A warehouse is a key to any supply chain. When you think about how important a warehouse is, it’s not hard to imagine them as the eyes and ears of a logistics company at both the local and global levels.
It is essential for warehousing processes to be able to keep up with technological advances that contribute to faster and more efficient material flows, especially in today’s market that has fierce competition among companies. The goal is to increase the speed of material flow and cut costs while keeping an eye on efficiency. Any reduction in lead times and overall cost drives growth.
Key Factors to Consider for the Right Warehouse Location
Let’s glance at the warehouse location & construction strategy that will help you choose the finest feasible location for your business:
1. Physical location and accessibility
When deciding on a place for your warehouse facility, always think about its proximity to transport hubs. Your warehouse should be near to major transport mediums. You should select your location based on accessibility and convenience to you. Ensure that the place is easily accessible by roads and highways, especially if you plan to use trucks to transport goods. Also, assess what it would cost you to get the labor for your warehouse.
Transportation costs can vary greatly depending on many factors. Here are a few key considerations while transporting items or materials to and from the warehouse facility:
- Availability of public transportation
- Highway accessibility
- Interconnectivity of highways
- Traffic volume
- Peak traffic hours
- Conditions and safety on the road
2. Layout design of your warehouse facility
It’s important to think about the layout of your warehouse to optimise productivity. For example, a wholesaler might encounter more traffic than a specialty retailer and so needs an expanded storage area with ordering units clearly defined so that products can be moved out of the way when necessary. This is what we call day-to-day flow.
Without it, you may have problems storing your merchandise in an orderly fashion. Setting up a good flow should be something considered at the planning stage of your warehouse design.
3. Right size
You need to find a warehouse that meets your business’ specific needs because if you don’t, then your business might run into problems. You need to ensure that the warehouse has the capacity and infrastructure for all of your goods. It also should be able to accommodate more products if you’re planning on expanding for any reason in the near future.
It’s very important to know that if you choose too big of a warehouse, then it could lead to being overcharged for renting empty space. Making sure everything is calculated down to the last detail is crucial here so factors like proximity are important as well. Being able to store all your inventory comfortably and properly is vital when choosing the correct warehouse.
4. Proper storage facility
Stores that deal with hazardous, flammable materials or food items should store them in a proper warehouse. The location should meet the standards of top-notch storage facilities, and there should be firefighting equipment ready if any accidents occur. Furthermore, the area must also have enough resources to be able to handle any unforeseen circumstances that may arise. For example, the area has ponds or other water resources.
5. Supply chain partners
When deciding amongst the many warehouse locations, you should make sure to pick one that is accessible to your supply chain partners. This will reduce transport costs and help prevent delays in product delivery times. An ideal warehouse site should be accessible to nearby ports if you’ll be importing goods from suppliers overseas or exporting them.
6. Environmental conditions
When deciding on the ideal place for your warehouse location, you must consider what kind of weather that area has. If you are looking for a warehouse location with lower rental rates but later find out that the area often receives natural disasters, it might not turn out to be such a great choice after all.
The next step is to decide whether or not the community will accept your warehouse facility. If your business is all about noise, then it isn’t a good idea to choose a warehouse location near key schools and neighborhoods since some disruption could affect them negatively. Additionally, if dealing with dangerous materials like flammable material, choose an isolated area where there are no residences so as not to cause harm or create noise pollution, which can wear on neighbours’ patience and even endanger those living in close proximity to the facility in case of a mishappening.
When choosing the warehouse facility for your business, don’t forget to analyse the short-term cost and long-term investment. Make sure your deal is a good one. Just because something looks great in the beginning doesn’t mean everything will be same afterwards as well. Compare aspects like the terms and conditions of any lease agreement before signing the contract.
Also, consider how long the building will be rented at a given price and how you might need to pay taxes on the property, too. There can also be lots of other fees to keep in mind, so look for ways to save money through things.
No matter whether you are relocating or constructing a new warehouse, choosing the right warehouse location is very important. Warehouses play an important role in the supply chain of a business.
Before making any decisions, do some research and make sure you understand correctly what is most critical for your company. This process can be overwhelming for small businesses, but compiling all the data will help you make a more informed decision about where to start out.
It’s vital for you to keep an eye on the space and capacity needs of your warehouse. That means taking into account things like the types of products being stored and corresponding storage needs as well as plans to ship items out from a facility. It varies from business to business, but there is a process for making sure you have done due diligence with regard to space or storage limitations before beginning operations.