This is Part 2 of our Point-Counterpoint series on the merits of “Design-Build” for distribution center automation. Design-Build refers to an approach in which a single firm does the design, engineering and implementation of an automation system, such as a Sortation system. In traditional approaches, one outside firm or the company itself does the design, and then contracts with another firm for implementation.
Last week, Gene Forte, Forte Industries’ president and chief executive officer, wrote about the customer benefits of Design-Build. (See Is Design-Build for Distribution Center Automation a Smart Choice?) This week, EnVista’s Jim Barnes says Design-Build usually doesn't work well for the client. What's your take? Respond at the Feedback button at the end of the article.
By Jim Barnes
There is difference of opinion in the material handling and industrial engineering consulting arena as to how to design a distribution center. Who is most qualified, and who can produce the best solution for a client? For example, let's consider a distribution center that is a 450,000 square foot facility and is used to distribute merchandise to 100 retail stores. The prospective client is considering using an industrial engineering consulting firm that is focused on a solution design that is unbiased, versus the use of a Material Handling Integrator (MHI) whose livelihood is based upon selling and installing equipment. In some cases, the MHI will propose a “Design-Build” approach, taking full responsibility from design through implementation.
I’ll note the discussion below is not about “right versus wrong,” but “what works” for the client versus “what does not work.”
Let's explore the approach and differences between an unbiased industrial engineering consulting firm and a material handing integrator using Design-Build. The approach and methods by the two parties is based upon the end goal. Yes, both parties will explain to the client that their perspective solutions have the client's best interest in mind.
However, we will look at the metrics used by each party to determine the best solution for a client. The metric that is predominantly used by both independent consulting firms and material handling integrators to evaluate facility design solutions is Return on Investment (ROI). To paraphrase Elli Goldratt (author of “The Goal”), “Metrics drive behavior. Tell me how you measure me, and I will behave accordingly. If you measure me illogically, then expect me to behave illogically.”
(Distribution and Materials Handling Article - Continued Below) |