ASTM E3056-16(2021)
(Guide)Standard Guide for Strategic Warehousing
Standard Guide for Strategic Warehousing
SIGNIFICANCE AND USE
5.1 This guide provides the considerations for the management of warehouses and warehouse contents.
5.2 The central objective of this guide is to ensure that warehousing activities appropriately contribute to the mission of the entity.
5.3 Measuring and managing the effectiveness of an entities’ warehousing activities should result in sustained usefulness of warehoused assets, reduced administrative costs, improved accountability, and enhanced operational performance.
5.4 This guide makes a differentiation between the physical warehouse facility (also called “Real Property”) and the contents of the warehouse (also called “Personal Property,” “moveable asset,” “product,” or similar term that differentiates the contents of the warehouse from the physical structure of the warehouse itself). Considerations of both these aspects of the warehousing function must be coordinated to lead to effective warehousing activities.
SCOPE
1.1 This guide provides strategic considerations for effectively managing warehouse facilities and the contents of warehouses (collectively “warehousing assets”).
1.2 This guide does not override or increase requirements specific to governmental authorities. To the greatest extent practicable, the guidance in this standard should be considered by these entities where efficiencies may be gained.
1.3 The values stated in inch-pound units are to be regarded as standard. No other units of measurement are included in this standard.
1.4 This standard does not purport to address all of the safety concerns, if any, associated with its use. It is the responsibility of the user of this standard to establish appropriate safety, health, and environmental practices and determine the applicability of regulatory limitations prior to use.
1.5 This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.
General Information
Relations
Standards Content (Sample)
This international standard was developed in accordance with internationally recognized principles on standardization established in the Decision on Principles for the
Development of International Standards, Guides and Recommendations issued by the World Trade Organization Technical Barriers to Trade (TBT) Committee.
Designation: E3056 − 16 (Reapproved 2021)
Standard Guide for
Strategic Warehousing
This standard is issued under the fixed designation E3056; the number immediately following the designation indicates the year of
original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. A
superscript epsilon (´) indicates an editorial change since the last revision or reapproval.
1. Scope action to be followed. The resources put into the business case
depend on the complexity of the situation and the potential
1.1 This guide provides strategic considerations for effec-
impact of the decision. A formal business case may be written
tively managing warehouse facilities and the contents of
out in a structured and logical manner, whereas an informal
warehouses (collectively “warehousing assets”).
business case may be developed simply through conversations
1.2 This guide does not override or increase requirements
and deliberations.
specific to governmental authorities. To the greatest extent
3.1.2 material handling equipment (MHE), n—equipment
practicable, the guidance in this standard should be considered
that relate to the movement, storage, control and protection of
by these entities where efficiencies may be gained.
warehousing assets (for example, materials, goods, equipment,
1.3 The values stated in inch-pound units are to be regarded
and products) throughout the process of manufacturing,
as standard. No other units of measurement are included in this
distribution, consumption and disposal.
standard.
Modified from Wikipedia
1.4 This standard does not purport to address all of the
3.1.3 warehouse, n—buildings or facilities used for storage
safety concerns, if any, associated with its use. It is the
of personal property assets, including supply distribution
responsibility of the user of this standard to establish appro-
centers, material storage facilities, and structures used for
priate safety, health, and environmental practices and deter-
storage of vehicles, equipment, and surplus assets. Also in-
mine the applicability of regulatory limitations prior to use.
cluded are underground or earth-covered ammunition storage
1.5 This international standard was developed in accor-
bunkers and magazines. This category excludes water reser-
dance with internationally recognized principles on standard-
voirs and petroleum or gas storage tanks which are storage
ization established in the Decision on Principles for the
structures.
Development of International Standards, Guides and Recom-
3.1.4 warehousing, v—the activity of storing, handling, or
mendations issued by the World Trade Organization Technical
otherwise utilizing a warehouse to focus on the management of
Barriers to Trade (TBT) Committee.
personal property assets contained within.
3.1.5 warehousing assets, n—the warehouse facility and the
2. Referenced Documents
materials or moveable assets housed within the facility.
2.1 ASTM Standards:
E2715 Practice for Moveable Property Storage
4. Summary of Guidance
E2135 Terminology for Property and Asset Management
4.1 Effective warehousing activities require a sound busi-
3. Terminology ness case decision to store moveable assets for short- or
long-term storage, operational staging, and other reasons.
3.1 Definitions: For additional definitions related to prop-
erty and asset management, refer to Terminology E2135. 4.2 This guide outlines the scope of strategic warehousing
3.1.1 business case, n—the sum of an entity’s review and activity; the numerous considerations provided here are not
analysis of pertinent facts and alternatives regarding a plan of developed in detail as there is much to be said on each aspect.
This guide is intended to ensure the entity is aware of the scope
of warehousing considerations.
This guide is under the jurisdiction of ASTM Committee E53 on Asset
4.3 Entities should be able to realize significant cost savings
Management and is the direct responsibility of Subcommittee E53.01 on Process
Management.
and increases in efficiency when warehouse facilities and
Current edition approved Dec. 1, 2021. Published December 2021. Originally
warehouse contents (collectively “warehousing assets”) are
approved in 2016. Last previous edition approved in 2016 as E3056–16. DOI:
managed strategically and holistically.
10.1520/E3056-16R21.
For referenced ASTM standards, visit the ASTM website, www.astm.org, or
4.4 Strategic management of these warehousing assets and
contact ASTM Customer Service at service@astm.org. For Annual Book of ASTM
activities goes beyond simply providing needed items in an
Standards volume information, refer to the standard’s Document Summary page on
the ASTM website. effectivemannerandatminimumcost;italsoentailsanoverall
Copyright © ASTM International, 100 Barr Harbor Drive, PO Box C700, West Conshohocken, PA 19428-2959. United States
E3056 − 16 (2021)
perspective that asks “do these items need to be warehoused?” to operate a warehouse activity or increase effectiveness, or
or “do these items need to be warehoused in this facility?” both. Options may affect the warehouse structure itself or just
Savings and efficiency gains may be realized when the size of the stored assets.
the warehouse facility is reduced to the smallest size feasible
6.5 Lifecycle costs must be considered—A business case
due to efficient operation of the warehousing activity and most
decision must look at costs and benefits throughout the
effective use of the space available.
lifecycle of the warehouse activity. For example, short term
4.5 This guide also provides the operational practices that savings in leasing an older warehouse facility may be offset in
an entity should consider to make their warehousing activities the long term by decreased flexibility to meet entity needs and
effective and contribute to the entity’s mission, and also limitations of the structure itself to employ more efficient
suggests metrics to gauge the efficiency of a warehouse or operations. Future warehousing needs (increased or decreased
warehousing program. activity) should be considered. Also see 7.1.3.
6.6 Knowing the operational requirements—Presumed
5. Significance and Use
throughout the previous sections of this paragraph is that the
entity acquiring, using, or disposing of the warehouse facility
5.1 This guide provides the considerations for the manage-
is fully aware of the entity’s operational requirements. In
ment of warehouses and warehouse contents.
actuality, this awareness cannot be presumed in planning a
5.2 The central objective of this guide is to ensure that
warehousing activity. The facility must reflect and address the
warehousing activities appropriately contribute to the mission
entity’scarefully-consideredneeds.Thewarehousingfacilityis
of the entity.
a tool for the effective management of the assets and materials
5.3 Measuring and managing the effectiveness of an enti-
stored and managed within, the ownership, lease, or manage-
ties’ warehousing activities should result in sustained useful-
ment of the warehouse facility, or combinations thereof, is not
ness of warehoused assets, reduced administrative costs, im-
an end in itself.
proved accountability, and enhanced operational performance.
7. Assets in a Warehousing Activity (Warehousing Assets)
5.4 This guide makes a differentiation between the physical
warehouse facility (also called “Real Property”) and the
7.1 Aspects Related to the Warehouse Facility:
contents of the warehouse (also called “Personal Property,”
7.1.1 General Type of Construction—The type of construc-
“moveable asset,” “product,” or similar term that differentiates
tion of the structure itself should reflect the need of the entity
thecontentsofthewarehousefromthephysicalstructureofthe
to store the moveable assets, while at the same time minimiz-
warehouse itself). Considerations of both these aspects of the
ing entity costs.
warehousing function must be coordinated to lead to effective
7.1.2 Location—Considerations include:
warehousing activities.
7.1.2.1 Proximity to Operational Requirements to minimize
transportation costs and the time to move assets between the
6. Strategic Considerations
warehouse facility and the places where the assets are needed.
Also, consider the risk and liability of catastrophic disasters on
6.1 Is warehousing needed?—Are the items being ware-
population centers if storing hazardous materials.
housed necessary to contribute to the entity’s mission? Often,
7.1.2.2 Access to Services such as needed utilities and most
entities continue a warehouse activity largely because it is
efficient transportation arteries.
easier to not make a hard decision and continue an operational
activity than to go through the considerable effort of disman- 7.1.3 Facility Layout—Considerations include:
tling a non-essential warehousing activity. 7.1.3.1 Vertical Dimension—Higher ceilings increase the
volume of the storage capacity without increasing the footprint
6.2 Should warehouse functions be consolidated (central-
of the facility. Higher ceilings may also be necessary for
ized) or decentralized?—Depending on the costs and benefits
storing tall or large assets. Taller facilities might lead to
associated with operating warehouses in different locations,
cheaper costs/square foot, which may lead to reduced carrying
effectiveness might be gained if activities can be consolidated
costs.
at centralized “hubs” (in lieu of numerous locations essentially
7.1.3.2 Horizontal Dimension—A basic measurement of
providingthesamefunction)ordecentralized(iflessexpensive
warehousing space providing the physical footprint of the
locations may be utilized in lieu of more expensive ware-
facility. In general, large and heavy objects would be stored on
houses). Calculate full cost/benefit factors and use the proper
the floor, and so the horizontal dimension would directly
business tools to arrive at an optimum solution.
indicate the storage capacity.
6.3 Are there alternatives to warehousing these moveable
7.1.3.3 Best Fit of Items to be Housed—There may be
assets?—The entity should consider alternatives such as just-
circumstances where the shape of the items to be stored don’t
in-time purchasing, enhanced supply chain management, or
dictate a squared storage area, such as when storing bulk
sharing warehouse activities with different organizations
materials. Warehousing costs may be reduced i
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