Strategic factors affecting warehouse maintenance costs

Abstract

PurposeThe purpose of this paper is to determine the fundamental factors influencing maintenance costs of logistic buildings and to provide benchmark indications for designing maintenance efficient warehouses that contribute to the enhancement of business performance.Design/methodology/approachThe relations between factors and indicators of building facilities maintenance costs are examined using regression analysis of a dataset collected from about 100 distribution warehouses leased by a leading global freight provider throughout Italy.FindingsMaintenance cost reduction can only be achieved by making appropriate design decisions on the strategic characteristics of warehouse facilities. In particular, the location and the age of a building are relevant factors of breakdown maintenance, while the monthly volume of freight transiting the warehouse is a significant cost factor of maintenance due to damage.Research limitations/implicationsThis paper is limited to logistic service providing organisations, has local impact, and does not consider operational requirements in suggesting design criteria. Further research may gainfully generalise the model by examining other businesses, geographical areas and industrial operations issues. Leasing and frequently relocating facilities have emerged as appropriate distribution management strategies to control location, size and age of a building, and thus to face dynamic business conditions.Originality/valueThis paper provides maintenance cost benchmarks and supports design decision making of distribution warehouse facilities.