Deciding on the location of your warehouse is an important decision that affects all aspects of your business. You will have to find a balance between a convenient location and a reasonable rent price. Your warehouse’s location has a direct contribution to your company’s efficiency and the overall customer experience. If you are looking to lease or buy a warehouse location or convenient storage service, making this decision can be hard because of the many things to keep in mind. But to make sure your company can effectively serve your customers efficiently, effectively, and profitably, consider the following tips:
Keep in mind the Consumer Base you are Targeting
When picking a warehouse location, consider the location of your target customers. Identify your customer base and the region you want to serve. You will want to pick a warehouse that is in close proximity to your desired customers lets you deliver your products fast. Also, this will decrease shipping costs ensuring a positive experience for your customers.
Think about the Proximity to Carrier Services
A warehouse located near carrier facilities will let you streamline the shipping process. Look for a location that provides both convenience and proximity to your customers and carrier service. Determine a balance of distance between the manufacturing facility, warehouse storage, and customer. Then, take into account the transportation and shipping costs that come with this distance.
Consider Storage Requirements
It is important to consider any special requirements that you may need to make for your products. Do you have flammable, fragile, or hazardous products? Ensure the proper accommodation can be made at your desired warehouse location. Estimate projected growth to determine an accurate idea of the storage your company needs. Think about leasing options that provide flexibility in storage space according to the changing buyer demographics your organization may experience.
Consider your Labor Needs
Keep in mind that not all locations can offer the desired workforce that has the right skills and the right price. You need to take into consideration the supply and demand of workforce availability. Such availability can affect overall company costs, thus, you must do research on the geographic location. When doing this, research the educational attainment and income levels of the city or state. Understanding the workforce is necessary as it affects your organization’s employee retention, productivity, turnover rates, and employee-related costs.
Picking a warehouse location requires research and planning. Your warehouse’s location can be beneficial for your company and customers, offering a more efficient, profitable, and effective experience.