Future-Proof Your Supply Chain | Material Handling

When businesses look to upgrade their fulfillment and material handling operations, they may need to decide whether or not to expand their network with a greenfield (new, purpose-built) facility or to improve the operations and capabilities of a brownfield (existing) facility. Each option has its pros and cons to sort through. For example, a greenfield project may need to pay closer attention to its material handling technology budget as part of the full construction costs, while a brownfield project may need to pay closer attention to building layout or how to switch over existing processes.

To navigate challenges like fluctuating demand, labor shortages, and operational inefficiencies, businesses ought to adopt warehouse automation systems tailored to their business and specific facility needs, whether it’s a greenfield or brownfield. That is where TGW Logistics comes in. A leader in automation systems, TGW Logistics specializes in developing efficient, customer-driven material handling solutions that work for both greenfield and brownfield settings.

Material Handling Solutions for Greenfield and Brownfield Operations

Greenfield facilities have the advantage of being scratch-made with optimized floor plans designed for their purpose. Greenfield locations can more easily implement the latest technology, energy efficiencies, and advanced automation processes like TGW Logistics’ FlashPick, an innovative order fulfillment system for goods-to-person (GTP) picking. High-capacity shuttle systems can attain rapid, high-throughput ecommerce, retail, and wholesale fulfillment in tandem with TGW Logistics’ PickCenter One workstations and conveyors.

Greenfield facilities have many advantages but also some downsides, including more significant capital investment and longer timelines for becoming operational. They carry a certain amount of risk concerning labor, regulations, environmental requirements, and other hurdles common to new construction projects.

In contrast, brownfield projects involve upgrading or retrofitting existing facilities. Brownfield projects may cost less overall than new construction but can be more complex, necessitating flexible automation processes due to space constraints and legacy infrastructure. The timelines for implementation are generally shorter than greenfield, and upgrades can often be made with little disruption to existing operations. Nevertheless, the same TGW Logistics systems that can be implemented in greenfield projects, like FlashPick or FullPick, can also be tailored in size and shape to work in brownfield sites. By retrofitting or upgrading a brownfield site in this way, businesses achieve notable improvements in space utilization and order processing times, strengthening their overall distribution network without taking on the cost and scope of a greenfield project.

In reality, most businesses will at some point need to take on both greenfield and brownfield projects. For example, in order to expand territories, a greenfield may do a better job of hitting SLAs than improving the throughput of a brownfield. While on the other hand, a company may be looking to reduce overhead and can slim down the number of DCs in a region by upgrading a brownfield with automation and consolidating multiple buildings. The benefit of utilizing TGW Logistics automation, which is suitable for a wide array of industries and can be implemented in brownfield and greenfield facilities, is the reduction in complications in managing different systems depending on the building type.

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Financial Considerations for Automation in Mixed Facility Networks

Cost is a central decision-making factor for any upgrade, renovation, or building project, including the type and scope of material handling automation. Leasing options are available for both greenfield and brownfield facility automation, offering businesses a way to preserve capital and allocate resources more strategically. In greenfield projects, some providers offer bundled leases covering both the building and the automation system, reducing the need for significant upfront expenditures. Instead of a large cash outlay for construction and technology, companies can direct capital toward investments with faster payback periods, making these lease agreements attractive. For brownfield facilities, leasing automation systems separately provides a similar financial advantage, allowing businesses to enhance existing operations without diverting funds from other high-priority initiatives. A company operating both greenfields and brownfields might lease a full-scale automation solution for the new facility while retrofitting its existing warehouse with modular automation, balancing costs and maximizing ROI. With automation, businesses expect a tangible ROI in three to five years.

Much of that ROI comes from eliminating manual processes and reducing labor costs. A company with warehouse automation may reduce labor costs by up to 50% after implementing material handling automation.

Metrics that drive financial returns and justify an investment in automation include:

Savings on labor costs
Savings on energy costs due to increased footprint utilization
Improved speed and accuracy, getting more orders out the door
Decreased error rates throughout the supply chain, reducing return rates and dissatisfied customers
Reduced cost per unit through more efficient processes

When working with companies to determine the best automation solution for their building, we conduct an analysis of a client’s ROI, internal rate of return (IRR), and the cost-effectiveness of customized solutions across their entire network. This ensures that your financial priorities and operational goals align.

Efficiency & Future-Proofing Across Facility Types

Both greenfield and brownfield facilities benefit from energy-efficient automation systems, such as smart energy management conveyors that monitor and adjust power usage to optimize performance and minimize waste. The U.S. DOE reports that energy-efficient systems can reduce warehouse energy consumption by up to 30%, which means these solutions are valuable across both types of facilities.

That said, greenfield projects offer additional opportunities to integrate broader sustainability measures from the ground up. Companies can design facilities with optimal material flow, maximizing efficiency while incorporating things like solar panels, natural lighting, and LEED-certified building practices. These are all easier to implement during construction, creating a more sustainable foundation in the long term.

Meanwhile, in brownfield facilities, automation upgrades still drive energy efficiency and operational improvements, though existing layouts may need adjustments to accommodate newer systems. Considering this, retrofitting brownfield sites with modular automation will extend their lifespan, improve efficiency, and reduce environmental impact without needing new construction.

TGW Logistics specializes in developing custom material handling systems that align with clients’ environmental and operational goals and enhance efficiency across varied facility types.

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Human-Machine Collaboration in Mixed Networks

Even with highly automated warehousing systems, human-machine collaboration should be at the forefront of the design to leverage the strengths of both entities. TGW Logistics offers ergonomic manual workstations prioritizing worker comfort and efficiency in both greenfield and brownfield settings. These systems incorporate advanced automation into human workflows, promoting employee health and well-being and increasing job satisfaction and productivity.

Retrofitting brownfield settings with autonomous mobile robots (AMRs) and modular technology, like automated storage and retrieval systems (ASRS), can alleviate the manual strain currently facing employees. TGW’s Quba portfolio includes AMRs that adapt to existing infrastructures and building layout, ensuring seamless integration and long-term availability.

Facilities that streamline their operations with ergonomic workstations and mobile robots can improve their workers’ safety and satisfaction while reaping the benefits of increased productivity and cost savings. Additionally, TGW provides robust employee training programs to aid in the transition to automation in greenfield and brownfield environments.

Real-World Greenfield and Brownfield Success Stories

Case studies of real-world applications of adaptable automation solutions illustrate how they significantly improve operations in greenfield and brownfield settings for companies like URBN and Jasco.

URBN, the parent company of Urban Outfitters and Anthropologie brands, consulted with TGW Logistics to implement a highly automated, flexible fulfillment solution in its new distribution center in Kansas City, Kansas. Using TGW Logistics’ FlashPick system, URBN is able to fulfill retail and ecommerce orders nationwide from this one centrally located greenfield building, reducing the need for future distribution centers. Additionally, the flexible automation effortlessly adjusts to the material handling requirements of numerous brands and shifts in sales demand, promoting efficiency and scalability.

Jasco, a consumer electronics and lighting company in Oklahoma City, selected us to upgrade their existing warehouse with a smaller FlashPick system that incorporates semi-automated palletizers. The automation solution improved Jasco's picking operations by eliminating the need to walk and repeatedly lift heavy goods. The setup also allows for split- and full-case orders, supporting omni channel fulfillment.

Adaptable Automation: Breaking the “Black Box” Mold

TGW Logistics designs flexible material handling automation systems that scale and adapt to both greenfield and brownfield facilities. This eliminates the rigidity of “black box” solutions. Unlike fixed-size automation packages that require businesses to buy an entire system as is, TGW Logistics customizes solutions to fit specific building requirements and can adjust them as well. TGW Logistics delivers automation that conforms to the business, not the other way around. Adaptable automation fosters a customer-centric approach, where client needs and constraints drive the solution rather than forcing conformity to inflexible technology. TGW Logistics produces measurable results, increasing throughput, cost-savings, and scalability while maintaining the flexibility to meet future challenges.

Supply chains prepared for the future require advanced material handling systems that adapt to greenfield and brownfield facilities. Companies that leverage technology and innovation to adjust to a dynamic and rapidly evolving market have better longevity. TGW Logistics delivers scalable, flexible solutions that improve efficiency, reduce costs, and address unique operational challenges.

Download our eBook to learn more about how our automation systems can transform your business’s supply chain. Contact TGW Logistics for personalized guidance on tailored material handling solutions that align with your financial, operational, and efficiency goals.

Future-Proofing Your Supply Chain: Adapting to Greenfield and Brownfield Challenges