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THE RISE AND RISE OF HIGH BAY WAREHOUSING F E B R U A R Y 2 0 1 7

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High bay warehouses are designed specifically tomaximise operational efficiencies for supply chains,at a product level. Whilst the resultant outcome ofa high bay warehouse is that there will be areduction in land area it is not the key driver fromour experience. Factors such as operational costs,property costs, people, and risk to operations areall part of the decision. It should also be noted thathigh bays don’t suit every business and productprofile and type need to form part of a robust anddetailed business case analysis vs alternatives.

TM Insight is currently Australia’s leading high bayconsultancy and we would like to share some ofrelevant experience through developing theseprojects for our clients rather than the theoreticalideas we are seeing around the market.

F I R S T LY, L E T S B R E A K T H E M O S T FA M O U S M Y T H O F

H I G H B AY W A R E H O U S I N G – T H AT I T S P E C I F I C A L LY

R E L AT E S T O L A N D U S A G E – W R O N G ! I F T H AT W A S

T H E C A S E T H E C U R R E N T H I G H B AY FA C I L I T I E S W E A R E

D E V E L O P I N G W O U L D H A V E B E E N S TA N D A R D H E I G H T

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TIP 1 – TO CLAD OR NOT TO CLAD…THAT IS THE QUESTION

A “rack clad” high bay means that the rackingforms the structure for the building where as a“non-rack clad means the building structure isdeveloped independent of the racking ASRSsolution.

We are currently performing both types offacilities for clients and there is pros and cons toboth. The key considerations in determining theproposed building type comes down to; who isgoing to own the facility (owner occupier orleased site), interaction level proposed with theautomation provider, lead times, and installsequencing.

All the above factors are vital when determiningthe best solution. Clients should not justundertake the most cost effective rackingsolution without considering these items. Thetotal cost and time will dwarf any perceivedsavings if not considered accurately in thebusiness case stage.

TIP 2 – GROUND CONDITIONS /SENSITIVITY OF THE AUTOMATIONEQUIPMENT

Ground conditions are paramount to a successfulproject and are fundamental to the likely successof the project. The general understanding andlevel of soil conditions in Australia are currentlybeing stretched in terms of the high bays beingdeveloped in Australia.

If the proposed high bay is to be developed on anexisting site, the first step to determining theviability of the project would be dynamicmodelling of the site. This is necessary given theextreme tolerances required by automationproviders, and potential ground improvementcosts to meet the required tolerances.

If the proposed solution will be on a new site orthrough a developer, the due diligence processwhen determining suitable sites will requiredynamic modelling also. This is irrespective ofpallets weights proposed.

TIP 3 – TENDER THE AUTOMATIONSOLUTION PRIOR TO THE PROPERTYSOLUTION

Too often we see clients deciding to startsourcing property or look at a solution on theirown site without finalising the proposed solutionor automation provider.

Unlike standard height warehousing, the highbay warehousing height is a direct function ofthe automation providers most optimisedsolution. That may be 12 pallets high through to17 pallets high depending on the system.

It is fundamental that the concept design andautomation provider is appointed as part of theproject team prior to the property sourcingprocess commences. The design specificationsare heavily impacted also dependent upon thesolution including structural, power and fireprotection requirements.

BELOW ARE OUR TOP 5 CONSIDERATIONSF O R A N Y O N E C O N T E M P L A T I N G G O I N G D O W N T H E H I G H B A Y W A R E H O U S E / D C P A T H

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TIP 4 – AUSTRALIAN BUILDINGCONDITIONS AND OH&SREQUIREMENTS

Similar to the above, the Automation/MHEProvider should be selected based on theirrelevant experience with Australian BuildingConditions and OH&S requirements.

As noted above, the rack clad vs non-rack claddebate will be critical in these discussions.Typically, even if you avoid the inevitable timingimpacts of getting this wrong, it will have adirect impact on the ability of the project Go Livetiming.

Furthermore, it is crucial to ensure the relevantcontractual requirements are “back to back”between the base building works and the MHEproviders to mitigate time and cost issues.

TIP 5 – INTERNATIONAL STANDARDSAND AUSTRALIAN STANDARDS

There is often a disconnect between the relevantstandards used by the MHE providers offshoreand Australian Standards/tolerances used withinthe Industrial Property Industry in Australia.

These buildings are designed around the MHEsolution and the building specifications should betailored to meet this requirement. There needsto be robust discussion between the Client andautomation providers on the standards beingagreed prior to commencing the propertysourcing process. This will save significant timeand cost through the design and developmentphase.

Whilst there are many other considerations, webelieve these to be the most relevant TOP 5items to consider when thinking about high bayautomated facilities.

If you are considering this as an option or want tocompare business case costs on differentstorage solutions high bay or low bay wewelcome the opportunity to discuss these withyou.

BELOW ARE OUR TOP 5 CONSIDERATIONSF O R A N Y O N E C O N T E M P L A T I N G G O I N G D O W N T H E H I G H B A Y W A R E H O U S E / D C P A T H

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