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Logistics Evaluation

*Note: Highlighted fields below are variables that can be edited to test different scenarios
Background: Brightpick has a number of options for sourcing and delivering the Brightpick solution components and typically the tradeoff is cost for time and it is likely that we will need to have multiple strategies ready to match our customer’s appetite for that tradeoff. The goal is to have an accurate understanding of the pricing sensitivity of the different logistics options at different project sizes.
Options: Air Freight, Sea Freight, Domestic Sourcing
Variables:
Number of totes per shelving bay:
27
Project Sizes:
Small: 1-10 Runners,
3500
Totes,
130
Shelves
Medium: 10-30 Runners,
8000
Totes,
297
Shelves
Large: 30+ Runners,
30000
Totes,
1112
Shelves
While many of the Brightpick components cannot be sourced in North America yet, totes and shelving can be and so this analysis breaks them out.
Shipment Scenarios:
Core Brightpick Solution
Brightpick -
0.322
40’ Containers - The minimum equipment to deploy, using the KY demo as this baseline for now
Small Project Supplement - Equipment needed to bridge the gap from demo site to a small (Davinci) size project
Brightpick -
0.23
40’ Containers - 6 additional Runners and Add-ons
Shelving -
0.73
40’ Containers -
130
Shelves
Totes -
2.85
40’ Containers -
3500
Totes
Medium Project Supplement - Equipment needed to bridge the gap from demo site to a medium size project
Brightpick -
0.74
40’ Containers - 18 additional Runners and Add-ons with 2 additional Pickers
Shelving -
1.47
40’ Containers -
297
Totes -
6.48
40’ Containers -
8000
Large Project Supplement - Equipment needed to bridge the gap from demo site to a large size project
Brightpick -
1.48
40’ Containers - 36 additional Runners and Addons with 4 additional Pickers
Shelving -
5.87
40’ Containers -
1112
Totes -
24.19
40’ Containers -
30000
To simplify the cost evaluation of each scenario, each shipment will be converted to an equivalent number of 40 foot shipping containers.
Container Space Requirements
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Shipped Items
Width
Depth
Height
Unit Weight (kg)
Unit 40' Container Need
1
Add-Ons 6-Pack
3200
1200
1590
1300
0.129
2
Runner
800
1200
1000
175
0.016
3
Picker and Chargers
800
1200
1300
230
0.032
4
Server
800
1200
1500
230
0.032
5
Calibration Station and Tools
800
1200
1500
230
0.032
6
Large Shelving Skid (2 per 150 Shelves, Stack 2 High)
3200
1200
1000
0.064
7
Small Shelving Skid (25 per 150 Shelves, Stack 2 High)
1200
1200
1000
0.024
8
Totes (60 Totes per Pallet)
1200
1200
1200
0.048
There are no rows in this table
Summary to this point:
In the table above we first converted each shippable piece into an equivalent 40’ container percentage, e.g. the Add-on crate at 3200mm x 1200mm (and not being stackable) consumes 12.9% of a 40’ container so we use .129 towards a total count of containers needed. Then for each of the shipping scenarios we input the quantity of each item needed for that scenario and the quantity of containers is calculated next to it. Below we can now take those quantities, round them to the next whole container and get our total cost for logistics by scenario.
Logistics Pieces
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Logistics Piece
Omni Unit Cost
Universal Unit Cost
Core
Small
Medium
Large
1
20’ Container Sea Freight
$10,000.00
$15,680.95
1
0
0
0
2
40’ Container Brightpick
$14,000.00
$20,508.68
0
1
1
2
3
40’ Container Shelving
$14,000.00
$15,608.95
0
1
2
6
4
40’ Container Totes
$14,000.00
$20,508.68
0
3
7
25
5
Local Dreyage
$2,000.00
$1,619.45
1
5
10
33
6
Container Unloading/Transloading
$1,200.00
$0.00
1
5
10
33
7
Handling per Pallet
$55.00
$5.00
10
93
211
762
8
Coast to KY Trucking
$2,000.00
$2,526.16
1
5
10
33
9
Risk of Extra Charges
$2,000.00
$2,000.00
0
1
2
3
10
Fees and Customs Clearance
$750.00
$750.00
1
5
10
33
There are no rows in this table
Costs are based on which was the lower of the two ().
Total Logistics Costs by Scenario
Core =
$16500
Small =
$123365
Medium =
$231605
Large =
$722760

Additional Results
The above results also allow us to estimate the crossover point where the savings on either totes or shelves is exceeded by the additional logistics costs for shipping them from Europe.
Totes: The average cost of a container for totes will be $21,600; a 40’ container can hold 20 pallets of totes and each pallet contains 60 totes so there are 1200 totes in each 40’ container. $21,600 / 1200 = $18/tote.
We can also understand what the crossover point would be where the density of totes in a 40’ container needs to be in order to match the domestic price of $14/tote. Assuming a best case cost of $4/tote leaves $10 for shipping each tote, $21,600/$10 = 2,160 totes in a 40’ container.
Shelving: The average cost of a container for shelving will be $21,600; a 40’ container can hold 185 shelves. $21,600 / 185 = $116.75.

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