The location of your warehouse can make a huge difference in how effective, efficient and successful the company is. It is a big decision and one that you should consider carefully before settling on a location.
Here are 3 factors you have to consider when choosing a warehouse location.
1. Proximity to Airport, Railway Stations & Ports
You can have the biggest and best warehouse in the world, but if you are far away from airports, railway stations and ports, then your warehouse will struggle to succeed. Transportation to receive or ship goods from the warehouse need to be considered in the decision making process. If the majority of goods you are stocking need to be transported via air, then you need to be located as close to an airport as reasonably possible. If that is not possible, then you want to consider locations that have easy access to highways and roads that are directly linked to an airport. This will reduce transport costs and increase efficiency, so it is something that can make or break your warehouse.
2. Workforce Availability And Labor costs
Your geographical location will dictate the kinds of workers that are available to you and how much they expect to be paid. If you are in a location where workforce availability is low, this will drive salaries up because those workers will be in high demand. This is not good for you because it increases your operating costs. One way around this is to outsource and use a company such as Warehousing And Logistics Australia, which offers a trained team of dedicated workers that can collect your cargo, transport goods, pack and unload stock and more. This way you can use staff as and when you need, and you won’t have to worry about their skill level as they are all trained for the job. This is important because if your workforce is lacking in skill, this leads to a lower quality customer service and a reduction in productivity and profit.
3. Rent Rates And Utility Costs
Rent rates and utility costs will vary significantly from location to location, and you have to work out exactly how much it is going to cost you per month to operate in the warehouse. Sometimes hidden costs occur, so make sure you do your research. That super cheap rent might come with a catch, so don’t be fooled by an initial low cost. There is no point in paying excessive amounts of rent to have the ‘best’ location because this will significantly impact your profit margin. Essentially you have to evaluate whether or not the costs will be worth it, because on the one hand a higher rent is the result of a good location, but will the location be enough to boost your revenue?
There is a lot to consider when it comes to choosing a warehouse location, however, the three points we explored above are crucial and should be very carefully thought about when deciding what is the best location for a warehouse.