Choosing the right warehouse location for your business is crucial. It can help reduce the shipping costs while contributing to an efficient storage process. Also, the perfect facility answers your customers’ needs, increasing the satisfaction. In addition, we share the factors you need to consider when picking the correct location.
Proximity To suppliers
The proximity to suppliers is crucial. The closer you are to them, the more your business will save on transportation costs. In addition, this helps reduce the disruption risks, which is very beneficial for companies working with perishable products.
Customer Locations
Despite being close to your suppliers, your warehouse needs to be close to your customers. Today’s customer wants to receive their order as quickly as possible. In addition, they are looking to pay as little shipping as possible. Meeting the demands will make your business more competitive in the market. Streamlining the distribution channel will reduce delivery time and provide lower shipping for your customers. For example, establishing your distribution facility in the area is ideal if your customers are located in the southeast.
Accessibility To transportation hubs
A strategically placed warehouse should be close to the major ones. If you work often with air cargo, your facility should be near a major airport. Or your warehouse should be easily accessible by the highway. If your working operation includes less than truckload transportation, finding your facility close to the carriers helps cut down money and time. The charlotte warehouse is strategically placed to allow easy access to major hubs.
Road conditions
Once you have the perfect location in mind, you need to research traffic conditions, roads, and highway systems more. The facility must be located near major highway systems to ensure connection. Analyze the traffic volume and visit times to identify any delays in your process. You don’t want your shipments to be late due to traffic congestion, resulting in customer complaints. Don’t forget to assess the road conditions as well. Substandard roads can question safety and accessibility.
Local factors
Your warehouse should be strategically positioned for fast delivery. Don’t forget that it should also be close to the employees. Also, remember that the demographics of the area you choose will influence the salaries you need to pay. Also, this will affect the available expertise and experience. You might have found the perfect location to accommodate your working process, but there might not be enough skilled labor in this area. In such cases, your service quality will decline, so you might need to pay more to attract high-quality labor. Don’t forget to count on natural events and rent costs when researching the local factors. In some areas, the rent costs can be higher than others. Also, look for opportunities such as government incentives or favorable tax structures.
Local laws and regulations can also impact your work process. Access limitations and vehicle size restrictions can impact the flow of goods. For example, some bridges can have weight and height limitations, making it impossible for trucks to pass.
Growth potential
A warehouse should have the potential to accommodate your company’s growth. If the facility doesn’t accommodate your future growth, you must search for a new location and establish a new warehouse. Relocating can bring many challenges, such as increased costs and employee turnover. Also, don’t forget to count on maintenance costs and utility availability. Modern businesses need internet access and telecommunication. So, the location needs to meet the specific technology demands.
