staff For non-US companies looking to enter the US market, warehousing is vital to their growth strategy. However, choosing the right warehouse is not a decision that should be made lightly. Monthly warehouse fees and storage costs can add up quickly, and a wrong choice can cancel out any profits you make.
Security
When choosing warehouse contractors, you must consider the security of your product. Warehouses are often home to high-value products and are a lucrative target for criminals. It would help if you implemented several security measures to protect your inventory and customers.
To keep criminals out of your warehouse, you must ensure that all doors and windows are secure. This includes using a galvanized window lock system or steel bars on windows, making it difficult for thieves to break in.
In addition to locking up the building, invest in a good alarm system. A professional alarm system will help deter thieves and trespassers by alerting the local authorities to any suspicious activity.
Conducting a risk assessment is the best way to ensure your warehouse is secure. A risk assessment will allow you to identify all the areas most at risk and devise a plan to fix them. A professional risk assessment will include the following:
- A full property inspection.
- Identification of at-risk entry points.
- A fire risk assessment.
- A security review.
Location
Choosing the right location for a warehouse is an important task directly proportional to the eCommerce brand’s success. The warehouse’s location should be close to key transport mediums to enhance the overall supply chain efficiencies and reduce shipment costs. It should also be easy to access by customers for convenient delivery.
The local weather condition is another important factor to consider. For instance, if the company manufactures a highly sensitive product to weather changes, the warehouse should not be in areas prone to natural disasters. The facility’s noise production might also cause a nuisance to the local community, so it is essential to determine whether the area will accept such a warehouse.
Finally, the facility should be near skilled laborers competent at handling the shipped products. This can reduce labor costs and ensure high productivity levels. It is also a good idea to check the availability of building construction space for future expansions, as this will save the company from having to sell or relocate later.
Space
Warehouses are the key to efficient supply chain operations. They help companies manage inventory and deliver products to customers. In addition, they can double as assembly spaces where product components are put together before shipping to clients (like the phone example above).
When choosing a warehouse, ensure it is big enough to store your equipment and products comfortably. A warehouse that is too small will cost you money by renting space.
It is also a good idea to check the company’s client profile. If the warehouse deals with many small businesses with simple warehousing requirements, it may be a red flag that it needs to gain experience handling more advanced warehousing needs.
It is also a good idea to check whether the location offers quick access to the highway system and how close it is to the main population centers. This will cut shipping costs and avoid wasting time transporting goods from the warehouse to the customers’ stores. It is also important to consider the local road conditions, as congested roads and highways can skyrocket fuel consumption and accident rates.
Pricing
Warehouses hold tens of thousands, if not millions, of dollars worth of goods. These items are a target for theft. This is why it’s important to take security seriously and do a thorough background check on any contractors that you hire for the job. In addition, your business will need to comply with workplace health and safety regulations and provide employment contracts and non-disclosure agreements for employees. Lastly, your warehouse will need computers and specialized equipment, which can add to the cost. Ensure you factor these costs when calculating the total price tag for warehouse construction.
Customer Service
Warehouses are filled with tens of thousands, and sometimes millions, of dollars worth of products. This means that theft is always a possibility. The warehouse contractor you choose should have a robust screening process to ensure the safety of your inventory. This includes thorough background checks and watching for unexplained gaps in employment.
They should also have a good customer service team that can help you with any questions or concerns that you may have. This is especially important if you store hazardous or flammable materials or food items where strict safety and firefighting requirements apply.
Choosing the right warehouse contractor is vital to guarantee high warehousing efficiency. If you do not, your business could face costly issues that affect competitiveness and productivity. By carefully evaluating the short-term costs and long-term investment, you can make an informed decision to benefit your company.
