Today’s market is competitive, and this means that a company needs to find the right location for a distribution warehouse. This is a critical decision in the profitability of a corporate supply chain. In this article, we will discuss the top five things to consider when choosing a warehouse location.
- Layout & Flow
First, start by asking yourself what you will actually need the warehouse for. Of course, you are getting a warehouse to hold stock, but you will need to dig deeper and analyze the various features that warehouses can offer you. For example, you will need to consider the layout of the warehouse. What do you need for your business, and what will fit the way you operate? While you are considering the warehouse, think about what design will work best for your business to allow the best flow of traffic. After all, bad designs and bad layout can be a liability and a hassle for your business.
- Size & Capacity
Another important consideration to keep in mind when choosing a warehouse is the size and capacity. When choosing a warehouse, there are a few important things to keep in mind. For example, does the warehouse offer enough storage space? If it is too big, there will only be empty, wasted space. Find one that strikes the right balance between too little and too big. Also, you’ll need to consider the growth of your business. Does your warehouse need extra room if your business grows? Another thing to keep in mind is that you will need plenty of space around stored items to maneuver products.
- Distribution
When choosing a location for your warehouse, you’ll need to keep in mind what your distribution needs entail. This is when choosing the right location really is important; a location close to a distribution center means low costs for you. It also means easier shipping and receiving. You’ll want to build or find a warehouse in a location that is convenient for shipping products to your customers. If your business is large, you’ll need to ask yourself if the warehouse location will be sufficient for supplying regional demand.
- Access
Accessibility is another factor that you’ll need to consider when looking for a warehouse location. The location will need to give you access to all the aspects of your business that meet your needs. For example, it will need to have good access to customers for easier transportation and shipping. Check if the roads are good, if access is available, what traffic is like and if there is clearance for trucks.
Another element to consider is proximity to workers and the job market. What is a good area where you will be able to staff all the needed jobs in the warehouse? Are there enough workers nearby that will have the skills that you need? Also, is the warehouse within a reasonable commute for these workers?
- Costs
This is perhaps one of the most important elements to consider, as the cost of the warehouse will have a large effect on your company. Is your current warehouse location the most cost effective, or would it be better to move elsewhere? For example, healthy local demands in labor can drive up labor costs, while putting your warehouse in an area with a large transient population will result in more training costs. You’ll need to put together a labor analysis with all these important factors to consider.
As we have discussed, there are many factors to keep in mind when searching for a warehouse location. Take careful consideration when choosing a warehouse location as overlooking an important factor can lead to losses and greater costs for your business. If you’re looking for a cost-effective storage solution, consider Allshelter for your next warehouse. We’ll be more than happy to find a warehouse efficiency solution that works for your company. More information is available on our website at https://www.allshelter.com.au/. Contact us today!
