SMITHFIELD FOODS Northeast Regional Distribution Center
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ELEGANT SYSTEMS ENHANCED PRODUCTIVITY SUSTAINABLE PERFORMANCE
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INTRODUCTION Pork producer Smithfield Foods has a large and complex network of operations - from agricultural production to food processing and retail supply chain. In 2015, they set out to cut costs, improve operations, and reduce greenhouse gas emissions. To help realize these goals, they identified two key strategies: 1. Consolidate the number of distribution centers. 2. R emap truck routes to reduce the number of miles traveled. With a dedicated industrial design team, Progressive AE was asked to provide solutions for the Midwest, Southeast and Northeast distribution centers. Of these, the Northeast facility is the newest and most innovative. Let’s take a closer look.
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THE CHALLENGE Working through multiple sessions with Smithfield, Progressive AE helped develop priorities for this new project. To help meet goals, the new distribution center would need to do the following: • Elevate
SUSTAINABILITY
• Enhance
PRODUCTIVITY
• Improve
PROCESS to reduce costs
• Increase
safety for PEOPLE
• Increase
throughput to increase REVENUE
• Protect
PRODUCT quality and value
With this framework in mind, a strategy for implementation emerged. By building a matrix of preferred improvements, it became clear that they would generate an impact greater than the sum of any individual improvement. With necessary improvements identified, and a basic building design emerging, the team identified two additional partners: CRT Design was selected as refrigeration system engineering specialist, and Whiting Turner for construction management.
SUSTAINABI
ILITY
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PEOPLE
REVENUE
PRODUCT
PROCESS
PRODUCTIVITY
DESIGN STRATEGY DIAGRAM
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THE SOLUTION: ELEGANT SYSTEMS
Reduce human and environmental hazards Desired outcomes: • Improved • Separate • Reduce
approach to refrigeration maintenance and logistics operations
ambient noise
SOLUTION: NEW APPROACH TO REFRIGERATION 1. Low Charge Ammonia System: • Electronic control valves allow 80% reduction in ammonia charge • Smaller system components reduce both the initial and operational costs of the system • Reduces the danger of hazardous ammonia leaks 2. Rooftop units: • Improve distribution of cold air across facility • Minimize the demand of forced air flow • Lower fan speed reduces noise level within the building
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THE SOLUTION: ENHANCED PRODUCTIVITY
Streamline and expand space for operations and flow Desired outcomes: • Fewer
motion conflicts
• Improve
visibility into operational activities
• Increase
desired staff interactions
• Increase
capacity to receive, organize, and ship product
SOLUTION: IMPROVED OPERATIONS AREA 1. Added space for movement and organization. • Allows for dedicated material handling zones • Additional overhead doors and larger loading area • Dedicated spaces for receiving and shipping products 2. A crow’s nest between the shipping and receiving zones allows for full operational oversight. 3. Simplify and organize movement of material handling equipment. • Standardize locations of shipping and receiving points of service • Reduce required equipment turns • Reduce interactions between equipment
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Penthouse Units
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Staff Lounge
Receiving Bays
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Refrigeration
1 5 Shipping
Crow’s Nest
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Rooftop Units
THE SOLUTION: SUSTAINABLE PERFORMANCE REDUCE HUMAN AND ENVIRONMENTAL HAZARDS 1. F ewer motion conflicts: • Dedicated shipping and receiving areas improve equipment traffic. 2. Improve refrigeration: • Low charge ammonia units provide better service while limiting environmental impact. 3. Increase staff interactions: • Staff lounge creates opportunities to connect during breaks. 4. R educe ambient noise: • Fans located inside rooftop units mean internal warehouse noise level is greatly reduced. STREAMLINE AND INCREASE OPERATIONAL FLOW 5. Improve operational visibility: • Crow’s nest is situated directly between shipping and receiving zones. 6. Separate maintenance service and operations: • Refrigeration fan coils are serviced via penthouse units eliminating use of lifts and interference with productivity. 7. Increase operational space: • Dedicated receiving bays allow incoming traffic to be separate from outgoing. 8. Increa se capacity to receive, organize, and ship product: • Dedicated receiving bays allow incoming traffic to be separate from outgoing.
IMPORTANT DATES August 2018 - Design is completed August 2019 - Construction is completed September 2019 – Smithfield moves in January 2020 – Building is fully operational PROGRESSIVEAE.COM
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THE RESULTS BENEFITS TO THE TRIPLE BOTTOM LINE PEOPLE
PLANET
25% INCREASE in throughput capacity 28% DECREASE in first costs 52% DECREASE in energy costs 80% DECREASE in ammonia 33% DECREASE in ambient noise
Greenhouse gas reduction is equal to removing 400 cars from the road. LEED Silver Certification pending from the U.S. Green Building Council.
PROFIT
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SMITHFIELD FOODS NORTHEAST REGIONAL DISTRIBUTION CENTER
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ELEGANT SYSTEMS ENHANCED PRODUCTIVITY SUSTAINABLE PERFORMANCE
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CONTACT US Michigan Offices Phone: 616.361.2664 North Carolina Office Phone: 704.731.8080 Read Our Blog progressiveae.com/strategic-insights Watch Our Testimonials progressiveae.com/testimonials