Case Study: Strategic Site Planning to Realize Network-Wide Savings

A leading global manufacturer of non-alcoholic beverages faced critical supply chain challenges. Locally, its raw materials (RM) storage was at full capacity, necessitating immediate action and a strategy to accommodate future growth. Meanwhile, offsite storage—already nearing capacity—was creating significant transportation costs, adding financial strain to their operations. The client sought a solution that addressed both their immediate needs and long-term goals for flammable RM and finished goods (FG) storage.

Resolve short-term capacity constraints while designing a comprehensive masterplan for future storage. In addition to adding capacity, it was critical to optimize their current flows and dedicate footprint as well as an expansion path for future production capabilities. For additional storage capacity, the client prioritized evaluating an AS/RS solution, which would comply with flammable material handling and regulatory standards and align with their growth ambitions.

New Flammable Materials Hub: A brownfield expansion was evaluated, but due to construction complexities as well as risk of disruption to operations and manufacturing, this was quickly ruled out as a feasible solution. With brownfield expansion ruled out, Miebach recommended densifying non-flammable storage within the existing warehouse to right-size the space while constructing a new interconnected building for RM and FG flammable materials, a ‘flammable material hub’.

Miebach, in partnership with construction SMEs from TMCA, explored the feasibility of alternative solutions. Facing the unique challenge of a site split across two municipalities, the team collaborated with both jurisdictions to identify the optimal location for the new building. This thorough evaluation went beyond logistics—delving into tax incentives, zoning restrictions on building height, and potential requirements for beautification and/or variances.

This final solution was informed by a detailed analysis of inventory profiles, temperature zones, fire safety requirements, and hazardous material regulations. By optimizing onsite storage and reducing external dependencies, Miebach minimized the additional capacity needed for future growth and ensured the proposed solution aligned with the client’s strategic goals for compliance, cost-effectiveness, and future scalability.

To align with flammable material handling regulations, Miebach collaborated closely with the client’s internal fire safety and hazardous material compliance SMEs as well as the client’s insurance representatives to ensure project success. The project team led educational sessions to explain the operational design of the AS/RS and address specific concerns, ensuring safety compliance while advocating for a client-centric approach. This collaboration resulted in approvals for denser pallet storage configurations that exceeded initial height restrictions, delivering a compact and efficient solution tailored to the client’s needs.

Miebach’s approach delivered tangible value for the client:

• Cost Savings: Projected $3 million in annual savings over 11 years.
• Regulatory Compliance: Achieved full alignment with fire safety standards while optimizing storage capacity.
• Operational Efficiency: Reduced dependency on offsite storage, ensuring resilience and scalability to meet future demands.
• Partnership Impact: Miebach’s collaborative engagement with TMC&A and the client’s fire safety and insurance SMEs highlighted the commitment to creating value-driven solutions. By bridging technical expertise with innovative design, Miebach created a future-ready storage framework that positioned the client for sustained operational efficiency and growth. By identifying the respective parties and involving them early in the conceptual phase of design, Miebach ensured bringing forward due diligence and regulatory considerations that promised a feasible solution moving into front-end design.