To choose a warehouse correctly you need to think about more than just space and location. However, very often business owners forget to consider many other aspects and suffer severe money loss as a result. Therefore, it is essential to have a warehouse that suits your needs. We prepared a simple checklist of what to consider.
Main points when you choose a warehouse
General convenience. Before you even start looking for an actual place, you need to evaluate a few things. First of all, think about what you need for smooth logistics. Then consider the layout of the warehouse. How should it look like and would it suit your operational needs?
Furthermore, think about the size. A warehouse should fit your stock, but not stay mostly empty. Besides, it must be able to accommodate your current needs but also allow for future expansion.
Moreover, would it be easily accessible for various types of transportation? Or maybe it is hard to reach and requires complicated directions. Lastly, think about any other specifics your business already requires.
Location. This factor needs to be considered carefully from a few angles. The warehouse should be situated where it would be comfortable for distribution. Therefore, you must know where your customers are. Before starting to consider any location, pinpoint your customer base and central regions.
The perfect location should allow you to serve the majority of your customers in a short time. Consequently, the close proximity would reduce shipping costs and help you save valuable resources. Even more, fast delivery and cheap shipping is a feature that enables you to keep customer satisfaction rates high and increase loyalty.
Cost. Try to incorporate various costs into the total amount. For example, add shipping costs to your defined customer base. Maybe if you get a warehouse outside the city, it would be cheaper, or perhaps vice versa? Moreover, consider staff wages, administration, taxes and everything else that running a warehouse needs to include.
What else should you consider?
Possibility to expand. Think about your business plans and future expansion. Then consider if a new warehouse could hinder that expansion. Moving warehouses is an expensive and labour-intensive task, therefore think ahead and take the necessary steps in advance. What if suddenly you need to reduce the storage space? Would this warehouse still be the right choice?
Workforce. This may not be applicable to smaller companies. However, it is crucial for large ones. It means that after you have selected the location, you need to look for someone to work there. If it is outside the city or in a small town, will you have enough staff?
Besides, think about the experience and qualifications that you require and inspect that particular sphere. Otherwise, you may end up with inexperienced staff which will require thorough training and additional resources.
The available workforce can be a significant factor in determining future profits or increasing costs. The lack of potential employees may result in high salaries and low qualifications. Before settling in with a new warehouse, you must understand that the demographics can impact your staff retention, productivity, effectiveness and turnover rates.
All in all, it is an intense task to choose a warehouse. If you do it right, then the new premises may influence total business success. Be thorough with your considerations and include a wide variety of factors.
