Greenfield vs. brownfield logistics projects

Greenfield and brownfield are two fundamental concepts in logistics projects. Each defines the starting point of an investment: greenfield refers to building a warehouse on undeveloped land, while a brownfield project upgrades or repurposes an existing site. In today’s logistics landscape — resource and cost optimization are paramount — understanding the difference between greenfield and brownfield endeavors is essential for both warehouse automation projects and software implementations.

This post explores what distinguishes a greenfield project from a brownfield one. You’ll also find real-world examples and tips for choosing the best approach based on cost, timeline, and investment objectives.

What is a greenfield project?

A greenfield project involves designing and building a facility entirely from scratch, on land where no previous structure existed. Because such developments take place on undeveloped ground, all infrastructure — such as electrical systems and communications networks — must be planned and installed from the outset.

According to Deloitte, executing a greenfield project can take three to five years, from planning and obtaining permits to construction and commissioning. These time frames, however, mainly apply to manufacturing plants; in logistics, a rack-supported building can be built much faster, offering a clear advantage.

For automated warehouses, a greenfield project allows designers to define capacity, storage system height (a rack-supported building or free-standing racking within a facility), internal flows of goods, and full integration with logistics management software. The result is operational efficiency and long-term scalability.

As for logistics software solutions, a greenfield project means implementing a warehouse management system (WMS) for the first time. This lets businesses configure receiving, putaway, and shipping in line with their own strategies and integrate the WMS with an ERP system (such as SAP) from the design phase. The outcome is optimized workflows, product traceability from day one, and full leveraging of WMS capabilities without the constraints of legacy systems.

Greenfield projects: Examples in logistics

Although greenfield is traditionally associated with building on undeveloped land, in logistics, it often describes any project conceived or executed from square one — even on a previously urbanized site. A prime example is Lantmännen Unibake, a leading European supplier of fresh and frozen bakery dough. Its new turnkey warehouse in Nowa Sól, Poland, integrates two automated storage and retrieval systems (AS/RSs) — one for frozen products and another for chilled goods. The site provides a capacity for 15,920 pallets and connects directly to production lines, guaranteeing an outbound flow of nearly 100 pallets per hour.

“The rack-supported building was designed with a modular structure. This means that as our production rate increases, we can expand capacity by adding more aisles to the five we currently have,” says Jerzy Sobieszczuk, Lantmännen Unibake’s Supply Chain Manager for Poland and Hungary.

Digitally speaking, a greenfield project might consist of rolling out a new WMS at a recently opened logistics center. With no legacy limitations, the software integrates smoothly with other systems and ensures complete traceability from the start.

This was the case for German industrial service provider WISAG, which opened a fully digitalized warehouse in Frankfurt. The Mecalux Group’s Easy WMS enables the company to manage 10,000 SKUs accurately and reliably. “We were already familiar with Easy WMS’s advantages and capabilities, which streamlined implementation in our new facility,” says Michael Lederer, Managing Director of WISAG Logistics Solutions.

What is a brownfield project?

A brownfield project involves modernizing or rehabilitating an existing facility, using current infrastructure while reducing environmental impact. CBRE contends that this model is gaining momentum over greenfield projects, as it promotes efficient land use (net-zero-land take), lowers costs, and revitalizes industrial and urban zones.

Unlike in real estate, in logistics, brownfield and retrofit are often used interchangeably. Both refer to updating, digitalizing, or automating an operating warehouse to extend its service life and improve performance without erecting a new building.

Industry analyses — such as a Forbes report on brownfield warehouses — highlight that refurbishing an active center allows businesses to leverage strategic locations. Nevertheless, such projects present technical challenges, including adapting automation to existing structures and keeping operations running during construction. Against this backdrop, a brownfield facility with manual processes can be turned into an automated warehouse quickly and cost-effectively by incorporating AS/RS trilateral stacker cranes.

In digitalization terms, a brownfield software project often means replacing or upgrading existing technology — e.g., migrating from an older WMS to Easy WMS — while preserving data and maintaining ERP or production system compatibility. This type of retrofit modernizes the digital infrastructure without halting daily operations. Additionally, it builds on user experience with old systems and shortens implementation times compared to a complete rollout.

Brownfield projects: Examples in logistics

One noteworthy example of a brownfield project in logistics is IKEA Components in Slovakia. Mecalux converted the company’s existing manual facility into an automated warehouse without disrupting operations. Frantisek Stora, Managing Director of IKEA Components Slovakia, says: “We had experience in warehouse automation but primarily in greenfield projects — started from the ground up. With Mecalux’s help, we transformed an existing facility, leveraging the building structure and the racking. The project was more complex than others we’d done in the past, but now that it’s finished, I can confidently say that it was a complete success.”

Another case of a brownfield project in logistics software is the Electrolux warehouse in Cali, Colombia. Before implementing Easy WMS, the multinational appliance manufacturer had been relying on an outdated warehouse management system. “With a supply chain as dynamic as that of Electrolux, we needed a more advanced program with more capabilities. As our product range expanded, we realized the need for stricter goods control,” says Jeison Saavedra, Inventory Analyst at Electrolux. Today, with Easy WMS, the organization tracks 250,000 products in real time.

Greenfield vs. brownfield: Which to choose?

Deciding between a greenfield and brownfield logistics project depends on each company’s circumstances and investment goals:

• Space and location. If the business prefers a new design and has access to available land, a greenfield project is ideal. It enables optimized layout and infrastructure from the start.
• Operational continuity. If uninterrupted activity is critical, a brownfield project is the way to go. It allows for modernization in stages, minimizing disruption to material flow.
• Budget. Greenfield projects typically require higher upfront investment, while brownfield projects reuse existing logistics infrastructure, reducing costs and execution time.
• Technology and scalability. Greenfield projects support fully integrated, scalable solutions. Brownfield initiatives drive digitalization and automation while retaining (some) legacy systems.
• Risks and complexity. Greenfield projects provide full control over design and operations, though they entail more detailed planning and construction. Brownfield projects call for careful coordination to adapt to existing constraints but can be faster and more sustainable.

The right path to logistics modernization

The choice between greenfield and brownfield defines the foundation of any logistics retrofit strategy. Greenfield projects create an ideal facility from zero, while brownfield endeavors prove that automation and digitalization can transform existing warehouses with minimal operational impact.

In both cases, partnering with a technology provider specializing in turnkey AS/RS and software solutions is vital. It ensures that an organization’s investments will be efficient, scalable, and aligned with strategic objectives.