How to Choose the Right Warehouse for Your Business

How to Choose the Right Warehouse

Understand the Big Picture

Choosing the right warehouse for your business can be a daunting task. Warehouse space is not a commodity item. There are many different types of warehouses and distribution centres that vary in size, location and services provided.

There are two primary factors in determining what warehouse or distribution centre to use: cost and service. Cost is the amount of money spent per unit of space per time period. Service is the quality of operations, systems and people that are part of the PNW warehousing operation. Often times in a competitive industry, choosing a warehouse comes down to cost with little consideration given to service, but that can be a mistake.

The most efficient warehouse is not always the cheapest because they may be more capable and have better systems than other warehouses. This can translate into higher productivity and lower operational costs. A well-run facility will have fewer errors, faster order fulfillment and better inventory control. It’s important to remember that the warehouse is an integral part of your supply chain, so while it may be tempting to choose the cheapest alternative based on price alone, you should also focus on service and efficiency when selecting a warehouse provider.

What Are Your Warehouse Needs?

You are an entrepreneur, and you have a business that needs goods stored. You need to find a warehouse for your goods, but you don’t know where to start. What are the things you should look for in a warehouse, and what do you need to know about the warehouse before you sign on the dotted line?

Size Matters When Choosing a Warehouse

The size of your business is going to be one of the major factors in determining what type of warehouse you need. Do you operate out of your home or apartment? If so, maybe a self-storage unit is all that you need. A self-storage unit will be relatively small, but it will also be inexpensive. They are usually climate controlled with many different security options, so they are secure and will keep your merchandise safe until it is time to sell it.

If your business has grown and home storage just doesn’t cut it anymore, then it might be time to consider bigger storage options. If this is the case, there are warehouses that can accommodate your needs. The larger warehouses come with a variety of options including loading docks and both heated and unheated spaces. These warehouses offer various pricing structures that can fit into most budgets as well as long-term leasing options if needed.

How Do You Determine Your Warehouse’s Footprint?

When it comes to the success of your warehouse and distribution center, there are many factors that go into choosing the right facility for your business. Warehousing is a big decision. Plus, moving from one location to another can be a tremendous undertaking. However, sometimes you have no other choice than to move. The more you know about what you need in a warehouse, the more informed decision you can make concerning which warehouse will best suit your business needs. Here are some tips to help you choose the right warehouse for your business:

The first step in deciding the best warehouse fit is to determine how much space you need. Your size requirements depend on a variety of factors including:

  • The amount of inventory you plan on storing at any given time
  • What type of inventory management system you use
  • How much product turnover you expect each year
  • How fast do you want products to move through your supply chain?
  • What sort of storage systems will give you the most efficient use of space?
  • Inventory Management System and Distribution Center Requirements

These days, most warehouses are using some sort of inventory management system (IMS). Whether or not your IMS will be computerized depends on the needs of your company.

Final Thoughts

In the end, finding the right warehouse can be tricky. No one wants to make a mistake that costs time, money, or resources. But with careful research, there’s no doubt that you can find a warehouse solution that works for your business.  Trust me: it’ll save you pain and heartache in the long run.