Four Steps to Achieving Active Energy Management

The overall goal of an energy-efficient DC should be continuous improvement.

Energy efficiency can be an intimidating subject for managers of warehouses and distribution centers (DCs). In lieu of quantifiable data, most managers have an inkling that plenty could be done to increase their facility’s energy efficiency. After all, who hasn’t walked into an empty room and noticed the lights were on, or watched empty conveyors running endlessly? However, the constraints of available time and budget often make addressing energy usage challenging, particularly in trying economic times.

While there are many ways to improve an existing warehouse or DC’s energy efficiency instantly by varying degrees, the overall goal should be continuous improvement. That means energy efficiency should be viewed by facility managers as the end result of a strategic energy management plan. The most effective plans comprise four basic steps:

1. Measure energy use;
2. Fix the basics;
3. Automate where appropriate;
4. Monitor and control.

Carefully constructed, such a plan incorporates a keen understanding of ownership and management’s energy efficiency goals, including budgetary parameters and payback threshold, along with appropriate product solutions and technologies. In short, it will foster a mindset of ongoing energy planning and accountability while avoiding energy and cost savings erosion that will occur over time unless such a strategic plan is put in place.

Step 1: Measure Energy Use

Anyone who has gone on a diet can attest to the chagrin of getting on a scale and realizing it’s time to make healthier eating choices. Energy can be the same way. It can be shocking for managers of warehouses and DCs to realize the current state of their facility’s usage, which leads to the inevitable question of what to do.

Before doing anything, however, it’s critically important to establish an energy usage baseline because it can suggest the most effective course of action. Additionally, without a baseline, there will be no way to know later whether energy efficiency measures identified as part of a strategic energy management plan are working. Thus, the first step entails collecting data from major energy consumers and analyzing the impact of those consumers on total consumption. One of the most effective methods of accomplishing this is through power metering and monitoring.

Power meters are devices typically installed at various points within a facility’s power distribution system. The role of power meters is simply to record how much electricity is used on a circuit, which can provide a facility manager critical data about the areas within a facility that need to be addressed. Power monitoring is also effective because, in addition to metering electricity usage, these devices also measure power quality. Poor power quality, or power that’s rife with voltage sags and swells, can have a negative effect on facility components and contribute to substandard performance and unplanned downtime—a crucial issue for warehouses and DCs with deadlines to meet. Special software converts the raw usage data from power meters and monitors into historical data that can be studied to identify areas that require attention.

It’s also important to note that facility managers have the option to contact the local utility to schedule an energy audit when they realize energy usage and related costs have reached unacceptable levels. While an energy audit can provide a snapshot of the current state of a facility’s energy usage, unless it drives a strategic plan that is focused on continuous improvement, it will ultimately be of little value.

Want to use this article? Click here for options!
© 2012 Penton Media Inc.

Feature Article

2012 Top 10 Predictions for the Supply Chain in 2012



2012 will see the consumer take a more prominent role in directing the course of supply chain management, as volatile demand has become the new norm.

More Feature Articles


More Web Exclusive Features




MH&L Video Spotlight

Kuna Foodservice, a food distributor based in St. Louis, Mo., expanded to a 98,000 sq. ft. distribution center that includes a refrigerated receiving dock, freezer and storage area for paper and canned goods. Learn more.

Video Archive

Featured Suppliers

Browse Back Issues

January 2012

December 2011

November 2011

October 2011

September 2011

August 2011