MAGAZINE  №3 (98) June 2020


CATEGORY Warehouse logistics



A company's turnover growth and market position expansion are nowadays impossible without substantial innovative and technological changes. Besides, in the conditions of consumer market stagnation it is impossible to increase profitability by increasing product prices, as there is a high risk of losing in competitive fighting. Therefore it is necessary to cut costs and increase productivity.
Searching solutions to these tasks sometimes leads to unconventional results. Here is one of such solutions aimed at partially cutting logistics costs.


 Electronic version

 Keywords:  sorter mechanized assembly line warehouse assembly productivity expenses costs case order picking warehouse warehouse logistics

Published in Warehouse logistics

MAGAZINE  №5 (94) October 2019


CATEGORY   Warehouse logistics Logistic infrastructure



 The relevance of the considered the author of the theme is that during development of the project developer focuses on the optimization of financial indicators: Bank discount rate the interest cost on the value of the construction and subsequent delivery, such as for rent, but few says and examines optimizing space-planning decisions of the warehouse, engineering networks and constructions.
In this context, this article deals with the topic of the impact of the presence or absence of a mezzanine on
the financial model of the project as a whole.

In the practice of designing and building modern warehouses building adopted Gables above the dokovymi zones (zones of loading and unloading). At the same time, never discusses how mezzanine affect: the cost of construction and financials.


Author, firstly, considers what mezzanines can be found in warehouses, secondly, on the example of one project is considering several options for the financial model of the project: mezzanine floor and without mezzanine:
1) Project budget:
- Purchase of land;
- Pre-project stage;
- Design stage;
- Construction costs;
- Costs for the Organization and management of the project;
- Reserve for unforeseen expenses.
2) Projected financial results of the project:
- Discount rate;
- Payback period-PB;
- Discounted payback period-the DPB;
- The average rate of return-ARR;
- Net income-cited NPV;
- Profitability index-PI;
- Internal rate of return-IRR;
- Modified internal rate of return-MIRR.
Research methodology is based on one project developer with the processing results by using AUTOCAD and the calculation of financial models using the Project Expert.
On the basis of the carried out researches the author makes the following findings:
1) Total construction cost of 1 sq.m. in stock without mezzanine is slightly higher. This can be explained by the fact that the relative cost, for example, the land remained the same as in option with a mezzanine, and reducing other costs not offset the decrease in the total area of the warehouse.
2) Despite the fact that the cost of construction of a warehouse without mezzanine is cheaper, but reducing the total area of the warehouse have not resulted in improved financial performance. Increased the payback period, though not significantly decreased net income shown in the reporting period.


 Electronic version

 Keywords:  warehouse warehouse logistics warehouse infrastructure mezzanine spaceplanning solutions storage system investments efficiency assessment efficiency improvement

Published in Warehouse logistics

MAGAZINE №4 (81) August 2017


CATEGORY  Industrial companies’ corporate logistics Warehouse logistics



 Post-soviet industrial companies often have archaic warehouse system. The production integrity and safety was key goal of provision system in that time. Nobody took care of production stock storage efficiency. Nowadays new owners of those companies started to look after stock management and storage capacity performance.
In addition, there are processes of building vertical integrated chains of enterprises. As usual, within such processes, it is resolving issue of storage locations termination or modernization of raw materials, semi products or spare parts. On the other hand, there are risks of production integrity, health or environmental safety, especially on dangerous production lines, in case of storage location operations termination, increasing of downtime. Therefore, storage locations release should be completed with the consideration of those risks. The article describes practical example of storage locations reduction on continuous production plant. The practice has been applied within the project of provision system optimization and can be useful for great variety of companies.

 Electronic version



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