November 20th, 2013
Have you overlooked the strategic importance that a good warehouse holds? Choosing the correct warehouse is indispensable to catering to your company needs.
Importance of a warehouse
- Be it a public warehouse or a contract based property, storage solutions is the prime function it offers.
- Holding extra goods during busy seasons is the advantage that an optimum warehouse must provide.
The keys to warehouse selection
- Conduct appropriate analysis and plan strategically as you do while making other important decisions and purchases.
A thorough analysis of the warehouse location is essential for the following reasons:
- It allows you to function in different geographical regions
- You can meet your customer needs by selecting a warehouse in the target market sector even if your in-house distribution is located elsewhere.
- It enables you to choose the market and then the property and not vise versa, therefore adding to the advantage.
Room for expansion
This is the major key factor that must be looked in a warehouse because:
- Busy days in the market require extra storage room.
- Adding up to the value added capabilities of any warehouse will benefit you during the hours of need.
- The potential capacity of warehouse must involve the futuristic idea of additional space that might be required.
- Switching to different warehouses every time your requirements change is practically impossible.
Therefore, you must choose a warehouse where future expansion plans can be implemented.
- Your company’s inventory requirements should get the essential system support from the warehouse.
- This support is imperative for the growth and safety of your products.
Ease in transportation
- Your warehouse location should be such that is connected with all the means of transport.
- In today’s global scenario, an easy port access becomes indispensible.
- Access to good railway network ensures that you can serve the people of your country with ease.
Don’t get fascinated with low prices, low transportation access can be the reason for it.
Timing of occupancy
- This is critical to your needs especially if you are looking out for a public warehouse.
- Layout of the warehouse is governed by how your inventories are to be operated.
- The receivable and the exit section must settle to a correct balance.
- Also, it must be support efficient storage, i.e. there must not be waste empty spaces that cannot be utilized to its complete capacity.
- This factor is inevitably going to affect your decision.
- The cost of the warehouse must be calculated in terms of both its location (prime or a far off location) and the cost of transportation.
Job market connected to the warehouse location
- This factor is especially applicable if you are locating your warehouse at a place distant from your in-house distribution.
- In such case, it becomes essential to ensure that your staff requirements could be met or not both in terms of experience and qualifications.