ATLANTA, July 24, 2024 (GLOBE NEWSWIRE) -- The 2024 supply chain landscape is witnessing a significant shift towards brownfield warehousing, states the report titled 'Navigating Warehouse Space Challenges in 2024: Unlocking the Value of Brownfield Warehouses' from Bart De Muynck, LLC, a consultancy providing strategic advice on supply chains including focuses on strategy, leadership and technology. FORTNA, a leading automation and software company for the full logistics value chain, is leading the charge by automating brownfield processes to enhance cost savings and efficiencies.
During the pandemic, there was a substantial investment push for greenfield construction to accommodate the surge of inventory entering the United States. However, with vacancy rates decreasing and the high costs associated with greenfield projects, companies are now turning to retrofitting existing warehouses through brownfield projects to meet current consumer behavior and industry developments.
Bart De Muynck, CEO of Bart De Muynck, LLC, and industry expert, emphasized the importance of brownfield projects, stating, "Brownfield projects are crucial to limiting warehousing costs going forward. FORTNA sits at the cutting edge of warehouse automation to allow for labor costs and efficiencies to be further enhanced."
"FORTNA is on the precipice of brownfield warehouse automation," said Jeff Cashman, SVP of Corporate Development at FORTNA. "Our expertise in warehouse execution systems and warehouse automation enables companies to unlock the full potential of brownfield warehouses."
The report states that in 2023, the United States saw a 25% decrease in new warehouse construction, according to research from Interact Analysis. With greenfield investment projects costing $100 million or more, companies are exploring brownfield projects to minimize development costs, increase operational efficiency and improve the performance of existing facilities.
While brownfield investments come with limitations related to building layout and existing equipment, the benefits often outweigh these challenges. Redeveloping brownfield sites involves lower development costs since infrastructure like roads, utilities, and loading docks is already in place. This significantly reduces the need for additional construction, permits, and architectural involvement.
"Key factors to consider when selecting facilities for brownfield projects include proximity to transportation routes and urban areas, site contamination levels, and access to a skilled workforce," added Cashman. "Companies, especially in the retail sector, can convert underperforming stores into e-Commerce fulfillment centers or ‘dark stores’ that offer ample space and are located near populated areas."
Technology plays a crucial role in optimizing brownfield warehouses, according to the report. Gartner states by 2028, 80% of warehouses and distribution centers will deploy some form of warehouse automation. Brownfield sites are particularly suited to point solutions that automate specific workflows, such as mobile robots and automated storage and retrieval systems (AS/RS), which maximize storage density within a smaller footprint.
Warehouse execution system (WES) software is paramount at brownfield sites, serving as the brain behind warehouse operations. A WES optimizes order fulfillment processes, minimizes idle time, maximizes resource utilization, and integrates old and new automation technologies. This is especially important in smaller, space-constrained brownfield facilities where every square foot counts.
A knowledgeable WES partner like FORTNA works with companies to determine inventory, throughput, service level agreements (SLA), and other requirements. Advanced algorithms simulate different types of equipment and technology to predict success in a brownfield environment.
"By seamlessly integrating with automation technologies like mobile robots and robotic arms, FORTNA optimizes workflows and reduces manual intervention," concluded Cashman. "This is particularly beneficial where space optimization is critical for vertical storage and seamless order fulfillment."
One of the added benefits of redeveloping brownfields is sustainability. By reusing existing land, companies avoid utilizing additional resources. Automation technologies can incorporate energy-saving designs to reduce consumption, enhancing the energy efficiency of brownfield warehouses. Improved inventory management and order fulfillment accuracy minimize waste and reduce the environmental impact of excess inventory. Additionally, optimized transportation routes and schedules reduce fuel consumption and emissions.
The demand for adaptable, cost-effective, and efficient warehousing solutions continues to evolve, making brownfield initiatives a strategic imperative. Brownfield warehouses provide flexibility and customization, aligning warehousing strategies with evolving inventory management goals. With proper planning and execution, brownfield warehouses can become significant sources of storage solutions in the US in 2024 and beyond.
To access the full text of 'Navigating Warehouse Space Challenges in 2024: Unlocking the Value of Brownfield Warehouses', follow the link here. To learn more about FORTNA's brownfield automation or WES capabilities, visit https://www.fortna.com/insights-resources/high-density-storage-solutions-for-brownfield-facilities/.
About FORTNA
FORTNA partners with the world’s leading brands to transform omnichannel and parcel distribution operations. Known world-wide for enabling companies to keep pace with digital disruption and growth objectives, we design and deliver solutions, powered by intelligent software, to optimize fast, accurate and cost-effective order fulfillment and last mile delivery. Our people, innovative approach and proprietary algorithms and tools ensure optimal operations design and material and information flow. We deliver exceptional value every day to our customers with comprehensive services and products including network strategy, distribution center operational design and implementation, material handling automated equipment, robotics and a comprehensive suite of lifecycle services. Visit https://www.fortna.com/.
Media Contact: Cheryl Falk
SVP Global Marketing Communications
and Demand Generation
FORTNA Inc.
cherylfalk@fortna.com
