Are you looking for the perfect place to set up your new storage warehouse location? Is your company expanding and you need more space than what you currently have?
Deciding the location of your warehouse is a crucial part of your business that can make or break how much success you have. Finding the perfect combination of price and location is pivotal to the growth of your company.
But where do you even start? How do you decide if one location is better than another? Keep reading to learn about the most important things to consider when choosing your next warehouse location!
How to Find the Perfect Warehouse Location
There are endless things to consider when trying to find the perfect location for your warehouse. However, trying to satisfy all of them can drive you crazy. Here are some of the most important things to think about!
1. Where Are Your Customers Located?
When you determining the best location, you’ll want to take into consideration where your customers base is located. For instance, if most of your customers are in the southeastern part of the United States, then it wouldn’t make much sense to have your warehouse in the northwest.
There are 2 huge reasons why this is important. The first reason is that having your warehouse in the same area as your customers can cut down on delivery time. That means your customers get what they ordered sooner, and that’s always a good thing.
The second reason is that it will cut down on the shipping costs for you. Shipping 1 state away, will always be cheaper than shipping 6 states away. Faster delivery and cheaper shipping equal a win-win situation for you and your customers.
2. How Much Storage Do You Require?
Make sure you know what kind of storage you require and what accommodations might need to be made for your products. Do you need to store anything that is flammable or hazardous? What about food or things that are fragile?
When you are trying to pick the perfect location, you need to make sure whatever space you choose is going to be able to store your products properly. The last thing you want is a space where accidents could be more likely.
Along with that, you’ll want to think about the future. How big do you see your company growing over the next 5-10 years? Don’t just purchase a warehouse for the current size of your company.
You always want to plan ahead so you aren’t having to move every 5 years. Not only does that waste your time and resources, but it’s also an incredibly tedious task that can be avoided.
3. What is Worker Availability Like?
What’s the point in finding a good physical location, if you can’t find the right workers to employ? Having a great location within a city is more than just having the right space. You need qualified and skilled workers as well.
Research the locations you are considering. Find out what the general education level and skill level is of people in that area. Also, find out how many qualified workers there actually are in that area or part of town.
If there are not enough skilled workers, that means the ones who are there, are going to want higher salaries because they know they are in need. Obviously, we aren’t saying pay people poorly. But finding a location where there are enough workers to satisfy your need will help keep your salaries at a reasonable level.
4. How Are You Going to Pay for It?
If you are a newer business or are not sure how much growth potential you might have over the coming years, coming up with a payment gameplan is critical. You don’t want to purchase a warehouse outright if you’re going to outgrow it in only a couple of years.
On the other hand, if you know you might be headed toward some significant growth, finding a property you can lease might be a great idea. That way you will have more flexibility to change or relocate depending on how much you actually grow.
Also, if you are considering a location that has a decent amount of extra space on the property, look into what you can do with that space. You may outgrow the current building, but it may be cheaper to build onto it, instead of trying to find a whole new building. Especially if the location is perfectly placed.
5. How Close Are Carrier Services?
Being close to your customers is wonderful, but if the closest carrier is 100 or 150 miles away, that’s not ideal. Try to find a good balance between the distance to your customers and the distance from the carrier services you require.
The closer everything is to each other, the quicker you can get your customers their products. That, in turn, equals happy customers who are more likely to become repeat customers.
6. Is It Easily Accessible?
You never want to choose a location that is out in the boondocks. Make sure the locations you are looking at are easily accessible for anyone trying to get there. Whether it’s your employees, your other facilities or the carrier services, make it easy on them.
The most ideal setting would be somewhere that is close to major highways. This is especially true if you are having products shipped and driven in from somewhere a little farther away.
7. What Are Any Possible Risks?
This is something that is extremely important to consider in a warehouse location. Do your research on the area the building is located.
Is it located in an area known for flooding? Are there trees or other things that could damage the facility if a bad storm rolled through?
These are the kinds of things you want to make sure to think about. Talk to your insurance company and see what the cost would be to properly insure your warehouse and limit any future catastrophes.
The Perfect Place
As you can see, deciding on your warehouse location involves more than its physical location. If you make sure to do all of the things we talked about, you’ll have your bases covered and feel confident knowing you chose the right place.
If you’re struggling to find the best location, don’t worry! Contact us today and let us help you with all of your warehouse and logistics needs!