Opportunities
Due to restrictions on their main site Euramax has outsourced part of their storage of bare products, Work In Process and Finished Orders. Considering the expected growth of 30% in the next 4 years and the actual option to use an adjacent warehouse the question arose what would be the lowest costs option for the future.

Solution
Groenewout created a model to calculate the storage, handling and transportation costs. These scenarios were examined:

• Continuation of the outsourcing procedure
• Investment in new warehouse buildings (normal and CPR15.2 storage) on nearby Euramax-owned site
• Rent of neighboring warehouse
• Purchase of neighboring warehouse.

For the short term the most optimal solution was to maintain outsourcing, as was currently done against relatively low costs. Investment in new buildings on their own site will become more interesting when the storage requirement passes a certain “break even point”.

Benefits

• Insight into operations and related costs
• Euramax-specific model for cost comparisons
• Best storage strategy for short and long term.