Reduction of GHG Emissions in the Supply Chain
- 1 gallon of diesel burned = 11.91 Kg1 of CO2
- The US class 8 fleet drove 273,900,000,0002 miles in 2015.
- If we use a conservative estimate that only half the fleet could utilize the Cargo Carousel System to exclude tanker trucks, flatdecks, etc. and only 10% of those miles3 represent tractor/trailers driving empty then: 273,900,000,000 x 50% x 10% = 13,695,000,000 miles of truck/trailers travelling empty
- Even if we allow 10 miles per gallon4 efficiency for those tractors/trailers which is “extremely” efficient then: (13,695,000,000/10) x 11.91 = 16,310,745,000 Kg of CO2 per year
- If 1Kg = 2.20462 Lbs. then 16,310,745,000 Kg = 17,979,497 tons of CO2 per year
- If our system could decrease empty back hauls in those trailers by just 50%5 then: 17,979,497 x 50% = 8,989,749 “tons” of CO2 per year could be eliminated in the US alone.
- If we use the same conservative estimate that only 10%3 of those miles represent tractor/trailers driving empty then: 273,900,000,000 50% x 10% = 13,695,000,000 miles of truck/trailers travelling empty
- Even if we allow 10 miles per gallon4 efficiency for those tractors/trailers which is “extremely” efficient and we use the average price for a gallon of diesel at $2.9326 then: (13,695,000,000/10) x $2.932 = $4,015,374,000 in fuel savings per year (use your own updated price per gallon)
- If our system could decrease empty back hauls in those trailers by just 50%5 then: $4,015,374,000 x 50% = $2,007,687,000 worth of fuel per year could be saved in the US alone.
Cost Reductions at the Distribution Centre
- Cost to lease a warehouse for one year: $4 to $7 per square foot
- Operational (utilities, insurance, taxes, etc.) expenses: $2 to $3 per square foot annually
- Fork truck leasing, per truck: $750 to $1,000 per month, per truck. Unmanned, automated fork trucks may cost twice as much when systems software/hardware components are included
- Cost per hour per worker: range of $30-$40 (includes admin & management costs, benefits, commissions, etc.)
- Percentage of aisle space for fork trucks to maneuver in a DC is easily 50%
Static expenses: At the “low” end for a 500,000 square foot building, ($4 lease costs, $2 operational per square foot), the warehouse could cost $3,000,000 a year before labor, equipment rentals, etc. Split that amongst the total pallets stored and you are starting to see the total cost picture. Add in labor, forklift rentals, etc. and the picture starts to solidify.
Active expenses: Add number of operators x “low” end of estimated labor (say, 50 workers, 8 hours a day at $30/hr.): $12,000 per day of operations. That’s $3,120,000/year for a 260-day per year work schedule.
So, if we add static expenses plus active expenses, this warehouse would run its operator $6,120,000 to run per year. If the facility can store 100,000 pallets, they would cost roughly $61.20 a year per pallet or $5.10 per month. This is a very low estimate, assuming the lowest cost per pallet position. The point is, you can find a number that’s in the neighborhood of cost per position for any particular geographic area. This obviously varies based on where you are, what you’re storing, and the size of your warehouse.
When stacked side-by-side and end-to-end the Cargo Carousel System can reduce warehouse aisles by 75% or more. Unmanned, automated fork trucks can reduce labour costs by another 50% or more. Using this same scenario, we could cut aisles space by 500,000 x 50% x 75% = 187,500 square feet or 187,500 x $6 = $1,125,000 a year and labour by another $3,120,000 x 50% = $1,560,000. That lowers total costs by $2,685,000 down to only $3,435,000 from $6,120,000. For that same 100,000 pallet capacity the cost per pallet position drops from $61.20 a year to $34.35 a year or from $5.10 per month to $2.86 per month.
These numbers provide a rough baseline to estimate warehouse costs. They are obviously variable between locations and facility types. The use of unmanned, automated fork trucks and other specialized equipment that are used in operations need to be factored in as well.
These are not difficult numbers to calculate and their sources come from readily available numbers on the Internet and uses standard figures (i.e. 1 gallon of diesel burned = 11.91 Kg of CO2). This is simply a new concept that has never been considered before and it doesn’t take into account the recycling, supply chain visibility or other attributes that our system offers. Learn more…
Flexibility, Scalability, Sustainability, Efficiency
- Radio Frequency Identification (RFID) with satellite communications capabilities are included with each Carousel to identify anything on any module anywhere in the world at any time offering “true” end-to-end visibility in the supply chain and have available sensors for GPS location, temperature, light exposure, humidity, barometric pressure, shock, and movement to alert owners of any problems in real time.
- Packaging can be minimized or completely eliminated as the modules are suspended from the Carousel to better absorb shock and their rugged construction protects their contents. Plastic wrap and wooden pallets are eliminated in favor of a properly designed system that minimizes insurance costs and the problems associated with freight damage all along the supply and reverse chains.
- Modules loaded with recyclables or store returns can replace empty positions on the Carousel while the truck is still at the dock. Delivery and/or pickups can be done continuously on the same trip eliminating empty back hauls (the return trip after a truck has delivered its load).
- Stacking containers side-by-side in a warehouse creates automated deep storage and retrieval that offers twice the space utilization of regular racking as it eliminates the need for over 75% of the aisles that are required between regular racking for forklifts to maneuver which more than doubles the warehouse cubic space utilization.
- “Crushable” products can be safely double-stacked without crushing the products underneath to insure trucks are always full allowing easier consolidation of LTL’s.
- Opaque, lockable and sealable modules from different shippers can be consolidated onto the same truck without the need for a neutral third-party intermediary to oversee shipments and applies to both, the supply and reverse chains. This has proven to save 35% in shipping costs and reduces greenhouse gas (GHG) emissions dramatically.
- The Cargo Carousel System can supplement fulfillment centers by utilizing stackable, weather proof, temperature-controlled containers in smaller multiple, secure, fenced yards right in the parking lot of a retail store or inside or outside of the city for omni- channel distribution and “last-mile” delivery as docks, dock plates and dock levelers are no longer needed. This brings inventory much closer to the customer and provides additional storage for seasonal or peak periods at a fraction of the cost of leased space that often goes unused in the off season.
- Trays of fruits or vegetables can be layered on trays in racks in a module. Refrigerated containers can be brought directly out to the field and loaded immediately since no dock is required for loading, maximizing shelf life while minimizing touch points in the supply and also the reverse chains where perishables can be recycled for their nutrient value.
- Unmanned Automated Vehicles (forklifts) can load or unload merchandise at the dock or in deep storage and retrieval without human intervention because the Carousel automatically stops at the exact same geostationary position each time it rotates to allow loading and unloading. Combining RFID with GPS creates exact inventory location identification so UAV’s can put away, pick and pack or cross-dock all on their own (“Lights-out” warehousing).
- “Click & Collect” – adding a digital keypad creates automated customer or courier pick-up like a giant vending machine anywhere the Cargo Carousel is positioned like in a parking lot or even facing “inside” a store, high-rise or mall and empty Carousels can be exchanged with full ones for quick replenishment.
- Marine vessels (Military, Cruise Ship, Freighters) can be designed to carry Cargo Carousels that can be quickly “exchanged” when they’re emptied with Carousels that are pre-stocked with supplies or munitions for quick replenishment (including refrigerated units for perishable goods).
- The Cargo Carousel will eliminate wooden pallets saving trees and reducing weight. A blue “CHEP” pallet weighs 75 pounds and a 53’ container has room for 26 pallets on the floor but, the Cargo Carousel allows double stacking so the equivalent weight of that many pallets would be 75 X 26 X 2 = 3,900 pounds. The Cargo Carousel can weigh half this much depending upon the application.
- Clothes can be hung from a cross-bar or a retail display fixture within an enclosed module of the Cargo Carousel which adds security and empty modules or fixtures can be exchanged for full ones to minimize touch points in both the supply and reverse chains.
- Courier or postal services could do a delivery and a “return” pick-up from the same location with the Cargo Carousel System. A focus on parcel “returns” could breathe new life into the ailing international postal service because they’re already “in the neighbourhood” anyway. Learn more…