Smithfield Case Study

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.

PROGRESSIVEAE.COM

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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

PROGRESSIVEAE.COM

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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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2

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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