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If you are a smaller business, you might not have the space needed to store and hold products. You may find that you need to look for an external warehouse to help with this. Many warehouses do not only store the products for you but can be involved with keeping inventories and packaging and sending out orders to your customers.
When trusting them with such a big and essential part of your business, it is vital that you choose the right company, and in this article, we look at some of the things you need to take into consideration when selecting a warehouse for your business.
This is absolutely key. There is very little point in renting out warehouse space if it just isn’t big enough for your needs. Before you sign any contracts, go and pay it a visit. Does it have enough space? Consider not just your needs now, but in the future should you decide to expand. However, it is important to make sure that it is not too big – empty, wasted space is not efficient for either you or the warehouse themselves. See if you can look at your own ways of maximizing space, such as using a pallet rack to build upwards. It is not only essential to make sure there is enough space, but making sure that the environment is what you need for your products – if you need a chilled or ambient temperature, or low lighting, can they provide that?
The location of the warehouse will have a considerable impact on the efficiency and ease in which your products can be stored and shipped out. Too remote and delivery drivers or pickups may not be able to find it, or charge more. Make sure it is within reach of excellent transport routes such as motorways, ports or railway lines. Depending on the type of business you run, you may need to consider whether it is close to your company headquarters or to your primary customer base. If you are a bigger company, maybe working on a national or even international scale, a location that makes regional demand easier to manage is something to look for.
Renting a warehouse space is likely to be one of your bigger business expenses, so it is important to make sure that the space that you choose offers excellent value for money. Before you sign a contract, visit several warehouses in the area to see what they are offering for the same amount of money. Warehouses that are in out of town locations may be a lot cheaper, but as we mentioned above, it can be a significant factor when it comes to efficiency and may end up costing you more in the long run. It is also important to know what is covered in the price so that you are not hit with any additional fees later on for things such as insurance or parking.
The best warehouse for your business will be determined by a wide range of factors, all of which should be taken into account when choosing one.