Feasibility study central control room

A large logistics service provider is considering a central control room. Controlling all security functions (people and technology) and investigations using video must be centralised and at a lower cost. Is that feasible? How do you substantiate such a business case to make an investment decision?

Situation

A major operational shift forced this organization to rethink its security model. Distribution centers and other sites had long relied on security officers, but over time their role expanded to include numerous non-security tasks.

Reference point

There is now extensive automation and process control through camera systems, a complete redesign of the logistics process, and structural modifications to the facilities. This enables centralized security management and reduces the (costly) reliance on personnel. Managing security from a central control room — or, in industry terms, a corporate alarm monitoring center — appears to be the most effective solution. However, perception of safety and rational analysis do not always go hand in hand.

Assignment

The assignment was to demonstrate, through a solid business case, that a central control room was not only technically feasible, but would also deliver cost savings sufficient to justify and recover the initial investment. Total cost of ownership and the investment’s payback period were central to the analysis.

Approach

Significant time was invested in engaging stakeholders, consulting operational staff, and developing a well-founded financial analysis. Technical possibilities were carefully mapped out. Emotional resistance regarding the role of people versus technology was addressed and overcome. The projected savings were presented realistically — not overstated, but clearly linked to decisive decision-making.

Result

The business case was approved. The control room — and the projected savings — were successfully realized. Since then, DutchRisk has also advised on the security concept in preparation for the relocation of the headquarters.