Is it better to construct your own facilities or “outsource” for space in public refrigerated warehouses?
Capital expenditure decisions involve significant resources that are committed long into the future. As a result, the Global Cold Chain Alliance and its Core Partners recommend that you spend considerable time and effort in evaluating plant asset proposals. The predicted cash flows must be compared to the required investments to determine if the return generated from each option meets or exceeds what management considers acceptable.
This Return on Investment (ROI) Kit was developed to assist companies in evaluating their temperature-controlled storage needs and whether those needs can best be met through construction of a distribution center, (referred to in this kit as “private warehouse space”), or through use of one of the many public facilities available worldwide and throughout GCCA-IARW membership.
Several techniques are available for evaluating capital expenditure proposals. This ROI Kit helps to organize factors to be considered in the capital expenditure decision, and provides worksheets to document your calculation of two commonly used methods. The kit includes several valuable worksheets.