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Small: 1-10 Runners, Totes, ShelvesMedium: 10-30 Runners, Totes, ShelvesLarge: 30+ Runners, Totes, ShelvesCore Brightpick SolutionBrightpick -40’ Containers - The minimum equipment to deploy, using the KY demo as this baseline for nowSmall Project Supplement - Equipment needed to bridge the gap from demo site to a small (Davinci) size projectBrightpick - 40’ Containers - 6 additional Runners and Add-onsShelving -40’ Containers -ShelvesTotes -40’ Containers - TotesMedium Project Supplement - Equipment needed to bridge the gap from demo site to a medium size projectBrightpick -40’ Containers - 18 additional Runners and Add-ons with 2 additional PickersShelving -40’ Containers - Totes -40’ Containers - Large Project Supplement - Equipment needed to bridge the gap from demo site to a large size projectBrightpick -40’ Containers - 36 additional Runners and Addons with 4 additional PickersShelving -40’ Containers - Totes -40’ Containers -
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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:
3500
130
8677
322
30000
1112
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:
0.322
0.23
0.73
130
2.85
3500
0.74
1.47
322
6.48
8677
1.48
5.87
1112
24.19
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
Shipped Items
Width
Depth
Height
Unit Weight (kg)
Unit 40' Container Need
Add-Ons 6-Pack
3200
1200
1590
1300
0.129
Runner
800
1200
1000
175
0.016
Picker and Chargers
800
1200
1300
230
0.032
Server
800
1200
1500
230
0.032
Calibration Station and Tools
800
1200
1500
230
0.032
Large Shelving Skid (2 per 150 Shelves, Stack 2 High)
3200
1200
1000
0.064
Small Shelving Skid (25 per 150 Shelves, Stack 2 High)
1200
1200
1000
0.024
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
Logistics Piece
Omni Unit Cost
Universal Unit Cost
Core
Small
Medium
Large
20’ Container Sea Freight
$10,000.00
$15,680.95
0
0
0
0
40’ Container Brightpick
$14,000.00
$20,508.68
0
1
0
2
40’ Container Shelving
$14,000.00
$15,608.95
0
1
0
6
40’ Container Totes
$14,000.00
$20,508.68
0
3
0
25
Local Dreyage
$2,000.00
$1,619.45
0
5
0
33
Container Unloading/Transloading
$1,200.00
$0.00
1
5
0
33
Handling per Pallet
$55.00
$5.00
10
93
0
762
Coast to KY Trucking
$2,000.00
$2,526.16
1
5
3
33
Risk of Extra Charges
$2,000.00
$2,000.00
0
1
2
3
Fees and Customs Clearance
$750.00
$750.00
0
5
0
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 =
$3750
Small =
$$3750106865
Medium =
$$375010000
Large =
$$3750706260
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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