Things to Consider when Choosing a Distribution Warehouse

Stock is one of the most important components of any trading business. Without stock, a business cannot operate. As a result, most businesses want to store their stock in a warehouse that perfectly suits their needs. Selecting a warehouse can be an overwhelming and confusing experience. Generally, stock distributors look out for a secure warehouse premise. Besides, they tend to consider the amount of space a distribution warehouse has to offer and its location. Perhaps, these are the most important factors when selecting a distribution warehouse, but it may not be as straightforward as looking at these features. There are many other factors that need to be considered.

Distribution Warehouse

Some of the top factors to consider when selecting a distribution warehouse include:

Location

Location is arguably the major factor to consider when selecting a distribution warehouse. The location of the warehouse determines how easy it is for you to distribute and receive goods. Consequently, it’s advisable to choose a distribution warehouse that is situated in a convenient location for easy and fast shipping of goods. A good location should have a reliable transport network such as railways and motorways based nearby.

Storage requirements

From food items, hazardous materials and flammable products, manufacturers propose certain storage requirements. The location of a distribution warehouse should be ideal to handle your unique needs. Besides, it important to look at environmental concerns.

What do you need the distribution warehouse for?

For you to find the best distribution warehouse, ask yourself what requirements you need it for. Apart from holding stock, it’s a good idea to consider its layout, size as well as facilities.

Vision for the future and potential expansion

Moving a distribution warehouse requires intensive labor which is costly especially if there is much stock. Therefore it’s in your best interest to consider the longevity a warehouse can offer. If you outgrow the warehouse too quickly, it means you will be forced to start another cumbersome process again. Carry out an analysis of the potential growth of your business before you start looking for an ideal warehouse.

Technology

Other important things to look at are the type of management system and handling equipment used in the warehouse. If your product lines are numerous with an assortment of stock keeping units, it’s advisable to consider distribution warehouses with advanced conveyor belt systems to minimize loading errors. Regardless of the complexity of your line of products, it is essential to have a system that can provide reporting regarding the moving in and out of stock preferably on an automated web-based platform that you can access any time, from any location.

Cost

Your choice of a distribution warehouse is largely determined by the cost. There a number of aspects that factor in regarding the cost. It’s advisable to incorporate all aspects into your financial planning. But generally, the business must be able to comfortable afford the warehouse and still be able to make profit.

As you can see, selecting a distribution warehouse for your business requires very careful consideration and examination of a number of factors. Never overlook even a single factor as it can lead to greater costs and losses to your businesses.