How to Choose a Warehouse Location

How to Choose a Warehouse Location

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When running a shipping company, location is probably the number one factor that can ensure its success. Proximity and being able to meet deliveries on time are crucial, meaning that you want to have a warehouse that can meet demands as easily as possible. With these factors in mind, this guide has been created as your essential overview with regards to what you should bear in mind when choosing a warehouse location. Read on to learn all about it. 

Rent Cost

Cost is such an important point to consider when looking for a warehouse. Naturally, warehouses in more competitive areas are likely to have higher rental prices, so it could be worth going somewhere more non-traditional, but this will have to be figured out via a complex analysis process. This means that it might be a smart option to bring in another company in order to ensure the best supply chain network optimization

Proximity to Other Businesses and Customers

By being as close as possible to the people that you serve, this means that the time it takes delivering to them can be minimized as much as possible. You should also be thinking about how close you are to other suppliers, meaning that if somebody orders something you don’t have in stock, it can be transported to your warehouse then to them in the minimal amount of time. Ideally, you should be equidistant between supplier and customer in order to maximize productivity. 

Workforce Availability 

It makes sense to set up your warehouse near the right people. With this in mind, it might make sense to set up next to a city, like Tesla in Berlin, but this might mean that there are a lot of other potential competitors, meaning that salaries are high. In less served areas, you could hire for lower salaries and maximize profit, but the likelihood of availability as well as skilled workers could decrease. It makes sense to think deeply about where to place the warehouse in order to weigh up these two competing factors. 

Proximity to Air, Rail and Sea Ports 

In today’s globalized world, it is likely that your warehouse will not just serve the community nearby but will be used to service locations all across the globe. That’s why it makes sense to make sure that you are as close as possible to air, rail and sea ports, so once an order has been made, it can reach almost anywhere within just a couple of business days. Just be sure to school yourself on the different and often difficult-to-understand import/export rules and regulations that are required when dealing with other countries.

Roads and Access 

It’s not enough just to have a warehouse near the people you want to serve. It’s also important to know that you have easy access to roads so trucks can come and go with minimum pressure. By maintaining a smooth flow of goods and services, your warehouse can turn the best possible profit. 

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