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Food Industry's Return
on Investment Guidelines
For Companies Evaluating
Private vs. Public Warehousing |
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Information Needed to Calculate Worksheet #1 (ROI)
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| 1a. |
Annual
Cost to Use Public Refrigerated Warehouse Space:
As discussed elsewhere in this Kit, this information may be obtained
from a local public refrigerated warehouse.
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| 1b. |
Transportation Costs:
Your cost estimate should include the costs to convey items to and
from the warehouse.
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| 2. |
Total
Annual Operating Expenses to Operate Your Private Warehouse:
If you have not already generated this information, Supplemental
Schedule B included within this Kit may be used to accumulate
operating expenses normally considered in refrigerated warehouse
operations. In generating your operating cost estimates be sure to
consider the following expenses unique to refrigerated warehouses:
- Operating and maintenance of
refrigeration systems.
- Increased use of electric power
with the possibility of peak power electric penalty rates.
- Additional clothing and
protection equipment for employees working in a refrigerated
environment.
- Increased safety and
environmental expenses associated with ammonia refrigeration
systems.
Because of their situation-specific
nature, the costs related to blast freezing are not specifically
included in this worksheet. Each situation must be uniquely
evaluated. Accurate determinations of these costs can be obtained by
contacting a Public Refrigerated Warehouse.
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| 4. |
Total
Costs to Construct Your Private Warehouse:
Supplemental Schedule A has been enclosed in this Kit to assist you
in accumulating the cost of your investment in your company’s own
refrigerated warehouse. Otherwise use your own estimate of those
capital costs. Your estimates should consider the following
construction costs considered unique to refrigerated warehouses:
- Refrigeration equipment
- Additional insulation, including
floor
- Refrigerated loading docks
- Freezer and escape doors
- Freezer clothes
- Inspection room equipment
- Underfloor heating system
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Next section |
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the complete ROI Kit:
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Links:
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