Design Budget

A tale of two budgets addresses a common perception that warehouses don’t warrant investment in design. In the first instance, the CFO is likely to approve the budget for a warehouse if the costs are based on historical benchmarks.

The COO presents a warehouse budget to the CFO. The CFO agrees with the budget since the budget uses historical benchmarks.

The challenge to design costs can occur for any reason. The CFO might believe a simple warehouse of racks and forklifts doesn’t need any design work. Or the CFO might expect the COO or staff should be able to develop a simple warehouse design.

The CFO challenges design costs in a budget, even when the design promises a reduction in overall expenses.

For help in developing a warehouse budget, reach out to us here.