Demand Planning, Delivers the Right Solution
Demand planning is one of the primary ways to ensure you are pursuing the right solution for any real estate investment. It is a vital framework to optimize real estate that includes efficient production and delivery. By applying this methodology, a lean and efficient workflow can be developed - one that reduces waste of time and space, optimizes resources, and improves overall productivity. The benefits of applying a structured demand planning process are enhanced clarity and focus on operations, improved resource utilization, and measurable increases in productivity. By reducing waste and establishing efficient workflows, you can deliver consistent output quality. This methodology can be applied to a single space, across a portfolio of facilities, and everything in between. Ultimately, a well-executed demand planning process ensures alignment between production capabilities and market demands. Through careful analysis and thoughtful design, an experienced design and construction management firm can help you create the right solution that aligns with your organization’s vision.
Here is a real world example of the value of Demand Planning;
When a client faced the possibility of constructing an 8,000 square foot climate-controlled warehouse, they turned to REID for guidance. Through a meticulous demand planning exercise, we demonstrated that rather than building new space, an existing 3,000 square foot facility could be transformed to meet their needs—leading to a savings of over $500,000 and a more efficient, scalable operation.
We began by examining the clients’ processes, products, and storage requirements, applying targeted strategies to unlock maximum value from their existing real estate portfolio. Here are a handful of things we did to challenge assumptions, resulting in a lower cost solution with ongoing benefits.
· We assessed item storage conditions, identifying which products could be stored outdoors, under covers, or in non-climate-controlled areas, reducing reliance on costly climate-controlled space.
· We designed a logical flow, minimizing travel distances.
· Zoning was used to separate fast-moving parts from slow movers
· We maximized vertical and horizontal storage and introduced modular racks for future scalability.
· A vertical carousel was incorporated to maximize cubic storage capacity, improving access and reducing clutter.
· JIT inventory practices were implemented to decreased excess stock. ABC analysis prioritized critical items, while RFID and barcoding provided real-time tracking, enhancing accuracy and reducing waste.
· A digital Warehouse Management System (WMS) and IoT sensors provided real-time insights into inventory levels, environmental conditions, and movement patterns, enabling proactive decision-making.
· Delivery schedules were adjusted to avoid congestion and optimize the dock layout
By applying these strategies, the client successfully converted their existing space, avoiding the need to build costly new infrastructure. This approach not only saved them over $500,000 but also resulted in:
Improved warehouse productivity
Enhanced inventory accuracy
Greater space utilization
Increased operational flexibility
Lower operating costs
This success story exemplifies how proactive demand planning—focused on process analysis, layout design, and technology—can unlock hidden value in existing assets. The client achieved a more efficient, cost-effective operation without the need for costly expansion, demonstrating that smart planning often surpasses mere space investment.
Engaging the Right Partner
A design and construction management firm like REID plays a crucial role in elevating the value of the demand planning process—something that often gets overlooked or underutilized when approached solely by internal teams or standard architectural design. While an architect can design spaces based on your requests, they typically don’t challenge the underlying assumptions that led to those requirements. REID views demand planning as the foundational opportunity to maximize both capital and long-term operational efficiencies from the outset.
Facilitated by experienced professionals, this process—guided by practical, common-sense principles—may seem straightforward, but its true power lies in its strategic impact. When owners try to undertake this internally, their perspective is often limited by proximity to daily operations and reinforced by the "curse of knowledge," which can constrain innovation and cause them to overlook better solutions.
A fresh set of expert eyes, unburdened by routine practices, is invaluable. REID’s approach challenges assumptions, clarifies why tasks are performed the way they are, and identifies new opportunities for efficiency and cost savings. This proactive, objective perspective ensures that all design and operational decisions are optimized from the start—delivering greater value, reducing risk, and setting a solid foundation for long-term success.
