How do I check a food co-packer’s cold storage and receiving dock capacity?
See the cold rooms and the dock at their busiest, not on a quiet day. Ask how full the space gets at peak, how trucks are scheduled, and what the temperature records and equipment history show. Capacity you cannot see in use is only a claim.
Visit during a busy shipping or receiving window if you can. Watch how long trucks wait, how pallets move and whether product sits on the dock. Ask how many customers compete for the same dock times and what happens when two arrive together. A congested dock caps growth no matter how good the production line is.
Inside the cold rooms, ask how full they run at peak and whether the plant has ever turned away work for lack of space. Request temperature logs and alarm records, and ask who responds after hours. Ask about the age and service history of the refrigeration equipment, and whether replacing it is on the horizon. An independent refrigeration technician can assess what you cannot. Finally, ask how growth would work. Could you add racking, or would you need another building? Compare what customers want to store with what the space allows, and ask your accountant what upgrades would cost against the income they would support. Write down what you saw, with times and counts of waiting trucks if you take them. A clear record of the actual constraints makes later conversations with the seller easier, and helps you plan how much work the plant can really absorb.
Key takeaways
- Observe the dock and cold rooms during peak activity, not a quiet day.
- Read temperature and alarm records, and ask who responds after hours.
- Ask what extra capacity would take: racking, equipment or a new building.
Related reading
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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