Feasibility Studies

The main scope of a Feasibility Study is to assess if there are opportunities to significantly increase productivity and reduce operating costs with minimum or no capital expenditure.

There are several activities involved in a Feasibility Study. This study begins with observing, documenting, and analyzing the existing work methods, procedures, and conditions, as well as utilization of equipment and manpower, housekeeping, and other activities, in order to identify problem areas and opportunities for cost reduction.

The second phase of the Feasibility Study is to determine if the conditions exist to conduct a Methods Improvement Study to analyze the previously identified problem areas and provide viable solutions to reduce operating costs, streamline operations, and improve service level, product protection, and operator’s safety.

The third phase is to assess the need for implementing Engineered Labor Standards (ELS) for all the operations conducted at the facility under scrutiny and to provide management with a choice of Incentive Programs to be associated with the ELS.

After these three phases are completed, our engineers will provide management with an extensive report on the findings plus the following documentation:

  1. Estimated Savings associated with the implementation of the recommendations contained in the Methods Improvement Study;
  2. Estimated Engineering Costs involved with conducting a Methods Improvement Study;
  3. Estimated Savings associated with the implementation of the ELS for each operation;
  4. Estimated Engineering Costs involved with developing and implementing ELS;
  5. ROI and Estimated Pay-back Period for each proposed implementation.

The cost of a Feasibility Study is $10,000, plus traveling and lodging expenses. We are willing to drop the cost of the Feasibility Study if our potential client is willing to pay for the expenses incurred by us while conducting the Feasibility Study. These expenses include lodging, meals, car rental, and airfare or transportation from/to our offices. We are willing to invest our time and money only if our potential client is willing to act in good faith by investing his time and money as well in a joint venture that could be highly beneficial to all parties involved.


Testimonials

When it comes to a sophisticated approach to distribution and warehouse management, working with Applied Logistics was a natural. Their systematic approach saved us money and allowed us to run our distribution of nationwide products efficiently. Our partnership benefits all at Lowe's. Joseph Mabry; Executive VP of Logistics & Distribution As one of the largest food & drug retailers in North America, Safeway Inc. is an innovative company founded on a simple value philosophy: taking care of our customers is what Applied Logistics did for us. Reliable and safe distribution and management systems allowed us to maximize our revenue. Jerry Tidwell, Sr. VP Safeway Supply Operations Applied Logistics exemplifies the values of Snap-on. Their strong ability to demonstrate integrity, always respect the company in all situations, promote our teamwork, and listen to our inputs to suggested solutions, has made us value our partnership with Applied Logistics. Over the years our distribution, transportation and warehouse management efficiency has drastically increased due to their innovative software and management process. If you are not using it, you are simply wasting your money! Gary Henning, Operations Development