Green Warehouse

Description

The main goal of this project is to enhance Aspasia-92 Ltd.''s presence in the national bottled water market by implementing a complementary shuttle storage system in an eco-friendly warehouse. The project''s specific objective is to promote eco-friendly innovations within the company. The introduction of advanced warehousing equipment is expected to substantially increase storage capacity, leading to more efficient production cycles. Importantly, the innovative storage system at the core of this project is designed to achieve zero energy consumption for heating.

This initiative is poised to strengthen the company''s competitive position through increased turnover, higher net operating profit, and the creation of new jobs. Additionally, by adopting these innovative technologies, Aspasia-92 Ltd. aims to reduce CO2 emissions by implementing more energy-efficient production processes.

Summary of project results

The project outlined for Aspasia - 92 Ltd. addresses several key issues and challenges that have been hindering the company''s growth and operational efficiency. Here’s a deeper look into these challenges:

1. Insufficient Storage Capacity: The company''s growth is impeded by inadequate warehouse space. As demand for their award-winning EKO H2O water increases, the lack of storage has become a significant bottleneck, affecting their ability to meet market needs effectively.

2. Inefficient Production Cycles: Currently, production is limited to once a week due to space constraints. The planned expansion aims to streamline this process, enabling production to occur every three weeks, which would optimize efficiency and increase output.

3. Energy Loss During Production Adjustments: Each production adjustment requires equipment to go into "stand-by" mode, resulting in energy loss and wasted production time. By enhancing storage capacity and implementing a shuttle storage system, the company seeks to minimize these adjustments, thus conserving energy and maximizing production time.

4. Labour Inefficiencies: The frequent need for readjustments not only results in energy losses but also incurs additional labour costs due to the extra man-hours required for these redundant tasks. The new storage system will allow for more streamlined operations, ultimately reducing labour costs and improving workforce efficiency.

5. Environmental Sustainability: Aspasia - 92 Ltd. is committed to promoting green innovations. By integrating a shuttle storage system and continuing its initiatives like tree planting and reducing plastic use, the project aims to bolster the company’s sustainability efforts, aligning with broader environmental goals.

6. Market Competitiveness: Increasing the market share in the national bottled water sector is a primary objective. The improvements in storage and production capacity will enhance the company''s ability to respond to market demands, thereby strengthening its competitive position.

7. Supporting Broader Economic Goals: The project aligns with the overarching objective of fostering sustainable growth in the Bulgarian business sector. By implementing innovative technologies and promoting sustainability, Aspasia - 92 Ltd. contributes to creating value and advancing economic resilience.

Overall, the project is designed to tackle operational inefficiencies, enhance production capabilities, and promote sustainable practices, thereby positioning Aspasia - 92 Ltd. for future growth and success in the competitive bottled water market.

The project undertaken by Aspasia - 92 Ltd. involves several key activities and outputs aimed at enhancing the company’s operational efficiency and promoting sustainable practices in its warehousing processes. Here’s a detailed breakdown of what the project has done:

Activities

1. Equipment Procurement:

   • Objective: To ensure transparency and obtain the best value for the shuttle storage system.
   • Components: The new system includes various elements such as shelving structures, safety fences and nets, protectors, shuttles, a reach truck, and a pallet jack.
   • Procurement Process: A tender procedure was organized, adhering to the company''s internal regulations, to select suitable suppliers for the equipment.

2. Installation and Commissioning:

   • Delivery and Installation: After procurement, the new equipment was delivered and installed under the supervision of company personnel to ensure proper setup.
   • System Testing: Thorough testing of the shuttles was conducted to confirm functionality and safety.
   • Training: Workers received comprehensive training on operating the new machines, ensuring they were equipped to manage the new technology effectively.

Outputs

1. Increased Storage Capacity:

   • The implementation of the shuttle storage system significantly enhances the warehouse''s storage capabilities, allowing for multiple products and batches to be stored in one corridor. This represents a substantial improvement over the old drive-in systems, which only accommodated one product and one batch at a time.

2. Optimized Production Cycles:

   • The changes in storage capacity facilitate an increase in production efficiency. The production schedule, which previously allowed for production every week, is now expected to allow for production every three weeks, leading to a more streamlined operation.

3. Enhanced Energy Efficiency:

   • The new warehouse equipment is designed to be more energy-efficient. It eliminates the need for a traditional heating source, as the shuttle system maintains optimal temperatures (between 5 and 25 degrees Celsius) throughout the year, resulting in zero energy consumption for heating.
   • The project is projected to save approximately 541.44 mWh per year in energy consumption, translating into a significant reduction of 160,158 kg in CO2 emissions.

4. Labour Efficiency Gains:

   • The innovative shuttle storage system reduces the need for intensive manual labour by automating the transportation of goods within the warehouse. This allows warehouse operators to focus on higher-level tasks rather than the labour-intensive maneuvering required by older systems.

5. Long-Term Growth Facilitation:

   • By overcoming the storage limitations that previously restricted production, the project positions Aspasia - 92 Ltd. to fully utilize its production capacity. This capability supports continuous long-term growth, allowing the company to respond effectively to market demand and expand its market share in the national bottled water sector.

Overall, the project not only addresses immediate operational challenges but also aligns with Aspasia - 92 Ltd.''s commitment to sustainability and innovation. The enhancements made through the shuttle storage system reflect a strategic investment in both efficiency and environmental responsibility, paving the way for future growth and competitiveness in the bottled water market.

The project has achieved significant outcomes that positively impact various stakeholders, including the company itself, its employees, customers, and the broader community. Here’s a detailed breakdown of the results and their implications:

1. Economic Outcomes for the Company

• Increased Competitiveness: The project has led to a projected growth in turnover and net operating profit. By investing in innovative technologies, the company has strengthened its market position, making it more competitive.
• Job Creation: The company hired two additional employees, contributing to local job growth and economic stability.

2. Environmental Impacts

• Reduction in CO2 Emissions:

  • The project achieved an estimated annual decrease of 160 tonnes of CO2 emissions through more energy-efficient production processes. This includes a significant reduction in energy consumption, specifically 541.44 MWh less electricity usage annually, which equates to saving 160,158 kg of CO2.
  • Innovations in warehouse operations will further contribute to this reduction, including a 68.8 MWh decrease in energy consumption and the elimination of 3,400 litres of diesel and coal usage annually, moving from a baseline of 4.4 tonnes of diesel and 2.5 tonnes of solid fuel in 2019.

• Increased Waste Reuse and Recycling: The project enhanced the company’s waste management practices, resulting in an additional 4 tonnes of production waste being collected for reuse or recycling each year. This includes:

  • Recycling 1,375 kg of paper and eliminating the need for labels, increasing total recycling from 16 tonnes in 2019 to 20 tonnes by 2024.

• Green Energy Production: The introduction of innovative technologies will enable the production of 220 MWh of green energy annually, further contributing to the company’s sustainability goals.

• Use of Recycled Materials: By 2024, 30% of the plastic used for bottles will be derived from recycled materials, resulting in a reduction of 143,914.83 kg of virgin plastic. This initiative will lead to an estimated savings of over 330,000 tonnes of CO2 emissions, significantly mitigating the company’s environmental footprint.

3. Customer and Community Benefits

• Enhanced Customer Satisfaction: The improvements in production efficiency and quality allowed the company to deliver better-quality products within shorter timelines. This responsiveness to customer needs strengthened relationships and enhanced brand loyalty.

• Promotion of Green Innovations: By showcasing these innovations among partners and stakeholders, the company stimulated interest in sustainable practices within its supply chain and customer base. This could encourage a broader shift towards environmentally friendly practices in the industry.

• Support for Nature Preservation: The alignment of the new equipment and building with the latest EU energy efficiency standards signifies the company''s commitment to environmental stewardship, positively impacting the community and ecosystem.

The project not only positions the company for financial growth but also significantly advances its sustainability agenda. By reducing emissions, enhancing waste management, and improving product quality, the company sets a precedent for responsible manufacturing practices. The benefits extend beyond the organization, positively affecting employees, customers, and the environment, creating a ripple effect of positive change in the community.