Key Factors to Keep in Mind While Choosing a Warehouse

Key Factors to Keep in Mind While Choosing a Warehouse

ecommerce warehousing and fulfillment solutions

Warehousing is a fundamental part of any business. To maintain stability and growth in business, stock keeping, inventory management is the key as it maintains the balance between your supply and demand chain. Hence, before you choose a warehouse for your business, here are a few key factors that you need to keep in mind

Geographical Location

A warehouse worker with a hand truck at a loading dock door in a warehouse.

Selecting the perfect location for your warehouse is the most important factor that you need to keep in mind. Ask yourself questions like – Where do you want to serve? How often are you going to be receiving stock? Where are your products going to go next? You must ensure that the location of your warehouse must be closest to the area where you want to serve your products. Only then you will be able to deliver the fastest to your customers.

Other than having a warehouse in the proximity of your customer base, you also need to keep the location of your courier service in the vicinity of your warehouse. The lesser the distance between your warehouse, courier service, and carrier facilities and end customers, the lesser will be the transport costs.  

The Layout of the Warehouse

Empty warehouse or storehouse.

The layout of your warehouse can contribute to the daily expenses that you will have to bear. It is essential to evaluate if the layout suits your operation styles and needs. With this, the day-to-day operational costs can be optimized to its fullest through efficient designs. If the layout compliments you need, it will make your operations efficient and effortless.

Availability of the Workforce

Uniformed warehouse workers surrounded by boxed products in a large distribution warehouse.

Choosing a warehouse in remote locations is a treat to your pocket, but in the long run, this might give rise to other problems. Lack of skilled workforce near such a place can be difficult. Investing in a warehouse means losing some control over your order fulfillment process. Hence, you would want trained professionals to look after your inventory. Hence, understanding your labor force at your new warehouse is important.

Storage Prerequisites

Pallet Storage Racking System for Storage Distribution Center

If your business sells hazardous material, flammable products, and sometimes these products require special storage facilities. In such cases, you must ensure that your warehouse is suited for your products.

Similarly, if you own a business off frozen or reirrigated items, you will review cold storage in place. If your warehouse is not well equipped for your business, that is not the right known for you.

Warehouse Lease

Signing legal document

It is advised to go through your warehouse lease thoroughly. Explore all the legal aspects included in the contract. Understand which party is responsible for what needs to be done. Who is responsible for the maintenance and repairs? Pay heed to the type of rental contract your warehouse offers. Your warehouse should be flexible and ready to bend for the needs of your business. If all of these are written in the contract, you will have a surety. 

Switching from one warehouse to another can be a costly and labor-intensive affair. Hence, while choosing a warehouse you must keep your current needs as well as the future need of your business in mind.


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