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cold storage, cold-room

Case study: Installation of a high – speed door generates a ROI of 225%

In this article we will give you an overview of a recent case study on usage of cold-room doors aimed to double its life-span and reduce operational costs.

Description of case study:

Object: Installation of a high-speed door doubles the life-span of cold-room sliding doors, and cuts maintenance costs

The purpose of this case-study: to demonstrate that installation of a high-speed door is an investment that generates a very high return, because it doubles the life-span of cold-room sliding doors and cuts costs of maintenance dramatically.

Country: El Salvador

Year: 2018

Sector: Refrigerated Food Logistics

The purpose of this case-study: to demonstrate that installation of a high-speed door is an investment that generates a very high return – it doubles the life-span of cold-room sliding doors and cuts costs of maintenance dramatically

STEP #1: The current situation of Cold-Room sliding doors

In July 2018, during a visit to a recently-build refrigerated distribution center, we noticed that all the cold-room sliding doors were seriously damaged. 

These cold-room sliding doors separate Freezer from a Cooler areas, where workers load trucks with goods to deliver. 

At a first glance, we focus on these details immediately:  

  1. We detect several bump signs on the cold-room sliding door
  2. The bumps on the lower side have badly damaged the sliding system
  3. Ice formation on the outer frame of the door

When we approach the door, we see the impact of ice formation:

  1. The frost built-up such a thick layer on the rail of the cold-room sliding door, that now it cannot close anymore, creating a leak of chilled air
  2. The ice has pushed the door away from the frame and damaged the sliding system 

The strip curtain that laid behind the sliding door is completely torn apart from the use:

  1. At the time being, the strip curtain is useless
  2. Constant hits of forklifts damaged the strip curtain 

STEP #2: Assessing the damage – method

To appraise the damage and evaluating the advantage of installing a high-speed door, we did the following: 

  1. Firstly, we assessed the cost of replacing every single door once in 10 years;
  2. Secondly, we evaluated its life-span, based on the current experience;
  3. Finally, we compared the ROI of this scenario against the ROI of installation of a rapid-roll door.  

STEP #3: The evaluation of the Return of Investment

Based on the actual situation, below we calculate the total costs on 10-years life span for a sliding cold room: 

  1. In the observed case, without high – speed door installed, the investor had to change the sliding cold-room at least every five years;
  2. The lack of high – speed door generated increased maintenance costs for the sliding cold – room door (e.g. change of gaskets, repair the sliding system, change of the handle);
  3. In the case where high – speed door is present, we see a higher initial investment;
  4. The high – speed door decreases dramatically the cost of maintenance of the sliding door, effectively doubling the life-span on the sliding cold – room door;
  5. We come to the conclusion that the installation of a high – speed door generates a ROI of 225%.
Conclusion: Installation of a high – speed door generates a ROI of 225%

In conclusion, ROI calculation breakdown:


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DOOR TYPE

HIGH-SPEED DOOR

LIFESPAN 

ISTALLATION COSTS


ISTALLATION COSTS

MAINTENANCE / 1 YEARS

MAINTENANCE / 10 YEARS

TOTAL COST

WITHOUT HIGH-SPEED DOOR

4 x 4 m Low Temp Sliding Door

NOT

5 YEARS

10.000,00 $

ON A 10 YEARS  SCENARIO

20.000,00 $

900,00 $

9.000,00 $

29.000,00 $

=

WITH HIGH-SPEED

DOOR


4 x 4 m Low Temp Sliding Door

4 x 4 m Low Temp High-Speed Door

10 YEARS

14.000,00 $

ON A 10 YEARS  SCENARIO

14.000,00 $

200,00 $

2.000,00 $

16.000,00 $

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*ROI = (GAIN FROM INVESTMENT – COST OF INVESTMENT)/COST OF INVESTMENT

Alberto Adriano

Entrepreneur in the field of International Commerce of Industrial Thermal Insulation; Sales Director at Globe Panels Ltd; 12 years of experience in Sandwich Panels; Exporting to Latin America since 2009.
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