We understand how difficult it can be to find the best warehouse for your business, so we have created an overview of factors to take into consideration while you are researching the various options.
The first two factors are probably the most obvious, and initially the most important, however, considering aspects three to five will help you narrow down your search results and benefit you in the long run.
1. Location One of the first questions to have in mind is ‘Where are my customers located?’ You would want to choose a location that is close to them, ensuring faster and cheaper deliveries. Secondly, ask yourself ‘Is this location convenient for shipping my goods?’; for instance, are there any carrier facilities close by or how are the transport routes?
2. Cost The cost of warehouse space will be a key factor in your decision making. When evaluating prices, please consider other factors that impact your costs as well. A prime location will be more expensive than a warehouse situated in the periphery area, yet choosing an A-location might positively impact your shipping costs. Create a list of all costs and determine how choosing warehouse A or B impacts these costs.
3. Storage requirements Are your current or future products fragile, flammable, or hazardous? Or do they need to be stored at a specific temperature? Next to warehouse size, facilities and layout, warehouse safety and proper accommodations play an important role. Look for a warehouse that meets your company's needs and plan for the future; you don’t want to outgrow your new facility in a short time.
4. Available workforce in the area Look beyond the hard factors such as price and size and consider the demographics of your warehouse location. Are there skilled people available in the area; for the right price? Can you secure all the staff you need? When demand is high and availability is low, you might end up paying more labor costs than you initially wanted to. So, evaluate the job market, and education & income levels prior to selecting your warehouse.
5. Keep future plans in mind Consider if your new warehouse will accommodate your potential future expansion. To plan for longevity it is best to analyze your data and potential growth before choosing a warehouse. This way, you can determine beforehand if the specific warehouse meets your future requirements, which will prevent you from embarking on a quest to find a new warehouse all over again.