How To Reduce Energy Costs For Your Distribution Business
April 23, 2018
Running a distribution business can use huge amounts of energy. Most of this energy is consumed by keeping storage facilities well heated, cooled and lit. Energy is a large expense for any business that uses storage facilities although your specific energy demands are dependent on what is in storage.
For companies that have large-scale warehouses, energy bills can be astronomical. But where are those costs coming from?
Did you know that:
- For some companies, refrigeration can be as much as 50% of their energy bill
- On average, 25% of businesses’ electricity costs come from lighting
- Heating accounts for 31% of an average retail energy bill
Saving energy is one of the simplest ways to increase profits. Creating efficient energy usage environments helps to reduce costs in both the short and long term. In most distribution businesses, energy costs only represent a small percentage of turnover but reducing them can directly increase margins without the need to increase sales. According to a Carbon Trust study, a 20% cut in energy costs equates to the same bottom-line benefit as a 5% increase in sales.
Cutting carbon emissions for your distribution business
In addition to any economic benefits, there are several social and environmental advantages of reducing energy consumption. Cutting carbon emissions, slowing climate change and improving air quality are just a few examples of issues that are of increasing importance to customers. Many consumers are choosing retailers who are taking responsibility for the environment through their energy decisions.
Find out more about Ignite’s Net Zero services.
Distribution centres, in particular, pose a complex challenge with regards to energy efficiency. Large open spaces, with varying uses across individual areas, often constantly occupied, mean these buildings are inherently difficult to control and optimise.
Warehouse energy consumption can be extremely high but there are several steps that can be taken to reduce this usage and achieve substantial savings.
Energy Saving Lighting Solutions for warehouses & distribution centres
Many warehouses use high bay-type lighting mounted several metres from floor level. This style of lighting uses vast amounts of energy and is often not as effective as it could be with light being lost over tall racking down distribution centre aisles.
LED lighting upgrades represent a great opportunity to dramatically cut consumption of energy thirsty traditional light fittings. They will also improve the direction of light to where it is most needed. There are a huge variety of options available that cater for various applications. At Ignite, we work with skilled contractors across logistics and installation to rollout LED lighting upgrades at scale.
In addition to changing to LED, these light fittings can be further optimised using built-in sensors to measure occupancy and ambient light levels. Occupancy detection is highly effective in distribution centres, due to the fact that individual aisles are not in use 24/7. Zones can be created that only turn on when the area is occupied.
Energy Saving Building Controls Solutions
Heating, cooling and other on-site equipment all use large amounts of energy, and if not properly controlled could be a source of wastage. In some cases, refrigeration can be as much as 50% of a company’s energy bill. Ignite ensure that you have all the data required to make intelligent decisions and prioritise energy efficiency projects. With our custom BMS and optimisations, we can help you get the control you need to reduce consumption and save money on energy.
Why Choose Ignite Energy?
Ignite Energy partner with large businesses to help them reduce energy consumption and cost. Working with some of the UK’s leading brands, we have carried out energy efficiency works on several of their distribution centres. They include New Look, WHSmith and Pets at Home.
If you would like to find out more about what we can do for you, please email us here or call us on 0333 023 2222.