Relumination | Dillard’s DC#29 Case Study
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Case Study: Dillard’s DC #29

Categories: Warehouse & Distribution

dillards pano

Location: Gilbert, AZ
Facility Size: 300,000 sq. ft.
Environment: Distribution Center
Installation Type: Retrofit

Opportunity

Founded in 1938 by William T. Dillard, Dillard’s has grown to over 290 stores in 29 states. They utilize a network of distribution centers to accommodate both their store inventory needs, as well as their growing e-commerce operations. The distribution center located in Gilbert, Arizona – just outside of Phoenix, was built in 1991 and expanded years later. The original lighting had been upgraded to T8 Fluorescent around 2008. Like many facilities that upgrade to T8 lighting, they soon learned that part of the energy savings came from reduced light levels – something that over time began to cause safety and quality control issues. In addition, the cost of maintaining the lighting with only a small crew of maintenance staff was a burden on operational efficiency. Exterior lighting had not been touched since it was originally installed and the HID lighting wasted almost 90% of its energy as heat. Something had to change.

Solution

Working closely with the operations and maintenance team at Dillard’s, Relumination was able to not only reduce lighting-related energy and maintenance costs (by over 80%) but also, the new lighting nearly doubled light levels throughout the warehouse and exterior areas. By combining energy-efficient LED lighting with an intelligent control system, each area within the facility could be programmed to run as needed. During the morning when product receiving takes place the light level in those areas is increased, and later in the day, the level is automatically reduced. With a control system that records energy usage, occupancy, and light levels, Relumination was able to tune the system to maximize savings while substantially improving worker comfort, safety, and quality control. Now the most advanced distribution center within the Dillard’s network, the Gilbert DC is the model for future facilities.

Financial Metrics

  1. fm-icon-1Annual Lighting Energy Savings

    $60,826

  2. Annual Maintenance Savings

    $17,935

  3. Utility Incentives

    $40,870

  4. ROI

    3.75 Years

  5. 10 Year Cost Savings

    $787,610

Benefits

  1. Energy and Maintenance Cost reduction
  2. Light level improvements for safety and productivity
  3. Supported company’s environmental sustainability program
  4. Improvements in operational efficiency and worker productivity

Environmental Metrics

  1. 584,520 kWh Saved Annually

 

  1. Greenhouse gas emissions from 152 tons of waste sent to the landfill

 

  1. Carbon Sequestered by 512 Acres of US Forests in One Year

  1. Greenhouse Gas Emissions from 93.1 Passenger Vehicles Driven for One Year

 

  1. CO2 Emissions from 47 Homes’ Energy Use for One Year