One of the services we offer as a third-party logistics company (3PL) is something called…
Not all warehouses are created equal. Even a warehouse that seems to be too good to be true on paper might be lousy due to other factors that make it unsustainable for your business. On the other hand, a warehouse that simply won’t work for your needs might be perfect for someone else.
When leasing warehouse space, it’s important to consider the factors that will impact the efficiency of your business the most. With that said, we’ve compiled the 5 most important considerations when choosing a warehouse location.
Where are your customers located? This is the first question you should be asking yourself when choosing a warehouse. When it comes to supply chain and transportation logistics, it sometimes is as simple as the shortest distance between point A and point B.
Choosing a warehouse that is near your customers means shorter lead times and less expensive transportation costs, which you can pass to your customers.
Closeness to Transportation
Okay, maybe our “point a point b” was a bit too simple. After all, your goods have to come from somewhere else first in many cases. That means they’ll arrive either via ship, airplane, or train. If you choose a warehouse that is too far from your primary transportation source, then you’re adding an extra leg to your transportation journey, thereby increasing the price of transportation while elongating your lead times.
Do you receive a lot of your goods by train? We’d then recommend you find a warehouse that is near a train depot. Do your supplies use multiple transportation sources? Then we’d suggest a warehouse that is centrally located between all of them.
Transportation is one thing, but you should also be cognizant of where your supplier is located and how easily they can get product to the warehouse you choose. Overseas product is especially important because costs can rack up if your point A, point B transportation solution suddenly sounds more like the alphabet song.
Choosing a warehouse that is strategically positioned to eliminate as many obstacles as possible between you and your supplier will go a long way toward efficiency.
Availability & Space
How scalable is your choice in a warehouse? You don’t want to lease space from a warehouse that is already choked with clients. Put it this way; if they barely have enough room for you, then it will be a nightmare if you ever need to expand.
Let’s put it another way; what business owner doesn’t want to expand? If you have high hopes for your business, then choose a warehouse that can grow with you.
Cost of Leasing
At the end of the day, you need to choose a warehouse whose rates best meet your budget. Should you pick the cheapest solution? Certainly not. Instead, we’d recommend finding the best solution that balances price, quality, and breadth of service. Most of all, choose an option that offers more expensive solutions for that point in the near future where you both need those services and can proudly afford them.
Are you in need of a warehouse in the Northeast? We have a warehouse in Springfield, Massachusetts as well as Palmer, Massachusetts. Reach out to us today for your warehousing needs.