part of the commodity market. We provide tailored storage solutions to the commodities community and are a London Metal Exchange (LME) and CME Group Inc. (CME) approved warehousing company.
Warehousing is part of logistics and supply-chain management. Logistics covers a wide range of areas, including storage, warehousing, trucking services, and equipment maintenance, with transportation as its core component. Institutional and regulat
Jul 03, 2014 · Promising Practices Warehousing and Inventory Management 3 Background Defined broadly, pharmaceutical warehousing or warehouse management is “the physical movement of stock into, through, and out of a medical store warehouse.”1 Warehousing is
Warehousing’s Role in the Supply Chain Warehousing p layed a role in the storage and exchange of goods for centuries. Long-term storage to provide product for future consumption has been a utility of warehousing both past and present. Transit
The American Board of Radiology . i The Diagnostic Radiology Milestone Project The Milestones are designed only for use in evaluation of resident physicians in the context of their participation in ACGME accredited residency or fellowship programs. The Milestones provide a framework for the assessment of the development of the resident physician in key dimensions of the elements of physician .
