GXO Logistics: Conflicts with Customers & Warehouse Management System Issues

This is a snippet of the transcript, sign up to read more.

What's the percentage of projects that are built to suit versus using an existing building structure?

From my experience, most customers want you to find an existing building. They might not have time for a new building, especially if they need a new operation in the next six months. In such cases, I have to find an existing building, even if it's not the perfect location or size. That's the trade-off for quick implementation.

This is a snippet of the transcript, sign up to read more.

When you mention specifications, what exactly are you looking at? Is it the size, the height of the roof, the racks? What are the specifics you're considering?

If inventory isn't moving quickly, different storage designs are required. Some designs focus on density, others on efficiency for easy picking and ordering. If it's not moving quickly, you might store it on the floor, stacking pallets. If you need to pick the second one down, moving the top pallets isn't a big deal due to low order volume. With high volume, items should be in rack positions for easy access and better picking efficiency. Various factors are considered based on the use. For example, consider the extremes. One extreme is a cross dock, where products come in and go out the same day without storage. These are long buildings with dock doors on both sides for unloading and loading trucks. Very high velocity. The opposite extreme involves dead inventory. I had a customer who shipped product samples with a regulatory requirement to store them for 10 years. They'd take a sample, ship it to us, and we'd store it for 10 years in case of future issues. In such cases, a big square building maximizes storage, despite inefficiencies in accessing materials. Unlike cross docks with short trips, dead storage doesn't require frequent access. Most warehouses fall between these two extremes.

This is a snippet of the transcript, sign up to read more.

For a standard warehouse, how large is it, and what are the capital expenditures involved? Since most buildings are leased, how much investment is required, and what type of modifications are made?

Generally, we were leasing for about a dollar per square foot per year. So, a million-square-foot building costs a million dollars annually for the lease. A 100,000-square-foot building costs $100,000 a year.

This is a snippet of the transcript, sign up to read more.