How to finance the sustainable warehouses of the future – now!

Jan 23, 2023


Making operations more sustainable is a key goal for many logistics businesses, including when it comes to their warehouse. As a result, many are implementing plans to make their operations more environmentally sound, but with this can come significant investments. This is where DLL can provide support for your sustainability journey.

Sustainable developments for old and new warehouses
Many logistics organizations are exploring ways to bring their current warehouse facilities up to date to help meet ‘green’ objectives. For instance, increasing recycling output, switching to energy efficient LED lighting, installing solar panels for power and improving insulation.

However, with the average age of a warehouse in the US standing at more than 30 years, many of these sites are unsuitable for simple updates. There is a big efficiency gap, extending into areas such as power, water and heat usage, between old and new warehouses. Businesses with dated warehouses simply cannot continue to run efficiently, let alone meet sustainability targets.

In these cases, logistics applications are increasingly opting for greenfield development of new warehouses, which are more sustainable, and at the same time, can better support the needs of today’s consumer. The creation of a new warehouse also presents an exciting opportunity for these businesses to look at improving efficiency in other areas.

Financing new warehouse technologies
To maximize productivity or minimize costs, many businesses are not only considering the role of sustainability when developing their new warehouses, but also if there are ways that automation could be helpful. In many cases, automating warehouses, or parts of them, can provide greater efficiencies, and reduce the human factor in a sector where the right labor is in short supply.

DLL’s intralogistics experts work closely with businesses facing this exact scenario to develop custom financing packages for warehouse automation, rooted in asset finance expertise and encompassing specific business needs.

With intralogistics financing solutions from DLL, businesses can finance a wide variety of automated innovations, including picking systems, racking, automated storage options, conveyor and AGV (Automated Guided Vehicle) systems, AMRs (Autonomous Mobile Robots), sorting solutions, and robot palletizing systems, to name just a few. In addition, DLL is also able to finance investments into carbon-saving technology to make warehouses even more sustainable. These finance solutions can also cover the associated costs of software, consultancy, training, and installation.

We understand that sufficient investment equity is not always readily available to fund the costs of automation and that every warehouse is different. So, the DLL team works closely with businesses to understand their unique needs, delivering a flexible solution that can help lower the total cost of operation (TCO), while at the same time helping to reduce their CO2 footprint. For example, it is possible to finance all progress payments during the installation period, or to create an agreement where payback only begins after the automated warehouse is up and running, helping support better cashflow.

Supporting the switch to green equipment
Alongside automation, there is also an increasing trend toward the electrification of warehouse equipment, such as lift trucks, in a bid to reduce emissions and make operations more environmentally friendly. DLL supports users, dealers and manufacturers with innovative finance solutions designed to support those keen to switch their large fleets of materials handling equipment from IC power to electric.

However, it is not only in the warehouse that DLL is supporting sustainability. More and more organizations are aiming to transition to electric vehicles in last mile delivery operations. This is another area where DLL already has proven expertise supporting customers with electric vehicle finance. Read more in this customer story.

Supporting your sustainability journey
Whether financing automation for green warehouses, or electric vehicles and materials handling equipment, for DLL, supporting customers on their journey to more sustainable operations is part of the bigger picture. We are focused on e-Mobility and building fresh solutions to help customers on this energy transition journey. Our goal is that this will not only provide new finance options for electric vehicles, but also for charging infrastructure, fleet maintenance, fleet management and more.

As requirements evolve, DLL is continuing to explore agile solutions so that whatever sustainability objectives you work towards, we can be with you all the way.

Creating a sustainable automated warehouse? Learn more about our expert Intralogistics team or contact us now. Or read more about options for financing equipment fleets, including electric vehicles, here.