Shifting a new warehouse is one of the most important steps when setting up a logistics and distribution company. It affects your efficiency and costs and, by extension, satisfies customers. So, if you are among those seeking a great location for your warehouse, here are some things to consider when choosing the right one.
6 Considerations Before Moving Warehouse Location:
- Location to Suppliers and Customers
Being close to your suppliers and customers can dramatically reduce lead times and decrease transportation costs. One can only imagine the following:
Supplier Locations: If the warehouse is near the key suppliers, then it can instantly increase its inventory management. Shipping time can be reduced, leaving ample time for considering the growth of any business.
Customer Base: The nearer you are to your customers, the faster you can ship the orders. Proximity will allow you to increase the level of service and better meet the needs of your customers. Fast deliveries will keep your customers satisfied and make them repeat business.
- Transportation Access
Good transportation options can make all the difference in any warehouse operation. Look for:
Road Networks: Easy access to major highways may make your shipping more efficient. Consider proximity to interstates and major roads: fewer delays, and lower transportation costs.
Rail and Ports: If you are using bulk shipments, then proximity to either rail lines or ports may offer options that otherwise are not cost-effective.
Public Transportation: Access to public transport is also a factor. Places accessible to public transport will attract a higher pool of workers. Thus, there will be a better chance of filling a vacancy.
- Availability of Labor
The right talents are needed to run your warehouse. Consider:
Labor Market in Local Region: You have to see if the labor pool in the immediate region has the skills required. Then, how hard will it be to find the people you need if the region has a strong labor market?
Wages and Benefits: Find out the prevailing wage rates and cost of living at the location. Harmonization of these aspects will enable you to control your cost of labor while ensuring that you have talent in your workforce.
Training Resources: Evaluate if there are training programs or institutions within the vicinity. Training can enhance the skills of your workforce, thereby enhancing operational efficiency to a large extent.
- Infrastructure and Utilities
A good infrastructure site can help you save a significant amount of time and money in the long run. Pay attention to:
Utilities: Availability of power, water, and internet infrastructures is fundamental. Verify whether the existing infrastructures can support your requirements without frequent power cuts or traffic.
Building Quality: Assess all the existing structures’ conditions. A good building will also keep renovation costs down and provide a good environment for your operations.
- Cost Considerations
Cost is always a factor. Ensure you:
Real Estate Prices: Compare property prices in different regions. Of course, the most affordable site would look very attractive, but additional charges may exceed the savings.
Taxes and Incentives: Check the local taxes and any incentives available for businesses. Some places offer tax abatements and grants for business relocation. This can be a deciding factor.
- Regulatory Environment
Dealing with the local regulations is a difficult task. Here are a few things you should consider:
Zoning Laws: Ensure that the location is zoned for warehouse use. Understanding zoning laws can keep you away from legal messes some other time.
Compliance Requirements: Check on regional regulations regarding safety, environment, and building codes. Compliance avoids expensive fines and possible delays.
Empower Smarter Warehouse Management with Pro-Racking Systems:
Pro Racking System is a renowned name in the warehouse solutions industry, with customized storage and racking solutions for various business needs. With years of experience, we understand that a well-run warehouse operation begins with the right selection of location, such as proximity to the suppliers and customers, and whether we must access transportation networks and labor sources. Our expert team works closely with you to design and build the best storage systems tailored to your space and operational demands. We ensure that work flows seamlessly, improve efficiency, and save cost. It is always a priority at Pro Racking System that you succeed.
Summing Up:
Selecting a new warehouse location is a multilateral decision requiring careful consideration of various factors. It is indeed by considering proximity with suppliers and customers, assessing access to transportation, ensuring labor availability, evaluating infrastructure, understanding the costs, and complying with regulations that one finds a place that helps him achieve his business objectives. It also works through warehouse solution providers who could help him make the best choices as they have already become accustomed to providing solutions for warehouses. A strategic location provides an entry to successful operations and long-term growth.
